This is obsurd.. ...the stock is trading non-senically as if 1) The Sprott deal is falling through and 2) the company is going insolvent regardless. There is no logic what so ever to the price movement; just down, down, down.... I know some are saying "but resistance is at .65"....Resistance for what? The last time the stock was .65 there was 1/3 of the outstanding shares and the company was nothing but a explorer proving resources. This is not the same company from 3 1/2 years ago. They have significant resources and are on the brink of becoming full-production @ 160,000 ounces plus, for the next decade. And that's just ONE of the resources....
Others are saying "but they're a producer, so they move w/ the price of gold". Really? So what happens when gold goes to $1400? Does their stock price go to negative $.50? I mean, come on....if gold goes down $10, a proportional impact would be down
.01 or
.02. Not a cataclysmic collapse like we're seeing here....
And yes, their last annual production was 85k and 2012 is looking like 85-90k, but at 160k in 2013. Aurizon is a 160k producer with 1/2 the resources LSG has (and I'm not including Fenn-Gibb because "really?" that shouldn't count. We all know that was fluff to secure management bonuses). Aurizon has 2 1/2 times the market cap LSG has. So what gives?
Back to my original point, it really feels like the Sprott deal is caving....It hasn't closed yet and at this rate, if I was Sprott, why would I want the deal to close?