Yes, gold stocks can be rather frustrating at times. Patience is a virtue indeed, unless you trade the ups and downs, even while believing the final story. If you consider the resource and reserves statements and the production estimates to be believeable then this company has a low valuation compared with other companies moving towards production. Gold companies go through a cycle from exploration to development that typically involves a company in the DFS stage stagnating while it secures development financing. Nevertheless, the "proven" gold is in the ground at an economic price for mining and so the company remains a good risk, so long as the POG stays at or above the DFS figure. There are other factors to consider of course, and sovereign risk along with financing for mine development and processing facilities would have to be some of those in the case of CDV. I am happy to hold at these prices and I look forward to very much better prices once CDV goes into production. The DFS stage is often a good time to buy if you are an investor with a longer term horizon and yes, the POG does influence the SP. Traders are only looking to prospects in a short time frame, regardless of the long term outcome. Investors (which you seem to be) need to concentrate on fundamentals. To me, CDV looks pretty good on those at present and if the SP declines further then even more so. As usual, as an investor, I spread my risk across multiple opportunities.
CDV Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
