Wow... strong pushback on that post!! But guys, while you may feel it is superficial I'm just detailing the facts as they stand and it's just my opinion. I'm sure readers and posters are smart enough to make up their own minds.
The bottom line is:
1. Nickel - Quicksilver may be a great deposit but Indonesia has done a deal with China and is flooding the market with cheap nickel. This has resulted in the LME nickel price coming close to halving since hitting a peak of $30,000 a tonne in December 2022 (now at around $16,000). Nickel sulfide & laterite mines across WA are now closing (see releases by BHP, Wyloo, Panoramic, and First Quantum), so in the short-medium term, Quicksilver (a non-sulfide deposit) is going to struggle to get up.
2. Battery Metals - for a variety of reasons battery metals are falling in value, cobalt is down to around $30,000/tonne today vs it's $80,000/ tonne highs in mid-2022 whilst the market darling - lithium - is off by more than 80%. The volatility in these metals alone makes it hard to get finance to develop deposits. And if you know anything about the scandium and REE markets, well, they are diabolical.
3. Junior Resources - with a few notable exceptions, the junior resource sector has been savaged in recent years. Why? An economically shaky China, falling metal prices, market fatigue, and a lack of progress (to name but a few) have left investors jaded. Investors as a whole are putting their money into safer bets - which is why the ASX 200 continues to rise as cash flows from the high-risk to the low-risk side of the market.
4. Quicksilver - I am not doubting the deposit's credentials in the right market. Hell, I made great money out of G88 in 2017-18! But it isn't that market anymore, management has missed the recent market/ development window and now they have no money (<$500K).
As for the metallurgy, they're making progress, great! But the original met work kicked off in 2018 - for those that don't know the average time from discovery to production is 5-6 years. G88 is now in Year 7 and still doing met work - really??
How are they going to fund the work program going forward? And more to the point, will anyone care in the short to medium term?
5. Golden Mile - where to begin? I'm not going to revisit the company's work program from 2019 to 2024. I don't have time, I can only compare what was and what is now. A quick scan of the ASX announcements indicates that they have spent quite a bit of time and money 'ambulance chasing', running after the hottest metal of the moment but knowing that good old Quicksilver will be there to run back to when they needed money.
They floated with just over 50 million shares and have now blown that out to over 300 million - which in market terms isn't too bad BUT if they raise in the next few weeks that is going to start ballooning out. The problem I see is if the stock drops below 1c, experience shows it is unlikely to recover. And just remember, as a broker told me many years ago (and I didn't believe it at the time but do now), "Companies raise at the price they think the stock is worth" - bear that in mind with G88 trading at all-time lows.
Then there's the management - in broad terms, according to Commsec, the original board was purged in once in 2018 and then the remainder in 2022 (probably should have gone earlier). However, (alarmingly) the company has had FIVE MDs in its short history, meaning that on average they change the helm every year, which points to an underlying problem. Add to that changing of company secretaries and constant office moves and you've got to question what is going on.
Companies need stability to succeed, hopefully (for investors' sakes) the new MD, with his brother as Exploration Manager, might provide that stability but that remains to be seen.
So to finish, I was asked to look at G88 AGAIN by a colleague to tip some money into it and potentially help them out. However, I make great money trading blue chips and resource producers, so see no need to dip my toes back into this end of the pool or revisit former glories.
Despite the virtues of Quicksilver, IMO it is now the wrong market for the find, and the deposit may also be in the wrong hands.
How investors spend their own money is up to them but G88's 78% decline in value since July 2023 tells you what the market thinks of the company - and as a wise man once said, 'the market is never wrong'. CHM is a good case in point.
Best of luck to all shareholders and DYOR.
PS. Bluebird and Nowhere Man I respect your opinions and you have a right to them. A quick look at your posting histories tells me where your allegiances lie and that's fine. Try and keep it professional - I'm just presenting facts and expressing MY opinion.
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