NCZ 0.00% $1.10 new century resources limited

Ann: CENTURY OPERATIONS AGAIN DELIVER RECORD METAL PRODUCTION, page-37

  1. 1,486 Posts.
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    Whatever posters motives may be, its obvious this is burning cash and will continue to do so for another 1 or possibly 2 quarters at least. A CR is likely unfortunately.
    The operation is improving and may be cash flow positive some time next year and make money after that but there will probably be more dilution b4 then.
    This, sadly, reminds me of Lynas. A stock with immense potential that had a share to reflect that.
    What happened:
    Issues on mine / plant start up that took a long time to resolve.
    Cash burn requiring several CR's
    SP down to 2% of what it had once been.
    The company did turn around and I was watching, eagerly waiting for the quarter of good news to begin buying BUT sad to say insider money got the heads up and started buying at the beginning of the 1st decent quarter so when the news was out in the quarterly, the SP had already appreciated to the point where it was no longer a bargain.

    I fear that the same will happen here, when the company turns the corner cash flow wise, many will know before the general market does and the good gains will not be there unless you take a risk and buy as it goes down in preparation for a turn around, which of course may also not happen, depending on what the real situation is with the plant and the zinc market at the time.

    The fact that the company makes its reporting confusing gives life to my fears that good news will be known to a few well ahead of the market knowing it sadly.




 
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