It does seem inordinately cheap. And possibly the market has got the story wrong.
But there are a number of issues regarding technical disclosures. Mining methods cost of extraction etc, that I have flagged before to R.P. For a number of years this stock has been touted as a take-over target. This was never the case, historically. However, the current price does seem to be getting to silly levels. So maybe this is - and it is time people will have another look.
Just as a guide - in evaluating a company, don?t look at the number of ounces in the ground, or the price per ounce, etc. These things may give you a rough guide, but that is all. Critical things are, the thickness of the orebody, and the dip (steeper is better), grade continuity, metallurgy, size, grade, capex required, nearby infrastructure, etc. Large mining companies want large, thick orebodies, typically low-grade (large thick ore-bodies are always low-grade) that they can open cut and negate mining issues. They want a processing option. Clearly CRK was never that.
Hence the reason why I kept asking, how much gold do you need before you start mining???
I do not wanting to be a downer ? on the stock. Frank appeared to be a good man. A self made man, from humble beginings in Ireland. An outsider to the mining industry, but gave it a go. Gave a large portion of this company to the Catholic Church. These a good and noble attributes that very few other have. And are therefore a credit to the man.
But this company does need to get real. And those research companies had better source some analysts who have actually worked in a mine ? rather than read about it in a book.
CRK Price at posting:
43.9¢ Sentiment: LT Buy Disclosure: Not Held
