In this post, I will be covering the events that took place in between the 30th of March 2022 and the 3rd of May 2022 and how it made SRN’s share price rally more than 350% in just 34 days, and how something similar could happen in the future. If you don’t want to read the whole post you can skip to the conclusion at the end. See image attached below of chart:
To start off, SRN’s share price closed at 0.012 for the day on 30th of March. The next day, SRN released a 16 page price sensitive announcement just 2 hours before closing titled ‘Victory Bore Unaly Hill Vanadium Project WA,’ in the announcement, SRN went over the opportunity to develop their world class vanadium asset and the importance vanadium plays in the future. Investors jumped at this news and stock price rallied 33% by market closing. As well as this, on the second last page, they stated some mining metrics like the strip ratio, life of mine, and tonnes per annum, this will play an important part in the next paragraph. See image attached below of announcement:
After trading sideways for 13 days, on the 13th of April, SRN releases yet another price sensitive announcement 2 hours before closing, which was following up on the previous announcement made 13 days ago. In this new announcement SRN retracted its production targets as it wasn’t permitted under the JORC code and removed all references from the ProActive article that had been written. Despite this being not great news as it outlines a flaw made by the BOD, yet again, SRN’s share price closed 6% higher, and this announcement also resulted in share price rising 17% the next day. See image attached below of announcement:
Because of Good Friday and then the weekend, SRN didn’t trade in between the 15th and the 18th of April, but when market opened on the Monday of the 19th, SRN released an announcement titled ‘Sights set on Vanadium Strategic Battery Metal For a Cleaner Future,’ which outlined that diamond drilling and metallurgical work would take place, planning for a PFS, and that discussions had begun with potential partners. This announcement is what lead to a 20% rally before closing, and eventually, what turned into a 50% rally in the 7 days that took place in between the next announcement I will cover. See image attached below of announcement:
Just 8 days after the last announcement, on the 27th of April, SRN was there to follow up on their words with an announcement titled ‘Victory Bore Vanadium Project Driller Secured Diamond Drill,’ stating that drilling would commence on the project, share price rocketed 16% by close. See image attached below of announcement:
But SRN wasn’t done making good announcements, the next day, on the 28th of April, SRN released another announcement titled ‘Additional Positive Results from Yidby,’ stating that they found a wide shallow intercept, building on their last drilling results, as well as stating that the potential for the prospect to grow is high as multiple areas haven’t been fully drilled yet, and that the next set of drilling had been locked in. Share price rallied 11%. See image attached below of announcement:
4 days after the Yidby announcement, on the 2nd of May, SRN released their quarterly activities and cash flow report, outlining the very positive quarter they had and what their next steps forward would be. Unsurprisingly, share price rallied 20% before close. Key points will be outlined in the image attached below of announcement:
The next day, on the 3rd of May, SRN released an announcement titled ‘VB Beneficiation Study Update Confirms Economic Viability,’ which goes over key points from the results that came from an updated scoping study they undertook. Share price rallied 2%, which would mark the high and the top of the rise, before the fall of this 34 day 350% rally. See key points of the announcement in image attached below:
Here is a chart with all the announcements listed where they take place on the chart, in this time frame, share price rallied upwards of 350%. See image attached below:
In conclusion, SRN rallied 350% from a good from of positive announcements in just 34 days. Share price came back a little bit after the last announcement as I think people felt that it had risen too high too quickly and saw the opportunity as a chance to get out and take profits. IMO, If SRN release a similar amount of positive announcements under current market conditions, for example, 5N successfully produced, results from Yidby or Perenjori, PFS, execution of binding agreement, results from the on ground work being done at Kooline, and maybe something unexpected like if Saudi is happy with the results of the PFS and we successfully execute a binding agreement with them, they could do a capital raising at a premium to show support for SRN.
I’m thinking of buying some SRN in the next couple weeks, as I don’t currently hold.
GLTAH
