Redknight, defending the Share Price16 Apr 2024 13:54
Red, you asked me what Solgold Management could have done to defend Solgold's Share Price, and I am referring particularly when the sp was at the 20p mark and there was optimism in the air. Then things went rapidly downward and we looked absolutely mothballed, not good for an exploration company. Particularly, a company with wonderful set of tenements and proven Geologists. Things were obviously more complicated than that and there were many other problems, I grant SC and the board that. But, the potential was there to find a second Tier 1 8Km down the road and still is!
A CEO's ability to defend their company's stock price is determined by a company's future prospects of increased shareholder value, market share, and future return on investment.
A remarkable tactic of CEOs would be having a strong investor relations program so that they can tell people what they are doing with the money in order to increase the company's future profitability as an exploration company. This will ultimately lead to an increase in sales on top of an already-existing growing base.
As summarized by Dunn on his website "CEOs act as unofficial stewards for shareholders." They must keep investors happy while still maintaining long-term viability or reliability of the business. Investors must feel confident enough about their investments that they do not sell off any shares, while making sure that current shareholders don't sell either.
The question is: Why did some major investors decide to pack up and sell, particularly as we have a proven Tier One Copper, Gold and Silver Mine with the possibility of long mine life, huge proven gold reserve and a quick pay back period to build an environmentally friendly underground block cave mine?
Just some food for thought.
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