Sort of agree...it will bounce if the next assays are good and the results keep flowing, but at the moment it is 3c which is a Mkt Cap of $35m. Look at Sandfire when it had its major discovery - it did not rocket straight up to $100m Mkt Cap+ immediately. Its shares moved significantly higher simply because there were so few on issue and so, even though the price rise looked great, in Mkt Cap terms it wasn't immediately significant. Over the course of teh weeks/months that followed SFR Mkt Cap really started to move.
By comparison MOD - given it has no money and $2m of debt (and with a gold asset that is structurally difficult to mine, and seemingly just as difficult to sell) - had a pretty high Mkt Cap when the shares were at 4.1c the last few days. People have to remember....this stock had risen 700+% from levels of just a few weeks back.
They have made a good find here, with plenty of encouragement ahead. They will be able to raise some much needed working capital on the back of this - possibly at least enough to clear out their debts and do lots more drilling. Add those shares to the mix and we ALREADY have a healthy Mkt Cap that will need further drilling success to push higher.
Its a good story -and still some excitement ahead for sure - but don't kid yourselves that a 3c share price represents some sort of massive failure at this stage of development.
You've got to keep expectations real....
MOD Price at posting:
3.0¢ Sentiment: Hold Disclosure: Not Held
