Buy the overlooked. Markets will re balance in due course when they see the economics and discovery cost.. What matters is relative peers for now within canada space..
Also, there is a thing in canada that provides superior capital dilution protection called CFTF. Raising funds at up to 2x the prevailing sp. (and in Quebec that nice 38.75% tax rebate on exploration dollars) There is $ scrip equity / discovery $. Aus plays will always have to issue more shares for the discovery cost = lower sp gradient. It always comes down to one thing - Earnings per share. And with canada, you also have cheap power. Some stocks will have close to surface low strip rations. Hence with Canada you have lower shares on issue because of the , and possibly higher margins because the cost of power is cheaper, and access to water, infrastructure, and close to north american markets.
My latest addition RON, 6m mc, with 4m cash. Next to BLZ, and Frontier lithium (398m x 1.88% drill) There are monster deposits in Canada, waiting to be found. PMT, WR1, Frontier, etc.
So when it comes to the bottom line, the sp is a derivative of shares on issue, and margins. Ultimately that is what will drive a higher gradient on sp performance over the full life cycle. Dividend yield.
Invest in premium Aus, then watch the next CR be full discounted to mates, not raised at premium with half the shares issued. Repeat. = Sp deflation gradient.
C1X Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
