RE:Lassonde curveThe Lassonde Curve is so popular as it seems to be true with so many junior mining stocks. Early on, if the drilling is good, their is a euphoria which drives up the stock price. Then, when the company actually starts making plans to develop the resource reality hits and the hype fades, resulting in the price decline. If the company successfully implements the project, the stock price rebounds.
That being said, the current market is strange (or different). After 20 years of low interest rates, and now 5% short term rates, money is flowing into treasuries and fixed income instruments. Altho the gold price has actually risen of late and, for most producers (in spite of their higher costs) they will be quite profitable. Yet their share prices are going no where - or down. Developers, who are approaching production in the coming months or 1-2 years, are getting battered. Mining companies like NFG, which are years from production, but appear to have good gold deposits, would be much higher in previous markets. But today is different. This is a market where you just need to grin and bear it. The fact that the gold price remains high should indicate gold will go much higher. But when is the question.