@AndreSalProbably because no-one is buying it, other than the person who coughed up 95 cents today.
It's virtually trading at shell value right now. The funny thing is if this this was floating right now people might fall over themselves trying to buy at $0.20 but here we are sub $010 and no-one wanting to buy.
There's only about 58 million shares on issue but only 33 million tradeable on the ASX and almost all are held by the top 30 holders. So very few freely tradeable shares available. If some serious buyers stepped up to the plate this will run hard. Copper results are due soon and the copper project could be world class in time. Based on the comments in last announcement it sounds like they may have a new project in the wings as well.
The listed market cap is just on $3 million which is about shell value with about $1 million cash following the recent mini credit raise, so minimal downside from here IMO. There is a further 25 million unlisted shares held by GBR due to come out of escrow in January next year.
There may be a number of reasons for lack of buying support. The recent credit raise is one reason it is trading so low, as there is a few more shares floating around which no-one is prepared to buy right now. This has changed the short-term dynamics but will sort itself out soon.
Anyway June is traditionally a bad time of year too and with just over a week before we start the new financial year I would expect a couple of positive announcements to kick us off in July. There's virtually nothing for sale, if you can pick up shares below $0.10 you could be well positioned ahead of the next run. Cash is limited at the moment but that should sort itself out when the time is right, management don't want to issue too many shares at this low price.
This is not a recommendation. Always do your own research before committing based anyone on hotcopper might say.
