Hi all, winding down my views here on BRB. RMS will have over 50% in this next week. That is pretty obvious. Once that is done, then the risk reward totally flips to negative for holders of this stock. I hung on partly in the hope of a sweetener from RMS that never came. This is not a loss at this stage of this secular bull in gold. Not at all.
The risk is that BRB will be de-listed which will destroy the liquidity from the investment permanently. The insto's playing this will know that, once a better offer is not coming, that it is all down hill from here unless they take the offer. I think they will.
I have seen my shares triple in value since Peter took over. Even better, I have accepted the offer in one account and will convert to RMS which earns money. Why would I not be happy with that?
Because the ride took too long, and with that, the risk started to escalate. The opportunity cost escalated the whole time as well.
Part of that was due to Covid and government response shutting WA down and printing squillions creating inflation - helped by Russian sanctions (energy costing more) and so on. Many related factors to the current banking crisis, crushed bond values, geopolitical risk and downgraded economic growth world wide (at present). Mass change is in the air; totally unprecedented and shocking.
Given the changing outlook and circumstances, I had to alter my investment outlook irrespective of my view of the deposit and camp potential. I will enjoy that as an RMS investor for the duration of the gold bull. Better in a profitable producer than a now stale explorer in my current view. Especially from an overweight position where I was a while back. The reactions in here prompted me to sell down to remove risk from the table. The relative value elsewhere in the industry also prompted me to shift capital into a few other outstanding opportunities in stellar hands.
RMS will take my investment to the highs I wanted from BRB over the next 3 years in my current thesis. If I have to pay tax on that due to hold outs who want to risk their capital then so be it. I have a war chest that can handle that.
For me it will be a more balanced allocation and lesson well learned. It is possible we will see a mega gold move here as true price discovery takes place; as a result of globally diversified metals exchanges outside CRIMEX and the LBMA. I sincerely thank Tom for the BRB opportunity and I sincerely thank Peter for converting the opportunity for all of us. At least those who could see the writing on the wall and were nimble and flexible enough to take advantage of the offer. I feel for those who can't let go and want to kill this opportunity for themselves. It is a personal decision.
The gold bull is just now beginning to transition into the next stage based on my harmonic model that has worked well since I discovered it back in 2013. My macro analysis all points to a raging gold bull as price discovery finally happens after so long. I am happily taking the money and running and very pleased to have profits instead of paper losses. Will RMS get the real value from the tenements? I still believe there is a lot more there.
I hope my posts have helped some of you as that was the intent. Ditto for clients as I educate about all this for a partial living. My income comes from investing and trading. I also sincerely thank those who supported my posts with a thumbs up here on the BRB thread. I am staying in HCopper but spend most of the time writing newsletters - now 441 of them. This is a challenging time in history in a challenging sector. I hope you all do well.
My sentiment should read "take the offer" but I cannot select that. No advice, just opinion, your choice and your money.
GLTAH and best regards CW
BRB Price at posting:
47.0¢ Sentiment: Hold Disclosure: Held
