Q: May I have your thoughts on GOT’s latest press release concerning 2024 drilling? To my layman’s eyes the grades posted seemed generally positive but not much more. The market greeted the announcement with a big yawn. I think they need a director of communications!
Jim
Jim
5i Research Answer:
GOT is up ~40% in the past year, so at least some are paying attention. We think the drilling results are fine. The headline grades are very high, but investors note the very small intercepts. Such 'nuggety' results are less reliable, generally, until there is a lot of infill drilling (the drill could have hit a vein that is limited in size). Still, the deposit it developing well, the company has some cash, and the overall resource size is getting bigger. All of this is positive. Lots of work still needs to be done, and lots of capital is still going to be needed, but certainly we would say things are moving in the right direction here.