another one that looks the real deal..., page-72

Trading was like clockwork today...

Both on a weekly and daily basis.

Must be in the water...or perhaps the profile of the register?

The stock has a history of large weekly moves...so if history repeats, today was just the beginning for this particular move (see chart below)

So much to like about this stock...both at a project, sector and corporate level.

I have no doubt they are taking notes from Mark Creasy's approach to market communications...which suggests to me they think they have something special, and probably have a fair bit to come.

Because, if you don't have something to keep feeding the market, their current approach will not work

I also guess from todays activity that they have a strong support base who also expect much higher prices...SIR had a similar "fan base".

lol

One of the drivers of the SIR initial rally was to get some money in the kitty asap...for them it was the 60c options.

MNE have their 20c options as a potential "play" at some point...perhpas not for some time however.

I mentioned recently that I saw an obvious corporate target short-term in the mid 20's...this is still the case and is based on historic trading activity around major price events...and of course, the 20c options.

This doesn't mean the stock will necessarily stop here...just thet I expect some increased activity here.

Good news is just as likely to push it through here with ease...just as bad news is likely to see us return to sub 10c.

With over $3m in the kitty now, they have the capacity to seriously add value via drilling...but this will be crunch time for the Company going forward...so they better position these drills right!

If they do, and they find decent grades at decent widths beneath the high-grade channel samples, then they will need a lot more than $3m to get a feel for the potential scale of things...and will obviously need more money.

Good results however should support a share price well above the existing options exercise price...multiples in fact...so they become an obvious and attractive source of funds without adding to the dilution at the front end of the project value-add.

Depending on results of course...if they get something spectacular, then the options will simply become another from of exposure to the project and less dilutive funding (higher strike prices) will be sourced.

Once in the money though...the dilution from the options is there, like it or not.

Above 20c, we will have about 140m shares on issue fully diluted...$3m in the bank, another $8m from options conversion...and a market cap at 20c of $28m...of which $11m will be cash.

So, an EV of $19m...for 2 new potentially significant gold projects...pffft!

Their known Cu/Au resources already support this price range...with nothing added for their new and significant gold potential...thanks to My Pato.

As I have said previously...if the gold results keep coming in as they have, I can see the Company eventually migrating their focus away from copper to gold.

If so, then this would also attract new market interest...gold is still a hot sector and will likely remain so in what I expect to be a higher than anticipated inflationary period ahead (globally).

Anyway, with options money potentially available with no new dilution to the register, I can see a case for the Company offering an incentive for people to convert early at some point...perhaps via an offer of a free options at a much higher exercise price ($50c?), for anyone who converts by a certain date.

No hurry on this front however...as I suspect we have some time up our sleeves here.

None the less, I have seen this sort of thing before and the end-result is much cheaper than paying a broker 5% commission to take cheap shares and trash your share price.

Anyway, a picture paints a thousand words...see below...

Cheers!