Since the number of shares in issue more than doubled as a result of the placing and share offer announced in October 2017, that means that a price of less than 200 p would take the market capitalisation back to the previous peak reached when the shares hit 399 p.
Arden Partners estimates Jersey has current net cash of £12.5m (57p a share), and places a risked value of $37m (125p a share) on Verbier and $25m on Cortina (85p), suggesting Jersey’s shares are trading on less than half risked net asset value after its share price was marked down more than 50 per cent on the Verbier drilling news. In the circumstances, I would recommend awaiting further news on Jersey’s development plans. All is not lost. Hold.
My thought is that the share price went down to 30 p (pre-cash raise) on despondency; up to 399 p (pre-cash raise) on sidetrack discovery; now down to 95 p on disappointment.