Thank you again Formless for your terrific posts!Thanks also to Blue, and others like the recent cautious comment by Jan, this is shaping up into a good board. As a result of the posts here and looking at all the presentations by management, I've become convinced this company can reach a market cap of $250-300m within the next year. While it would be great to see multiples of that, I'll be a happy camper even if this turns out to be a single or double and not a grand slam. Like you Formless, I take big positions in a few companies, sell and take my loses if the story begins to disappoint, and hold through the ups and downs when I'm convinced of the value proposition. Despite 4 to 5 traumatic stikeouts, I more than offset those loses with early huge investiments in KL (began with St. Andrews), sold everything about a year ago, and WM, sold all my shares in December after an amazing 2 year run. Much more luck than skill, as great drill results drove the stock prices of those two companies. Anyway, now I see SKE as a relatively undervalued company that reminds me of KL and WM in their second innings.
My main fear is a liquidity crises, and one of my macro guru's, Doug Noland, writes weekly commentaries that scare me to death.
https://creditbubblebulletin.blogspot.com/2020/01/weekly-commentary-issues-2020.html This mine closed in the 2007 financial crises, and I worry that only profitable producers would be able to weather the next credit crunch. Thus, some of my big investments are profitable producers with good growth narratives. In any event, one point you made I especially liked was that whether Barrick opts in or out, their involvment mitigates the capex risk. This helped my pull the trigger for a lot more shares.
I retired from a good job in May. In the past, I took more risk because I had income, now I'm much more risk adverse with a social security income of 3K/mt, plus retirement withdrawals. Thus, I have a large cash position, treasuries, producers, etc., but I still have quite a bit of capital to risk on companies like SKE. More than half of my portfolio is focused on capital preservation, but I am also hoping to offset retirement withdrawals with new resources, the long mine life retirement concept.
Like you Formless, I also like to bet big when I think a company is undervalued. If I have the capital, I try to buy more on good news, but I prefer to endure the gut wreching volitilty early in the story, to FOMO at a much higher price. And I agree with your articulate macro bull thesis that gold could be the go to sector the next few years, maybe until a debt crises ends the insanity of the world's central bank policies and deficit spending... some kind of eventual return to sounder money.
Sorry that I can't add anything in terms of analysis, but I do have some hardened investment capital in the game for the next few years. I've removed a significant number of shares from circulation the last few weeks, about $100K away from the accumulation finish line. Looking to add with any significant retracement or stellar news.
Best to all longs,
Poet