RE: All drilling complete30 Nov 2020 14:38
It’s a good question; there’s been some reasonable, and I stress, reasonable volume over the past six weeks. That’s been coupled to some pretty extensive dilution, through exercise of warrants and the new prospectus, detailing our climb to in excess of 440m shares over the near term. But let’s remember that this is what’s ABSOLUTELY required in order to climb to a 75% holding in the JV with Andromeda. Well, given the dilution, the SP has held up remarkably, given that we still don’t have any results at all to speak of, literally. However, we are now 2/3 of our way through to 75% and control of the JV. So regardless of results, in the very short term, and I did indicate in previous posts, not to judge the 10,000m race on the first lap of the pacemaker, we are finally in a position of strength, whereas before today, we were an intellectual approach with a plan. Now we have a plan and 50% ownership of a gold mine. It’s a big big thing. The market has behaved well, given that we are under dilution pressure today, albeit well publicised and given.
With all that, I think sp may come under marginal pressure from the odd sheeple-moth chasing a brighter light. But frankly, WTF not to like? Well apart from the fact that we have to be patient (Michael ;-)) ), and await results, I think this is exactly where my smart money sits.
I’ve loaded what I want out of this share now. I’ll end up with a double nose-bleed and runny bum if I buy much more.
Where do I see SP going? Well let’s be simple about this. The BOD and NEDs need this to get to a £10m mcap to get their options. Then there’s the next warrant acceleration at north of 4.4-4.5 pence (memory), and unless this is achieved, then our JV to 65 or 75% is under pressure.
So reality is, CM has a big job on his hands. He’s got to deliver. My suggestion, however, is to gauge how relaxed CM sounds in his pièce. I think he knows what’s there, and needs to make sure he doesn’t shoot his bolt, too soon.
In summary. It’s like trying to complete a stage on the TDF; full of peaks and troughs, but with a lovely finish at the peak
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