Have you considered taking the cash proceeds from selling VXX short and buying SDS, or something similar? They move up and down together, but VXX deteriorates much more rapidly.
There are many ways to hedge off VXX exposure for people who desire to do such a thing. I’m content to be unhedged and let it die a natural death.
Is this where Energold gets its rigs? http://coreboss.com
Sort of confused now. This means the technology is not Energold?… So whats stopping someone else from trying it out? (of course there are reasons… im sure you get my point…sort of…)
Honestly, I’m not sure where Energold gets their rigs from. I believe the technology is proprietary. I am almost positive that these are not the Energold rigs. To start with, Energold rigs are man portable. No component weighs more than a man can carry. This product has a piece that weighs 1600 lbs. What man can carry that? These rigs are moved by helicopters. It’s a totally different business.
There are companies making man portable rigs. The technology can be duplicated. The issue is that there are 800+ employees at Energold spread throughout the world. Beyond the cost of the rigs, the company has spent millions positioning the equipment and building relationships with local groups. It took years to create that footprint and it is quite difficult to replicate it. Others have tried and given up. I think this is a very difficult business to replicate. And there is only one Fred Davidson in the world.
I see no less than 47 companies operating in the field of aerial geophysics surveys.What would the basics be about evaluating them?
If you want to evaluate any company on their product, it is always best to ask around and get the opinions of people in the industry. The products and ability to deploy systems are quite varied. Mining companies either have partnered with a provider in the past and are comfortable with them, or they hire consultants to guide their choice of service provider as a lot of the technology is quite high tech and difficult to understand if you aren’t a PHD.
There are a lot of smaller companies competing on price, but that’s really quite silly as most of the cost is flying cost and that’s pretty constant for everyone. If you are going to pay for a survey, you should pay for it to be done right by someone respected in the industry. If the systems are last generation or aren’t functioning right, you will pay money and learn little. The best thing about the larger companies is that some of them can offer multiple technologies simultaneously. For a bit more per km (you are flying it anyway), you can get a much better idea of what is going on underground. As with everything in life, you get what you pay for.
I enjoy your articles. I am interested in Ivan Hoe and their project in Mongolia. I ran across a junior miner Entree Gold that has a 20% stake in the project and a market cap of 330 mill. It has gone up significantly since July. I think it is under valued, if you agree please tell me befor the rest of the world. Thank You
I wish I had something worth telling you before the rest of the world…I know next to nothing about Entree Gold. However, keep in mind that they do not own 20% of Oyu Tolgoi. They own 20% of 2 parts of the much larger Oyu Tolgoi property. There is a significant difference between the two.