Post by
AlwaysLong683 on Aug 09, 2023 5:56am
Things To Consider
1) Daily Volume can be misleading if the share price is low.
According to TMX Money:
August 1: 556,000 shares traded, closing price $0.08, total dollar value traded $44,668 on 35 trades or an average dollar trade of $1,276.
August 4: 512,000 shares traded, closing price $0.105, total dollar value traded $52,617 on 49 trades or an average dollar trade of $1,074.
These are very small amounts in terms of total and average dollar amounts per trade even on days when the share volume is over 1/2 million. Looks to me like it's retail longs and shorters who are likely the major participants in these trades given the low dollar amounts.
2) How long until another equity raise is needed? At what price will a private placement investor or underwriter be willing to pay for the new shares if in fact such an entity can be found, or will Eric Sprott put more money into this company (which is certainly a possibility)....?
3) It doesn't matter how many land packages you have or what metal(s) or mineral(s) you find there, if no company believes one or more of the properties can be profitably mined with a reasonable margin of safety, the company must either continue to raise money with share issues or, if it can't find anyone (including the CEO or other insiders) to invest more of their cash in the company, it can go to zero. That's the risk. A lower and lower share price does not necessarily mean it's a bigger and bigger bargain. The share price can always go lower.