RE:The real reason the stock drop on the NRBlackHawk7 wrote: I've listened to these interviewers say they don’t understand why the SP went down on the NR. They say the 10gpt was fantastic and as such there should have been no sell off. All I can say is obviously they don’t understand the investor psyche.
The problem wasn’t the grade. The problem was that people have seen wide variance between grades previously. They have also been told they will have sample results only to have that keep being pushed out.
IMO the problem was the market was looking for more than 2 sample assays. Everyone knows that with a nuggety system that you will get a wide variance of sample results, which is why you need bulk sampling and you need a large amount of samples to get a true handle on the grade. So two lonely samples from 10gpt to 1 gpt just doesn’t feed the bulldog, that is why the stock dropped IMO. We need samples in size not a sample or two every several months. Provide the market with more info and you will see a different result.
BH, you hit the head on the nail!
In addition the market was also disappointed with:
1. KX157 previously reported gold nuggets, AND the masses went wild trying to GUESS how many grams were in those nuggets. I saw from 3 to 40 gpt guessed at. NOT including the smaller gold that missed the dialed down metal detector, and minus any fine gold. The market was sorely disappointed with this result based on past releases...
2. "Considering returning to Purdy's" What!? All along we've been told that Comet was the cat's meow, the monkey's uncle, now we are going back to Purdy's, where we have already been disappointed once, AGAIN. Just to redo some samples with the new technique??? Another disappointment.
3. No mention of Scout drilling holes. What have the results been? How thick are the conglomerates down into the basin? what is the future plan? Crickets. Another disappointment.
4. No mention of Beaton's creek. That ba$tard stepchild. Where does that stand? What's the strategy here?
5. We will continue with "future geological modelling and economic studies." No kidding. I would hope that you would not only "continue" (for 2 million a month), but that you would establish some sort of timeline. Like "we estimate a congolomerate modeling done by December, and a PFS by Dec 19!??
Throw us a few bones my friends. Another disappointment.
6. THE BIGGIE as you mentioned was, TWO FLIPPING ASSAYS after 8 months of work.....this is one I just can't believe came from expert professionals. That tells you everything you need to know about the competency of those in charge. IF YOU CAN"T PRODUCE, THEN TELL US AHEAD OF TIME YOU CAN'T PRODUCE. Not after 8 months of "work". Don't leave us hanging like that. Expecting 10 or 20 and then giving us 2!!!!!
I can honestly say that in my 50 years of investing that is the BIGGEST jaw dropping disappointment I've ever encountered in a news release. Any rational man would have expected at least ten of those samples!!!! Two samples tells us ABSOLUTELY NOTHING. And absolutely nothing is what we've gotten over the past 8 months.....REALLY DISAPPOINTING.
The stock crash had nothing to do with grades, and everything to do with communication incompetency, and missing the expectations you set up!!!! Remember the first sample was 86 gpt....what's up with that? any explanations yet as to why nothing else over the past YEAR even comes close???
You had us all on the edge of our seats, and then you kicked it out from underneath us! And you wonder why the stock price is down on such "good news"??????
ICARUS