Share Price15 May 2020 17:19
A number of people have been asking about where the share price could go. It’s impossible to say with precision because we don’t know how much of the “stuff” we have. As Mineralex has pointed out several times, drilling surveys have failed to fine the bottom of the resource.
For those who may not be aware, there was a report produced by SVS, one of the company’s former advisors, in January 2019 which placed a target price, at that time, of 0.41p on the share after applying a 70% discount factor which related to the ongoing risks at that time which included permitting. The undiscounted share price, at that time, would therefore have been around 1.37p. https://www.sunriseresourcesplc.com/research
Since then a number of things have changed. There are more shares in issue, there were circa 2.7bln then and there are circa 3.3bln now. Also more drilling has been carried out which has identified a significantly larger resource, referred to above, and the overall size of the resource area has now increased following additional drilling.
So, although no one at this point can be precise, once the remaining permit stage is complete it’s fair to say we’re looking at pennies rather than fractions of them. In addition, the current customer interest, in the form of MOU’s, once converted into commitments, hopefully, and other interest which is apparently being expressed will further underpin the share price.
My own view is that the most likely outcome, following permitting, is that the company will become a target rather than morph from a geology focussed company into a producer. That’s when things would become particularly interesting!
I hope that helps.