I am not going to attempt to explain, in full, the disparity between the EQR and G6M share price/market cap but I will throw up one word which I honestly believe accounts for a biq chunk of it - RISK ( in capital, bold and italic letters)
Essentially EQR have put basically all their risk issues behind them - the CEO has used the word "de risked" in quite a few of his most recent presentations for a reason - because it is derisked.
G6M, on the other hand, have an extensive array of risks still ahead of them - and sadly for the shareholders (and management), they dont even know what many of those risks actually are yet.
G6M management are boldly pushing forward acting as if there are no risks and shareholders are actually blind to the fact - these are two ingredients of a very likely, very ugly outcome.
EQR management shareholders know exactly what they are sitting on and they are long term holders of size, likewise with many of the remaining larger shareholders who have been in for a long time. Why ? Because they know they are sitting on a great project and they know that project is in great hands, that management have delivered on everything they said they would, and not put a foot wrong.
They are out there PRODUCING, they have prepped themselves to be operational during the wet season, they are recognised as "sustainable", they have additional revenue streams because of that sustainability, and they have a "ready and waiting" market place for that sustainable bi- product because that quarry itself has been a prolific provider of product to FNQ for more than 20 years.
This translates to an overall incredibly low opex for the end tungsten product - this is in fact a very very unique "hedge" in the companys opex against any downturn in the global apt price, which will ultimately make their financial forecasts much more credible in the eyes of institutional investors.
At the moment, with what is going on in the world, a tungsten price downturn is just not on the horizon - all the market research houses like Roskill, Hallgarten etc are all calling the apt price upwards ( some in a big way as well)
As for lack of buyers ! - well I believe this wont last too much longer, and I believe the buy support will come form the Insto/corporate side - Instos typically are not interested in a stock this size unless it is derisked, is generating cash flow and that management are capable. They now know that it is derisked and are just waiting to see production levels rise and these two key outcomes will serve to prove managements capabilities - as I said earlier, management have not put a foot wrong.
With production levels on the rise and heading to 600+ tonnes over the next 2 years, Kevin and team are timing this perfectly to MARKET this in a big way and you can bet your bottom dollar there are a few Instos checking this out right now.
Be patient - its just around the corner
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