Makamint, though i am pretty good with analysis, i am at a loss to explain the prices of the precious metal stocks. I have a number of great gold and silver stocks that are producing the underlying commodities at miniscule cash costs but have yet to see the appreciation in their market cap. This has left me completely baffled...I have a silver stock that produces 1.5 million ounces of silver at $7.50/ounce and is currently completing another mine that will give it 6 million ounces per year at a cash cost of $8.47/ounce! So in a couple of months, they will be making 200 million dollars in PROFIT...
This firm is currently valued at less than $200 million! That is just one of a number of firms that have not gone up with the spot prices.
With MKO, i am just weary of sell-offs as i have been burnt twice. I do not think that favorable results have been factored in but it all depends on what the current crop of holders are looking for in terms of resource estimates. What would constitute a poor result for the general market is the real question....
Also, i have stumbled onto another gold junior that has already got the ounces in the ground and valued similarly with MKO. So i am trying to weigh the risks and rewards..
MKO Price at posting:
20.5¢ Sentiment: ST Buy Disclosure: Held
