RE: Scratching my head!12 Feb 2022 15:26
Kevin - the +10Moz suggested by the brokers is their TOTAL amount of gold/Cu. Inficated and inferred. How much of the +10 is indicated is anyone's idea but the indicated is what adds value to the stock, not the inferred. So they are 'assuming' an SP of 24p based on a small part of that +10Moz.
Walkabout - please read the samll print in the GGP Growth Update report (October 2021), they tell you what the expenses for tolling/processing is.
TT - of course it's not based wholly on fundamentals, some portion of future reserves is considered, but where does one draw the line? Brokers have made a leap of faith (24p) which sounds reasonable to me, so they are thinking ahead. But the current market place haven't made that leap of faith because they have less visibility to the product and plans than brokers for instance.
We get this argument from the anti shorting brigade "keeping the price down". If we remove shorting in its entirety (if indeed it existed in the first place) where the hell do these people think the SP would be?
I can bet my bottom dollar the SP would be ahead of their investment levels, that's for sure. So someone here currently who bought in @ 30p wants the SP to be north of this......ridiculous.
Someone somewhere in ALL stocks makes the call on its real value based as much as possible on what they can see to a greater extent...and that's the traders.
The SP Timber has been in this 'zone' for a year now...doesn't this tell you something.
Please don't say it's shorters....that argument is so worn out, it is now farcical.
GGP is a minnow, GGP has only 'proven up/ 2moz It has BILLIONS of shares.
For instance if it only pumped out half those shares, the SP would be 24p now. Would that make everyone happy, I wonder.
Take a look, everyone, at other junior explorers and their share issue. We diluted the living daylights out of this company years ago and that certainly hasn't helped our share value.
People see 10Moz, 20Moz, 50Moz (ffs). They do the maths and think my god billions of pounds....but (a) our company only owns a third of that and (b) it has to divide that third amongst 4,200.000.000 of us!!
Z