@McQuade ....Yes! Good post!
The low market cap compared to peers was fully explained by today's announcement. Management here have basically got this exploration wrong in the past, going all over the place without defining a resource, despite some great drill intersections.
There is also the 'reading between the lines' admittance that Stricklands is not a big enough resource on it's own for a stand alone mine. Even including both Investigators and Cathedrals will be interesting, unless they plan to ignore the PGEs.
Let me explain. The existing nickel processing plants in the area are set up to produce nickel concentrate, not nickel and PGE concentrate, so to get full benefit from the PGEs we would need to build our own processing plant.
.........
Suddenly a whole lot of EM conductors that were passed on are going to be drilled. Why were they not drilled when first discovered? Why are they worth drilling now if they were not worth drilling in the past?
Those that continually put management up on a pedestal need to have a good hard look at what makes great management. Flipping from one place to another without an overall easily identified plan is amateur stuff. What happens if one of the new holes in West End discovers a few metres of good massive sulphides? Is the company going to then forget about it for the next year while they complete the resource drilling at Investigators and Cathedrals, just like they have done in the past?
The reason most companies drill out a resource when they find good hints of one, instead of chasing the motherload as St George has done, is that most of the time there is no motherload hiding elsewhere but close. SGQ have IMHO been wasting a lot of time and money chasing something that might not exist, instead of concentrating on the bird in the hand.
The usual approach, that has not been followed here is...
...identify a potential resource,
...drill it to identify an economic resource,
...do the necessary studies to work out economic viability of resource.
...hunt for funds to develop mine or sell part/all of resource and development plan.
THEN ... hunt for further monsters.
I sold most of my shares here after the Dec 3 announcement, keeping a few in case they do hit something major, or start going about this in the correct manner. It is obvious there will be further cap raises this year, so having just a small position will keep me interested.
Remember they are only doing a scoping study. There will be no mining, even the 'starter' shallow mines until after there has been a feasibility study that shows it is warranted, so any mining is now not likely until 2023 at the earliest.
At the end of 2017 people were looking forward to a great 2018, that disappointed. At the end of 2018 people were convinced that 2019 was going to be the year for St George, only to be disappointed. At the end of 2019 some commented on how great 2020 was shaping up for the dragon to come good, but it was disappointing.
Now it's the end of 2020 and I see the same expectations for next year, personally I think I'll just trade it technically around a small position as I'm not that hopeful of poor decision making suddenly changing to good decision making.
(20min delay)