Can you imagine an investment world where you could make decisions based on what management/Maurizio wants? He wants to become a mid-tier gold producer. I want to live on a yacht and be fed grapes. I can’t tell you which outcome is more likely but I can tell you that Maurizio has been desperately looking for financing on many different projects just like 1000’s of other, undercapitalized companies/individuals have during this challenging period for the precious metals.
I would argue this was one of the worst bear markets in history. Until recently. The market is considerably better which means the cost of capital has become “cheaper” but is still very limited to those projects with undefined resources.
If gold trades at $5000oz everything is going to come into play. The question you need to ask yourself: am I better investing in a late stage development/early stage producer which will go up 10-20x with $5000 gold or should I speculate on an investment with no visibility re: dilution. In other words, if you own 1% of MDMN now what will that percentage be post financing? I have no idea which makes the decision pretty easy.
I will definitely be buying the book “Anatomy of a 30-bagger” but I’ll be skipping to the chapter that discusses losing 97% of one’s investment, and then getting a 30-bagger, to break even on a 20 year investment. This would be the chapter that most of us could probably find both relevant and informative.
It’s always fun to speculate and even average down but, as even BB admits, it probably makes sense to understand what you own before throwing good money after bad. There are a ton of stocks to play with, that actually go up with the price of gold, if you are generally bullish on precious metals.
All IMHO.