As we have previously spoken about , it's not so much about the ' specific ' news event happening as it is most times about the Market ' Expecting ' the news which drives the SP. So as mentioned , I am not surprised that the market would rather factor in the rises more gradually as the expected date looms.
In this instance , I would suggest the Market is now factoring in that this is ' it ' now.......the last hearing date which is conveniently scheduled after the Courts resume , and the legislative committee meetings come back on line from the middle of August.. So unless the decision requires official Ministerial approval , we may not know the official endorsement until the Quebec National Assembly resumes on 15th September 2020. However , I reckon it's fair to say that if the Courts approve the SISP and announce the successful bidding consortium , i'ts then only a matter of rubber stamping this decision ( hopefully ) ......
With respects to the trading in the DMNXF's , I'm not certain we can take much away from this except for the fact that from the 1,072,403 traded overnight , a total of 130,507 or 12.16 % was bid up 18.75% from .008 to .0095 within 3 minutes from 2:09 pm to 2:12 pm for the last 3 transactions of the session. This tells me TWO things - FIRSTLY that the ' supply ' and availability of stock has tightened up significantly for this to occur. And SECONDLY that this also occurs on what would be considered a significantly higher volume day at 3.34 times the volumes in the last 30 days.
Finally , I would like to stress the point that at no time die I ever state that we ( Sayona ) doesn't own the Projects outright . Quite the contrary in that what I have pointed out so many times is the fact that the ' Carrying Value ' of SYA's projects , and namely he Quebec Assets ie Authier is currently represented in the Accounts at $21,462,273 as at December 2019. Add to this the approximate capitalised exploration expenditure of $1, 573,000 for the period from January 2020 through June and the figure would be $23, 035,273
Notwithstanding that Sayona also has it's accumulated losses of approximately ( $ 57,632,708) to offer up into the implied value calculations , the estimated cash held currently of $3.243 million would see NET of the losses a figure of approximately $26,278, 273.
So I don't reckon it is any mistake or oversight that the Market has been up until now only willing to prescribe a value of around A$25 million . The question then becomes how much ' Premium ' will the Market ascribe to any potential deal , and will it be more or less in line with Accounting and Tax calculations which in turn have an immediate impact on any future production and revenue output numbers which should see the SP at least achieving in straight up accounting terms a reflective SP of around 3 cent or just shy of the Acuity 3.15 cent calculated price of previous shares issued.
And this is what I have been suggesting as the ' Backing In ' of Sayona Quebec's Assets. Obviously there are potentially BIG gains to be made here as a new investor or one who has been sitting back and stalking the numbers along the way........
(20min delay)