One Year Ago "The share price I have no doubt will continue to rise as the resource is expanded. The ride will not be smooth. Expect rapid swings in both directions as Mr. Market tries to separate you from your shares. I suspect that by year end the deposit will be defined as much larger and the share price will reflect that as well.”
I wrote that post on February 12, 2011. The SP closed at 2.39 that day. Since then we have had Fukushimo, the American debt load crisis and potential European bankruptcies. Fukushimo cratered the uranium market and the debt load crisis has been an albatross around the markets. Macro events have played a significant role in the past year. None of these events were in my thoughts when I posted the above. Fukushimo was unpredictable and the debt load issues were not ones that I was aware of at that time. (Others more astute than I may have seen the writing on the wall.)
I do believe my comments were born out during the past year. I must confess though, that I thought a year later (given all the positive GCU news ) we would be much higher than our current price.
The immediate impact on the SP, we all know of course, will be the NI 43-101 which we expect in the next week or two. Beyond that event, I believe we are expecting a Pre-Feasibility Economic Assessment before year end. (Given the extended timelines of the original NI 43-101, it would not be unreasonable if the PEA was pushed into the first or second quarter of next year as well.) Is it possible that another update
(NI 43-11) will be provided after the 50 000 metre drill program is completed this year? I would hope so. Our impending NI 43-101 plus the results of the 50 000 metre drill program should move us to the forefront of gold exploration companies on the Vancouver exchange. Hey we might even move to the TSX.
All in all we have a lot to look forward to in the coming year. I would hope that a year from now our resource definition will be well known in the wider community and that Springpole will be seen as a viable economic undertaking after our PEA. I can only hope that we do not have a “black swan” event which casts a shadow over the markets. If that is the case, GCU will suffer the fall out and will not be immune to the pressure on its SP.
Disclosure: Yes I am very long on GCU and very biased.