It's hard not to notice the decline of lead pricing over the last few months but thats only cause it was even harder not to notice the 6 month bull run it had leading up to that turn. We are talking commodity pricing so I don't think even the greenest of investors would think that they'd see pricing stay flat over the course of the project.
The fact that lead pricing is only a little below DFS quote isn't an issue for me, especially considering since the time of the DFS Galena has managed to secure an offtake agreement with IXM at a premium to benchmark pricing.
In the DFS Galena had also factored in silver pricing at $16/oz, where it is currently up over $18/oz and analysts predicting a bullish year for the precious metal looking for it to run beyond $20/oz with potential of a big breakout to the upside of this price.
https://seekingalpha.com/article/4315149-silver-lots-of-action-in-2020
Since the DFS theres been more outstanding drilling results so an updated reserve and LOM are on the cards very soon to add even more sex appeal to this ugly duckling of the commodity world (no-one buys lead necklaces to impress anyone but its one of the most commonly used metals on the planet with unwavering demand).
And in a show to holders that management are the real deal they've also saved the project potentially over $40mil in the last month or so by completing a termination of royalties.
Finance due literally any day (if it's like most other timing 'coincidences' in the spec end of town we may see this around Phase 1 signing when markets hit their straps - or is that too cynical?)...
Oh and while we are on the Phase 1 deal I'm glad you mentioned the US/China trade tensions feeding into the suppression of most commodities. I'd say the signing of this deal next week and continued progress throughout the year (leading up to elections) will take the brakes off. So for me personally I can see a lot of commodities having a very good year in 2020 and especially projects as well advanced as Galena but thats up for investors to make their own minds up.
IMHO
GLTAH
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