The company is intending to do a sorting test pit to build...

The company is intending to do a sorting test pit to build confidence with partners/financers/investors.


I think putting the company into hibernation would come with its own issues, and I don't see the benefit. It makes sense for some companies like unprofitable lithium miners - they can continue to produce at a loss until bankruptcy, or they can go into C&M and hope for lithium prices to rise - improving their odds from terrible to bad/ok.

An explorer going into hibernation - would burn through half of its remaining cash on simple things like redundancy, ASX fees, management wages, while achieving nothing in that time (years). Then incur further costs to re-hire, re-furbish equipment when deciding to restart. And in the meantime, nobody will want to own the shares, so the SP falls. That's assuming the company has a positive cash balance to begin with - if in debt, then add interest costs and the financer disagreeing. So upon re-opening, expect huge dilution at a low price (maybe another scenario exists eg. lithium mania / crypto, where temporary high valuations appear).


Gold is already high, so waiting for even higher prices is a big gamble. I think explorers are down because of higher interest rates increasing the opportunity cost and funding cost of the money. So the bet is, that interest rates fall back toward 0, and explorer valuations rise again. But in the meantime, while in hibernation, all existing holders are driven toward 0.