RE:RE:RE:RE:RE:Company's Latest MD & A on Sedar
The company does need to regain credibility; however the entire market has suffered from their inability to source cash due to a significant slide in gold prices. SCM has been no exception and this has resulted in them failing to be able to produce gold as projected.
The fact that the company has been able to source large funding options proves that there is significant potential seen in this stock. Once the company closes the $3mil financing and starts to produce 8k ounces in the short term as projected, the stock will clearly be cheap based on those earnings and market cap under $3mil.
If future revenue of $20-$40 mil (annually) can be achieved the stock will look completely different; however this can only be achieved through further funding.
The company has already indicated that it is obtaining funding up to $12mil through various sources and has soft commitments on M1 upon a successful BF.
The M1 capital cost is only just over $20mil and has an NPV of $100mil with an IRR of 95% in current market conditions. This type of return is not seen with any other stock.
Thus, I think that access to funding will drive the share price, as it will eliminate the risk and enable these projections come to fruition.
If something is cheap and the risk is reduced or eliminated it is only going one way and lucky for this stock it has low liquidity so it will move fast.