stick to the facts...

We should eventually see a positive turn upwards this week / coming weeks as at this stage there is nothing to suggest this is anything but a great announcement.. any negative sentiment is pure speculation (unless there are any qualified geologists out there that can put forward a recommendation / perform a scoping study for us before BTR can!?) as the facts presented to us are all positive from my understanding.

The course of events from my perspective on last week's share price dip are the following:

1. The resource estimate vastly exceeded all expectations: we were all hoping for around 100Mt at 1% and we got much more than that! i.e. 160% rise!!
2. At open we had excellent buying and a rise of 10 cents as expected with such an announcement
3. The run was halted at $1.50 as there seemed to be a cap on at 1.50 (have a look at how much changed hands right on 1.50 and how quickly it happened i.e. perhaps automated system responses to buy orders). E.g. every time I refreshed my page at the time I couldn't see any accumulation of these orders, they would just appear and take out any buys so it wouldn't fly northwards..
4. Not sure but could have been someone taking profits or the opposite i.e. the likes of Glencore trying to keep the share price within a low range...
5. The other possibility is that it was end of financial year so many took their profits (or just didn't buy waiting for July). This explanantion is viable for the acitivity throughout the day although there was a high concentration that crossed hands at 1.50 specifically at/around open as mentinoed previosuly..
6. Everyone got in at the start and the run didnt continue because those waiting to see what would happen in the first hour before jumping onboard didn't see a rise... this meant many buyers waited on the sidelines and still continue to do so..
7. The price continued to drop as a result of and a combination of profit taking and end of financial year positions

So once the end of financial year dust has settled and people have looked at the numbers and realise the real 'potential' value held within Mumbwa, it is logical to expect the share price will rise again. This doesn't mean it will necessarily as this is the stock market (as prices can fluctuate greatly with smaller caps) however I would be very surprised if it didn't! i.e. the current market cap / share price is where I would expect it to be based upon Perkoa alone, once you add Mumbwa we should be in the $2-3+ range (conservatively given the 180Mt etc. resource estimate)... so what should the price be in the interim given the 'potential' mine? This is where the debate begins and you hear everyone coming up with various estimates... my guess would be somewhere in between i.e. £1.50-$2 for now (prior to August)...

The upcoming scoping study in August will ofcourse determine ultimate viability however I expect the share price to rise strongly before then in anticipation oncemore and if positive (on viability of mine & production) fly once announced...