Post by
AlwaysLong683 on Nov 09, 2023 12:30am
Reason For Continuous Decline in Share Price...?
Most Canadian-Listed Small / Micro Cap Precious Metals stocks have certainly taken a significant hit this year, but many have bounced off their 52W-Lows. I believe tax loss selling is occurring earlier and earlier each year - it seems investors are now ridding themselves of their losers in October and not waiting until early December or even November to spruce up the look of their portfolios at year end.
My theory as to why IAU hit a new 52W-Low today of 1.73 before closing at 1.80 is investors look at interest rates and inflation and are not keen on investing in a company with so many projects at various stages of exploration / development. Not surprising that IAU went looking for and apparently found a joint venture partner for Ruby Hill....they appear to need funding help from third parties as they have lots of dollars still to be spent and not enough money to fund it, reluctance to do an equity raise at current share prices, and would likely be looking at a high rate of interest provided they could find a lender willing to offer them more debt financing.
Didn't the bosses at IAU realize cheap money and low inflation would eventually end...?