Ann: General Security Agreement, page-276

@Creep

Usually when there is a devaluation of a countries currency, you will usually money flow out and invested into overseas and alternate assets. For example, over an approximate 2 year period between 2015-2017, there are a massive surge in Chinese Residential Highrise Development along the East Coast of AUS. It was amazing the amount of tower cranes across the city. Now, hardly any. Refer below.



During that period we saw apartment prices almost double in value. IMO, for everyone holding US Dollars you start to see the USD invested into emerging markets, precious metals and other alternate assets. Remember, the US are a trade deficit country, so there USD held by many other countries won't be going back into the US, it'd be use to purchase other assets whilst the USD still has any value.

It is good to own hard assets. Precious metals, like real estate (land only) is a scare and non-depreciating asset. There is intrinsic value and becomes scarce over a longer time period and appreciates in value over a longer time period.

For investing in the precious metals sector, one would be investing in such companies because the Low Cost Operators, particularly at the POG over $1500/USD are making 50%-80% Margins! they are currently one of the highest yielding sectors and their dividends will increase as they build on their free cashflow. They return a certain % of their free cashflow as dividends to shareholders.

For explorers, you are investing on good quality, big discoveries with potential to become a lost cost operational mine. The value is derived from the scarcity of such discoveries. Like i pointed out on the other thread, it has been circa 8 years since the last 5Moz + Discovery (GOR Gruyere) in Aus and prior to that discovery is had been almost 10 Years since a 5Moz + Deposit was discovered in Aus. That is why DEG's Hemi drew so much attention from around the world. It is still early days at El Zorro, but, if the district target drilling and regional delineation validates a massive District Scale System, you'll be looking at a 15Moz + potential, which has been decades since the last one was discovered. Even a bear market won't be able to dampen that discovery! It isn't that long of a wait to find out and the risk/reward is heavily stacked on the side of the investors.

That is how the sector has operated for decades. The sector is muddled up with alot of trapped generalist investors from the run up last year. Once the generalist investors and retard managed funds are out of the sector, you will see a re-balancing in which the good discoveries will be valued well and the garbage grass roots small resource explorations plays will likely end up fizzling away.

Ofcourse, you have the traders looking for a sharp rise in the POG as a catalyst to pump the sector, but that is just short sighted and they'll likely end up getting burnt chasing momentum stocks.

The stuff you read and see on the mainstream media sites are designed to influence and install fear amongst the herds. If you weren't invested in the sector between 2008-2018, particularly during the lows between 13-18 here is a quick summary

• The sector was front ran by all sorts of funds and investment into stocks and etfs were at mania levels
• During 2008-2012 it was really easy for explorers to raise money
• There was never any actual physical demand so once the funds started selling everyone else followed
• From 2013 onwards, the sector was oversold and it became really hard for explorers to raise any capital and many fell over
• A falling POG is NOT a big risk for explorers, it is where they are in the exploration campaign and the INABILITY to raise sufficient capital to progress from explorer to developer WAS THEIR BIGGEST RISK
• Many that were no advanced enough could only raise capital in piece meal sizes and were forced to attach unfavorable options to even attract the grubbiest investors.
• We saw many fall over and the small garbage explorers/prospects ended up becoming stranded deposits.
• However, a handful they had great discoveries and those that were able to pick out the gems, NST, GOR, WAF etc did extremely well & it wasn't even that hard to identify them.
• The same thing is going to happen again. The top exploration discoveries will go on to do extremely well and the ones that aren't already funded to at least complete an MRE will probably fizzle away.

I see you are also invested in MDI, which i think is massively oversold and undervalued for what they have. They already have assets worth in excess of $60 Mil, their open pittable resource is circa 250 Koz and they don't require massive amounts of capital to restart operations. Similar sized peers are all valued around the $130 Mil market cap range, so, based on their current MC, bloody hell, I'd say the the risk/reward so HEAVILY STACKED in your favour. IMO, a very very veryyyyy nice play right there, and probably the smartest play a non spastic/retarded person could make.