RE:DilutionDo you not understand that mining is the WORST possible business that is possible to have All miners eat their seed corn, dilute, sink all the profits back into the ground. They are rentals, never investments. Most mining ventures go to zero. But that doesn't mean that you can't make a lot of money before they do.
If you played the Lasonde Curve by the book then you would wait to own TLG until an actual construction decision was made and after funding was secured.
I chose to buy in at 30 cents US because it's absurdly cheap on several measures and the finaincing and construction decision are practially imminent. Same with SKE under $4 US Same with Perptua
All 3 are pre construction and financing so I'm front running the expected because they're too cheap to ignore, have incredible financials, gold is moving, the group is out of favor....in short because I want to be there before everyone else decides to
No mine that I ever heard of got to be a mine without dillution. Lots of dilution. It's not a management problem it's how it works.
At the point of development my miners are at that's largely over. The resources are now known quantities and all will have feasibility studies outlining the NPV of the project, cash flow, costs etc
You know where you stand. You don't need to hope about drill results.
So then it's simply a question of value. Even with dlilution do they represent unusual value? I think so.
Will the projects be valued by the market higher or lower in the future as they near commercial production? The Lasonde Curve and my experience say yes.
Would you rather own 100% of a project or be in debt for half at high interest? If you sell equity you own it all....any other means and you're sharing and paying interest.
Regardless....what is the stock market saying the project is worth now and what will they say it's worth once pouring metal? That's all I care about...that and buying when the discount is extreme.
TLG and PPTA are valued at 10% of NPV....SKE at 20%.....dillution or debt will these projects be worth more once they're pouring gold then they are now?
That's the only question needing an answer....and then you sell them and move on.