My guess (and I'm no expert on mining, but maybe accounting) is we are being held back by a lack of cash. We really only have 2 quarters of cash in the bank, Vs KRC which has over $7m. So we are probably being held back in part because we don't really have the cash to complete the activities. I would have thought with the recent capital raising, they should have issued shares equivalent to the subscriptions they got - strike while the iron is hot.
The only reason not to do this, IMO, would be because you know you're sitting on something special, and don't want to issue too many shares at such a cheap rate (maybe those in the know feel it will be worth more in 6 months time), otherwise they missed the boat to bank some cash. Of course I could be wrong.
The second part is, KRC's quarterly cashflow said this:
"As at 3 July 2018 the Company had $7,369,000 Cash at bank. The Company is now fully funded to complete metallurgical test work, complete the Concept / Scoping Study on the Speewah Vanadium / Titanium / Iron project, and to conduct an extensive RC (with some diamond) drilling on the high grade Mt Remarkable gold discovery".
VMC can't say the same thing, because we don;t have the cash (and alot of our projects are JV's?)
Other than that, I'm not sure - but I certainly feel a lack of cash is likely holding this back. Time will tell I guess - lets revisit in 6 months.
VMC Price at posting:
15.5¢ Sentiment: None Disclosure: Held
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