The Dawn of EV, page-1072

I've been scratching my head trying to make sense of the concurrent situation of the share price falling further, shipping prices falling (good), and Mn ore prices increasing (good). Parking the possibility these sellers are privy to inside information that is bad, about the only thing I can think of that makes sense is some investors expected E25 to issue some sort of supported confirmation that the outlook was still at least ok and this hasn't happened.

If the underlying case is still ok, the share price would usually have bounced from the initial reaction rather than continued to fall. A key part of that bounce would be management releasing clarification information / new additional information explaining the oddities and thereby confirming the ore mining activity has useful or good profitability at name-plate, and name-plate is genuinely achievable. This could have been any number of things including a breakdown of $8.9m production costs, commentary on how this is expected to change as name-plate occurs, revised estimates of name-plate production costs per dmtu (so how close to $2.91 is this?), daily or weekly or monthly production volumes showing positive trends, provision of information around the actual CIF/FOB adjustment, the starting price used for the revenue calculation, the actual grade of the two shipments or details of production for the quarter and details of current expectations on smelter credits. If name-plate isn't achievable, what are they doing to align costs to production volumes and what does the cost base look like on the production volume achievable?

A lot of producing companies provide at least one of the following - full year revenue, production or profitability estimates. It could have even included an update of the pre-feasibility for the next 2-5 year period based on what management now knows.

Its possible the investors bailing out yesterday would have given management a few days to prepare and release this pack. The absence of any timely release is being interpreted as assuming there isn't a positive story to be told from providing more information and the Mn ore operations are a dud. This would mean there is limited to no value from expansion. Selling now is either cutting losses or if bought last year still achieving a profit.

My guess is however that management haven't transitioned from investors expectations of an explorer to investors expectations of an in-production company. They have treated the release of the quarterly the same way they would have any of the previous 40 quarterly's over the last 10 years. The analyst or analysts doing the numbers that would have prepared the pack noted above have instead been instructed to work on the financials behind the HP scoping study. Because they are working on this for a release this quarter, they aren't doing the pack noted above that these bailing out investors expected.