Duclean93, the way a stock price works is the value of the stock is determined by the assets the company has and the earnings it is expected to make. When that is recognized by the market, then investors will start buying the shares.
To recognize the stock's value, the investors will want to see verifiable or expected value. Verifiable value is what the company can prove, such as contracts for work, past earnings, or in this company's case, a working mill along with the estimated (assayed) precious metals in the mine leases it holds.
So, a company can have 24.7 billion shares of stock outstanding, and still have buyers. It isn't a question of supply and demand like in other commodities, it is a situation of "proving up" enough resources to make each share of stock worth the price that is being asked.
That means that if there are 24.7 billion shares and the price is .10 per share, then the total worth of the assets of the company would have to be $2,470,000,000 or about 2.5 billion dollars.
Now that number (.10) is arbitrary right now. The official assay results are not known. However historical figures, the numbers that the miners who used to operate the mines could prove, are estimated to be reasonably high.
The Silver Wing mine is believed to have well over $300 million in silver alone.
The Brooklyn mine had some preliminary results earlier this year that showed a gold content in each ton of ore that doubled the historic expectations, (1.3 oz per ton) and the silver content was also much higher than expected.
At $1500+/- per ounce of gold, and a capacity to mill 700 tons of ore per day, the numbers start to add up fast. At those numbers, estimates would put the mill at $1,365,000 per day or $355 million per year, working 5 days a week, from the one mine.
Other sources of income for CGFI is what is referred to as "custom milling" or "toll milling" where the mill gets a percentage of each ounce of gold or silver that is milled. The Pride of the West mill already has contracts for $9 million in this type of work. (That is before they start working on their own mines.)
All these numbers are available in research, if you wish to do the looking. I highly recommend that you do your own due diligence.
Even if this stock only goes to .01, or 1¢ from here, that is a 1000% increase. Where can you find a return like that?
Keep asking questions and reading. You will either come to recognize the potential, or decide not to invest. Either way, it should be your decision, no one else's. There is a risk with every investment, and research is the only way you can be aware of the risks.
Good luck in your investing and research.
$CGFIA
Don't take my word for it, Do your own research! Then you will know it's true!
