FDR all cashed upIt’s never a bad time to bring on a strong new shareholder, especially on fair terms. Now we’ve banked all the money we’ll need to
- wheel and deal with the property vendor if and as needed over a potential accelerated earn-in arrangement,
- expand drilling,
- purchase adjoining property for the right cash price, or even
- process Antino’s accumulated tailings ourselves, should we decide that is the best approach there.
Sure, my buyout model takes another hit. Somewhere in the neighborhood of a 10% reduction in my target price, after this new dilution. But I would much rather have a materially higher chance at 90% of my expected winnings. Even if we already had very good odds of a big win on FDR.
Humans are funny that way. Studies show people overpay to eliminate tiny chances of bad outcomes. That explains much of the insurance industry’s enduring success: those clients unable or unwilling to self-insure. (It also explains why so many people fail to win sufficient financial independence for themselves to *allow* self-insurance on big items.)
In FDR’s case, you can count me as very human. Both of the two biggest problems our team faces, finding the gold and managing the treasury, are now of little concern to me, thank goodness. The important task of assembling a good staff roster as the company grows also seems to be well in hand.
And the other big piece of the puzzle, managing our reputation in the eyes of our shareholders, is about to get some attention any day now with the release of more drill results. While gold is still acting like its near-term bull run is not over, so that casts a warm glow over everything.
What more can an FDR shareholder ask for? Thanks Colin, and the rest of the gang. Keep at it.