Five years ago this month, the GDXJ, an index of junior gold producers, stood at 171.84. Today it was 20.39, indicating a loss of 88 percent.
Over the same period, the LBSR stock price has fallen by almost exactly the same amount, though the capitalized value, I think, is off less than that.
The suggestion here is, if nothing else happens but that these issues return to previous levels, the gain will be a factor of around 8.4. 8.4 on today's closing price is 3.95 cents - call it 4. This is kind'a shaky stuff, but something of a tool, if even just a passing consideration.
HOWEVER, and looking merely at the near term,
I think anticipation leading into drilling by LBSR, and before results can be released, may take us to a minimum of .008 - trying very hard to be a minimalist here. Then, on good returns (not Bonanza grades), we MAY go up 3 times from there. That would be 2.4 cents from TWO holes alone, meaning there is lots of room for a run, ASSUMING GOOD RETURNS (and while guesstimating the low end of possibilities).
Now, there is no way here to factor in the effects of an improving market, should we see it, but an improving market should be in the back of the minds of those who choose to hold some or all of this long term
But don't get too exicted just yet! There will giveaways out of this - more dilution & perhaps eventually two or more partners for Hay Mountain. In the end, years from now, I think LBSR could be down to around a 10 percent interest, but that's just for Hay Mountain and nothing else.
Now, and the most important point for me, is the fact that JB's goal is to bring this company to the point of being able to finance it's own project(s), meaning these will be dilution and partner free.
If so, I believe a mining legend is about to be born near Tombstone, and I can tell you I ain't been smok'n nothing neither! This is the way I see it, and how my money's on the table.
VP, Bullish and Long! [Do you own DD.]
