is the DRC block any good? we wont know until its been looked at in more detail.
we hear from keyboard warriors that the last two projects were duds....probably correct....its called exploration !
No doubt, we all clapped and cheered when they were acquired and the price rose. We said they were company makers...whatever. They werent, and thats the nature of the game, have a look at 100 or so random spec shares and you get the same story......its high risk exploration, and, if you want to play along, its incumbent on you to accept the risk, and manage it accordingly. If you make money, or if you lose it, its because of one thing...Greed....pure and simple. Greed is good when you get it right, but its also what turns you sour when it goes wrong. Get it wrong and its your own fault, blaming someone else doesnt negate your own responsibility.
Am i defending management?? Yes, and, also, if they cannot bring home the bacon this time, then i will happily black list them, but, the decision to buy, and keep buying is my own.
Finding a deal isnt so easy, its not as simple as picking them out on Ebay, yes, there are websites that market projects, and they are also introduced privately. Its a matter of sorting the wheat from the chaff....no different in some ways to buying a used car, and its reason for being sold etc. Not all projects can be bought off the shelf with a degree of confidence, some require inspection. Then, there is the negotiations etc...........it all takes time, and sometimes, amounts to nothing.
I have been fortunate to be able to chat occasionally with an ex director of an ASX co, and the tales of dealing with the ASX are astounding.
As an example....WFE....word is the suspension is due to a change in scale and nature....in other words, its a decent sized deal. Its here that the ASX desk jockeys give the most buggery. Everything is questioned, your made to jump through flaming hoops, and every word of your announcement is quizzed by someone who understands rules, but not always common sense. Even the simplest acquisition of a plain jane tenement is scrutinised.....you cant say its 'exciting"....you cant say its an orebody if it isnt JORCed...blah blah, ...some really ridiculous stuff i can assure you. Strangely enough, some of the scrutineering becomes detrimental to the shareholders the ASX is supposedly looking after. i.e....in a recompliance, the company has to raise to get to a certain cash/asset threshold, which usually dilutes at a cheaper price than current. WFE will be worth watching, if for no other reason that to see what they acquire, and what hoops had to be jumped through to get it over the line, clearly a suspension of several weeks tells you of the issues involved, and, having a new board, they may not even have operating staff that are used to dealing at that complexity of bureaucracy.
I'll back the board, and see what transpires, i am aware of the processes that go into finding something, and, if i'm not impressed, i'll move on....blaming anyone but yourself is little more than a sign of not being responsible for your own risk management. Again, we are playing the dog end of the market....20-30% daily swings tells you this is the high risk end, not the "safe haven"end. If you want safety, go and play with a train set....and...again....go through 100 or so specs, no doubt you'll find a success, because we are wired to remember pleasant memories, but, the fact is, most exploration projects dont succeed, and for every one that does, it simply reduces the field of projects available. Its getting harder by the month to find anything, especially now the mining scene is experiencing an uptick in interest, and companies are beating each other off to get to the good projects first. If the North American deal fell over, then there is probably a good reason...no doubt you'll say the board werent up to it...but how do you know?...we could have been gazumped, the project may not have been up to scratch, may have been too onerous on the terms...........best to be sure the dog is house trained, rather than tread on a turd in the dark
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