2c again. Grab a coffee and donut. When stocks drop like this,...

2c again. Grab a coffee and donut.
When stocks drop like this, folk automatically assume the worse. What is wrong with the company? Simple answer, nothing I can find.
It’s just cheaper than it was because the sentiment is fear driven. instead of fear of missing out, it’s now fear of getting out of everything. This is where cash is king. The ambulance chasing Media are full of horror recession headlines and rising rates will destroy the planet etc. If I step back and ask some serious questions with an open mind, I keep getting the same answer. I can’t see a fault in the company that can’t be managed by experienced people. They are more to do with time delays we have all experienced because of covid. Covid actually turned the managements attention to swooping on cheap embedded assets. I see that as being a bonus over time as well. Why do it otherwise?
The overall market is risk off and will oversell good assets with the bad ones. The good ones normally regain their composure over time. I am grateful that the company raised some serious cash before this market had an involuntary protein spill (chucked up on itself). People have managed to turn a $35m placement into a $17m loss at 30c. Go figure.
Has anyone read any bad announcements since listing? Bc8 have gone from zero ounces to 2.1m high grade ounces, cash on hand, 3 major mining assets, 4 mills, 2 camps since listing and the stock is capped at $25 per ounce in the ground after allowing for the cash. They also have a study out with $1000 margins even after covid inflation pressures. I know we are not in production yet, but that’s coming. Even the producers are off 30 plus % with a solid gold price.
Has gold melted? Has the A$ exploded? Has management run off with the money? Have they been sued? Lost their assets? Had permits rejected? Are the assets fake? Has the financial system been fixed over night? Do management pay them selves $400k pa and go to lunch all day long? Do we not use gold any longer, are the costs so extreme that the mines are uneconomic? None of these things have happened and the stock has dropped in half. Management have put in over $7m of their own money into every placement and most have been well above todays price. paid up options and bought on market. How many juniors do we see where management drop that sort of coin into the company? They are totally aligned with other holders.
Funds and people recently dropped in $35m because it made perfectly good sense. It was cheap and the gold price is the same. What’s changed besides peoples fear factor? Zip. I think the truth is most people don’t know what is going on in the world and therefore would rather be in cash. It’s clear the FED has never understood what was going on with inflation or chose to ignore it to keep printing dollars since they had no other choice. Debt is continuing to spiral. Those things feed into negative sentiment but are positive for gold. Double edged sword short term.
I believe LTR raised $450m at $1.60 and they are nearly 80c in no time at all. Funds tearing up $225m like that is amazing. They are factoring in doomsday scenarios. Chalice is also off over 40% after raising $100m at $6. This doesn’t help us when we look at the cats price action but it puts things in context. We are all in the same boat and funds are clearly leaving all stocks across the board to raise cash. Tax season doesn’t help.
In testing times, we better have the right people running the right assets or the lessons can become extremely unpleasant. I see that in a lot of companies, but I’m not seeing that in the cats, if anyone knows otherwise, let us all know. dyor.