Another new lowSGF hit 38 cents for the low today. Just about $70 million as a total market valuation for the company. Certainly a far cry from the $8/share of early 2007. This for a company with one of the largest kimberlites in the world after spending more than a decade evaluating the kimberlite and preparing for exploitation - an expenditure that is a multiple of the present market value.
And it isn't a matter of the diamonds not being there. Seems there is plenty in the ground, but the market is not willing to look for such future benefits - present holders just want to exit at any cost, even if the price gets beaten down to near zero.
The guys who bought the private placement at more than double the per-share price will not be amused, but the specter of endless dilution haunts the halls. We are probably at the point where more dilution is counter-productive. Best to let someone with deeper pockets into the deal (newmont??) than raise another $10 million - and issue 30 million new shares. Seems a mug's game with the kind of money needed to develop the ore body.
To my mind we must be close to the bottom - but those who have been watching Shore on the way down have probably been saying that at $3, $2, $1, $0.50 etc.