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Continental Gold Limited New CGOOF



GREY:CGOOF - Post by User

Comment by carbideon Jan 17, 2019 12:16am
43 Views
Post# 29243722

RE:RE:RE:RE:In mining, success is relative

RE:RE:RE:RE:In mining, success is relativeKnown to whom?  One poster was not aware of it.  It was buried in the MD&A, and - correct me if I'm wrong - not mentioned in any press release or corporate presentation that I recall reading.  Well, bad news always takes the slow boat to China.  Anyway, this capex overrun, of over 100 million dollars on a 400m project, is totally outrageous.  The stock is down because the market knows they need money.  A lot of it.  And a capital raise at these prices, according the the numbers I laid out, would dilute by 70%, i.e., you end up with 40% less equity than you had before.

Yes, some of the exploration results have been good.  But security has been a problem, to say the least.  What if Newmont backs off?  Many seniors are now busy with merger integration, and have increased production profile and thus reduced need to add ounces, regardless of their willingness to put their employees in the line of fire, in this age of ultra-scrutiny.  So this is just another junior which has disappointed expectations and needs a lot of money, which is very negative for stock price.  I hope you're right, but given all I know about this industry and a PhD from the school of hard knocks, let's just say I'm sceptical.

As to Alacer, I'll post there so nobody complains.

When I read the posts here I often wonder if I'm living in an alternate universe.  You all seem to think mining is such a wonderful investment.  It boggles the mind.  At best you're trading dollars, and these are trading sardines.  Not so if you're on the inside.  As a common shareholder, well...to quote Gordon Gekko, "wake up, will ya, pal?  If you're not inside, you're outside.  Okay?"
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