Uranium equities won't turn around, until there is clear evidence of a turn around in the spot price. Simple, really.
As for Toro, our upside is even more conditional, because of Richard Homsany, I reckon.
The market may (likely in my view) limit any upside, out of concern over RH. Why? Because, RH is a chaos engine. He creates uncertainty, lacks transparency, is a scarce & awful communicator, and is very unreliable. For example:
1. RH gave up our chance at a mining permit in Jan 2022, without notice of this decision to market. 3yrs of value destruction. Political, and credibility risk added to stock price. Limits upside, until resolved. Labour likely to win.
2. Why has gold demerger not happened as promised? Will Toro's focus & cash be diverted away from uranium, to gold exploration again? Why create this uncertainty? Gold sector is in bull, now is the time, wtf is going on? Secretly changed mind?
3. Why failed to deliver pilot plant? Not even delivered a final design yet, after 13months of work? Very strange. Is there something wrong with the process flow or metallurgy? Too much time passed without results. Without explanation. Creates more uncertainty.
4. Where is promised bulk sample drill campaign? Why not delivered yet? Not even a simple drill plan yet, after 13months? Why not show market a drill plan? What is the hold up? Is it serious, or not?
5. Why no details/outcomes of the consultations with native title holders, about bulk sample drill campaign? Who are they? Why these discussions still ongoing, after 13months? Issue? Why not provide certainty around this?
6. Why burning so quickly through cash reserves, while nothing been delivered? Is remaining $8.6million cash still enough to deliver promised drill campaign, and pilot plant? Needs to address this.
7. So, when promised deliverables be delivered? When progress again? Been 3yrs. Dates? Milestones? Any accountability, please?
Unfortunately, these are the big uncertainties that, I suspect, will plague this stock, and limit any upside for us.
TOE Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
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