Re loss of value recently, guess there was EFY selling to offset losses on other stocks for tax write-offs, now there is selling into the new FY for folks who want the $ now and to pay the tax in a years time (or retirees selling enough for their annual income below the tax threshold), there's folks who bought in on spec that the MRE would pump the price (but it didn't!), there's a declining gold price,
you name it.
Lots of reasons for a falling valuation and it might continue for another week or two in the absence of any more great news. But the upside is pretty bright. I can see lots of reasons for delaying release of Scooby results up until now (but the intense drilling there gives a clue to their direction) as well as other regional drilling results. No doubt they prioritised the lab assays to Hemi rather than Scooby and other regional areas, as well as staff reporting/analysis time for getting the Hemi MRE in on time as promised, just for starters. And why release good results when the EFY sale is going on? That would just allow a bigger sell into the news.
However, there are some big turning points coming up. Good news from Scooby will infer more than just that. It will confirm predictions that the mineralised intrusion event that created HEMI is not only widespread, but that it is widespread at economic grade. Likewise a detailed scoping study will confirm the economics of mining Hemi one way or another, but I'm suspecting it will be on the positive side given the likely (but yet to be confirmed) very low strip/waste ratios at Hemi that will significantly reduce mining costs relative to many other operations that may have higher grade but much larger extraction costs. Those savings may well counter the additional costs of dealing with refactory ores, especially given the high recovery rate from current metallurgy. We will see.
Any positive news from some of the more distant intrusion-related drilling they are doing (bring on the Calvert results! They are certainly getting their teeth into that one too from Satellite imagery) will confirm the Sankinotoid intrusion model more widely (if it's needed given they predicted some mineralisation at Hemi based on the Toweranna work and look where that ended up...), then we may well be on track for Neetram's predictions to come true, with subsequent re-enthusiasm for the SP
. As always, I'm along for the ride.
(20min delay)