Wow, not even chatterThis certainly proves my point how ridiculously low sentiment is in this sector. A stock is hit on (by my guess) fears of financial problems, the company resoundinly proves the contrary, and the stock barely moves up. And, even the chat room is silent.
FYI, there has been one particular seller in the past three days (including today) operating through the ETN Arca (don't know who that is). This one seller has been incredibly aggressive selling (at least half the volume in this time), proving the point that in a thin market one big buyer/seller can move a stock. Oh well, once he's taken out things will change.
As for the company, my god they did a stock deal at $1 with warrants at $2 and $5, plus it is clear that more financing is on the way, and I'd bet that it too will be relatively non-dilutive. Marc has met with no less than 10 major banks/funds/wealthy individuals in recent weeks, and rest assured there are plenty of funds available. Plus, the cash burn rate drops substantially until the Chinese drilling season re-starts in April, so they don't need much more for the next six months.
As for news, there will be drilling results coming out for both Mexico and China in the coming weeks, and potentially significant discussion of the company's plans in these areas. The only reason Mexican drilling news has not been out has been, per the status quo, massive delays in the Mexican assay labs due to understaffing (another sign of just how early we are in the bull market). But rest assured, some news is coming in the next few weeks (I'd guess two).
As for China, don't know when the results will be out, but the 2007 drilling season ends at the end of October, so the results should be out sometime in the fourth quarter. Also, by the way, Marc is going to China again next week, with one of the things on his agenda to sign up Ausenco to do 43-101's on all nine properties. They already completed the first one (on Erbaohuo, the smallest of the nine properties) and are currently working on Laopondao (the largest of the nine), and he wants to ink them for all nine, as well as to accelerate the process as fast as possible. In fact, his initial target is to have Laopondao done by March, to coincide with what he hopes to be the time of the TSX IPO.
By the way, here's the best breakdown I have seen re: the company's resources. At the current prices, the Cerro Los Minitas 43-101 shows about 32 million Ag equivalent ounces and the Erbaohuo 43-101 shows about 6 million, for a total of 38 million. For the remaining eight Chinese properties, the Chinese equivalent of proven/probable is approximately 60 million ounces, for a total of just under 100 MILLION OUNCES. I haven't seen the numbers for the Chinese equivalent of measured/indicated/inferred, but believe they are around 150-200 million ounces on top of the aforementioned 100 million.
So for the current market cap of about $45 million, you are getting an incredible amount of resources, which as noted above will all be comverted to 43-101 ASAP (I'd guess 12-18 months in a best case scenario, but clearly Laopondao is the most important because of its huge size).
Moreover, the company's internal goal is to prove up 100 million ounces at Cerro Los Minitas by the end of 2008, which will probably not be as hard as people think because the Esperanza discovery this June was so large. Of course, in this year's horrific junior market no one seems to care about good news, but that will change soon IMO.