Interesting how when a stock's sp falls from grace, all sorts of people come out of the woodwork, doom and gloom abounds, bad rumours surface and people's confidence in the company drops, which makes the sp fall even lower!
It’s is exactly the same with my football club at present! These quotes have been in the media: "The board members and the coaches are being paid big salaries for no results!" "Sack the coach!" "Sack the CEO!" "Members are leaving the club!" "The club is doomed to fail!" etc.
Shareholders in any spec stock hold belief in the company that things will go well. Just like at a football club.
Nothing has changed with VRC's long term plan, just some extra shares are now in the market and the price is now 2.2c. Which is of course much lower than shareholders would like!
The big question is: "Is there anything that is going to prevent VRC from being granted a mining licence from the Tanzanian government?" I am unaware of anything that is going to prevent that from happening! Then the PFS is due, and by all accounts Stage 1 of the mine development will be profitable. So the bond issue then comes into play. Exotix is a reputable firm and it believes that the $40m will be raised.
So, in theory, shareholders just need to wait until these steps materialise, and the general belief around the traps is that they will happen. Edison has valued, “Stage 1 implementation at 7.6c per share!”
There are other Tanzanian mining companies which are also waiting on their mining licences to be granted, and which are nowhere near as advanced with their funding processes as VRC.
I am not stating that VRC is the best Tanzanian Graphite mining stock. It doesn't have to be as if all goes to plan, then shareholders will be well rewarded! The risks are still there, but the rewards may be great!
So, “hang in there” is my recommendation to VRC shareholders. The sp might still drop lower, but at this point in time there is nothing to state definitively that the company will not achieve its goals!
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