It's not misleading at all. Just because SIR say they have so much nickel in the ground at such a percentage does not mean that is 100% correct. Drilling holes in the ground can give you an indication of the resource size and grade which can be modelled into an estimated resource. Many resources have over the years come back less grade than what has been stated. Until SIR mine that resource, the company makes NO cashflow. Regardless what has been proven as a resource, it will stay in the ground till mined.
PSY has a technology that can enter a billion $$$ market, it has been proven in testing if proven in prototype it will be commercialised.
As SIR has proven a resource and with current Nickel market conditions, I have no doubt SIR will become cashflow positive, if nickel crashes (not likely in coming years) but if it does it can put pressure on the company to make positive cashflow or even start a mining operation although their costs are cheap, their debt will be high.
The same said in the MEMs industry. It's expanding in a huge way and will continue to, just like nickel demand outlook has changed, in the MEMs industry companies are searching for new MEMs tech's to move forward with and the demand is huge in the future. That being said comparing a resource stock to an IT stock is apples and oranges, but lets compare SIR to POS. I won't drag it out here but a greenfields company with 350k+ tonne approx of reserves of nickel no infrastructure and huge debt to come trading $4+. A company POS with 3 near term projects over 400k resource no debt or very low debt with operational mines and equipment 22c. All I'm saying is the market prices these companies and sentiment is priced in. At the moment MEMs is going to be huge and if the market prices that in to PSY's share price than the market has spoken.
SIR has a future resource thats been estimated till it's mined to see if the model was accurate.
PSY has a future technology thats been proven and needs real life testing to see if that was accurate.
DYOR.....
PSY Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
