- Chesapeake Gold reported a Q2 loss of $1 million.
- The company purchased a 1.5% royalty on its Metates Project, which it subsequently sold to Silver Wheaton.
- Management is evaluating the potential to construct a smaller than expected mine at Metates in order to bring the enormous $4 billion initial capex expense down.
- This is a positive development that I hadn't anticipated in my article on Chesapeake Gold.
- The appeal in the shares is largely in its gold optionality: investors looking for cash-flow and dividends should look elsewhere.