RE:RE:RE:ProductionNo Rob, CITIC probably couldn’t have bought it cheaper two months later.
1) They’re not buying 100,000 shares. They bought 196.2 million. Any attempt to buy that amount of shares in the open market would have overwhelmed the low volume, sending prices steadily higher, not lower. Once they become a 10% security holder, they are required to register as insiders. That would send share price soaring. And they would not have had access to IVN proprietary information or close inspection of the physical properties. What works for you as a trader, doesn’t work for them as miners.
2) Perhaps RF would have done something different, shutting them entirely out of a project they really need. They’re not going to risk losing an important project, just to possibly save 50 cents or a dollar.
3) What appears risky to you, does not appear that way to CITIC and Zijin. You guys are thinking up all these explanations for why IVN is so dangerous, and it’s obvious they don’t share that opinion at all. Not at these prices, anyway.
The biggest risk for private investors is not the political situation in DRC. It’s treacherous Canadian markets, where low volume combines with high short selling to blow stocks up. Until these projects advance to production, that is a risk we will all have to live with. The market doesn’t ignore high profits for long.
As for a recession, maybe in Europe where they have a circular firing squad going on. But the rest of the planet is intent on growth. We’re witness to the most accelerated industrialization in the history of mankind. Way faster than the first industrial revolution. It’s not that recessions won’t happen. They will. But you can’t rely on the old business cycle model for guidance. What was once true for the Western economy, does not hold true for an expanded global economy. The complete lack of global investment in mining, just $29.2 billion in 2017, will continue to support strong metals prices.