RE:RE:RE:RE:RE:RE:RE:RE:Todays tradingSander was defnitely around when Youle was discovered. Not the very latest drill results which were the best yet, but he was very pleased with Youle. I took careful notice of that when I initiated my MND position.
Yet right up until his deparature he was talking about 1. acquisitons and 2. restarting Cerro Bayo, and of course he never thought to make any Fosterville comparisons even though the whole time Costerfield and Fosterville were sharing the same emergency response team. I read on a technical document the two mines are 45 km apart and now they're saying publicly it's only 30 km.
Anyway, which junior gold company with an enterprise value under $C150 million has assets of this quality? ALO has Ana Paula but that mine has yet to be built and is located in a much worse jurisdiction.
MND seems priced like an advanced explorer yet has two working mines and is all ready to go converting exploration results into actual cash flow.
That said, I knew Q4 was going to be bad, but even I was not prepared for those cash costs. They shocked me and I expected them to shock the market, but instead the institutions already invested here were easily able to support the share price. They can do that because they have conviction the worst is in the past and the best is by far yet to come. It also doesn't take much dollar-wise for these big entities to support the price.
That's why I was surprised the stock didn't have better support when it was being driven below 10 cents all the way down to 4.5 cents. Azvalor was buying before that point and suddenly left and allowed the stock to get hammered. Why?
Well, when I was buying more under 10 cents, no way did I expect Q4 to have AISC of almost $1800! If I believed that no way would I have had the conviction to buy more at the lowest lows.
When I was buying based on not the best intel and being subject only to myself, I believed the valuation was crazy low.
Now consider if there's about 900 million shares out. Then at 90 cents that's a $900 million market cap. We have predictions here of 90 cents. Is that realistic over the near future in a $1300 gold environment? I don't think so.
Even 40 cents is pushing it. The drag to the valuation of all the news shares isn't a trivial matter. Before I believed they were going to get through 2019 without any shares so $1 was a realistic target but now? It's not. They have to tout Fosterville analogies to try to bring back blue sky to the stock because the dilution was so severe.