RE: Hmmm29 Jan 2026 13:39
'Well, this is certainly an interesting ride for the gold price last day or so. It is fun, but also a bit terrifying. Producers of course are in clover, but for explorers it's not that helpful. Higher is better than lower of course, but for us, the question is not what the price is today, but what it might be if and when we ever come into production, and when there is clearly a frothy component to the price, that creates uncertainty.
It was instructive in Vancouver to see many projects that looked good on paper, but that had been sitting about for years and were still not being developed - why?
Many reasons, but one financier mentioned to us that there is still not the funding for these projects, as investing in a bull market is dangerous. If a company has a project that will require capex that is 10x the market cap of the company, and will need 7 to 10 years to get into production, then there are just too many variables. The gold price is totally unknown, costs will almost certainly be higher, and how will the company find the money and what is the impact of that on dilution?
Seems the fence is a popular place to sit for a while to see where things settle. In the meantime, smaller, cheaper and sooner, seems popular.'
' In the meantime, smaller, cheaper and sooner, seems popular.' Thats it Brad lad, no 10x the market cap capex or 7-10 years required here.