Loading ...Life cycle of a mining company
In the past read few posts on Kitco about the subject.
But I can not find it in their archive.
However, traders investing in junior must be aware of the cycle of a junior.
There are several phases:
– Discovery First hole assay
– Expansion of resources
– development of Economic assessment analysis Phase
– planning the mine ending with production phase.
Below is a time line and price action of the company during these cycles. It does not include the bear trend in PM sector these companies get cought in.
Like Allied Navada’s property has great resource deposit but is bankrupt.
May Plunger be able to shed some light on this????
Yes, This is an accurate model. Go to Brent Cooks web site he outlines this process. It takes years, but one should respect it.
Thanks.
There is suspicion and indeed allegation that the case of ANV was not a matter of getting caught in a bear market but outright fraud. The theory implies that insiders and cronies assumed as a part of premeditated machinations that the price dip of Au and Ag was temporary, a means for seizing the property on the cheap.
A shareholder appeal of the bankruptcy was rejected, but the rejection of the appeal has itself been appealed. I do not know when the ruling will be available.
Unfortunately the case is extremely convoluted. I do not fully understand it and thus cannot properly describe it. I have previously linked here (perhaps my 1st posting, as Anon) to where multiple shareholder legal filings can be found (mainly those by Brian Tuttle), but I suspect no one wants to see the links again, much less wants to wade through them.
From my limited if not completely naive understanding I will not touch anything company with an insider who was an ANV insider at the time. Pure filth, or incompetence beyond incompetence, or both, to have anything to do with an ANV insider, I suspect.