RE: RE: RE: RE: RE: RE: RE: RE: RE: MD & A Excerpt Nakate: Why would the stock drop? As the most important question will be answered. Is this a scam or some kind of pie in the sky dream? Even you know what that answer is. The thing was a lot of investors had doubts and were easily spooked, maybe not so much any more. I think this break in trading was needed for everyone to stop looking at the share price for confirmation and focus on the fundamentals to tell them what is going on and why and most will be wanting more shares not less on D Day
The halt and suspension of trading has only to do with the PEA and technical reporting requirements here for the rare earth elements (and revisiting the energy costs). The question here is how competent management is. They seriously effed this one up. They had to correct information and provide additional information for the NI43-101 back in November/December. That should have been a warning.
Management gets to see a draft of the PEA and the NI43-101 before it is released. Clearly they did not have the expertise to know that this would be unacceptable and did not meet the reporting requirements. Is it arrogance, incompetence, or laziness? Why are there no mining experts involved in management? Geologists? Management did not think it was important to bring that expertise inhouse and look what happened.
This raises the question of whether they can execute the SGA plant and bring production in at a cost level that makes Orbite highly cost compettive. If they can, they will make buckets of money. If not, well, there goes the company. Execution is about bringing in the right people and getting the job done correctly. So far they have not been inspiring confidence. Where are the experts on BUILDING and OPERATING large scale chemical operations? Orbite should be hiring world-class operations engineers and so far there does not seem to be any such move.
I want to go long on Orbite when trading resumes, but I have some doubts. I would not be surprised if there is some serious shorting that goes on. If they screwed this up so badly, what else will they muck up?