SGQ (ASX) Ann: St George Commences Drilling at Paterson

Originally posted by ozblue: ↑

@VatreniHR ... "And no, the "pump and dump" narrative isn't plying out by the action. "

Really? Looks exactly like a pump and dump to me, especially with no news from the company.

BTW the dumpers were selling on the way up to those that expected some news from the initial rise. Try and learn trading 101, or read some books going back 100 years that explain it.

1/ create demand by initial push of something that looks way oversold..
2/ trickle supply into growing demand
3/ get rid of last holdings before stop losses go off from new traders caught in P&D

A lot of holders here don't get it still, the Mcap is still way overvalued for a company without any declared resource. There are plenty of junior exploration companies with much lower Mcaps, that have a resource worth many millions (most not big enough, or viable enough to mine). They also have plenty of talk of great possibilities in their current program of drilling, all in exciting locations 'near' some notable deposit. They all sell the same type of sizzle nonsense, with every punter hoping for the one good hole...

There is also a very big chance that some of the most vocal supporters here are insiders/company shills just trying to keep this mob going.

How many months now since the Cathedrals 'resource definition drilling' without a word about results?? It obviously adds to the Stricklands 'resource definition drilling' that also came to nothing viable. If they don't declare an MRE, then they don't have anything close to viable. They don't have to release an announcement stating they have nothing viable, it's assumed by all in the industry just by being a junior explorer, until they do declare an initial MRE

If Mt Alexander is not worthy of declaring any type of MRE, meaning it's non viable, then the 'value' of the company rests with the exploration potential of other tenements, none of which has shown any assay results of something promising.
There was the promise of releasing assay results for the initial drilling at Paterson that happened from June last year. The current drilling started without the release of any of those results!!

Why didn't SGQ release those assay results from last year?? Probably because they were not newsworthy!!

If the latest pump in SP had anything material about inside information being leaked, then the SP would not be approaching the lows again. Approaching the low is the best indication it's just a P&D IMHO.

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I'm not buying into any of your arguments that this is a P&D, I don't have an opinion either way.

But I certainly don't agree with what you said about the need to announce information to the mkt. You said "...If they don't declare an MRE, then they don't have anything close to viable. They don't have to release an announcement stating they have nothing viable, it's assumed by all in the industry just by being a junior explorer, until they do declare an initial MRE..."

The test for determining whether information is mkt sensitive under Listing Rule 3.1, whilst specifically an issue for the coy, is based on whether a reasonable person would expect info to have a material effect on the coy's SP or value. If the info would, or would likely, influence a person in deciding whether to buy or sell - then it needs to be disclosed. I'd say clearly that if SGQ don't have anything close to a resource, however small, they have an obligation to disclose that fact.

Your point also that "...They don't have to release an announcement stating they have nothing viable, it's assumed by all in the industry just by being a junior explorer, until they do declare an initial MRE..." is clearly incorrect. Reporting is based on a reasonable investors' needs, not what those in the industry might assume.

So, whilst your guessing on the mkt disclosure rules, I'll leave it to others as to whether or not it brings the rest of your assertions into question as well.

The real issue, in my view, is WHY the coy hasn't reported the outcome of these drilling results and programs? Now that can lead to any number of assumptions - yours being just one of them. But I'll be peeved off if they have deliberately withheld that sort of information.

JP hasn't covered himself in glory by any stretch, but he'd be aware of his listing obligations - esp now that he has his finger in other entities, and he wouldn't want to put those positions in jeopardy. There's probably a number of ways to defer having to report, by not finishing a drill program, etc but it leaves the coy open to repercussions.

The way this coy has been operated, esp in the past 2 years, does leave a lot to be desired. I've only a small dabbling in it so far, so not losing a lot of sleep, but the issue raised re the resource drilling does need a response from the coy.

J22