I don't get how much profit shorters really expect to make after our fall from >$4.
The company is cash flow positive, with increasing (albiet slow) production. The company is close to trading at a discount. Plus with expansion plans in the works there is definitely positive prospects long-term.
My guess is they are betting on:
- possible cap raise (which the company has vehemently ruled out)
- the production process is inherently flawed, with nameplate perpetually delayed
Otherwise I see very little room for shorters to profit. I would expect a down-trodden company with zero prospects and dodgy management to be the #1 shorted stock, not a new producer of a material that is in a sellers market.
Though some may it is financial irrational to take a contrary view to the market, I say: "Fortune favours the bold". GLTA
ORE Price at posting:
$2.74 Sentiment: Buy Disclosure: Held
