For those who do not have the time for Warren Buffett’s legendary long-term vision, patience and luck, the ASX can actually be a pretty good place for free money. Or they’ll tell you that. But with Kaili Resources (ASX:KLR) pumping and dumping again intraday Tuesday, it’s a seductive idea.
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As usual, it was a story of first-movers. The price shot up above 90c eleven minutes after the market opened and quickly sank to 52c nine minutes later.
As far as speculative swing trading goes, KLR is probably one of the better opportunities out there when it comes to the Australian Dream sector of junior explorers.
Then there’s what the company told the ASX on Tuesday, which you kind of need to laugh at. Kaili Senior Adviser Alan Zhao told ASX Compliance – who have been looking at the company very closely through August after a string of meteoric rises – the company might start hunting for copper and gold if it feels like it.
That, it said in the same Tuesday response, was “subject to trends.”
If that’s not a Freudian slip, I don’t know what is. Not that it’s necessarily illegal.
“Subject to the trend of gold and copper market prices, KLR may contemplate investment in gold and copper projects,” the company wrote.
“At this time, KLR has not investigated into other projects for investment and the timing for the conduct of such investigation is not known.”
But on a perhaps more critical note is what Zhao revealed about the company’s intentions to drill for REEs in South Australia; the reason everybody is watching the stock.
The company will aircore drill initial holes “up to 20 meters deep, totalling 1,000 metres on roadside verges adjacent to council roads.” Then samples will be scanned with a PXRF machine. Sure, why not?
(Editor’s note: JD and I will be discussing Kaili and its response more on the HotCopper Podcast tomorrow – that episode should be live on Spotify, Apple News, and right here on the website by close.)
KLR last traded at 58cps today.
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