Blue start to the New year -2 Jan 2020 06:53
Good morning all, the first day of trading in this New year, what we know to start the day is Gold down, Silver Down, Platinum down, Palladium Price Per Ounce $1,951.50 + $4.20 ... UP.
We know the directors have a massive amount of skin in the game, a fantastic plus point.
we know the company has at last turned the corner and is starting to make some money.
We know the company has no debt now and has stated it will not require to raise funds going forward, growing organically.
We know the company has removed the middle man and has since last September started to mine itself on a 100% basis.
WE know the company mines a valuable product that is rare and very valuable and will be required in larger quantities.
We know the company has been around for 24 years and is not new.
We know the company has one of the cheapest open-pit mines to operate.
We know the company has directors fully aligned with shareholders.
We know the company has got two of the largest world banks involved to sell either the whole company or its assets.
We can all speculate on what the sale values may be going forward.
We as investors in this company and can see the potential only see a fantastic investment opportunity that is worth far more and could easily multi-bag 10-15 times from here.
We see the share price as massively undervalued, but as the value is in the assets and not directly in the company this can cause a problem for any new investor as all the existing share valuation calculations go out the window if we look at company revenue, as the company has only just started to make a profit that is not a good historic metric to go on and until the assets are sold and that value added to the company coffers it will not be reflected within the share price, a dilemma for new investors as asses our true value at this time, we have not yet seen the mined 2019 output figures but expect them not to be great as output was capped by incorrect license application and 70% going to middle man, things have now changed and the company is due to ramp up production in 2020 and going forward, there are so many positives but are all going forward and not reflected in today's share price. we have all done our research and due diligence the new investor may just use the normal company valuation yardsticks, so unless any new investor has the foresight and strong beliefs he may miss out on this fantastic opportunity to invest here. So we all hope the share price continues in its upward trend and it certainly shouldn't drop but at this time it may still lie below the radar with some for the technicals raised above. this is, of course, my take on the thing and as you know I rate this share as a strong buy, just saying as to whether this rises strongly from here today or treads water sideways till more news is up for debate, does not counteract my advice to hold for the end game.
Good luck all and long may the share price rise.