Post by
goldenI on Dec 29, 2022 10:38am
Expectations for 2023
I think we are in for another year of drilling (at least). From Roger's posts and otherwise, it would seem that unlocking Laurion's potential depends on gold reaching sustained levels above $2000/oz. While I can certainly see this happening, it will most likely come with an increase in the expenditures needed to extract it. I think that is the main reason for engaging DRA, to figure out how to lessen the costs of extraction so that the profit margin makes Laurion an attractive target for a buyout. The success of this is not guaranteed no matter how much gold is in the ground.
In the meantime I can certainly see the stock price drifting into the low 40s if not lower. I think that is more of a possibility than seeing the 1.00+ price of 6 months ago. With that, I think there are other opportinities to do better in the short term. So I am stuck. I have already begun to trim my holdings (at a loss) and while that doesn't feel great, it would feel much worse if the SP was in the 30s.
I am wondering if anyone sees any short term catalysts for an increase in the short term (other than "A buyer could along at any moment..."). I think if there was a buyer based on the data available now, it would have happened. If this post seems pessimistic on the Laurion, my apologies, it isn't meant to be. I believe in the project long term, but see significant headwinds in 2023 including the ability of raising capital.
I just wonder how others view the lost "opportunity" cost of keeping their money here. It's all speculative of course, but the outlook for Laurion has become very cloudy in the short term for me.
Comment by
NoRealPlan on Dec 29, 2022 12:48pm
So true regarding the buyers timeline of extraction. 10+ years... This also highlights the importance of Canadian Government red tape and burocratic restrictions... If this is lessened, it might encourage developement and an eventual buyer.