Price fear on AIM14 Nov 2020 11:51
Many people get price fear that they feel indicates the direction of a project. Price does not reflect this unless it was a consequence of price reducing news, like a poor drill result, met tests do not allow production of metal you want, denied licence.....all things that would stop the progression of the company in the mine life cycle to production.
Price of a copmany fluctulates all the time due to personal choices, cycles, world macro events, any event a MM thinks they can manipulate for gain...... you will have bought somewhere on this cycle, but panic if during this cycle of movement you are down. 1. Has the reson you invested changed 2.Has the macro environment driving your invesment changed. 3. Does the 3 year outlook (what you invested for) changed? 4. Will the SP be materially higher than your buy in price when the future plans fall into place?
There are risks to mine development at alllll times but they get progessively more derisked and valuable along the way. Drill results build an asset, licences allow the asset to be commercialised, the financing actually makes it happen. The value increase gets more each time.
A syndicate of international banks has alrady green lighted this project with more than expected from them on top of a chunky royalty that has kept us going in very hard times from a very respected group........anyone thinks that we cannot complete financing needs their head seen too. Timing might slip but this is not chump change! Will the equity not be as good as it could, maybe, but what the financing unlocks is multiple of value not priced in now. There is no way we will be valued at this price once building a mine.
There are many reasons people have sold since 9p very few of them are related to not thinking this mine will get finance or be built.
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