Mr market9 Jan 2020 20:48
Peggycilla this is a long term game and mr market rarely makes sense. What I can tell you is that the long term share price will be a reflection of the true value of this company and not the short term price. This is an environment with many traders and as such the price will never reflect an accurate level until we see future catalysts e.g proving up the enlarged system, majors involvement and to a lesser extent production from the CSD plant. Don’t allow yourself to be weak of mind in this period - it is testing you and the weak holders will and have been progressively ousted. The traders relish on this weakness and that’s why they do what they do as they are literally powered on this cycle of emotions that retail investors exhibit time and time again.
What we know is Arc have $4m - double that of last years raise to assault the two licenses with a significantly more aggressive drilling campaign. Assuming Baba drilling again agree to a similar/identical drill for equity deal, that $4m considering that the cash expenditure is only 16% will go unimaginably far in proving the license. Investors are not here for modest returns, investors are here waiting patiently to see what arc are actually sitting on here and the price will only reflect that once we know. So there is zero point selling or getting upset when the share price doesn’t go up on results that are not yet sufficient to delineate what arc is truly sitting on. The patient who wait until that point without letting emotions or mr market or traders get the better of them will be rewarded if and when we gather sufficient data to prove the license. This as NvS has stated will take a minimum of 12-18 months so don’t expect the share price to act rationally AT ALL until this period has elapsed. This period offers every investor with the proper emotional resilience required for this kind of share, the realistic knowledge of this industry and the patience the opportunity to buy at a great price for the underlying assets and potential upside. Never forget this is high risk but also never forget that investors are in this for 10, 20 or 30 baggers and certainly not 20-30%.
Arc has 13 target projects, Arc only need one of them to be significant to multi bag. The drillers are taking shares, the drilling is costing arc in an extremely cost efficient way to make cash go farther than any other junior miner can do and arc have a plant with the optionality of production. You can be sure that arc will be negotiating from a position of strength when the majors want in on one of those 13 targets - what other junior minors can negotiate from that position?
Don’t let emotions rule your investment decisions, unless of course you like to help traders make money.
Sign In
Follow the stocks
