I've posted this several times in the last few years but those posts are buried deep by now so here it is again in case some serious investors still read this board.
The company has a proven gold resource that keep modestly expanding every year. It's a high cost, safe steady low-risk operation with little if any unknowns.
The gold is is extracted through underground mining at a forward True All-inclusive cost of about $1740/oz.
Much of the cost is fixed (incl. interest costs). That means they are now bleeding about $500 cash on every ounce currently produced. But the number will get much higher if they produce less ounces.
The company has leveraged all assets pretty much to the max (royalties, against loans, etc.). Debt is high and the interest rate paid is also relatively high.
What are the company's options in this gold price environment?
Not many. There is no magical solution to a routine operation with high costs.
In fact the only clear solution is higher gold price.
Knowing these facts, what would YOU do if you were the management of this company?
What COULD you do?
Not much different than what they are already doing.
If I was in their shoes I would consider closing down everything, if this option is available, until the gold price improves enough.
Glad to hear it was a joke and thanks for the wishes.
PS. I just bought a very small initial position in Romarco, expecting to average it down next year.
You know that there are "advanced intelligences" in the universe? And they ignore us, also?
Does that come from your atheist beliefs! All that mind of yours and that's really the best you arrived at?!
Was it stubbornness or Was it arrogance?
In any case, I wish you a happy Thanksgiving with the family. And I wish that you would acquire some humility which I believe will do a person like you a lot of good in different aspects of your life.
Thanks for your thoughts, Carl.
Any other areas you like beside nat gas?
Any view on the stock markets in general, after it's been making new highs.
The more interesting job posting in the region is that of Tim Horton's who has 20 positions to be filled! The region's total population is in the 4 digits.
Can it be in expectation of the ruby guys moving into town ~)
RUBICON MINERALS CORPORATION
All positions: Generous wages; attractive benefit package; remuneration based on experience. We gratefully acknowledge all applicants but only those selected for an interview will be contacted.
Ø Underground Mine Supervisor
Ø Safety Training Supervisor
Ø Maintenance Planner (Electrical)
Ø Maintenance Planner (Fixed Plant)
Ø Mill Construction Superintendent
Ø Senior Underground Geologist
Ø Underground Geologist
- If you like ice fishing, that's a plus.
Warmcamp, if you've been following this story somewhat closely you wouldn't find it as wild a card as you describe.
I say that because I know that you are more knowledeable than me and by now the picture has cleared up pretty well in my mind.
The feasbility study saw ~ 7M oz's and now it's become clear in my mind that this number is going to be substantially lowered. For someone who followed the rby story as it developed, this is a much less confusing picture.
The short of it, sell pvg and buy rby. In fact I suspect that this is exactly what was happening last week and the action in rby's stock shows it. If one wants to take high risk for potential high reward then I'd say buy a promising explorer and stay away from pvg.
Disclosure: no positions in any of the names mentioned and no intention of initiating any this year.
Sentiment: Strong Sell
I think what you said in this post is fair.
One has to be on the cautious side with this CEO. Look back at his historical track record and his ultra aggressive promises with regards SSRI potential resources when he was its CEO and compare to how they panned out in reality. Some may say he's great in raising money (from shareholders) and that's true.. it's great that the company gets to build its mine but it's not great for the shareholders who financed it. I was invested in ssri when he was the ceo, unfortunately.
A good read is the Oct. 24 12:25 AM post. It also has a good link that goes back to July.
In mind the collective evidence is clear that the resource here will be resized lower.
It sems that there really are no large easy gold finds to be had any more. This bodes well for the gold price but not for miners.
Disclosure: I sold all my pvg holdings in late August. I bought back a small position in Sept which was very much under water when I sold it on friday. I don't intend to get back into pvg ever again as long as this ceo remains there. It was my mistake that I invested in pvg never checking who the ceo is until a week ago.
Sentiment: Strong Sell
sewell said: "If it doesn't that will be somewhat of a red flag for me that will require more research."
Seriously? If continuous disappointments with your analysis of RBY over a 3 1/2 year period haven't flashed red flags for you I don't know what will. Every single bullish prediction you made regarding it have failed and the failure spanned 40 months and counting, yet your pride and arrogance stood in the way of you admitting your mistakes and instead now you are asking rby investors in essence to wait 25 years to see your predictions proven true.
Are you kidding me?
And now you're trying to provoke people on the PVG board to uselessly debate your flailing theory. How long will you ask them to wait this time? I know that you will never admit that your prediction is wrong, you'll always just ask people to wait a year longer then 3 years more then 10 years more so what's the point? You can be proven wrong at every juncture yet you continue to insist that eventually you would be right. Fom rby at $5 and you warning people not to sell their shares for $9 (as if anybody offered ou that) and now rby is at $1.20 and you still repeat your broken record.
Face it bud, you Suck at mining analysis but apparently excel at endless useless debates that can go on for months at end so why don't you leave mining to the analysts and take up membership in the debating society or something along those lines that will make use of your available skills.
It's clear that today's news is negative and that the difference in opinions between Snowden and Stratchona COULD result in a downgrade of the resource. But the way I read your messages, you don't believe it's a mere difference in methodologies but you are suggesting that the company is engaged in outright fraud and eventually it will become clear that this deposit is not even worth mining. Am I reading you correctly?