G79 0.00% 2.7¢ goldoz limited

At the present moment we should be valuing a company that has a...

  1. 1,516 Posts.
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    At the present moment we should be valuing a company that has a SP in the 3s not 18 to 20c it was a month ago and then see how it compares to all the 3c mining companies.

    The MD has stepped down from his position for new leadership to takeover. He has built a ruby mine fully functional with staff, machinery, water systems with extensive leases. He has presented the beginnings of a world class large flake graphite mine and planned current drilling programmes for continuity procedures for further development. Even at this stage it has SYR holders in states of paranoia throwing vitriol into the cogs on site here.

    He has a following of artisanal workers backing him all the way.
    He has arranged finance right to the end before the tender process to be able to move forward if things didn't turn out exactly right.

    Did he stuff up at all. Yes, big time in some important ways, gradings and assumed worth of stones which led to S/Hs jumping on the bandwagon and being jingoistic on the valuation process.
    Did S/Hs make money or have the opportunity of making plenty on their holdings. Yes.
    Did most S/Hs ignore the basic rules of Share-trading and follow the crowd believing their never ending worth. Yes.
    Did JC refuse to sell rubies if they didn't reach their reserves. Yes.
    Have we got any idea of what we've got, what we haven't got and what the approximate true value range within reason of the possible 400,000 carats we believe they have now again stockpiled. No, not at the moment anyway – maybe some idea at end of week.
    Are we getting new leadership? Yes

    Will CJ stay? Yes, because he believes it can be made into a success and at least two directors will be set for life if it is. He will probably adopt a new role in the company.
    How do we value the company to see if it is undervalued? Again by comparing it to other companies in the 3c+ range i.e., market cap, balance sheet debt or lack of it, Infrastructure mining development stage, funds, potential, knowledge gained, reporting and drive.

    What have been the first tender/auction major mistakes?
    Not locating a large selection of rich red rubies with high iron content to excite buyers, improve average carats and give a range of stones to all buyers. Also, seeing 95% of rubies are heat treated to some degree and Gemfields used this procedure for some of their sales it may be relevant to present some as slightly heated red stones can range in value upwards of $5000 ct. if done the traditional way. In any case would make certain stones marketable and at a higher price even if not at that level.

    What else? Clear communication to all and follow the Gemfield's model of quality marketing and presentation which is the key to Ruby success. Time to take off the L plates guys.

    I reduced my holding lately but still in for a buffer if it bounces soon. DYOR


    https://buygemstone.info/2012/09/28...eated-heated-new-glass-filled-ruby-treatment/
 
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