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Generation Mining Ltd T.GENM

Alternate Symbol(s):  GENMF

Generation Mining Limited is a Canada-based exploration and development company. The Company's focus is on the development of the Marathon Project, a large undeveloped palladium-copper deposit in Northwestern Ontario. The Marathon Project is 100% owned by Generation PGM Inc. (Generation PGM), a wholly owned subsidiary of the Company. The Marathon Project is located along the Trans-Canada Highway in Northwestern Ontario and covers a land package of approximately 22,000 hectares. The Marathon Project is estimated to produce about 2,122,000 ounces of palladium, 517 million pounds (lbs) of copper, 485,000 ounces of platinum, 158,000 ounces of gold, and 3,156,000 ounces of silver.


TSX:GENM - Post by User

Post by Rainydayon Dec 31, 2021 9:43pm
325 Views
Post# 34275508

Character of Trading Changing

Character of Trading ChangingAs Zola2 pointed out, now that GENM is over $1.00 there are new investors who will be attracted to it. Using the most recent GENM presentation there are 193.6 million shares outstanding on a fully diluted basis (incl. the 21.8 being issued to Sibanye recently announced). But 42.2% of the shares are owned by 5 key shareholders (incl. Sibanye) and there are warrants that are in the money that probably haven't been exercised as well as options (also in the money) in the 193.6 million shares figure. So it's reasonable to use a figure of 100 million for the public float (probably a little high).
The average daily trading volume on all the Canadian exchanges in November was 511,867. In December the average volume rose to 852,075 but if I exclude Dec 22 (day of the WPM announcement) the figure drops to 584,597. Using 100 million for a public float and 550,000 shares trading daily it suggests the entire public float is traded in less than 9 months. That's a very active stock and when one considers that there are a lot of committed investors who don't trade the stock - they are just sitting on their shares and maybe adding occasionally - it suggests to me there has been a lot of day traders flipping this stock around. Perhaps now we will see the character of the trading change towards longer-term investment by those (like many of us on this board) who care more about fundamentals than small moves in the stock price and have been frustrated by the market capitalization being so low compared to the NAV of the project. Here's to 2022!
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