it's called the worst bear market in memory,for miners anyway. the ftse miners get hit hard, the ftse 350 miners got hit hard harder the aimers got slaughtered. financial crisis's take no prisoners,especially if you have no income or rely on debt.
on Friday 20 December sp was 0.475 p approximately so its down 42% in 12 months on the basis its currently trading at 0.275 p....AIM index over same period has fallen about 16% but there was not inconsiderable dilution at 0.45 p earlier in the year and it looks like there will either be " newsflow" ( of exciting ,well diversified etc. projects in Nevada and Australia) or another placing most likely at 0.20 p judging by current sp. In 2012 the sp briefly closed at about 2.25 p so its only down 87% from that peak. However,current sp is down about 95% from its all time high of 6.75 p( Long Lake days) And this( 2014) was meant to be a good year!?
Rumours of JVs are usually followed by fundraising to the detriment of most shareholders and,in the current AIM market,it would have to be at a considerable discount so my best estimate continues to be that there will be a placing at 0.2 p for the "chosen few";given that subscribers to the last placing at 0.45 p are unable to take profits,this seems inevitable along with another ( far too generous,in my view) issue of warrants
I don't care about the diversity. If Cue fails it will be three out of three. However many chances do you give Patrick? How many years of testing on a shoestring, with no real value being brought in? No production.
About 3 years ago,I seem to remember that this share spiked towards 6.5 p on an announcement regarding Gold exploration in Canada; since then the price of Gold and Silver have fallen but the market cap is sub £ 2 million Will the Bears be scattered by a positive update from Nevada!?Perhaps two positive updates even!?
Having had a go at Patrick over the delay in Australia I think we do need to put things in perspective. It is still very difficult for junior mining exploration companies and Patrick has added considerable diversity to the portfolio at very low cost. Essentially, the this has all been about using his expertise and, going forward, this may well unlock considerable value for shareholders. The last few years have been hugely frustrating for us all but we have edged forward and dilution has been kept to a minimum. Traders will come and go and take their slice as we continue to see, but I still believe that this is an investors company and our interests remain central hence the very low cost base. The low oil prices will boost global growth next year and although there will be geopolitical tensions, the overall impact will be positive. We are looking very well positioned and still have around £300k from the last fund raising so the drilling last year was, as always, done on a very tight budget. Time to accelerate? Happy Xmas Patrick.
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