Post by
68Charger1 on Feb 11, 2024 8:40pm
FDR: Padget underestimated again?
By me, that is. Some of you quieter types may have never underestimated him. There is so much to draw from his recent interview with JuniorResourceInvesting I may be writing about it for some time to come. But what struck me today is the number of levels on which Colin Padget is operating.
Sure, I figured he was a solid CEO, a shrewd acquirer of property options, adept at dealing with the banks and the corporate finance arms of brokerage firms, plus good at overseeing an actual gold exploration venture. He may be a master of stock-price management too.
I don’t mean just putting out results regularly and yet still somehow keeping the market guessing about when the next big bulletin would hit the newswire. I mean working with Antino’s existing, proven assets to achieve the maximum effect with the smallest expense and time investment.
Case in point: what might be the best way to make use of those tailings of ours? Why, process them and start a new cash-stream to make all future financings unnecessary, of course. Not so fast.
A better course of action is to *threaten* to do so. And mention, while you’re at it, that the effect of such tailings processing would be to make FDR shares scarce. Did you achieve exactly the same full result? No. But was it an efficient use of money, management time, and impact potential?
Well, assuming Padget didn’t actually want to spend any money processing the tailings, and any management time overseeing the purchase and set-up of the equipment, then it was superb. We might get 90% of the share-price impact while incurring none of the costs.
And the scenario may instead play out like this: a new (and possibly final) round of financing at, say, $6.00. Dilution, to be sure, but less than the financial cost of setting up tailings processing operations. And much less than the managerial-time cost of doing so.
Yet the beauty of the situation is that I actually believe Padget is seriously considering processing the tailings this year. So no one can accuse him of cynical posturing. And what better fact pattern to finally spur the next few institutions into taking their serious positions in FDR? And devouring a few million more shares of our float, at ever higher prices?
Talk about picking up free money off the ground. Figuratively *and* literally, but just not quite *literally* literally.
One final point today about our CEO. Did everyone notice the visceral proof of his modesty when he praised Exploration VP Pascale Voegeli? For convincing Padget to go with the new imaging technology to accelerate the gold-locating game?
What happy news it is that we can rest assured we have our own version of Bob Singh focusing the drill targeting. Along with the news that Padget has shown he doesn’t fear surrounding himself with the smartest people.
If my earlier estimate of drill results pace is correct and we must converge on a new average of bulletins every 8 trading days now that two drills are turning, then Wednesday next week should see more assays.