One of the things I like about GIX.TO/GXEXF is that we will know what happens in 2 weeks.
To be clear, my investment thesis here is that GIX.TO will be revalued upward sharply if (WHEN, per my bet!) they announce some kind of financing for that $34MM payment. Specifically I think they will pull together some kind of deal where a larger company pays the $34MM on their behalf, and maybe carries them to production, in return for a majority interest in the property.
I think GIX.TO is similar to what NG and SMC looked like before they popped, as follows:
--small company with big deposit
--needing financing of some kind with a near-term deadline
--show-me-you-have-the-money market sharply discounting price due to uncertainty around financing in crummy credit market.
As to whether GIX.TO is a good longer-term hold, that would be a separate investment decision and would depend on the nature of the financing/deal they can do. As has been pointed out to me by PM, GIX differs from SMC in that production is further out for GIX while SMC could have cash flow from production within 9-12 months (as I recall). If they can do a deal that eliminates or significantly reduces the need for further cash commitments from GIX.TO, then it might be a very nice long term hold. However, I will fall off that bridge when I get to the end of it--not why I am buying now.
