The inherent value of the company is increasing over the last while so I am happy about that. Retained shareholder equity is improving, number of shares / warrants outstanding is declining, cost of production has been lowered (whether thru production efficiencies and / or through aggregate sales) and they are slowly advancing their other properties (building more inherent value). I have added a little over the last few months in small amounts because of this and because of the improving price of gold.
In some ways, I am glad they are capital constrained by a lower gold price right now as their capital spending plans seem to be a little too ambitious for my liking. Forced to be more cautious, maybe they will develop some discipline in capital spending (that is an opinion only based more on a feeling rather than empirical evidence). I think that feeling comes from the number of fields they have in Panama and now Spain / Portugal under development or targeted for development. I can remember getting burned by junior miners before that had a lot of properties under development and did not do well because of the multitude of individual costs and inherent difficulty of focus that is required to be successful.
It's a wait and see situation for me. There is value here, when will the market recognize it? Will management continue to improve the inherent value or will they destroy what they have built up? Hope for the best, prepare for the worse.
JFF7
It's better to be out wishing you were in than in wishing you were out.
"Markets can remain irrational longer than you can remain solvent". - John Maynard Keynes
