ann out high grade drill results from majestic, page-64

Cookie, let's assume all instos did't buy unless a certain resource/reserve base has been built. That would mean that instos didn't hold shares of the company, thus they didn't show up as buyers, neither sellers. In other words they would not influence the price of IGR in any direction. Their absence would not have any effect at all, certainly not prevent a company's shares from being valued correctly.

In the real world however, we know there ARE instos who do hold shares of IGR. What's more, their rules are not all the same. Some impose harsh restrictions on their ability to choose from certain companies, others are less restrictive and some might not restrict their ability to make a perfectly free choice at all. Accordingly, there is no such thing as a one-and-for-all threshold under which instos were not allowed to buy IGR stock. We've been witnessing IGR move from 25c to 65c, back to 50c and up again to 73c within a couple of weeks. Obviously it CAN happen without the help of institutions and without a certain criterion met. A gold miner with 2 yrs of reserves will be earmarked with a certain valuation and companies with 3, 4 or 5 yrs of reserves will carry different valuations. The threshold of 7yrs mine life might apply to one or a few instos but saying IGR stock couldn't be valued correctly without this one criterion met, seems to be a popular misconception, particularly on chat boards.

If a company is valued at say 100M and they find an additional 100k ounces of gold in the ground, it is reasonable to expect this company's valuation go up. Overlying broader market conditions can overshadow the valuation increase but over time it should become visible. A series of several discoveries and other excellent news without proper adjustment of the company's valuation remains unexplained though.

Reserve/resource thresholds might prevent a certain insto from getting into the stock right away but it can not explain continued mis-valuation of a company's shares. A reasonable valuation never relies on one or a few market paricipants. A well functioning market is supposed to take care of it. But it doesn't in this case and there must be a reason for it.