RE: The irony While MAT is a secure investment backed up by a giant investor, the SP dropped from its high of 0.47 to 0.30, while RGX in the same time period has doubled in SP with no major backing. Maybe MAT should have kept some of the numbers to themseleves as to keep speculation alive and have some risk.
Where the level of risk is very low so are the profits. Go figure.
SeekReap: We are probably in a long lull here until at least the deal is signed and finalized. Andre did mention that certain aspects of the JV are still being negotiated. However, if you go by the PEA and estimate that Matamec gets 51% of the $600 NPV, their share comes out at $300. Probably higher since the capex will be paid back much later.
What we have here is basiclly MAT trading with a market cap at 10% of their share of the Kipawa NPV. That will lead to real and substantial profits, but not until ~2015-6. There is the real possibility of upside here as well with the other projects and resources. In the short term, there does not seem to be anything here to driv the share price up. Profits are a long time away. As we get closer, the price will slowly rise. But the speculation factor is now gone. No one is going to come in and buy Matamec at a premium. We are in the orphan period of junior explorer. This chart is one of my favorites and explains much.
Put MAT away in the back closet like a fine wine and bring