With a share price of .74 cents today, we have hit new lows both financially and in in terms of morale.
It is almost as if McFaulds did not happen.
While the Windfall news two days ago was not steller, it was also not complete. Assays from W3 (former area around hole 100) are still due and they have essentially mined out much of the area without being in a production state. All of this material can be processed and there will be gold. How much remains to be seen.
The key is that the money is spent and any gold recovered remains with the company. As long as the cost of processing is less than the value of what is coming out of the ground, we are further ahead.
The key news was the economic feasibility study which shows we have very good potential at McFaulds. Not based on hype or wishful thinking but actual and estimated reserves as reported in the June report.
Often times we as shareholders are so close to watching the share price and the issues surrounding a company that we might miss the factors that have led to the share price drop. We talk in high level terms about the sub-prime crisis, the US banking crisis, and the economy.
While I believe today's shareprice is an attempt to demoralize shareholders in the days leading up to the AGM, there are other reasons why we are not sitting at $3, $5, or $7.
It is commodity prices.
Nickel has fallen from $23/pound in August 2007 to about $4.20 today.
Copper has fallen from $4/pound to $1.83 today.
A look at the venture shows that we hit had 52 week high of $3192.55 and now sit at $872.
These are drops of 81%, 55%, and 72% respectively.
Is it any wonder that Noront has fallen from a high of $7.50 to $1.25 (I do not count today's gong show price as it is an over reaction or manipulation before an AGM and has no reflection on reality even in this market or at these commodity prices).
Let's face it, we are in a bad market. But bad markets change and hopefully so will our fortunes. A lot of other company are in the same boat which is why the venture is at these lows. Demand for commodities will return and we will once again reach new highs as demand over the long term increases with expanding economies. How long this will take is anyone's guess.
The question is whether we can survive until then. The first step takes place in five days with the proxy vote. After that the real work starts.
M1.
