RE: Gold explorer8 Mar 2021 14:16
BoracicLint, I agree with the points you make.
I believe this is indeed the best prospect the company has ever had. In Tanzania with illegal mining and dubious support from officials it was never going to happen. In Australia, well we just bought a pup.
My caution is just based on my long association with this company. I would liken it to somebody about to be married for the third time. Exited by the prospects for the future but somewhere niggling at the back of their mind are the memories of what happend to the previous two marriages, where the prospects at the time had seemed equally rosy.
Of course, not everybody carries the baggage from the old versions of the company, so they will feel differently about the prospects of LEX and they will I hope make significant returns if the company is successful in its stated objectives.
I see this a a bit of a race. Cash and time are intrinsically linked here. Drilling and sampling need completing, reserves proved, a suitable partner found to take the project into production so Lex can move on to the next prospect, all, ideally before cash runs out.
For reasons of my current exposure I don't want to see a capital raising, I'm not suggesting people shouldn't participate if there is one, in fact it may well be a good idea. I just don't want to invest more unless I feel I really have no other sensible option.
Rising inflation forecasts here and in a number of major economies, and significantly increased fiscal stimulus in the US, that will certainly bring forward that prospect, will bring the price of gold into sharp focus during the year.
The price of gold in relation to the cost of extraction will be crucial elements in making a deal with a production partner, and in turn rewarding shareholders, which is what we are all here for. I think!