Post by
nozzpack on Nov 19, 2024 11:55am
A Change of Function is Needed
Almost all gold explorers are walking on their knees.
Even those with cash and cash equivalents twice their market cap like LAB.
Gold producers are doing fine , with market caps containing similar ounces being 4-5 times higher as producers relative to explorers with the same ounces of gold.
The cost of mine construction , and long time to first cash flows are the reasons .
So, with tax loss selling and ongoing exploration continueing to consume cash, along with mass shorting , the outlook here in the short term is not very comforting .
Converting to a gold producer is an obvious solution along with imaginative financing solutions as part of the acquisition process .
In short, sagacious but aggressive management capable of making bold moves..
Comment by
Dixiedee on Nov 19, 2024 1:04pm
That is where we are in the cycle rotation will be to smaller cap exploration companies down the road in this gold bull market