Could not agree more GeoProf!
While all stocks have taken a hit in this commodities bear market, it is the companies with cash reserves that have the best opportunity to rebound. This is true for two reasons: 1) To raise money at low share prices means increased dilution of shares. As shares are sold at discount rates, not only are the longs hurt but the share base moves from strong hands to the potential to short and cover at higher volumes. 2) All other things being equal, those with cash in a bear market will continue to move their business plans forward while other stagnate. Stagnation increases the availability of labour, capital (drills), expertise, as those without cash ramp back their drill plans in order to survive the bear. As commodities drop in price, low volume production potentials are hurt first as the cost per tonne mined becomes that much more critical.
Noront is in a good position at the moment, despite the market and the metals prices. They have enough cash to keep them going for a few years, followed by the possibility of selling processed Windfall gold which means more cash flow moving forward.
With the high percentages they have hit with Windfall gold, the Eagles Nickel and PGMS, and the Blackbird chrome, the probability of economic mining is greater than low percentages finds - all other things being equal
