Bear CaseI went back and listened to a Proven & Probable podcast with QH from March 30th, 2017. Beaton's Creek was undoubtedly considered the flagship asset at that time. In short order, QH expected:
1) To be mining Beaton's Creek
2) AISC of $500-$600 AUD
3) 2,000 tpd
4) $30M AUD small start-up capital costs
5) Prove out an extensive resource
6) Use CF from Beaton's Creek to explore other areas
IMHO QH sounded more enthusiastic than he does today, regardless of what BM says.
Eric Sprott was greedily buying shares even when the price was over $8, which would be expected if this had a true shot at being a Wits-like deposit. Now nada. QH is off in Fiji signing other Technial Advisory agreements, not what would be expected if sitting on a Wits-like deposit. Pacton diluted share ownership for a non-conglomerate project and is focusing some of their very limited 2019 resources on Red Lake. Again, not what you would expect if there was a billion plus ounces around for grabs.
Question is - did something change from as recently as this summer? Is the market trying to tell us something, or is there a good reason why the investment thesis still remains in tact? Is there a reason why NA investors bought into this story while locals are more skeptical, and why Newmont sold their shares to KL?