I think @RinaAkira is making the point that junior mining companies including Geopacific are incredibly risky speculations where more often than not the outcome is unfavourable for shareholders. I have data that fully validates this point of view. I follow close to 200 junior mining companies and over 50% of them destroy value (its a fact). The median for my list is actually -1.3% (so 50% of the list destroy 1.3% of value or more over time). The average value added over this list of companies however is presently 79% thanks to a number of outliers (predominantly lithium companies but not exclusively). What this tells you is this sector has the potential for strong returns over a handful of companies which can more than adequately make up for the numerous losers. This sector has an asymmetrical nature which is what appeals to speculators. I have found some of these best candidates fall in the sub 15 million dollar Market Cap category, hence my interest in Geopacific.
For people who are looking to put next months mortgage payment (or any money they can't afford to lose) into a company like this, I would agree that's not a good move. On the other hand most people who participate in this space have made and lost enough money to appreciate the risks associated with these plays. I have personally weighed up what I consider to be the risk and reward and am prepared to roll the dice and will fully accept the outcome. A favourable outcome for me is a share price north of $0.06 a share. An unfavourable outcome is if the share price declines below $0.01. My entry level is $0.02.
Chances are @RinaAkira will be right and I am perfectly at peace with that. I will move on to the next play.
GPR Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
