Hey everyone, I purchased Greensland Minerals (GGG) @ 55c - I purchased because Its land holds 3 REE, HREE and Uranium deposits with grades that are competitive worldwide. After Greenland amended its mining law to allow GGG to explore for uranium - thats when I knew I wanted a piece. Since then it has floated around 2 steps back one forward. Today for no known reason - it has spiked up over 10% Let me tell you a short story - once when I was exhausted, i went to bed early and fell into a deep sleep. My phone rang next to my head. It completely shocked me, in my daze I sat up to get my phone, smacked my head on my bedside table and fell back on my pillow in pain... the phone kept ringing. Sometimes stocks do this - they all-of-a-sudden WAKEUP and speed towards their 200day moving average - hit it - and straight back down again. This is because shareholder sentiment is low, shareholders are fatigued and looking for a good rally to sell into. It is a sign of weakness - but also a possible signal that shares are moving out of selling hands and into holding hands. But it must be confirmed by the average parcel of shares purchased.... divide the daily volume by the number of trades and you will get that average share parcel size. If it seems low - it is mainly speculators and day traders - if it is high chances actual investors may be buying. Another way i investigate this is that 'course of sales' graphing the the price range buy the number of shares traded at each price interval, segmenting each parcel (imagin doing that when over a million trades happened in a day) - wish i was a programmer But anyway - have a think about these things and be careful of buying into strength - you could smack your head and end up back down at pillow level.
To be honest BB Greenland Minerals are so hard to value i gave up. I never bought this stock on the basis that I believe it will become a mine. Whether they ever get into production is beyond me - it will cost about $2bil to build all the infrastructure required - before they even dig some ore. Where will they get that $2bil ? I Dunno. Are they worth $200mil now? I Dunno Why do I own them then ? Its big in Uranium relative to BMN, its not in africa like BMN Its closer to Europe than LYC & ARU and its bigger than both LYC and ARU (and Molycorp for that matter) Greenland's governmental pradigm is changing, environmentalism has caused this country to suffer economically - fishing, whalling, seal furs etc all but gone because of green pressure - they are in need of native energy and they are reluctant to join the EU. They basically gave the forks to the EU and said 'no way'. They need this deposit - and I believe the government and communities know that. The next mineral rush (energy minerals, presious metals) area will be in Islandic and Scandinavian countries - Sweden, Finland, Greenland, Netherlands, Northern Canada, Alaska are the economically/legally safer zones but northern russia as well. Here is an excerpt from WIKI In 2010, Greenland's exports to the EU amounted to 331 million (a 92.7% share of Greenland's total exports) and the Greenland imports from the EU were valued at 614 million (68.9% of all Greenland's imports). Exports to the EU were mainly food and live animals (89%). Imports from the EU included mineral fuels, lubricants (and related goods), machinery and transport equipment (together 47%). The EU is Greenland's main trading partner. However, Greenland ranks as the EU's 103rd largest trading partner. Here is from the Ministry of Forign Affairs Denmark (greenland's big brother) "Climate change is causing the polar ice cap to melt, and is posing a threat to humanity. Paradoxically, the man-made temperature rise is also opening up new commercial opportunities. Beneath the melting Greenlandic ice sheet there are huge reservoirs of fossil fuels up to 13 percent of the world's oil resources and 30 percent of gas resources, estimates the U.S. Geological Survey. Russian energy concern Gazprom has established its first Arctic drilling rig, Prirazlomnoye, in the Barents Sea, where drilling is being carried out in temperatures as low as 50C (58F). The US Environmental Protection Agency (EPA) has given Shell the green light to drill for oil in the Chukchi and Beaufort Seas off the coast of Alaska. And the Danish Commonwealth, which comprises Denmark, the Faroe Islands and the world's largest island, Greenland, has also joined the hunt for oil. Denmark has recently formulated a strategy for the Arctic which focuses on the commercial opportunities and the new challenges for the populations of the vulnerable Arctic region. The newly appointed Ambassador for the Arctic, Klavs A. Holm, says: "The Danish government and the Danish Commonwealth have chosen to give greater priority to the Arctic, which in recent years has gained increased political and economic importance concerning oil extraction, minerals and increased maritime traffic. But naturally we must not let ourselves be blinded by the economic opportunities. These are developments with many opportunities, but also great risks for people and for the environment."" Interview with Prime Minister How is Greenland preparing for the major readjustment that the access to raw materials will lead to? We have already passed legislation to enable handling of large incomes from oil and gas activities. We have established a raw material fund which resembles the one in Norway. Savings and investments will be made for the benefit of the Greenlandic people both for the current population and future generations. We are educating and training our people so that Greenlanders themselves can take part in the activities. We have for example established a mining school. Our own raw material companies are gaining increasing experience in the sector, and one shouldn't forget that raw material activities are not completely new in Greenland. How do you view the claim from environmental organisations such as Greenpeace that the Danish Commonwealth, including Greenland, is prioritising economic development higher than the environment in the Arctic? Greenpeace must respect our democratic system. Their activities are not always legal, often very confrontational and undemocratic. Having said that, it doesn't mean that we do not listen to environmental organisations, because relevant criticism can be raised and we are the first to be interested in protecting the environment. After all it is us who live here close to the oil activities and their consequences. But we think that the extraction of raw materials and environmental responsibility can go hand in hand if the highest standards are applied. We impose strict requirements on the oil companies both in relation to protection of the environment and application of the best available technology in their activities. Source: http://www.netpublikationer.dk/um/11138/html/chapter07.htm
So I am coming at this stock a different way than I would come at most other stocks. I needed REE exposure in my portfolio http://www.bmp.gl/newsletters-and-p...-32-zero-tolerance-does-not-imply-zero-mining
I dont recon they will take it on alone But there are Iron ore projects held by smaller companies with similar build costs. Lynas' build costs was about 2bil i think... an important ratio is build costs/ npv With this project its 1:3 33 year mine life with probability to extend to 60 - im hoping they farm out one of their lesser deposits or let someone buy in. Or the majic word - take over! All things equal this aint no gold mine - its a polymetalic deposit of complex nature - not for the faint of heart But like I said before Greenland know they need this deposit to work, economically its a long awaited life line. I just hope GGG play their cards right politically - thats probably the biggest concern Im expecting REEs to have a resurgence and the REE market bubble again in the next 2-3 years. The REEs are needed from military purposes more than flat screens - guidance systems and all types of military gear dont work without them. Europe is behind the 8ball - thats where GGG comes in, biggest REE deposit in the world by tonnage, and world class uranium grades. Im not recomend anyone follow me here I recently sold out of ARU, but still hold a good number of ALK shares (which have a headge in the form of their Gold deposit) If anyone does want exposure to REEs I suggest ALK as a first look
http://kingworldnews.com/kingworldnews/Media/James Dines 5:5:2012.mp3 Dines talks about europe and REE needs I believe GGG also will benefit from this The risk is that Greenland is a Socialist country - so I hope they dont get their deposit stolen
