Their announcements and actions so far seem to indicate that there is plenty of potential for them to make preparations even if they do not yet know exactly how to tackle the mining. That to me suggests that it's not a matter of whether there is enough gold in the ground, but what the best approach is to get it out. I think we'll all be pleasantly surprised by how the SP moves once the plan firms up after the bulk sample is returned.
Having said that, the real pay-off will actually be once there is sufficient production for the operation to be self-sustaining. That'll be the first milestone to tackle, and I'm happy with how management seem to be keeping the eye on the ball in that respect. Focusing first and foremost on the venture that is going to get them to a stable income.
I know that some in CFR are much more excited by the prospects of one of the wildcards of the pre-existing projects finally paying off... but if they were putting any attention into that first, then the company would clearly not have learned anything from the past. Once they have enough cashflow to not worry about where their working capital comes from there will be plenty of time to dig deeper into those prospects. And who knows... that may very well result in a big SP-jump somewhere later in the game... maybe next year... maybe the year after that.
CFR Price at posting:
0.7¢ Sentiment: ST Buy Disclosure: Held
