In my view, the SP should have risen at least 10% after such an announcement. This in turn would have triggered a few follow-on purchases (for technical reasons) and therefore had to be prevented. I see it as follows: The same pattern for weeks now. In the long pauses between announcements (good by the way....) the SP is kept low and a few smart people accumulate unnoticed. Last price today at 4.9 cents - shares traded: one.
I have written about this before. About our neighbours 40km away. I'm talking about Liontown Resources. A look at the history shows: a not particularly successful gold explorer that has been getting by more badly than well for years. Nothing worked until they stumbled across a few lumps of pegmatite while searching for gold and someone had the idea of following up on this lead. That helped the SP a little (as you can see in Chart 1).
The comments on Hotcopper are also interesting to read. Some believed in the potential, others we're usually pessimistic and brought their profits into the dry and then jubilated with joy (but not for a long time...).
The lithium evidence thickened until sometime in May 2019 it became clear that Liontwon had drilled into something of significance. The SP then moved "slightly" upwards (see chart 2).
I do not want to compare HMX with LTR. But looking at it realistically - if the lithium story intensifies, you have to see it in the overall context. So Kalman, Mt. Hope, JV with Sumitomo (or new JV - which I expect to happen soon) plus Yandal with lithium...and gold. In my view, such a combination would be worth a market cap of 500m. At least.
Early days - but you can see a systematic approach. Air core drilling is no longer the order of the day (?) but RC drilling. Which is much more expensive. So Dan and the team seem to be getting a bit more sure of themselves. My opinion.
I have been mentioning this for some time: If this story turns out to be substantial, then the current SP is at least worth considering buying. Also my opinion. Whatever. Let everyone do what they want.
The fact that the SP closes down 2 % after such a report - defies all logic. Presumably some people at LTR were thinking the same thing: SP is not rising, so I have to sell. The rest is really history......and a lot of pain for those who didn't stay with LTR. I don't care - I'll watch what happens next. (Very) exciting times ahead. DYOR
HMX Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
