RE: Can someone explain28 Feb 2021 12:41
A deal is being negotiated and is not guaranteed, so the share price reflects the chances of a concluded deal.
A bit like the game show deal or no deal, the banker offers the contestant a specific sum of money based on the odds of them having a large or small amount in their box.
It's a calculated gamble basically. So at the moment, confidence has been knocked due to the large sale of a board advisors shares, which has lowered the odds if you like.
Now if we were given official proof of what's in the ground and it was massive, the share price would likely rise significantly.
So at the moment, it's all about potential sale of potential pgm's, hence the decent share price which offers a profit on conclusion of a successful sale. How much profit is open to debate and has been debated constantly for many months in this process.
A prospect is a gamble, but how much depends on what level of share price you bought in at.
If you bought in low you are likely to be in profit whatever happens. If you bought in higher then that obviously changes and becomes more of a gamble.
It's why for me there is so much friction on here, because people are in at different prices and therefore taking more or less risk, so there views will differ hugely, hence the friction.
Best case is we all make a nice profit. :-)