Holiday musings.
posted on
Dec 14, 2007 07:34PM
There is only a few trading days left this year. With the holidays around the corner there will be few things to debate that are relevant to our conpany so let me throw a tidbit for contemplation.
We have a permit, we have financing and are progressing to construction. In about two years we will be sufficiently along with the construction that it will be impossible for the big fish to ignore this guppy. Presumably our share price will also reflect that so it will no longer be possible for certain interests to manipulate our price while buyers will be begging for shares.
We are begining to drill Choco 5 and in about a year we should have defined a resource that will turn heads. Yes, I expect at the very least another Brisas. Eventually with one project at production and producing income with Choco 5 looking positive we will have cash to develop it on our own, probably without further dilution.
What will that do to our share price? Our problem will be holding on to both projects and perhaps even being bought out entirely, or too cheaply.
The cash flow will also make it possible to be a bit adventurous as in aquiring some more properties or even neighbouring mines.
Our neighbour having started their permit aplication earlier still do not have it so I look for causes. What I consider as the main one is the left over copper. That has to be the stumbling block to the permit and I do not see a solution forthcoming. Obviously they should aquire the rights to it and modify their plans to include its processing but that means more costs due to back tracking, hence a stalemate. Perhaps they, or perhaps CVG, will ask Gold Reserve to process their copper.
Otherwise I see no saving solution for our neighbour. They will go deeper into debt or more share dillution and Venezuela may be waiting to rescind their contract for that reason.
Of course they could be bought out in the mean time and if Brisas is bought also by the same party then Cristinas mine construction will be unnecessary.
Now the clincher:
KRY could be in deep financial trouble and still no permit, we with cash inflow buy them out.
Brisas, Cristinas and then Choco 5 in the same pocket, hopefully ours.
A stretch of the imagination but one can dream can one not when there is nothing else to do but wait.
Have a Merry Christmas and a prosperous New Year.