FDR: Good drill cores meet market psychologyWas I wrong? Or did I forget how real time markets work? Or both? It is very comfortable to remain in an ivory tower, writing how once a second major zone pulls widely-spaced gold assays, FDR's stock price will double at the open. I didn’t use those exact words, but I might as well have done.
What we saw this morning was evidence, I think, of the excitable people like me having bought all they dare… while ultra deep-pocketed, ultra patient accumulators see little immediate need to rush into buying more. And most potential new entrants have not heard of us yet. At least not properly. Or from their friends / neighbors / relatives.
Throw in some short-term Founders traders itching to reallocate their capital to six other stocks they feel are about to pay off any day... and what do we get? Enough selling meeting the buying that our good news fails to move our stock price. (Though the breakout of volume level - and bull board chatter level - was welcome.)
And the assays *are* good news, make no mistake. Another A+ grade from Aaronmcm. And rightly so. We’ve got the clear beginnings of another large gold zone, starting right from the first batch of holes. What overall quality it rates remains to be seen, but it does have both bulk low-grade and pockets of high-grade. Over a big footprint. Ideal for an open pit set-up.
I will sit down later today and update my takeout value model. We’ve got much better clarity now on what number of ounces the Antino property might deliver. And some new data on the tailings too! The “specialized” gold source we already know exists in our little kingdom.
Plenty of unknowns yet to be determined, but at least we are moving out of the realm of mere imagination and adventure. We are now entering the world of cold calculations by our potential suitors among the big producers.
So, yes, I do still expect the selling to dry up today or tomorrow, and buyers come in to take or add to positions in what is now a much de-risked proposition. You didn’t hear it here first, but you heard it here a lot.