RE:You people just don't get it.Carbide,
Of course everyone here gets it. We all know DRC, and to a far lesser extent, SA, are politically challenging jurisdictions. IVN has seen this movie before in Mongolia. The situation was even more extreme. The government seized one third of the Oyu Tolgoi project. Investors were stunned. I actually predicted it back in summer 2005, and got my first six ignores on Stockhouse for the effort. I didn’t know precisely how it would come down, but was certain the government was shaking down the Company for more money. The stock faltered temporarily and then zig zagged it’s way back up over the years, eventually all the way to $29 share. You’re dealing with ridiculous amounts of valuable ore, combined with a tricky political landscape. It usually works out in the end, because everyone needs each other, or nothing gets done. And no one is better at navigating these rocky shoals than RF.
I see where analysts like CIBC and Josh Hall are coming from. But if you have that little confidence in the ability of a Company to overcome challenges ahead, why bother to set a fixed price target at all? OK, in the case of CIBC, maybe they don’t have a choice. You can’t be a mining analyst at a major bank, and refuse to offer an evaluation of three of the biggest mining projects on Earth. And this isn’t intended as a put down for their hesitation. Everyone is entitled to decide something is too risky for their taste. But it doesn’t help the client when you’re always basically neutral, where target price is continually adjusted to closely match current market price. This is what Cash Tango was pointing out.
Miningweekly.com stated production at Kakula is expected to commence Q1 2021. That’s in two years. Which means construction can’t be that far off. In my opinion, it will be hard to maintain these low share prices, once millions of tonnes of high grade copper ore starts to get processed. In the same way markets tend to ignore stories under the radar, once they become sexy, everyone jumps on the bandwagon. Look at palladium. It was $850 last August, and nobody wanted it. When it was $1400 to $1500 everyone rushed in. They should have bought it last summer.