Good morning everybody,
I know I should have done my due diligence before making any investment decision, but it's too late now. I hope you can help clear up some of my concerns about this stock or the sector in general.
I bought 70,000 shares of BTO on the 15th of July for an average price of 5.25. Just as expected, whenever I sell a stock, it starts shooting up; and soon after I buy something, SP starts tanking. My apology for tanking this stock. :D
While I am able to draw the electron configuration model and energy distribution model for Au, as well as knowing about its electronegativity and chemical reactivity like I know the back of my hand (ya know, all the stuff that makes life worth living), I, on the other hand, know as much about the gold mining business as a pig knows Latin. Over the weekend, I have watched numerous videos from B2Gold's YouTube channel, and I'm quite confident that I didn't overpay for this stock. But I'm still at the crossroad as to whether or not I should be adding another 30,000 shares to bring my ownership to 100,000.
I have to admit that I was never a gold bug ( complete opposite of the vast majority of Asians) simply because I don't find it sexy. It pays no income/dividend. I only own gold made into jewelry, mostly from Tiffany's, so no gold bullions and no pure gold. But now with this out of whack inflation, coupled with my desire to diversify a bit into a different sector, I decided that gold is the one to go to for now.
My questions are as follows: it costs an enormous amount of capital to build a mine. What happens to these mines after they're no longer in operation? I mean when the gold reserve is depleted. What's the residual value?
I'm quite surprised to find out that the total amount of gold mined since civilization can fit into a 21 meter cube. That's a much smaller amount than I had predicted. With 90% of gold having already been mined, where are we going from here? Are we going to start mining other metals/minerals? Platinum, Palladium, Silver? Etc.
Clive, in one of the clips, said B2Gold is profitable without depending on gold price going higher; we're profitable regardless of the price of gold. Although I don't think that gold price can tank from here, it feels very good to be assured from the CEO.
I know the company is sitting on a lot of cash, but let them accumulate 1 billion and distribute a special dividend of $1/share. I'll take my $70,000 and buy some gold bullions. Haha...
Hi Aurum!