PINL:VLTAF - Post by User
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VentureTrader1on Jul 12, 2013 10:39am
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Post# 21604132
RE:RE:Is this Good news or Bad news? - | Report abuse
RE:RE:Is this Good news or Bad news? - | Report abuseI'm with Jdn55 - I would say that, while not surprising, this is catastrophic news for the company, the timing is absolutely terrible, as
- they've burned most of the money and will now likely need more to complete the 'smaller scale study' (which it's been obvious for 2 years now was the necessary approach anyway, due to the wide recognition that low-grade high-tonnage deposits are no longer viable).
- they've killed ANY chance of getting some investor enthusiasm that might get the shareprice at least back to a point where financing was an option
- In the event of any sort of sector rebound, they've virtually guaranteed that they won't participate, and delaying results means they'll probably release their study just in time to hit the next downturn.
This isn't 'dead money for a few years', this is a dying company that's just going to bleed out slowly rather than quickly. What a disaster.