Some good points Rockchipper. Especially with regards to a...

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Nijiman

5,273 Posts.

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05/01/23

09:36

Post #: 65538238
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Originally posted by Rockchipper: ↑

Happy New Year all.

I have a different take on the position of our gold miners/explorers ATM, that being the very tight money supply position, magnified by there being little to no relief from the unexpected explosion of cost of production / drilling ( interest rates, fuel, chemicals, explosives, labour supply and cost, lab access etc) that hit the industry in the first half of this current 2022-23 FY and IMO not likely to change in the near future.

Luckily POG has risen marginally which is providing some offset, but overall cost are still very high and IMO not likely to receded while Europe's political/war situation remains unresolved and the Covid debt continues to ramp up.

The Investing/ speculating/ betting end of the money market always dries up first, less money, less punters, less trades, languishing prices.......

Around 1/3 of my ASX listed mining investment have made a quick crabs for cash since October, smart moves as storm clouds gather, as evident in offers to shareholders being made as the "sophisticrats" become very cautious as to what they take on....... But IMO its not all doom and gloom, cash will be king again and there will be a sorting out of the field.... In that regard yes, we can claim shares are undervalued - and many are, so some good pickings for the brave or foolhardy. STN is the only one I've put extra money into, becos I consider regardless of what the market thinks, there are sufficient assets / reserves to either be near start up or be taken over by the activities around us.

IF the economics we have witnessed previously are still applicable, gold should keep moving up to new highs, how long it takes for the mining sector to absorb the extra costs and reflect such increases in firming up mining margins it still to be proven, BUT cream rises to the top and hopefully our faith in STN will win through....????? Cash in the bank and good dirt to drill to scope out the best mining options keeps me optimistic, while I still keeping an eye on the bigger players keeping on board, with their judgement being hopefully better researched than my optimistic gut feelings.

Keep well and keep patient, & like Sarg says, why come this far otherwise...............

All the very best for 2023.

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Some good points Rockchipper.

Especially with regards to a number of companies who previously tapped insto's & S.I's now electing to do general rights issues instead.

I must admit to being very suspicious at the time of the rights issue. Saturn's almost altruistic claims of wanting to offer all share holders the chance to participate came across as pure B.S to me. They have a long history of rattling the tin to S.I's & insto's to get er done as fast as possible.

STN Price at posting: 16.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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