8Barker, have you lost the picture here, or what?
Yes, Tyhee is not doing anything to support the share price with a solid PR program to keep investors eye on what we have. Yes, we will run out of money at some point if we do not raise fund.
ANd in that regard, your comparison that selling shares bought at 15 cents for a dollar may be worthwhile.
But. You seem to have lost the context here. This is not an exploration play, where making 7 times on your investment (at 15 cents) is enough. Those guys, who take that, are welcome to leave say in about Dec 2009.
The larger context here is that this is one of those rare gold mine stories, where a resource is taken all the way into production, not taken out. The valuation of this company, regardless of the strange behavior in the markets this last 6 months, will be based upon four things, two of which are now in the books.
1. Solid management that can and will see it through to production and beyond. We have this.
2. A significant resource that makes a mine profitiable and with lots of mine life expansion. 2+ moz, with much, much more yet to be drilled off (open at dept and lenght). WE ahve this.
3. A water use permit. To get there, we have to get through the MVEIRB and MVLRB aspects / DAR and EA. WE are in solidly in this process, and that's the effort for the rest of this year. It does not cost money, so much as it costs time. Not needing to emphasize on exploration during this time, cash conservationn does not make this bird dead, rather, this bird is busy building a nest for the future offspring, so don't expect to see it flying around and playing songbird. WE ARE IN THE PRCESS OF GETTING THESE PEMITS.
4. Money to build the mine. We don't have this, and we don't know at what stage in negotiations DW is at with those with money. But suppose he is nowhere in this regard. Is he more likely to have to raise $10 million, as in the past when the emphasis was on exploration, or is he goign to have to raise $200 million? I put it to you that he does not need to raise $10 millino again. Maybe, just maybe, he will need to raise $2 or $3 million in the winter of 2009-10, but I think that the next financing will be through debt or JV, not share issue, to raise funds for building a mine.
So if the real story is here that it is no longer an exploration company, and it IS a developing mine, then who would be willing to sell their shares for a dollar, only to see them pass though $5.00 towards $10.00, in the short timeframe between the end of the MVEIRB process and the end of the MVLRB licence stage?
I'm no fool, even if I'm sick of the 'teens. This whole discussion about being bought out is a waste of time.
Or maybe just a contrived put-down, with the real intention of picking up more shares on Monday? 18 months from now, this will be a billion dollar value, a steal even at a market cap of $600 million or so. I would accept a billion dollars, and take my $5.00 share at that stage, but only for a third of my shares. The rest I would hold on until over $10.00. ANd with the weakness of the US currency on that same timeframe, maybe I have to double my expectations, as 2012 dollars will be worth far less than 2007 dollars we still have in our minds (that we originally invested at about 50 cents).
A billion dollars, no less.
SKELEG
