There's definitely potential in here - especially for some appreciation at current price levels.
There's a few redeeming qualities -
- Top 20 unmoved by recent price movements
- Conviction from the all parties involved to continue their drilling campaign in light of the COS
- Beneficially, the annual report shows that this isn't a lifestyle company - salaries at a conservative level + skin in the game.
Speculative miners generally experience uptrend prior to drilling. How much this one will experience will depend on the likely cap raise and cost obligations @20% of $45M. If there's not enough interest to spur a better moving av/vwap then it'll get ugly. Interested to hear about Skye Energy's cash position - will check with some contacts tomorrow - agree with msj re bigger pockets joining in.
Potential for two raises now - one in the short term, and another closer to the drilling campaign to support future ops.
Should have some support around current levels - at worst at 0.5.
(20min delay)