RE:SP slipping and future predictions Hello Kanerfalk,
Thank you for your post and current predictions regarding the share price. I have shared my estimates before - if we get confirmation of the volume and prices predicted for Q3 I have little doubt the share price will move significantly and we will close out 2021 at or close to $2.00.
If the top line sales growth continues in 2022, with extraction and production costs benefiting from economies of scale, with good control over marketing, sales and distribution costs, matched with a more efficient and effective general and administrative "fixed" base, then I would see a further appreciation in share price heading towards $5 per share.
The release of the updated Pre Feasibility Study will be an important factor, especially if it supports a reasonable section by section comparision to the 2017 version that generated a NPV of around $2 billion. If a more reasonable production growth projection, supported by actual cost experience replacing the Class D estimates in 2017, produces an equivalent NPV, then I would expect a more rapid rise to the $4 plus level. The release of this document might also generate the financial rational for a take private or takeover transaction that would crstalize the value for current shareholders and in fact force them out at an attractive, but not optimal or maximized, valuation.
Shareholders selling their shares today at prices under $1.30 have perhaps not had the opportunity to receive and examine the amended Q2 financial statements, or to update their expectations for the Q3 results which might match the entire 12 months of 2020 dollar revenues. They are also likely not readers of Stockhouse or CEO.CA where the more detailed due diligence of the VSG group has been shared and discussed. That being said, I have not been troubled by being on the other side of their decision to sell and will I willingly put up open buy orders below the current market to see if they will come down to meet me on their desire to unload their Verde shares. So far there have been a steady stream of small shareholders who have accepted my bids over the last 6 weeks or so.
Cheers,
S.