Covid and PSD Funding

SFG share price has obviously been coming off the past few weeks due to the delay in obtaining funding for Project Sea Dragon. From my calculation we are in month 4 of the indicated 6 month Arranger period, but this is drawing closer to the end date and presumably shareholders have grown frustrated with the delay. Some probably now doubt the possibility of funding and have sold out.

From my understanding the entire process of this Arranger period has been affected by the State and Territory lockdowns due to covid restrictions, and the inability of funding groups to complete due diligence assessment in a timely manner.

Clearly the lockdowns are now being eased, and this is likely to accelerate with the substantially improved situation in Victoria. The Northern Territory has eased its lockdown towards other States appreciably in recent weeks. This surely will improve the progress of due diligence work, and IMO there is an increasing likelihood that the Arranger group will be closer to a financing decision.

We now have an irony that Australia is close to being completely free of covid, and many countries in Asia are similarly substantially unaffected by covid due to careful lockdowns, and yet ASX share prices (not just of SFG) are now being placed under pressure because of another wave of infections elsewhere in the world (particularly in the USA and Europe).

Its my view that investing in ASX listed companies that have no direct association with those covid-affected countries probably will be safer investments, and the fact that SFG has a 12 month or more development runway makes it an ideal investment. People who are selling out today at less than 10 cents might rue that decision.