Post by
dustymi on Mar 01, 2021 1:24pm
From Feb. 4, 2021 Interview.
Nana B. Sangmuah: If they follow the space, I think people should be aware of the fact that there is a lot of money being generated at this level of commodity prices. There is lots of free cash flow being had. Unfortunately, what that money is going to be used for, comes with very fewer opportunities in the space. We've seen an M&A frenzy. The truth of the matter is, the M&A has never resolved things. It creates an additional allowance in the industry. I would rather build bigger monsters that would need more reserves and resources to sustain them. The backbone of the industry, if you come back to the roots, is discovery and exploration. I don't recall when we had the last major discovery of 3 million ounces at two grams anywhere of significance.
We are sitting on four targets right now. One discovery, three additional ones, together with advanced results. We have a target that we had our results on, and now we think we will be able to make it bigger, be recognised as a junior success for explorers that are making discoveries. That should be well noticed by both majors trying to replenish their reserves. But more importantly, being in the mine and equity cycle, when you are in the discovery phase, provides the best returns that you have in this business. We are not only sitting on one, we've made three additional ones. Our geophysics that's being completed potentially is going to reveal some more. It's clearly the place you want to be in the cycle. I think management has demonstrated a strong capital market savviness, a strong technical savviness, and good relationships with governments. Once there's delivery and output, I would expect a phenomenal response from the market.
As Kai recently said, some 'nuggets' have been dropped for the shareholders.
So 'many hints' have been dropped in the last few months, for those who were listening and interested.
Especially: ( I would expect a phenomenal response from the market ); from the above interview.
https://metalsnews.com/t1340914i