These old school statist European jurisdictions are starting to make me more and more nervous. I’d say what has recently happened with BKY in Spain is the worst example of governance I have seen in a long while and that includes many recent examples of poor governance that I have seen in African of late, including the shenanigans in Tanzania. BKY’s permits have not been declined. What happened is that politically motivated agents within the government have anonymously made claims via the media suggesting the permits will not be granted, resulting in a scuttling of the BKY share price, a complete disgrace.
Bosnia and Herzegovina have one of the most complicated systems of governance in the world so this should be considered by investors IMO while the project still remains at an uncertain and early stage. My softly softly approach with BKY saved me more than any advice from a broker ever would have. Better to rely on your own assessment than that of a broker IMO as brokers may also work for their own self interests. Given what happened with BKY I’m personally still cautious about loading up here. My investment in ADT was the first thing I though about when the BKY “news” broke. I’ve now been burnt twice in my investment career with permitting issues in Finland (for gold) and Spain (for uranium). Bosnia doesn’t exactly fill me with confidence.
On the exploration front this announcemt seems like another good result given the limitations of needing to drill within the current licence boundary. The down plunge continuity has been tested (albeit only 35m along) so we can still remain confident the deposit hasn’t been faulted away.
Given the thinning lateral geometry I’m however beginning to wonder about how reliable the claim that the south west drilling orientation represents an approximate “true width” perpendicular orientation. It seems to me that this orientation is closer to hitting the long axis of the deposit than the short axis.
Also curious how some high profile posters are now also resorting to gold equivalent estimates after having scorned and ridiculed this approach in the past.
I suggest you read my posts on Net Smelter Returns. That’s probably why the pros aren’t going to fall for the simplistic AuEq comparisons, because they are not equivalent. You can generally recover plus 90% of the gold in a gold deposit and you get paid near enough to 100% for all the gold you recover. This might explain some of the valuation shortfall, along with the country risk, slow progress and continued concession uncertainty. Once the expanded boundaries are properly locked in the market might see a way forward IMO. So far the share price has been holding up strongly on low volumes IMO. I’m actually surprised we aren’t sitting lower.Esh
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