Then why would Frank be buying at 72c? If I were him I'd be negotiating to sell 50,000 ounces at the current Australian price of around $1,400 an ounce. That would be enough to start the whole process without diluting the shares. Those ounces could be delivered within the year. Alternatively there may be a buyer in the wings or a partner. This can't and won't be revealed now. The PFS is due out any time and this will clarify the issues for the sale of ounces or the business. With gold at these levels in Australian dollars the profit potential with CRK is very large, perhaps as high as $850 million, assuming a cost of $550 an ounce. That is just for the first venture. That will then provide the cash for the next stage. Yes, I know it is easy to be gloomy about the fluctuations in the share price but the reality is this has been largely fuelled by the GFC when everyone has been nervous. If that had never happened we would be mining by now and the share price would be several times its current level. The darkest hour comes before the dawn!
CRK Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
