the future

Falcon is not one for the short term but it will repay those who hold over the longer term ie the next 6 months at least.

However at this stage it is not the master of its own destiny in either of its two main prospects, Collurabbie and Saxby. In both cases it is reliant on its two major partners; BHPB and Anglo American Exploration.

While BHP has not done much to push the Collurabbie project of late, they are still in there and this is despite their having ditched most of the other small projects left over from the WMC takeover. Why is that?

My guess is that BHPB sees some future in that project and would want to secure any new nickel find. However my guess is BHPB and Falcon will come to some arrangement which will allow Falcon to take the running on Collurabbie before long and then we are likely to see some drilling of the really prospective areas.
That could lead to some significant upside for the stock.

Saxby is potentially very interesting too and Anglo American has committed to spending some $7 million on exploration to get its share. Just look at the Falcon web site and you will see that they have identified a significant number of conductors which could, potentially, host Ni and Cu orebodies. Falcon has indicated they will be tested by drilling ASAP although given the demands on rigs at this time, that may be months away. If any of these turn up trumps then Falcon will take off.

Contrary to some of the views expressed here, Falcon does have very good prospects which marks it out in contrast to some of the other penny dreadfuls out there and it does not have a large number of shares on issue. In this market those factors give Falcon some measure of value. However in the absence of immediate news of a huge find there is nothing to make the shares take off at this stage.

I notice that the turnover in Falcon shares remains fairly consistent while the share price is low. which suggests to me that people in the know are accumulating this stock.