wakey wakey mr market, page-66

Good post. You hit the nail on the head!

Maybe the one or other remembers the old Florys days in 2006. At a SP of roughly A$ 3.50 (market cap was then roughly A$ 500m) a lot of people were talking of a possible price target of A$ 10-15 (I have to admit that at that time the zinc price was substantially higher end in regard to Mumbwa most people - also BHP - were of the opinion that Mumbwa would host a 2nd Olympic Dam) and therefore of a possible market cap of 1.5 to 2.5bn A$. Some people was even of the opinion that this is a 5 to 10bn A$ company.....

Well...a lot has changed since then:

a) Perkoa is not longer a hole in the dirt (as it was at that time!) but is a producing zinc mine

b) Kitumba is not longer a "one-hit-drilling-wonder" with average grade but instead - at least for the time being - an interesting copper deposit with above average copper grades

c) 5 Km from Kitumba we have Kakozhi (already with some interesting drilling results) as 2nd important target for a possible 2nd copper deposit

d) Alreday Flory was of the firm opinion that Perkoa is not a stand alone zinc deposit (by the way probably open at depht)...therefore a good chance that just around the corner an additional deposit could extend substantially the life time of Perkoa

e) I do not know if all in this forum is familiar with the story of Mumbwa. To make it short: different companies (e.g. BHP) started already in the 1970ties to drill this area because they were of the opinion that somewhere there it should be possible to find a "giant deposit" similar to Olympic Dam. By the way: Even geologist do not fully understand the Mumbwa anomaly or even the Kitumba deposit in all details. So therefore there are only to options: All were completely wrong or....the deposit has not been found yet...

However...even with all the progress that has been made the market cap is at modest A$ 40m. Compared with the "old days" today you can buy Perkoa and Kitumba for "peanuts".

The crux of the matter is the fact that the development of such a company needs time, good management...and luck.

Perkoa is almost up and running (I have waited for 6 years to see the zinc concentrate...). Kitumba is in the starting blocks - at least for the moment - maybe in 3 weeks we know that Kitumba is a "no go" or maybe a surprisingly interesting and se.xy "on go"....if this is the case I will wait - if necessary - another 6 years the get the full value of the company.

To last hints from my side:

1. In 2009 the SP was at 6 cents. At that time really nobody (except some hard-core long term holders) were of the opinion that the SP might recover to 30 or 40 or 50 cents....not to mention the > 1.50 of last year. In 3 years (2009-2012) the story has been rewritten almost completely. The same might happen in the next 3 years.

2. I am still convinced that Mumbwa offers more the just Kitumba....the game might change over night with just one drilling result.

PS: I am back from holiday....and I am thrilled to see the PFS and next drilling results as soon as possible.