The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Yeah I agree with some of the posts below. With this share, you aren't just investing in leveraged silver (volatile to say the least), but also the macro-economics of Mexico and its currency issues.
In other words, this share is not for the faint of heart!
There could be a number of reasons they've held back on the annual results. Have they ever done it before?
But combined with the fact they are pretty much blocking off communications (e.g. can't speak to Dominic Frisby), it is suggestive something may (finally) happen this month.
Price of gold means it is a better environment for gold miners but I think it too early to call a bull market yet. Inflation, geopolitics (threat of nationalisation), the fact all the easy to reach gold is out of the ground, all these things will weigh on gold miners going forward. Gold streaming companies seem to be a safer bet.
My guess is there will be more M & A activity and hopefully Condor will be part of that, but one of the reasons for the delay is that any acquirer will be doing a lot more due diligence than say 15 years ago. I also think it probably a deal will be announced this month.
Jim is a promoter himself really, that's partly what master investor is about, it allows him to big up his companies.
In fairness, gold juniors have always been very risky, with lots of issues along the way; so it is a well known strategy in the sector to paper over the bad, try to keep the investment coming in, as they are all generally loss making.
The same went for the big gold miners in the last supercycle, they were wasting money left right and centre. This is one of the main reasons gold miners in general remain in the dirt, investors don't trust them.
My opinion is that a lot of people got into gold miners via condor via master investor / Jim's rubber stamp of approval. I do have an issue with them spending money on the mill and then about turning and deciding not to produce. Everything else I consider to be fairly normal for a junior miner. But the company has to do an update soon.
Agree that there needs to be a proper update at some point. Frisby's article will only drum up interest for so long.
I note there are no upcoming Events on the Condor website so I'm assuming Mark won't need new presentation material in the meantime. It's a puzzle I tell ya.
I suspect they would have agreed a price of gold on which to do the valuation. Not 3k that's for sure. Maybe 2k, perhaps slightly less.
Then like anything it comes down to drumming up a bidding war between 2 maybe 3 buyers to get a higher valuation. Condor unfortunately say, well if you don't pay what we want, we will start mining ourselves, as it would clearly be a bluff.
Looks like the major gold miners (Glencore etc) are getting ready for some M & A bidding wars.
Might inject some much needed life into the sector.
Dominic Frisby has been banging the gold drum for a long time. My take is that the price of gold will probably consolidate around 2200 but the miners will start to close the value gap; and silver will catch up this year.
Silver was the key form of money in the development of the global trading system in the early modern period.
I still think it is a form of money, as well as an industrial metal, but gold is the key form of money in terms of PMs.
It should catch up with the gold price ratio over time; silver based miners would be a very leveraged play that's for sure.
I made a ten bagger no less from Mellon's Polo Resources back in the day (hence my username).
The shareholders that time were nicely rewarded with a big jump in share price and dividend when the copmany was sold.
Make of that what you will but in my experience it's not this board's strategy to deliberately screw over shareholders.
It's weird that both usd and gold are high at the same time. Some analysts think it is a short lived situation and the pog will go lower. I'm not so sure. Global debt levels are high, unprecedented outside of wartime (world war time), especially USA.
USD strength has little correlation with US debt; British sterling remained the reserve currency for a long time after British geopolitical decline and high debt back in the day.
For any newcomers here are some reasons to think Calibre is the leading bidder:
1) they are already well established in Nicaragua
2) they were busy completing a previous acquisition until earlier this year
3) they have just raised further funding of $115million and indicated they want to expand in Nic (although it's unclear if this is through expanding existing sites or acquiring new ones)
I've thought Calibre were the most likely buyers from day 1. But obviously if they have made a bid it has been on the low side; maybe rejected by Jim; and hence why they've raised the extra money.
This is my obviously very speculative reading of events!
Gold still doing well overall. FTSE selling off with Iran tensions. Condor up today a bit. IMO markets have been complacent about the Middle East crisis, whereas gold started ticking up from last October; it has a more prescient quality.
Longest period of radio silence from Condor since the (attempted) sale of the company was announced.
Easter hols can be a big thing in North America, not so much China, but if Calibre are going to make a move that could explain the wait.