With St George - and strong companies that you know , and highly believe in ,management included ( where can calculate over the medium term as being definitely very undervalued cf future company to be . )
To me must be view that the company WILL be a Miner or producer - then you do your sums on future market value & production .
This thinking - buying options are very worth considering, and carrying through to maturity or near end of contract .. if you see the intrinsic value for where it should be .
It makes acquiring a future parcel in a bigger company , more affordable too .
Strategy then is to hold the number of shares / heads that you wish to hold indefinitely or into the future .
And - Sell the Oppies! at time , basically . Intrinsic value should be there when you hope a significant re- rating occurs . ( better than heads appreciation then )
I’ve used options fundamentally also - & this is where your argument is more true ,ie. as a hedge / or insurance .
*I think most people’s strategy here , in small company stocks with great potential like SGQ ( I am biased . )
St George - certainly by end of this year , or when decision to mine definitely be made , will be by later this year , next year , and development and planning then should be occurring .. ready for peak Nickel in 2020s — and forward .
So perhaps - you can see ?
** Options here can be a profit strategy - for holding in longterm companies that you are following for years .
Buy to of course sell options ( as you otherwise need convert to own the shares , though some investors invest purely through longerterm options solely , & do not hold any heads . )
Selling down options before expiry , to make your deserved profits from following, investing , instead of otherwise investing, hoping to sell some of your heads in in the end .
These are my thoughts anyway !
I trust JP’s skill and combined forces here of the St George and WSA teams .
I hold both in my SMSf . Have nil intention of selling, esp the ‘parent ‘ processing company . Hold only a parcel intend to keep through next decade .
Also - investing via the options , is good Imo when company has good backing as here , with a significant potential for share value appreciation with resources increases - where you don’t feel that the company will be a target of hostile takeover or unable to raise funds if needed to continue exploration work or development.
( if a TO - you must often convert your options to participate in end sale of your holding. Not what you wish for . )
Compared to WSA , or Independance for that matter - St George is where the primary resource potential growth to me is and under appreciated by market , the increase over time and greater potential.
*Also - st George - is equally almost compelling as a platinum metals investment & gold also .
Plus is high grade Nickel sulphides - no arsenic or contamination issues .
Shallow ore bodies ? But likely a deeper root there - to bring potential for many years down the track . ( fingers crossed - but near known faults , and the rich ore veins must originate from somewhere )
Processing - not an issue - or development.
This ore , when / if mining to be confirmed- is wanted for its blending potentials also by the mid -tier (WSA?) and likely major company above - WSA I see likely to build additional processing , and refining capacity for its own expansion potential alone .
BHP likely desires the ore - for their Kwinana plant ( also it is their original tenement )
I’m very excited to see today’s shareprice movements !
The technical picture was very positive if you overview the closing monthly sp and clear interest coming back in now , buyers returning now the extreme heat of summer is gone ,
* and the most exciting drill programme for us as investors , now in 2019 - is underway .
- then you do your sums on future market value & production .
(20min delay)
