I remember those DEG posts from all those naysayers.And what’s...

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deathstare

133 Posts.

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30/01/21

10:06

Post #: 50566573
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Originally posted by captain: ↑

Been pondering about the collapse of the RXL share price over the last couple of months and it struck me that I saw something similar happen to DEG in late 2019. The circumstances are not quite the same but what I am seeing in regards to shareholder sentiment is identical. By that I mean the DEG Hotcopper threads were awash with doom and gloom. For those that may not be aware DEG announced a Capital Raise at 0.05c - a very heavy discount to the share price at the time. The purpose of the raise was multifaceted, firstly to buyout a Chinese partner in their tenements and secondly to massively ramp up their drilling campaign. The share price before the raise was around 0.10c and prior to the the shares had been trading in the teens. This decision made by the company was widely criticised by the existing shareholders who were shocked at the discount and a campaign of bagging the Board and Management unfolded. The share price then fell to a low of 0.039c on the 9th December 2019 as many existing share holders sold in protest and disgust.

The DEG share price then slowly recovered from that point on, a gradual move upwards until the 6th February 2020 when the Hemi discovery was announced to the market. Over the next couple of days the share price rose to 0.10c and over the next couple of months to 0.25c and then 0.44c and of course we know where they are now. I did have the pleasure of being part of that journey.

Now RXL may not be the next DEG but for certain the assets that RXL have are worth a hell of a lot more than 0.033c. The management at DEG were vindicated and in the end the misconceived sins of that capital raise have been long forgotten and even heralded as a master stroke. The key here is to remember that mining is not a perfect science and proving a resource takes skill, patience, persistence and an ounce of luck. The game here is far from over and things can turn around on a dime.

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I remember those DEG posts from all those naysayers.
And what’s hilarious is those same naysayers were full of praise
when the DEG SP started heading north in a big way.
For this reason alone,I am holding on to my ROX and (in due course)
will be getting my ROX off.

RXL Price at posting: 3.3¢ Sentiment: Buy Disclosure: Held
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