SKE viewed as an call option assetOnce again, gratitude to Formless and Blue for their insightful comments and willingness to share their dd with others.
The Thomas Kaplan interview on the CEO board is quite illuminating. I use Kaplan and Guistra (googgle his latest interview) as my macro big picture smarter than me analysts. Both are students of history, both are hightly successful investors in precious metals, and both make the case for a gold bull over the next few years under conditions of out of control deficit spending combined with Central Bank debasements of all currencies in an attempt to inflate our way out of deflation with anemic growth.
Formless, if I'm not mistaken, you applied Kaplan's NG investment thesis to SKE in your 1/19 post:
Oh, and forgot to add, that is why Skeena is so good as part of the portfolio and why I chose it and bother to post so much on this board, Skeena fits both massive growth and as a gold hedge, it will be successful and is undervalued here at the current POG, or really even a much lower POG. Do not worry or bet on anything but maybe 1800-2000 gold at this point for now IMO. But in the scenerio I just mentioned in the previous post, SKE offers silly upside leverage. A massive gold/silver call option play that will likley never expire (unless it gets bought out). But in the mean time they are also building one of the best, large, high grade, open pit, jurisdiction 1, very low CAPEX, mines in the world, that will be a mine someday within 5 years (most leverage gold play juniors have zero chance of ever being a mine, no matter how high their share price goes up, or how high the POG goes up). Skeena you get both, a great gold in ground hedge, and real growth of a real, near term cash-flowing buisness that can survive and even thrive at even lower than today's POG levels. For me the biggest issue with most juniors is CAPEX, most projects with Eskay 300-400k a year prodcution have 700million CAPEX on up to billions compared to ~220million Eskay CAPEX which makes Skeena's mine as inevitable it will be in prodcution in the near term and a better--investment-- for the risk.
In any event, that's what I was thinking listening to Kaplan, SKE has a high grade assett like NG but needs a lot lower CAPEX to get into production. And in a crazy monetary policy world, holding assets is one strategy to whether the coming storms.
Best to all longs,
Poet