The problem with all exploration companies is simply that of cash burn... drilling/exploration isnt a cheap exercise... not to mention well paid board members etc etc..
This caught my eye about 5 minutes ago... have yet to do research... but I had a quick look at the last cash balance and it was just over 900K, but correct me if I am wrong, they seem to have done a recent CR and raised $5million, is that correct?...
These types of stocks are plentiful on the ASX, small micro cap companies that raise money of the back of shareholders, go treasure hunting and hope to find something of worth... If they do then most hope a TO or a JV will eventuate as funding for CapEX and OpEx to mine is near impossible for such micro exploration coys...
The market is dissecting these types of companies now... once upon a time the SP would have jumped hard and fast on recent results... not any more, market is now like "Now What"...
there is never revenue, ever... so the gamble is to invest that they find enough resources, gold,silver,nickle etc etc so that a big coy will come along and buy the shareholders out... other wise if your a LT investor you will be subject to endless CR's and massive dilution... just alike the last one here... chart proves that bears are ruling, however todays finish will confirm if there is a real breakout... cant confirm that until end of day...
Correction Within an Uptrend
ZNC appears to be correcting within a longer-term bullish trend. Although its MACD is presently below the signal line, shares remain 0.2% above an upwards sloping 200-day moving average.
Strong Bearish Momentum
Momentum for ZNC is strongly bearish. The 14-period Slow Stochastic oscillator is below 20, the level which many analysts call oversold. This means that investors have been actively selling shares and driving the price lower.
Above Average Volume
The last 10-days have seen significant volume in ZNC, with average daily volume above the average for the last year. Today's volume is no exception; with over one million shares having been traded already. The On Balance Volume indicator (OBV) is bearish. The slope of the indicator is negative and suggests that there is a lack of buying interest.
Recent High Volatility Signals Potential Pause in Trend
Bollinger Bands use standard deviation of the closing price around a moving average to measure volatility. The Bollinger Bands are presently wider than usual, as a result of greater than normal volatility that accompanied the recent price move. Events such as this may precede a pause or reversal in the near term trend.
I have yet to do some real study on the FA...however
at Dulcie North, new results include 32m at 9.4 g/t gold, including 9m at 31.4 g/t.
The highest individual 1m sample returned 199.2 g/t gold. not bad IMO
correct me here please if I have this wrong: the last CR raised just over $5million
@10cents a share?, so hence one of the reasons that the SP may be sold down fast back to 10cents, holders getting their money back?, the last reported cash balance doesnt show the placement, so hence the bank balance should be still over $5million?, is that correct..thanks in advance to any one willing to answer...
Again very very rare for me to post on a bearish stock... but I am keen to watch this space for the future and see what transforms here... best wishes to holders..
Not that you will like my input on this as it would seem negative, however if you like my type of TA please feel free to hover over my avatar and click follow... Tag me in any other stock for a similar TA, I love being bought attention to potential gainers... take care...
