Well they should only be able to get to $0.0125 cents because that's a market cap of $41million which is the cash in the bank.
Not a cracker for how many billion dollars worth of Iron Ore, what happened to fair value ,
During discovery and exploration, there is usually an
increase in stock price as investors speculate, based on preliminary drilling or other
sampling results, whether the company has found anything. As the company defines
resources and releases further results, institutional investors usually become interested in
the stock. At these stages, the stock price tends to increase.
Once a decision is made to proceed with feasibility, the stock price may decline as
investors worry that a feasibility report may deem the project uneconomic. If a decision is
made to go into production, the stock will still remain relatively flat, as investors are
uncertain whether a company can secure financing and permits. Once financing and
permits are in place, the stock may start to increase again, although at a slower pace, due
to uncertainty regarding cost over-runs and other surprises.
As the mine starts production, the stock should then increase at a faster rate. The
above discussion is a simplification as the stock is also influenced by general market risk
and commodity price risk
Someone offer to buy the deposit for $1billion and sell the company will you, at least we might see $0.30c a share. Hell I'd even take $0.15 a share now
SDL Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
