Well, it's an exploration project. Additionally, the rate of growth of resource is phenomenal.
I can see the question of how to fund the exploration exercising directors' minds. There are two elements :
1 if they think it's using up cash better spent on Hillside.
2 they think it is better funded by a spinout.
Obviously, well-developed projects trade on a higher $/resource ounce or $/ lb Cu.
I think they will look at what price they can sell a JV interest in Hillside for. If the purchaser offers a good price for a split of say 30% they may well have enough to keep funding Hgs ranch in-house. If they struggle to raise funds at decent terms they will most likely look to spin it out whilst retaining an interest.
It's pretty clear the average retail investor has not got a strong grasp of exploration and it's funding. From the sharp fall in the SP on the UDFS announcement (and now recovery), I'm not sure about development either.
To be clear I do not invest in any pure exploration companies. However, I am happy for companies like SFR or IGO to go hard at their own exploration in the current environment and/ or buy up or JV undervalued exploration prospects that need funding.
My geoscience Exploration lecturer thought the other way but then again he did some of his own prospecting and had a completely different risk/reward ratio in viewing exploration data to myself.
Still, everything can and should be vired from one's own viewpoint and goals.
All IMVHO.
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