Member Info for Overhyped

What has happened to stop the sp moving? It's surely to soon for the orphan period and the big dip in the sp that the Lassonde Curve predicts always happens to cash strapped junior miners, during the orphan period, before a mine goes into production and starts making cash.

SML isn't your usual junior miner because it isn't strapped for cash. It has a regular income stream from its mine in the USA and has other assets that it can sell to raise capital. In any case, the 'Lassonde dip' if it happens at all, is likely to be much shallower and shorter in duration, than with the normal junior miner.

I expect we will see an upward turn this afternoon, rounded off by an end of day surge

I bought a small amount at 7.02p on the recent dip a few minutes ago. I was lucky to get that price. People have been paying 7.1p since

I hope it will be more but, at the moment, it seems that profit takers are selling at about 7p

At this rate it could be above 8p today. It might be above 10p by the end of the week.

Buy for 7p now

I don't wonder what she says because she always gives out the same message over and over again, even if she changes the words. I experienced her on the EEE board. She always spouted the same rubbish there as she does here. She might even have influenced some novice investors and put them off buying EEE shares. She talked the sp down. She's not just a stupid old crank. Imho, she's a dangerous stupid old crank.

I've filtered Jane so I don't see any of her posts. Whenever she posts all I see is 'This message has been filtered'.

It makes my life more peaceful.

Why has the response to this morning's news been so tepid? Has no one any faith in SML's future?

Jane. I'm glad you're still with us because I have a question to ask you.

What does it feel like to be a total waste of space?

Ah! I was wrong. His/her posts are still there but he/she must have got bored and stopped posting earlier.

What has happened to Jane? All his/her posts have disappeared from the thread.

Judging by the number of 4p buys, It seems as if the 'dip' might have bottomed out.

Jane, What are your criteria for finding junior miners to talk down?

Well done Jane. I do believe that you've talked this one down. Congratulations. Facts are no match against your skills of persuasion.

For what It's worth, perhaps not much, I believe that SML is at the feasibility stage on the Lassonde Curve that with most junior miners would mean entering the 'death valley' or 'dip of doom' or whatever name you want to apply to the dip, when the sp usually drops dramatically as the company scrabbles around trying to raise funds to develop the mine.

I believe that isn't going to happen with SML, because SML has an independent income stream and has already raised significant funds, both of which should enable SML pay its way to developing the mine without beggaring itself in the search for funds. Consequently, if there is a dip, it shouldn't be very great and shouldn't last very long.

It will pay to be patient for a short while and put up with some slight pain while we wait for the bonanza.

The Lassonde Curve is a visual representation of the lifecycle of a junior mining company, illustrating how project value and investor sentiment change from exploration to production.

Overview of the Lassonde Curve

The Lassonde Curve, named after mining financier Pierre Lassonde, serves as a valuable tool for investors in the mining sector, particularly those interested in junior exploration companies. It outlines the typical lifecycle of a mining project, highlighting the relationship between time, risk, and value throughout its development. Understanding this curve helps investors set realistic expectations and manage risks effectively.

Key Stages of the Lassonde Curve

Concept Phase: This initial stage carries the highest risk and lowest value. Geologists develop theories about potential mineral deposits based on preliminary data. At this point, there is often no drilling, and the project is largely speculative.

Discovery Phase: As exploration progresses and drilling begins, the project enters the discovery phase. If promising results emerge, such as high-grade mineralization, investor excitement spikes, leading to a significant increase in perceived value. This phase is characterized by high volatility and speculation.

Feasibility Phase: Following discovery, the project undergoes detailed feasibility studies. This stage often sees a dip in perceived value as the complexities of mine development become apparent. Investors may become cautious as the realities of financing and construction set in.

Development Phase: In this phase, the company secures funding, permits, and begins construction. While risks remain, progress builds confidence among investors. The value of the project typically increases as it moves closer to production.

Startup & Production Phase: Once the mine begins producing, it generates cash flow, and the focus shifts to performance and profitability. This phase usually represents the highest value for the project, as it transitions from a speculative investment to a revenue-generating asset.

Importance for Investors

The Lassonde Curve helps investors visualize the rhythm of value creation in mining projects. By understanding where a company sits on the curve, investors can identify favorable entry points, recognize value catalysts, and remain patient during periods of low interest. It is essential to note that while the curve provides a general framework, individual projects may deviate from this pattern due to various factors such as market conditions and project-specific challenges.

In summary, the Lassonde Curve is a crucial concept for anyone involved in mining investments, offering insights into the lifecycle of mining projects and guiding investment decisions based on the associated risks and rewards.

Is that where to answers are?

But not necessarily tomorrow. Perhaps next week might be better?

Well said DoBre. Many people seem to forget the rules, especially Rule