RESOLVE ? ( instate in situ resource value ) Many CM projects are valued at significant discounts. ( politely stated )
Yet.. how did this happen ?
One can't point the finger at CM spot prices,
each of the minerals ( cept few ) have responded quite well.
I figure it happens in 5 distinct ways,
- subtely, over time, shorting stocks ( junior's no revenues resource rich ) valued under $5
- no in situ stock value assigned to - in situ resources ( find, prove, carry )
- stocks held at suppressed valuations = allows more control
- new CM format, diff funding, too many % players involed, nothing for sm shareholders.
- some situations, CM spot prices don't reflect true values based on, avail stockpiles
Resolve ?
- enforcing an in situ base value for, finding the resource, proving up resource,
carry costs of maintaining resources.
If in situ values were practiced ( just like gold oz in the ground ) junior CM stocks
would then have a level playing ground to, keep advancing, maintain value.
Example ?
$1,000 ton spot price ( graphite )
x 10% in situ value
= $100 ton based on inferred ( $120 / measured etc...)
500,000 tons x $100 / ton
= $50,000,000 ( can't go below ) backed by in situ value
~ 100,000,000 million shares out
= $0.50 cent stock
Positives ?
- juniors can utilized public placements to keep advancing. after all, it's public markets.
- dilution is minmized ( few shares to sell, easier, to advance, public value maintained
- level playing ground vs one sided near forced funding paths that ask for further discounts
$ 0.50 cent pp would only need 3 million shares
= $ 1,500,000
Would restore investor confidence, guarsnteed in situ value.
Would repair overall market exchange values.
Country's rating restored.
Brings stability to, economy.
Have investor's been slowly conditioned to think...
resources in ground are of no value ?
I would say, yes.
An opinion.
Cheers...