RE:RE:RE:RE:RE:RE:RE:RE:many quarters of growing goldproduction ahead !1. Zero insider participation in the financing of the New Mexico acquistion. (as of May 19, 2021, Mgt and insiders owned 48% of the total shares issued. Cant see why they would have to buy more to show their confidence in the company. In fact, l think they are probably selling right now since they know better than anyone else the company's current issues).
2. Management undervalued the price the shares of the company for the financing at $0.22 by a significant discount to the two week trailing share price of $0.265. (hard to argue that they undervalued the SP when few weeks after the transaction, the SP is valued by investors at 20% discount of the sale price. My feeling is that mgt had a pretty good idea of what's was coming and thought that ,22 was the max they could expect for the time being. They could have waited to buy this new property and most probably bought it a cheaper price but the financing would also have been realised at a lower share price.
3. A general summertime swoon in precious metals share prices. (Agreed)
4. Investors are concerned with jurisdictional risk in South Africa with current protests. (why now and not prior???. There is a risk to mining in most developping countries. The jurisdictiional risk is not higher now than before . But social risk due to the pandemic and to the social unrest following the imprisonment of former president are much higher than few months ago)
5. 10's of millions of those $0.22 shares are released from escrow in August. (l am not fearing the selling of these shares as the current price is too low. The owwers would sell at a 20% loss. I would fear if the current share price was higher than at time of financing).