With the announcement on the 4th, of an additional zone containing coarse visible Molybdenum at 690m, one would think this should be treated as positive news, instead the market has sold down the stock.
Combined with the previously announced new M4 zone in February one would draw the logical conclusion that the soon to be released resource upgrade, will be exactly that - an upgrade.
When combined with the incoming cash to be received later this month from Red Kite, one may conclude that the full feasability study will more than likely include these additional resources to increase the mine life, thus producing greater economic benefits...
In addition the announcement in regards to Red Kite hints at big things to come, with Red Kite having a first right of refusal to provide project finance.
Red Kite is in the buisness of providing mining finance, and as they're prepared to invest $10mil, this represents about 50% of the current market capitalisation of the company, they wouldn't have done this without performing their own due diligence.
Hence, it doesnt seem to make sense why the market is reacting negatively to what should be perceived as multiple positive announcements. Does anyone have any theories as to why this might be?
DTM Price at posting:
8.7¢ Sentiment: None Disclosure: Held
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