Assay Lab Backlog: Blessing in Disguise

What do people hate more than anything?

To wait.

What makes people sell?

Boredom, impatience and paranoia over delayed assays.

What do we get?

Even more “artificially” suppressed prices… “When it rains it pours”.

Have you seen many junior explorers ramping into assay results lately?

Nope.

It seems that most people have forgot that countless juniors have a lot of core in the labs just waiting to get assayed.

So what are we seeing?

A sector where sentiment is so poor that almost no good news is getting priced in even if the news hiked up the implied value of a junior by 50%.

A sector where impatience and boredom is so rampant that almost everyone has forgotten that drilling has taken place and that assays will eventually come.

What do you get?

An environment where one can steal value without taking risk (buying companies that have increased in value via NR but the market has yet to reflect it)

An environment where the usual drill hype premiums have not materialized. Which means that the risk/reward for drill result punters is unusually good. With that said there are no guarantees that good drill results will get much traction given the previous observation.

Anyway, the result is that the junior sector is very much brain dead and it’s like shooting fish in a barrel given that there is “free money” spilling all over the table.

What is not reflected in the Price of a company today will get reflected in the Price of a company… Some day.

One day we will see a market so hot that a news release that includes a whiff of VG in the core will slap on C50 M in Market Cap for ye average junior. Right now one can buy 2 Moz of confirmed resources for less than that.

Don’t hate Mr Market. Play Mr Market.