Hello Tetlom,Near term production is a very high risk time for a...

Hello Tetlom,

Near term production is a very high risk time for a gold company. I could mention quite a few where the commissioning process has not gone well or the deposit does not reconcile to estimates, over budget runs even discovery that they have build the wrong plant (TAM) years ago.

Novice or semi-experienced investors often get trapped by the thought that they will be making money now so the SP should go up.

They have to feed a million tonnes of rock and dirt into a complicated line of individual components and use low grade ore to start so costs are high. Then the process has to be optimised right down to the mix of oxygen and other consumables. Mechanical systems and wiring etc has to be tested.

High risk explorers with no cash flow are also higher risk. So are stocks that seem to be endlessly falling (when the rest are rising) for no apparent reason. Relentless selling as the insiders offload on no news.

We have stagflation FYI which is why you are getting conflicting signals. Governments are ensuring gold will rise not just stay at these levels. This is nowhere near a bubble at this stage. You are right we are over regulated and taxes will have to rise to cover the cost of intervention. This transition to lower debt levels is fraught with high risk.

CW