You make money not buying on fundamentals, yet I will post one of the reason's why I bought back in. You make money not on buying by technical, yet that may be why I bought back in. You make real money when the market goes way up and starts a long run (sag) down, and you sell. You then buy back in when the market has had it and there are more sellers than buyers.The last time this one hit the dumps, it traded at .15 and I bought at .32. I missed the bottom, as I usually do. Then I sold at 1.40 area, and missed the top big time. This time I am back in and sorry to say at .65 and have missed the bottom again. I will buy some more and average down a little if I can. So this is how I see the market. The summer doldrums always pulls PM stocks down 9 out of 10 years, and I think this could be the same, except we also have a way more fear in the market right now than a normal summer. So here we are in the middle of summer, and so we may have more weakness, but like I said I never pick the exact bottom, and that does not bother me. That said this is how I see the fundamentals of this company right now.
The negatives
1 We had an accident and that is always a downer.
2 the first quarter was not very good.
3 The 2nd quarter may not be as stellar as hoped for.
The positives.
1 The accident was human error, and the company is looking into how to rectify that so it does not happen again. Also the good news is that he is out of the hospital. The company prides itself on its safety plans, and gets upset when something like this happens. So we will move on, after they review what happened put in another safety net.
2. The company usually sends in 300 truck loads of supplies over the winter road, and that is normal for stocking up supplies for the year. This year over the winter road they sent in close to 550 truck loads of supplies, and that has put a real dent in the 1st and 2nd quarter. The extra loads were for some upgrades and may be some extras, that could have a positive impact on next years 1st quarter.
3 The company;s replacement costs for the producing mill is over 100 million and the madsen mill and 4 compartment shaft would cost 200 million to replace. That means that we have over 300 million in replacement, and the market cap is only 100 million. Just a good deal for shareholders right now.
4 When I bought in last time the company had less shares, but they also had less than 2 million oz of gold. Today they have 4 million oz of gold and if you divide that by the market cap, that is an asset worth only $25 an oz. and that is real low. Back when gold was at $300 an oz the value was $50 an oz in the ground, so at $25 its a real bargain considering gold is now close to $1600 an oz
5 We have some new higher grade ore that will be mined starting next year, and that will boost the bottom line big time.
6 We have 30 new holes going into the Madsen, and that will give the company a lot of insight into the structure and potential of the Madsen. That will cost the company about 9 million this year, and I think it may be a company maker. (the budget for this is from last years money)
7 The company expected to end the year with $15 million in the bank, but with gold off its high and trading in the sub $1600 an oz they will still end the year with $5 million in the bank. They will not be going to the market for more cash by way of new shares.
For most of the investors here, they know all this about this company and a lot more, that does not have to be repeated, so I will end with this last note.
I repeat, We may not be at the bottom, and I don't really care. I have invested at a price that has real value, and will wait for the market to catch up.
JIMHO