Amen. Investors are getting Ecuador on market for free at present. I licked my lickety lips when I had a chance to average down aggressively in the low twenties. A complete farce it ever went there, I suspect the end of financial year came into play for some with short trading windows.
I watched the entire days trading from start to finish yesterday, after the announcement. Arduous yes, but as an independent investor of some success, particularly in resources, doing so at crucial progress intervals has become a staple tool in my investment repertoire. The trading to and fro yesterday was as predictable as it always is to a tee after these announcements! I seen over a million units on the buy side above 30 cents getting sold into in a mili second numerous times. This was insto’s offloading hard above 28 cents for an easy 8-10% profit (six figures) knowing full well there is not enough money (pressure) flowing into the stock to push it up further just yet, once they’ve dumped. They will do this a few more times perhaps until they get closer to a free carry and let it run. And in my opinion it’s going to, purely on speculation alone.
We have a near term, low capex, small, high grade mine ready to complement a potential lower grade behemoth in those hills. Tier 1 potential. Fully funded until we have a complete gage on said potential.
The market cap looks more expensive than what it actually is given the value all the drilling from the recent capital raising may unlock. The man at the helm, Kris knauer, is top notch. He could not have raised at a better time. I draw parallels to another gold explorer/producer I hold who had instos all over its trading too before it’s inevitable spike in share price. Said company also have a ready to extract lithium deposit the market placed zero value on for a long time. Due to some recent financial chicanery over there, they raised capital at a an enormous discount to what they should have, especially after the value of their lithium deposit was realised with an announced partnership to mine it out of the ground. The people who orchestrated the capital raising at Challenger are clearly levels above those who did so at said other company for obvious reasons. Anything below 28c is daylight robbery at this point in the picture based on pure speculation alone.
Regarding excrement like Canacoord and Blackrock. They are excrement, but they are needed excrement to get the ball rolling. They will sell into large liquidity around 10% above their entry price indefinitely. As we get closer to the next round of results however, there will come an inflection point when they have no choice but to let the price rise to a more respectable speculative level due to more buyers coming online. Or they will continue to play games until the next round of results from Hualilan are announced, and next time it will jump 100% from current prices if the results meet the higher end of expectations. I don’t regard that as pie in the sky rhetoric after doing my due diligence, more a testament to the current discount on true value presently.
All in my opinion of course, but these are some of the reasons (not all, don’t get me started on my bullish gold spot price sentiment) I see the share price rising on speculation from current fundamentals alone in the near term.
