Celtic Resources - Mining The Mountain

Ian
I have no idea about CER. Hopefully they can mine enough gold to become cashflow positive, reinvest to expand, and the shares will go up. If not, gold fever could result in the shares going up anyway. I think we are not far from having a virtuous spiral upward - maybe a slow one, but who knows.

What they really need is for the thing to kick start. The gold is there. More cash equals more mining, equals larger turnover and (eventual) profit to reinvest, equals more mining still. All this equals more investor confidence, equals higher share price, equals more cash raised with less dilution, equals more gold mined and more for the shareholders, etc.

This process could have already started if the bulletin boards had been more positive and the AIM listing had gone better.

Someone phoned me and pointed out that the overheads are pretty much a fixed cost. Most other things are roughly proportional to production. So the major hurdle is getting past the point where production is merely used to keep the business going, interest on loans?, etc.

Again, this is what I mean about a kick start being needed.

The gold price could trigger it. A decent production figure at Suzdal could trigger it (but I have no idea of the status), maybe stuff mined at the new site and processed at Suzdal could get us going, or an injection of shareholder capital. I would offer the company a few million pounds for shares at £1.35 if I had it. Unfortunately, I am a retail investor and not a huge fund! I would have bought in the recent offer if I had the cash.

Hmmm. To tell the truth, I would like to do that, but I will probably diversify when I get a chance. At the moment, getting rich is more important to me than how rich.