FDR unfairly classified in GBR comparison?Thinking about my last couple of pieces contrasting and ranking the two companies, I realize there is another major aspect to the whole discussion. We must first ask the question of whether this is fair footrace. Did FDR instead take its place at the starting line in a colourful F1 car, revving its engine with joy?
Let me explain. Both companies sought gold in proven gold districts. Both districts reside in massive geological occurrences: the Canadian Shield and the Guiana Shield / West African Birimian Shield. But there the similarities end.
Great Bear pulled gold from a claim where none had been extracted before. Sure, there had been previous inconclusive drill hits. But Taylor and his team had to pour over the old data and puzzle out the fact that an economic deposit might lie beneath their feet.
Padget’s people were also “searching” for gold, but their efforts are properly described as expanding an existing mine. Which always ought to be a much more likely proposition. The best place to look for gold is right next to an existing mine, or so I’ve read. Antino already *was* [and is] a mine.
A very low-tech mine, granted. But a long-producing, shallow open-pit operation. And that gold didn’t arrive by falling from the sky, or being carried onto Antino in water flows long vanished millennia past. Of course there has to be a lot more of it below ground.
This is not to take anything away from FDR’s geos. Just because something theoretically has to be there doesn’t mean it can be easily found, or found at all. But the odds go up.
In any case, it’s fair to say both Taylor and Padget had to be good to be lucky, and lucky to be good. And any shareholder would be very lucky indeed to have either man as their CEO.
And once the market realizes this, FDR’s stock price should respond accordingly.
A quick comment on Padget’s interview last week with Eric Coffin. When Padget says he’s leaning heavily toward buying the third drill rig, I assume that’s a euphemism for “we’re currently haggling over a price with the rig seller.”
As impatient as I am to see a third drill turning, Benjamin Franklin’s penny saved being a penny earned is still true in 2024. Glad to see our management team’s got both growth and expenses well in hand. That kind of mental toughness will be just what we need to get the best price for FDR’s gold deposit come buyout time.