RE:RE:Birch Results You are lare on this call the PP happened months ago. After the PP was committed the future became diluted. Even in dilution the share price rose. All the way to .29.
with 200M shares the market priced the company at 58M market cap simply because they kept drilling into timber.
So all your FUD about dilution is off because the market priced it in. The buy pressure driving the price up was there the potential was there.
so now let's talk about why the market saw this as a good buy in the 20s.
The 58M risk vs a 2B reward. (A 20 bag multiplier)
as they are drilling into the geography of mines with over 30x that revenue over their lifespans and a margin running around 25%. That puts the income in the 15B range. A reasonable split of 2B for the junior for the field rights is still very economically sound for the major as it's paid for from the potential profits which stay good. Furthermore the existing major up there running the existing mines have all the capital costs of the support infra accounted for and sunk so this becomes more of an Operational cost for the incremental supply processing.
so at 29 cent we have a 20bagger potential with your feared dilution priced in.
at 9cents that 20bagger potential is a 60bagger (rough maths) so yeah the arguments you have proposed have already shown the market is more interested in that upside. The drop from the highs to where we are now have been a result of the sell pressure from the traders counting the shorts over the time frame of PP to now what I can project is the shorts likely pulled out a portion of their initial investment at the elevated price to reduce their $ balance on this to $0 while keeping the majority of their shares and the warrants that come with those. (Of which the market already priced in and are reflected in the potential)
the bigger delta to the above analysis is the new financing required to bulk sample the most ideal targets to determine if there is a large economic deposit.
Sorry for the long post...