Sorry I don't have the stock on my HC watchlist so haven't really been reading posts on this, therefore missed yours.
The concerns were more around 'market performance' rather than actual geology. For an IPO, we didn't think they had the appropriate program to give the SP momentum (in the then very flat nickel price environment), and therefore would run out of cash, trend down and end up having to raise again.
This is not really concern anymore given the new structure, ie via an RTO. I would have no issue with their program as it was back then, via this mechanism. Having said that I have not discussed it with mgt since, so perhaps they have completely changed the approach. I have not even read this announcement. I wouldnt worry too much about geology here, this is just going to be a single massive nickel resource...low grade but the size will offset that. You are basically banking on a rising nickel price environment, and that is definitely coming imo. They should also be able to find some higher grade pods within the resource given time.
I will take a proper look at it again to see what stage they're at if I get a lookin in the raise through Patersons. Though very likely I will take it up if I'm offered any.
SMI Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
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