You know, I can see people being upset that we have not hit the original targets which is in all honesty quite fair in my opinion. From what I can see, many people that use the online investment community whether it be stockigloo, Stockhouse, or agoracom need to understand that they are dealing with venture capital here. When we seen the news about the results we were obviously a little upset but as venture capital we knew in advance that it could very well happen. Just by looking at the numbers that they had given us we could have made an estimate of the amounts of AU that would have been produced. I never post these figures in advance as it can sometimes cause people to change their own goals and as we have seen leads to people making predictions that are not always feasible under certain conditions. I just see so many people going into a panic over the recent stock decline. I have received several private msg’s from some people that use these sites stating that they were upset with the figures. Now this might seem like I am being a little harsh here but the reality behind venture capital is that if you can’t be willing to wait things like this out buy stocks like Johnson & Johnson or RBC...etc. These kinds of delays are to be expected folks. We knew the equipment was not in Quebec yet, we knew that numbers were low. Just with that info we should have known that we would not have hit our target. It’s like a tell people in practice, when you buy venture capital you have to be ready for three things: Loose it all, Make a lot, or play the waiting game. Whenever someone wants to buy a penny stock I make sure that the individual is comfortable with loosing the entire investment as it happens often in this game. Not saying it will happen here since we have all the funding we need and we have some very deep pockets backing us up but the risk is always there. At the end of the day if you are not happy with the risk around venture don’t buy into it. We have people that are consistently complaining about losing money and that things are moving to slow. If there are others in his shoes I would suggest you consider less volatile investments in the future as this type of capital is obviously not for you. When you buy an investment make sure it matches the risk levels in which you are willing to take. If you can’t sleep at night your obviously in an investment that has a beta that is way too high for your likings. As some of you here know I do have control over a significant number of shares and I have not sold any at this point in time. In the past few weeks I have actually upped the position in CMM by about 18% which is slightly significant. Over all the future looks bright for this junior mining Co and it is our largest play at this point in time. In the future assuming we can stay under.45 I will accumulate shares on a weekly basis here and there. For those who may be in at higher prices I say stay the course as the future looks very promising and for those who already have positions maybe buy a little more! With that being said I wish you all the best of luck on this stock. I have some projections on this stock that me and a finance group put together but I am still wearing as to whether I will make it public or not. In the mean time take care and best of luck to all investors.
8 comments:
Thanks Mr. Stormpay, Always enjoy reading your posts and what you have to say.
Wopster
figured I would remove our little battle as it did not contribute to the blog what so ever.
Cheers
Anytime wopster!
Thanks for the kindly comments. I'm not sure I'm really on target here, as Carib didn't have to delete any responses to what I said!
In any event, looking at the broad market for gold, how much is being produced by existing mines and how much is in development, it seems quite clear to me that the best money is on companies at or near commercial production, who have something more than .25 oz/ton in the ground (a subject that gets lost in these crazy-dollars-for-gold days).
My opinion (and it is JUST that): buy all you can below .50.
Hope all the Yanks are having a great Thanksgiving!
Good post Storm ..
A couple of thoughts .. most fund managers are not willing to risk money in gold companies that are not cash positive .. "Unless" .. the management team is very well known and highly respected. Even in these cases it is not many.
CMM does have a past .. and the plan to open pit mine failed .. nearly causing bankruptcy .. burning many of the funds that will consider stocks such as CMM.
It is like a pack of sheep .. they see a patch of nice green grass in yonder field .. but some time ago a wolf ate one of the sheep.
Now it has been some time since .. and the grass is greener than ever, but the sheep still remember that past friends who got eaten.
One day one of the sheep will go over and take a nibble .. then .. seeing that this sheep did not get eaten .. a few others will follow .. eating eating.
Then at some point the whole herd will think things are safe and will move in.
The catalyst will be hitting and sustaining production of 1000+ tonnes/day @ close to 4 g/tonne = roughly 4000/oz/month
According to Q3 report and conference CMM should have been producing at this level for 6 weeks now.
CMM needs to confirm this to the market.. and then the nibbling will start.
Increasing production to 1500 tonnes/day by Jan 2011 or early Q1 will cause the herd to move in.
Hi Mike
Like your sheep-green glass analogy. Similarly I am waiting for Co to show proof production is stabilising at 1000tpd at reasonable ore grade and looking forward to the Q1 1500tpd figures.
IMHO once these figures are proven n sustained, dwan has arrived. Further believe getting from 1000tpd to 1500tpd is more predictable. It is not quite the
same as getting from 300tpd to 800tpd during the very early mine development stages
>>>>CMM does have a past .. and the plan to open pit mine failed .. nearly causing bankruptcy .. burning many of the funds that will consider stocks such as CMM.<<<<<
While the shennigans [read "deferred stripping] at the Sigma Pit certainly didn't help CMM, the real downfall was Peggy Kent's unbridgled ambition and her belief in the "mine to generate cashflow, to build" model/idea.
That mine at Rosario de Belen was a dog by any standards - but she got hood winked into to monetizing the Peruvian's investment. Then her ploy to take over a company headed by one of the Top Natural Resource Law firms in CA was a killer too. If Peggy had stuck with exploration at Sigma-Lamaque, making certain permits were filed timely and not spending wildly on failed ventures, then CMM might very well have been viable and not "technically" bankrupt. But alas, she had Big Ideas and poor execution. But it wasn't the Open Pit failure that killed CMM - it was the wild spending and lack of focus on existing assets.
jmho,
123
Does anyone know if the PP's closed for sure today? When I spoke with Pete Ball last week he said the flow-through would be closing Friday or Monday, and yet I havent heard anything...suprised? Nope.
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