RE:RE:Niobium Claim Group : Drill Program Phase II first half 2020guerreiro wrote: "thairat" based on your analytical theories Commerce Res Corp is really trading at a big discount to its mineral deposit intrinsic potential value and the low cap structure.
Why is the stock only trading at .35 /.37 cents. Your opinion would be greatly appreciated.
Only a shareholder.
Chris Grove (15.8.): In terms of this, the most important things to remember are that: 1) the share price has nothing to do with the quality of the projects, and 2) it has everything to do with attracting money to finance these excellent projects.
The third factor is that the “discount” of where the share price is right now and where it may trade for the next couple of days, as compared to the where it was trading prior to the announcement, is the most important motivator for this new money to come in.
That is to say, we should see the difference between $0.30 and $0.60 as the “leverage”, which is exactly what the bankers will see and they will believe that they can invest in the company at a significant discount. That is the central idea.
Arguably shareholders who have held the stock – as long as I have, being 20 years now – can either buy or sell of course, but in truth can just wait out this period and then we should see the actual value of the stock go back to where it was, but the company should also then have money to actually do some work, which we just could not do for lack of capital for a very long time.
This business, with the most demanding mining legislation in the world, is extremely expensive and there is just no practical way for a company to raise funds excepting by issuing new equity – unless we are able to secure a joint venture partnership.
This is what we continue to work on – securing the capital that we need through a non-dilutive investment being a percentage sale of future offtake or a percentage sale of the deposit itself to a partner who needs the actual commodities.
This is exactly what I have been working on ever since we published our economics for our projects and that is 8 years and 7 years respectively. But so far as yet, we have not been successful with this and so the need to consolidate the shares.
However, I have to also say that we have literally never had as much interest in our projects coming from industry in the last month as we have right now – and yes, I am sorry that it did not come to us earlier.
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