RE: We also have 2moro for what I hope is another 20%+ minimum on top30 Jun 2022 14:26
Trytosmile great question and its very difficult to answer mostly due to uncertainty related to a looming recession (inflation, interest rate increase, general debt to equity ratio) and the Russian war which has hugely contributed to a climate of fear which is effectively the number one enemy of investments; to increase fear is to increase risk, therefore push people to withdraw from investing thereby bringing stocks and share prices down, we also had a crypto crash which also contributed to the general fear notwithstanding just about recovering from Covid.
Given this scenario almost all investments tend to be slow, and not perform very well. However, Gold according to most analysts (and charts/technicals) will prove this, has most of the time increased during recessions and turbulent times more so because it has intrinsic value where you can derive utility (unlike fiat or paper currency). So it is often the fall back choice for most 'safe centric' investors. Its also relatively stable due to this intrinsic value and limited amount in the world.
Coming to Kefi or GGP, its important to have a JORC since that reduces the fear of the unknown that exploration companies suffer from. Also a Joint Venture is a must since a company cannot extract this alone in a cost efficient manner, besides never does a company contain every single resource for every single part of the operation, need to outsource for expertise whether that's contractors, miners, excavator operators etc these tend to come from a joint venture.
There needs to be an offset between dilution through placings (which we know are a necessary evil in AIM) versus value. This brings me to my point of why I'm in Kefi, the gold price is increasing and according to analysts it will continue to for some time. This increase in value helps a lot to offset the placing dilution that Kefi has created.
Furthermore, we have Saudi Arabia as a first mover, this is beyond huge in my opinion. Just need time and patience to see it through.
I see at least 1.6-2p short term and 4-5p mid term up to 7-9p long term taking into account possible placings and if gold slows down resulting in a lower offset against dilution.
GLA
Hope that helps,
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