jpg1010 - You said: "Be nice to have more buyers come in as they digest the latest news... "). OK, I'll fess up ...
More buyers/buying
I picked up another ~100k today, on top of a decent holding. I couldn't believe what seems to me to be significant under-pricing of what's emerging here (more about this below). Here, FWIW, is some of what influenced me.
I think I know the Caspin story well. I've spent a LOT of time studying its releases and presentations, especially anything to do with XC22. In recent months I've added more as we found, in YARC22, the Ni-Cu and especially the PGEs below the Ni-Cu. I added again when we recently realised we had extremely high value rhodium, as well as platinum and palladium etc. in the PGE unit in that hole (and perhaps/probably in other holes too which will now be re-assayed for rhodium for the first time).
TODAY'S ANNOUNCEMENT: "Zones appear continuous and predictable" ..."some confidence ...on the cusp of a major discovery ...in camp-scale intrusive complex with ...many opportunities for discovery"
It was clear that the diamond holes downdip of YARC22 would be of great interest so here we are with the first batch of observations from them - YAD20, YARCD27 and YARCD25. With assays still awaited, what is Caspin seeing so far? Its highly regarded CEO, Greg Miles, said today (I've underlined what caught my eye):
“We’ve made excellent progress over the pastcouple of months at Yarawindah Brook, drilling over 6,000m of RC and 2,500m of diamond core.
We are really excited by what we’ve seen at the XC-22 Prospect, particularly the significant zones of sulphide mineralisation intersected in recent diamond drilling.
Just as importantly, these zones appear continuous and predictable,which gives us some confidence that we’re on the cusp of a major discovery at Yarabrook Hill. ...
...we’re also drilling a number of peripheral targets, such as the Northwest soil anomaly and theBrassica Prospect, because we believe that Yarawindah Brook is a camp-scale intrusive complex, with multiple prospective settings and many opportunities for discovery.
We’ll continue to evaluate new targets as wesystematically collect data from across the project. “I’d like to thank our technical team for their fantastic effort during this drill program and hope they and our shareholders enjoy some reward in the not-too-distant future.”
Figure 2 from today's announcementThis pic. is useful
We do need the assays though
The tone of that looked extremely promising to me, and it appeared well supported by technical details that I won't go into here. Bear in mind that the diamond drilling was targetting the PGEs, and that
- PGEs can't be accurately tested via pXRF out in the field, so we just have to wait for the assays;
- The CEO also said:
" It should be noted that PGE-rich mineralisation in YARC0022 is not always associated with significant sulphides,sometimes being associated with less than 3% sulphide. The presence of sulphides is considered a useful indicator of the potential presence of PGE-mineralisation, but the amount of sulphide does not necessarilycorrelate with the tenor of PGE mineralisation."
Caspin looks materially under-priced IMO
With 74.4m shares on issue (and a few incentive options?) and a MC of ~$65M at 87c, Caspin looks materially under-priced to me:
- for a PGE discovery containing rhodium;
- especially given recent misbehaviour by Russia and China;
- in a Tier 1 jurisdiction - WA is one of the worl'ds best;
- a mere~150km from Perth (and the port of Fremantle);
- very well served with roads, power, water and mining facilities generally; and
- with Caspin's large block hardly scratched at surface and many further early signs of PGEs and Ni-Cu potential;
- only tens of km from Chalice's world class PGE and Ni-Cu Julimar Project.
Two Warren Buffett quotes are on point :
1. "Price is what you pay; value is what you get".
- In my experience stocks can be mispriced significantly and for long periods. This is no surprise since share registers can comprise thousands of unrelated shareholders having different states of knowledge, agendas, finances, tolerance for risk etc. especially in volatile and complex times like now. There will often be people in the market with a different view from me.
- If it is indeed under-priced - and I'm confident enough that it is - that gives me the chance to capitalise on it. So I've added more.
2. "Opportunities come infrequently. When it rains gold, put out the bucket not the thimble."
I'm not a trader as I've found I can make a lot more money investing, and with less stress. I try to buy "mortgage -buster" type stories, that can change your life. That means taking a decent swing at it, which in turn means doing enough homework to justify that. And of course it means watching out for good and bad signs, to know whether to keep buying, to hold or to start selling.
At the moment the Caspin story is improving materially IMO - and with huge upside IMO as they have barely started uncovering the potential of their ground - so I have a strong conviction to hold a decent parcel and give the team a chance to prove what they think. Bear in mind that they picked up this dirt before Chalice discovered Gonneville so they're astute and very well led by CEO Greg Miles. Good story - very good indeed.
