Facts in brief, (with a quick look at financials) well, it made a 9m operational loss on the last financials. lost another 39m on exploration, and they have 100m in debt. (requiring refinancing)
Its not making money, its unprofitable existing operations.
OK, they have a reasonable project study, but require 300m to get it up and going.
So why a downtrend? If you cant make money on existing projects, and you have debt to service, can you get finance approved for the expansion of the other project?
A nice project study, could be just that, if the company cant find a manner to finance it, without massive dillution.
Would you loan them 300m until they get to pay it back ?
And what happens in the meantime with their existing debt obligations (while losing money on existing operations), and captiol structure?
So the other question, why did it pump up to 10c? Long term beleivers, and a short squeeze.
Good luck holders, time to look seriously at financials, and ask some tough questions.
Ask if it is another wishful thinking stock, based on coal prices of the past, and where are those prices heading forward. (thats what everyone who sold from 30c to 6c were contemplating at some level)
Thats the crux of it. If you beleive better prices ahead, and exisitng operations can return a profit, and return viability to the bottom line.
COK Price at posting:
7.2¢ Sentiment: None Disclosure: Not Held
