05/06/2010
December 3, 2017
04/29/2010
December 3, 2017

05/02/2010

Hi Kuppy

One thing that I noticed with the recent earnings releases from the larger gold miners is that they are increasing their exploration expenditures. Do you believe that Energold and Aeroquest are positioned to capitalize on these expenditures or are their target customers mostly the juniors? What in your opinion are the dynamics in terms of customer buying behavior for these companies?

Majors seem to be increasing spending. Juniors are raising piles of money. I think they will begin to increase spending too. There is a lag however from when money is raised and when it is spent. As it stands right now, exploration spending should be up significantly over 2009. I sure hope some of this spending trickles down to Energold and Aeroquest. On the most recent conference call, Energold mentioned that they are already seeing increased spending and backlog.


hi, i learned of you via Fleck’s posting of your writeup of EGD and AQL which i decided to invest in. thanks for sharing those ideas.

regarding gearing, have you considered sprott asset management due to its PHYS gold vehicle? based on the action in SII (week of 4/30) not a new idea but may be a back door to participate in Gold’s favorable primary trend.

cheers

Glad you found your way to the site. NEVER invest just based on something you read. ALWAYS do your own research.

I looked at Sprott. They have multiple revenue streams beyond just the PHYS vehicle. When i looked at Sprott right after the IPO, I felt that the company was set up in a way that let management cash out of some of their equity–yet still keep much of the economics of the business through salary/bonuses. I do not know if this has changed since then, but at the time, I wasn’t interested b/c of this fact. I haven’t looked at it in a while so this may have changed. Clearly an increase in revenues will help the business–but will shareholders see any of it?