I am not sure how to break the news to you but there is no billion dollar value, or do we even know if 100 million in value.Imagine it this way- someone sells a house to you saying it is worth $100,000, but rehabilitation costs are $80,000 so what is house worth, $20,000 or $100,000 ? Then imagine that the local city building code may take 3 years for approval, and then another 5 years to finish building to maybe get approval.So then there is cost of time value of money.And in any case CGFI doesnt own the mines but has an option on mines for a price it cant afford.
Dilution a foregone conclusion for companies in this sector without cash flow. The trick is to know how to add value, and market the stock , to add value faster than dilution. Clearly the CFO unable to do this-enough time has passed that in my opinion one can make that judgement.
There is some value to these mines, but hardly anywhere near approaching what there press releases said.Trading stocks like this is sheer speculation, but wild press releases certainly a red flag management doesnt have the vision that it can implement.
