RE:Abcourt's Mines, Next Year's Valuation? Java, is the Elder Mine actually a success?
The independent valuation of the company at ~$1200 usd oz Gold was ~25 cents per share. Currently gold oz is at ~$1800 usd, and the share price of Abcourt is ~9 cents.
Elder Mine reached commercial production 3 years behind schedule and with no promotion in the months either side of this material change to the company. The production costs per oz of gold were far higher than the estimates. The amount of ore produced was a good deal less than was projected per year. The only people that made any real money out of Elder Mine were Renaud Hinse and his family through Decochib and the Royalty. It was a success for them, and only a success for them because of the royalty. However, for the small shareholder it was a failure. And regarding the lack of promotion around the announcement of commercial production of Elder mine, I have to say that it was breathtakingly negligent. There should have been some kind of promotional actiivty in the months leading up to and the months afterward, and to not have that was a sign of our company being disturbingly mismanaged.
My view of a success would be If the mine had not been 3 years late to commercial production and if, at commercial production, there had been promotional activity, if the cost of producing an oz of gold had have been close to the estimates, and the amount of production per year had have been close to the estimates, then one could say it was a success. But as things stand, you have to be deluded to think that.
So, here we also have the means to judge the success of SG Mine. The following I view as a way to determine success and a way to see the company in a positive light.
1) Does SG Mine reach commercial production approximately on time?
2) Does SG Mine produce gold at approximately the production cost estimates and in the amounts estimated?
3) Does Abcourt Management exploit this material change to the company by promoting and engaging potentially new investors in the period surrounding the announcement of commercial production of SG Mine?
4) If the previous 3 work out well, does the market view that as success by a higher share price more in keeping with the independent valuation (bearing in mind gold is ~$1800 usd per oz. as of time of writing).