Ok. Might I ask how long you think that will last? You are missing the entire point. Saying that a junior is in a bad financial place is hillarious. They are making money. Would you rather have them with 3 mill via dilluting the hell out of the shareholders with never so much as producing one ounce of gold and not being certain that they ever will? Look, I'm not saying you are wrong. It's just that for some reason, everyone continues to assess the risk associated with this company in completely the wrong way. For instance, do you know who owns the note, the main debt on LKA's balance sheet? Do your homework. LKA is not perfect, but its problems can literally be dealt with in 90 days. I think part of the issue is that people see the grades, dont believe them, then try to shoot holes in the company to rationalize the underperformance of the stock. Call Kinross if you dont believe the grades. The entire problem with this company is that existing share holders understand the value proposition and have done the homework and realize that at some point, the market will get it right. They simply will not sell at these levels. Prospective investors want it cheap, especially in the penny stock world. They soon realize that the spreads are outrageous and they cant pick up enough shares to make it worht their while. So, a penny stock suffers from a lack of sellers. And you see this as a problem!? Unbelievable! This is one reason that management has agreed that their "forget about PR and focus on mining, the stock will take care of itself" approach was flawed.
As far as the deal with Premier, it gives them an option. Thats it. It changes nothing structural with LKA. Like I said, do the homework. Management is finally changing course and is going to take PR and exploration seriously. It will be off to the races for this thing. If stock doesn't appreciate enough, it will get bought up. Tell me one other place in the world that you can produce these grades at these costs. How long do you think mid cap minors will look past that? Its simple economics