Indirectly through a major shareholding in Regency Mines plc which controls Red Rock Resources plc I am very interested in the future success of Jupiter -after all I assembled Mt Ida and Mt Alfred for RRR when we spun it out of RGM -then we sold Mt Ida to JMS and subsequently I developed the CYIO strategy which Andrew Bell and the Pallinghurst boys have worked hard to implement.
In the same way that I recommend any company maintains it's key assets - et al RSL- that does not mean you stay focussed on just one commodity if you have the firepower to also take on gold projects. So I disagree with RRR/PR/and JMS management on a singular focus on manganese and iron ore given my view of the international economy. Noone can convince me that the major economies of the world can keep printing money and we can go forward with huge debt burdens as if nothing has ever happened. I also do not subscribe to the theory that China can decouple -although some very knowledgeable people are now suggesting that is possible. After 50 plus years in importing -exporting and mining I have never seen an economy that can go it alone -hence in my humble opinion if the world economy is mired in recession/depression then China will stall -as it has done already with zero growth - not the growth figures published by the Chinese.
To that extent I have not changed my sentiment - I am having two bob each way - if it all recovers quickly RRR will walk with a big payday from it's JMS investment and indirectly RGM should benefit-if not it still has cash flow from gold -which is low capex -low cash cost and depression proof. We are still profitable with gold prices sub $500 oz let alone $1200 oz.
I suggest we now let history take it's course -each of us must make our own judgements and each of us must weigh up the prospects of each stock in which we are invested. As insurance I still have interests iron ore - manganese -salt -nickel -copper etc etc - but gold is my key focus.
That's my contribution for now mate - best of luck - time for a beer !!
JMS Price at posting:
15.8¢ Sentiment: Hold Disclosure: Held
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