RE: Marketing15 May 2026 10:20
ON. I understand their approach to avoid volatility to attract II and HNW, but it's at the expense of the retail investors.
The reason they do these raises and warrants is to sell high volumes of shares at a fixed price so that II and HNW don't have to chase the share price. They get a deal, and we get diluted. 10 years ago this didn't matter because they were the main investors in companies like this.
Now however, AIM is a essentially a meme-index. It thrives and survives on volume.
If they keep up this approach I can tell you exactly what's going to happen, because it has been the same for the 6 years. They will achieve milestones like the EL or an MRE update, they will shout into the void, some will come and push the share price up, it will hit resistance at 40-45p, and then again at the warrant level of 60p. They will then do another raise and the share price will probably stick at around 45p before drifting back to the 30-35p as the traders sell out. They won't have the retail or II/HNW volume to maintain the share price.
The reason this happens is because the "meme" story runs out of puff. This is a function of AIM, it's not a normal stock index. It flys on hope and dreams until it can drum up enough money to shore itself up. You can see this with other gold explorer companies that also struggle, and then they only re-rate when the threat of dilution stops. Ones that do OK are the ones that everyone knows about.
The board are aiming to spend as much time and money on drilling as they can before they reach a point where they either can't drill anymore because of money or the drill bit turns poor results. Only at the point will there be a deal or sale, because they want to maximise value. This is all at the expense of the retail investor. And if they don't obtain enough retail investors, then this share will continue to languish.
I believe in this company and its potential, but the investor acquisition strategy is only one sided at this point.
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