Following the most recent drilling result announcement on 10 Jan 2018, the share price went to .71 cents on 12 Jan 2018. Less than a month later it has quickly drifted back to .495 cents today.
That is a drop of about 30% in less than a month after what looked like a terrific announcement.
I can’t help wondering why the share price has dropped by so much on low volume when all the hype suggests this is a major green fields discovery.
Surely there are quality annalists’ out there who would be advising their clients to buy if they thought the value was there. Unfortunately, it doesn’t look like anyone of significance is prepared to jump in and buy at these prices which make me wonder if BRB has the goods.
The maiden Resource announcement was delayed by 3 months in what has been promoted as a better opportunity to include extra drill results, let’s be honest, the numbers simply didn’t stack up and the maiden Resource announcement had to be delayed to try and get a better result.
Anything less than one million ozs as an announcement will disappoint and the share price will drop further.
One way which Tom appears to be trying to sugar coat the process is to inform the market that there may be an opportunity to build a low cost start up without limiting the scale of the development.
The advantages are offered as early cash flow, low initial capital expenditure which will provide funding towards drilling and further feasibility work.
I can’t help wondering if BRB knows the numbers won’t be what the market anticipates and are promoting the concept of a start-up plant.
I have thought a lot about this and in my opinion, it is a load of rubbish, the company and Paterson’s have ramped this company, and now must be held accountable if the Resource figures are poor.
if the numbers stack up to what is anticipated by the market, there is no need to waste time and energy building a small processing plant as shareholders will gladly participate in a capital raising to continue drilling to expand the Resources which eventually leads to funding an appropriately sized plant.
The nagging concern I have is the company knows they do not have the numbers to back up the hype and they are trying to placate shareholders by floating the suggestion how they can benefit by a small plant.
If the maiden Resource announcement is not a minimum of 1 million ozs or more, then I would have strong concerns regarding the veracity of future announcements from this company.
BRB Price at posting:
51.0¢ Sentiment: Hold Disclosure: Held
