Adriano: I also doubt the reserves will be zero, especially officially, but it's not entirely out of the question that they could be effectively zero. Sure, there might be some economic wells in the group, but if you have to drill enough uneconomic wells to hit an economic one, the entire venture may not be viable. It doesn't seem to have been so far, correct me if I'm wrong, and betting on it being possible in the future is obviously pretty speculative to say the least.
To put it in your gold terms, if you know exactly where gold is you could make millions of dollars going around digging it up with a shovel, but realistically, if you go around digging random holes you'll probably never find anything. If you had an extremely poor gold field but knew exactly where to excavate, sure, it would be profitable, but realistically, the field needs to be good enough so your strike rate is good enough. If MAD knew exactly where to put the drill every time, sure, they'd do well, but in the real world there's a bit of luck and guesswork involved in all these things, and if what's in the ground is too sparse it's not going to be economic even if the resource is there. If we all knew exactly what we were doing all the time it would be profitable to buy lottery tickets or bet on horses and we'd all have known that we should avoice MAD because it was was going to crash from $1.40 to 27c.
FDM Price at posting:
27.5¢ Sentiment: Sell Disclosure: Not Held
