Largo Resources Ltd

Yukon Territory - Brazil - Ecuador: Gold-Copper, Vanadium PGE , tungsten/molybdenum

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Message: sobriety

sobriety

posted on Oct 23, 2008 08:39PM

alas, i see that ihave not been the only one taking a vacation from the tumult amongst us...meaning that i see that the board has been quiet. i feel like a pummelled boxer, having no orientation, pathetically trying to stand afoot. in that spirit, i have some very basic questions to put out there, ones which i would never dare put out on SH. Actually, i have a number of seemingly very very simple questions, but ones which i think are valid.

Actually, i would like to pose them not as questions, but rather as propositions. Remember, i am not rooting against largo--quite the opposite. Nevertheless, i prefer to put out concerns i have in terms of propositions, and i hope that they might be addressed in a realistic manner (leaving behind the silly dichotomous world of pumpers bashers). here is one (multifacted) concern---

Proposition #1: the fundamentals of largo dont matter. Those "fundamentals" stubbornly remain in the ground, literally. Largo has no means to mine them and has no resources to change that fact. Since it is all about potential, there is no cash flow. Today, with no means to extract those resources, and no cash flow, the fundamentals are a mere abstraction and that just doesnt cut it in this environment. the market doesnt care who might some day extract those resources, and will be perfectly happy to sit on the sidelines until the wider environment cheers up--in other words, the "paper" story of the potential of largo story means nothing now. Since the "fundamentals" dont matter, the current sp is not so far off realistic expectations.

the first and last sentences set out my basic proposition, and the middle thoughts were possible supporting ideas. I am sure other supporting arguments can be made (interested to hear any thoughts on that point), which could refine the concerns i have. however, there are also lots of assumptions in those points, which could undermine the basic proposition i put forth. Maybe you think the basic "proposition" is rubbish to start with! in this plumetting "buying opportunity" which we call the market i think all level-headed questions are valid. And remember, i put this message out here in the spirit of discussion.


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