You ask "how". It is a plain fact that costs of ancillary mining services have dropped so I might ask what does it matter "how"? It is fairly obvious really - the consequence of sector-wide scaling back on new exploration activity. This is the first time you have explained your position in context so I am grateful. I can almost begin to like you for that post. However, I think you should probably reflect on how your comments are presented if you want to portray OTC fairly. It is up to you - but clearly it makes no sense for investors to dump OTC holdings at the bottom of the market. It is generally unhelpful to investors whose interests you seek to guard (?) by giving advice which MAY lead to more selling. Yes it might go lower but there is no real reason for it to do that. A wave of selling would lead to a great entry price whilst investors dump their shares now at precisely the worst possible time. This would ot be in their interests. Can't you see? If I come across as a "ramper" (which I am not- you may be surprised to learn that I usually tend to be drawn to the negative) then its because I have doubted your motives and I am irritated by the constant repition of your central point.
Happy to respond
Sorry, might come across as ignorant, but how have drilling costs dropped? Would have thought those costs were fixed. Has OTC focused its activities as capital cant currently be spread to all projects? Why focus if drilling is cheaper than ever as you said? In reply to your second post, I focus on OTC as I did extensive research when I was invested. From translating newspapers from kremnica (some might remember my posts) to calling up OTC. I was advocating buying at higher prices 2-3 years ago as I believed (still do) that OTC has excellent potential. However I soon realised that the mining sector as a whole would prevent it from achieving its targets anytime soon due to it being very cyclical. As you can see from my posts, my concerns are related to the market as a whole and not OTC. Dilution is brought into the picture only due to the problematic way of getting financing at these low levels caused by a distrust of the mining sector. It was easier and even surprising at the time ( Henderson/Darwin equity line) that we were able to get funding and better deals compared to other miners 3-4 years ago. That was a big plus at the time. Now, also considering we are only valued at £5Mil, something similar will be much much harder to achieve. Just saw your last post. This Lion group that you talk about and posted links about....ONLY invests in junior miners as their strategy.... Of course they would buy in the sector and promote it... Quality in posts, not quantity feeks To conclude, Im definitely not here to deramp, as OTC going bankrupt or x20 doesnt make me a penny. I am inquisitive, I like to look at problems and give my own input, as the rampers here try to ignore the serious questions that everyone has on their minds. I hated SPOT years ago as he was the #1 deramper at the time, but I definitely appreciated having someone make me rethink my strategy and why I was invested.I really dont believe posts on LSE move the market....institutions do, and trust me, when they put down the reasons why they bought/sold they wont put chiefo/speranza as a reason.
I suggest you read Lion
They understand the market and are buying in the sector as a way of making money not losing it :->
Question for speranza
Why not issue your saintly message to other junior Gold BBs? Why only this one, and why were you advocating buying at drastically higher prices previously. Accordingly, why should anyone act on your wishes now?
There are plenty of funds and drilling costs have fallen sharply since 2011. Otc has also focussed its activities which is a smart move. The only reason to keep raising this is to spread persistent negative news. The wider perspective is that there is probably no better time to be investing in mining equities.
Chiefo, I am not stirring, only looking for opinions and discussions. Whats your opinion on this?
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