Anyone read SA article about "trap door" under PM miners & explorers?
I think it explains why the PM co's are diving even faster than the POG. If RBY has no intention of building a mine but just seeks to build M&I resources it will have to contend with the dropping POG which forces a higher cutoff grade and thus LOWER resources. Such companies are known as "hoarders" according to a Hard Assets interview this week. Buyers know this situation and will pick up the junior "hoarders" at the bottom of this plunging cycle. In hindsight I wish RBY had the stones to start low volume/high grade production and prove their reserves the old fashioned way. Just more buyers remorse I guess. I am down so far now I think I will just hang on until the sooner of forever or TSHTF.
At some point they are going to have to start to prove something. Small talk is not going to cut it much longer.
If they miss their 2nd qtr 2013 date then we can start to think that their production date is more BS