I think it was nothing short of criminal that they stopped working on the serbian mines, they put so much shareholder money and time into these shares and then stop before things got interesting. The mutsk mines are of very poor grades and it will take years before they get to the point of mining gold. So there will be further losses, further dilution of shares. It really wouldn't surprise me if they never ever mine any gold and keep doing the same thing as deli jovan and put it on the shelf again.
I have always believed that those running ORE see ORE as a way to make a living at people's expense by just continuing to issue shares to pay their wages without any intention of producing gold.
The future is not bright here, the future here is very bleak. You would have to have rocks in your head to buy this share. There is absolutely no point buying this share now. It has no chance of rising for years. This share will only go down further. Sorry for those invested here but it is time people on these message boards were realistic and not ramping things up.
I was invested in this share when Medivinci turned into ORE and the promise of shallow and open pitting to get the gold out at Deli jovan, the really high grades, ex bod from Rio tinto, mined previously by the romans etc it was all exciting.
When the news came out regarding mutsk and mining elsewhere i sold up simply because I knew its going to be a long, long wait for any return. The Bod should have got an investment partner for their serbian mines and continued the work alongside Mutsk. We could have had a jorc by now, some valuation and further progression to get it producing, it seems 4 years later we're still at an early stage.
I dont doubt the gold is there in both projects its the bod which I dont have faith in and the dilution as well doesnt help.
Some blame the posters for the problems with ORE - in simple terms it's not the only mining/share that has crashed. In the present climate it's a day traders market - jump in on good news and make a sharp exit. But the Long Term view for ORE - the future looks bright - I'm not ramping
This implies that the cost of mining gold is falling while the price received for each ounce of gold is rising slightly. So margins, which have been squeezed to the point of evaporation for even high-quality miners, might be less horrendous than the markets now expect and (assuming current trends continue) earnings in the second quarter and beyond might exceed expectations. With mining stocks beaten down to historically-low levels, even stable earnings might be enough for a nice rally.
A few years ago (when the world was very different) veteran mining analyst Jay Taylor told me something that seemed counterintuitive: Deflation can actually be a good thing for the gold and silver mining business -- if the prices of mining inputs like oil fall faster than the price of precious metals.
In other words, it's not inflation or deflation per se that matter, but the distribution of price trends. "With quantitative easing," said Taylor, "the liquidity being pumped into the system has caused energy and labor costs to rise, which has more than offset higher precious metals prices. Historically, the miners have actually done better in a deflationary environment in which gold and silver are seen as monetary metals and the cost of getting them out of the ground declines due to lower energy and labor."
So the relationship of gold to the rest of the commodities complex is a good indicator of the mining environment. Gold might be down, but if it's relatively strong, the mining equation is favorable. How is it today? Improving:
Taken from Dominic Frisby (Money Morning email article):
Firstly, the worst of the falls for gold appear to be over. It fell by about 1% against the US dollar in 2014, but it rose against other currencies. For example, it enjoyed 13% gains against the euro. It started the year at €876 an ounce and ended it at €980 (it now sits above €1,050).
It rose by 6% against sterling. And by a lot more against the likes of the Russian ruble, the Ukranian hryvnia or the Syrian pound – demonstrating gold’s role as a hedge against local currencies.
This situation of extreme US dollar strength is favourable for gold miners. The nominal price of their primary product – the dollar price of gold – may not be rising, but that is not the whole story.
The majority of mines are in jurisdictions where currencies have been weak – Canada, South America, Africa, Asia – even Australia. That means many input costs, especially for labour and infrastructure, have fallen in dollar terms.
The miners’ product, however – the gold – is not sold in weak local currencies, however, but in US dollars. So even though the US dollar price of gold may be flat, US dollar strength means that mining companies benefit from the arbitrage.
Secondly, there is the matter of the oil price, which has fallen by more than 50%. Fuel costs equate to anything from 20% to 40% of the costs of running a mine. Very convenient, then, that this cost should have come down by so much.
Thirdly, following three years of what is probably the worst bear market in living memory – those who were in the game at the time agree that it has been even worse than the bear markets of the 1980s and 1990s – standards of behaviour have improved, particularly at the corporate level.
Mining costs have been lowered, but, almost as importantly, so have general and administrative costs. Starved of capital and shunned by investors, prudence has returned. Salaries have fallen. Analysts are more cautious. Excesses have been reduced. What acquisitions are taking place are being done at reasonable valuations. Investors are more conservative. They are also more demanding.
There is still plenty of room for improvement, particularly on those admin costs. There are still too many companies masquerading as explorers, which are really just vehicles for Canadian executives to pay themselves large salaries. But there has been at least some improvement.
This change of circumstances has been reflected in share prices. The XAU hit $80 yesterday (before falling 7% – gold mining is very volatile), a near 30% bounce from its lows. The midcap producers have risen by a lot more, and there are nice uptrends now in place. As long as energy remains cheap, the dollar stays strong, and gold remains firm, the conditions for producers are good.
Someone who isn't patient and needs money to invest elsewhere. That said the drop in price is good news for me. I hope it stays low a bit longer while I get some money together to throw more of it at this share.
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