Replies to post #275 on Alamos Gold Inc (AGI)

[echarters]

I guess the acid test is who Franco Nevada bought the Royalty of. If you want to follow mine building careers, try Almaden Res. and Archer Cathro. The latter does stuff that is all spin-off. Drilling in Yukon now.

As I have said before, on the Moydow thread, spin-off does not always build value well. If it is a big company diktat then, the spin is well shy of the total potential resource and the smelter-return fine print may not be that flush.

Lassonde made a fortune on Royalties because he bought good ones, well written, of the kind VSE companies will not sign, and he bought them when gold Royalties where cheap. Many NSR's with all sorts of deductions and smelter penalties and beneficiation agreements are really NPI's. Subsequently they earned lots, enforced by a load of lawyers and detailed accounting. Without the lawyers and the probes into the finances to keep the thing honest, you and I would not collect. NPI's are routinely not paid because the wording is "after payback and all reinvestment" When is that? Never, it seems is much too soon by comparison.

There are some mine builders that are prolific, but the mines themselves did not do that well. They were holes in the ground that ate, but did not regurgitate money with any sort of positive interest. Somehow the people in the company ended up with lots of money, but minority stockholders are still a-wantin'.

There are other so-called mine builders that have one mine to their credit, and it looks fabulous, and leads the pack, but to do business with them is another thing entirely. Some outfits from PQ are not my faves to bring an sort of property proposal. I steer wide of Montreal promoters with 2.5 twists of the wheel at least.

The longest dividend paying company in the USA is Rosario Resources, a gold mining company who concentrated on the Caribbean. They specialized in building tiny mines and then growing them out of profits. They built, in the past 40 years, several 500K ounce producers. Leitch Mining worked a cash rich one ounce vein for 38 years at perhaps 60 tons per day, and with the proceeds bought about 38 mining companies. Dome worked a small vein in Timmins for 90 years, starting at 60 tons per day. I have reasoned from that and Lassonde's success that production revenue is the surest route to security. Drilling thrills, but mining pays the bills.

EC<:-}

[echarters]

Small indications of geology may grow mighty mines.

It is an exciting field.

It is where the market is extremely inefficient.

The greatest market inefficiencies of all time are demonstrated in Canadian junior explorers. Market leverages can 'routinely' (ever so many routine years..) pass 3000%. People in the US and most European countries just don't understand. To them a pass is 25%. For us, a four bagger (400%), is a yawn. We had better not let the Feds take over the securities commissions, or these opportunities may be lost forever. As it is, the TSX venture is not too bad a compromise. The 43-101 rules are a tad tense, but not a show stopper. You cannot legislate honesty or any procedure that guarantees it. Bre-X could have still operated under the 43-101 rules. "Our 43-101 individual, M. deGuzman will now lead the analysts on a tour of the west zone."

I saw Voisey's Bay when their stock was 3.50. Diamet when it was 90 cents.

I can see others now.

I think CZZ is gathering steam. It is the ore(s) in the ground, stupid. As well as a few other critical mass details. It has people drilling nickel all over the place.

EC<:-}