Thanks FF, I hold for a long time and was mostly underwater too... but... We have proven deposits in Tassie (VMS spent close to $40 Mln proving them in the past) and v. attractive tenements in WA...
There are quite a few problems facing mine developers in OZ and I won't mention great unwashed as well as commodities price fluctuations - at last the IO, tin and tungsten prices are on the mend! The problem is cash and the access to finance!
- Unless you are looking for a trendy commodities or gold recently ... it is difficult to get investors attention and retain serious holders as well as get the financial backers at reasonable conditions and
- Most of today's "investors" are short term day-traders looking for instant gratifications... IMHO eg - only today an exploration company who (has done nothing) just applied for the tenement in Julimar neighbourhood went up in the market value over 120 % and "soph" investors offered them close to 2 x more money they needed to just start drilling!!! How good is Australia and how good are "sophisticated" investors??? - I bet they won't last till result announcement in 3 months? quoting:
..."Then, on Monday, it went into a trading halt ahead of a capital raising.
On Tuesday, the company revealed it had placed new shares worth $440,000 — but this was a placement with a twist.
It was not originated by "x" but resulted from the company being approached by a group of sophisticated and professional investors.
"x" will now follow up with an entitlement offer to raise a further $760,000 from shareholders.
The event connecting all these events is that "x", a penny stock that had previously been focusing on a vanadium-copper-nickel-platinum group elements (PGE) project in the Kimberley region, is now a player riding the Julimar wave — and the number of riders surfing that particular wave is now in double figures."
2/ regarding averaging down... I do not suggest to anyone but that's what I do for over 20 years with v. positive results as I did gained experience losing on selling under-performers and almost always losing as they usually came back in value with time ("dogs" I had a few... and lost a lot of money "betting" on exploration success... but if you do your research and invest as I do now - only in the companies with proven deposit and mine developers ... as nothing changed only sentiment of the "market" or price of commodities are in a downtrend...: I just average down to maximise my chances of either exiting or more like having a much better return on investment like eg I had recently on DEG and few others ... trends and commodities prices are reversing their trends and all of a sudden you are on the winner (eg DEG went up min 20 x in few months and "lo and behold" the same unhappy holders were complaining about "management" prior as well as during that incredible "run") IMHO/DYOR
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