there is no doubt you state some valid concerns but i do feel you are channeling our ol mate mark79bond if in fact you are not actually him by another name. Somewhat negative in my opinion.
if inflation really starts to shit its pants as many expect I would bet that the price of gold would break its shackles and rocket up more than enough to counter inflation as an obstacle.
Quite honestly one of my fears for this company is along the lines of what you mentioned.. trying to finance and build in the middle of some economic Armageddon, which Is one of the reasons why I wouldn't be against them having a well funded experienced partner to jv a portion of the project.
however, all similar companies will be in the same boat at that point which is where the merits of this project stand it in good stead.
The scariest thing is the price of the processing plant partially because of the refractory treatment issues but I'm confident this has been studied enough that any problems can be put to bed when and if they arise. The other reason the plant is costing so much irrespective of inflation is that is going to have to be a whopper, because we have a shitload of gold. That's obviously a good thing and somewhat counters the sticker shock of the initial outlay. You're actually paying for the capability to produce a shitload of gold.
What helps me sleep at night is my faith in human greed. When the shit hits the financial fan and financial coliforms are splattered around the room all the bullshit stops. The world keeps on spinning and people still want places to park their money but people who have their coin in crypto, growth stocks and all the other fickle risky parts of the financial sphere will be looking for the next best place to park their money and gold or miners will be fairly high up the list I believe. Leaving your wealth in cash will be scary because of inflation, all the bullshit sectors like crypto and the non earning growth etc will dealt a massive reality check.
if this starts a fire under the gold price there is little doubt the miners and explorers will also get some of that love
When this happens and you start to rank the most most deserving projects to park you coin degrey's would have to rank high up there for all the reasons we have mentioned ad nauseum previously in this forum.
will the fear of a bit of a little bit of refractory ore processing scare people off when there is a hungous open pittable deposit with low strip ratio close to Infrastructure,water and with ongoing resource upgrades and likely other metals to be thrown into the mix to help it all along? I don't think so. Thats got to be a better scenario than trying to build a smaller mine in some dry Barron place 1000kms from anywhere with no power / roads etc let alone some ice road trucking kind of location in some other country.
some companies will fall by the wayside for sure - its not risk free- but it's not like the issues are invisible as an obstacle at this point in time. Some level of contingency has been planned for. As long as we can weather the Initial shock we will progress to become a very profitable company.
yes cost may blow out because of severe inflation but the financial metrics have a lot of fat built into them and it will still be viable. The flip side of the doomsday scenario is that circumstances may force more people back into the workforce or attract them from other troubled sectors and provide more labour and other resources to help build and run the mine. It may not be all bad.
If youre going to move forward at all you have to have some degree of positivity and resilience or else you may as well pack up, take your money and bury it under the vegetable patch of your doomsday bolthole while you wait for the comet strike or ww3 and zombie attack but then you'd be worrying all day about the worms eating it.
mark bond was all doom and gloom with degrey but we don't hear from him at all now. Its good to hear your viewpoint but I suspect we'll be fine.
DEG Price at posting:
$1.04 Sentiment: Buy Disclosure: Held
(20min delay)
