While I am not one to speculate, note the last press release ... "IQR has received acceptance of its proposal on a third dump that is presently being defined. The Company will announce details on this project when they become available."
In other words, the press release is in the works and this adds to the overall project economics (i.e. the more sites you have the lower the unit production costs). After being awarded a number of Kolwezi's other tailings sites in April, America Mineral Fields is also about to sign a formal agreement with Gecamines.
Regarding the current price threshold, with news pending as mentioned above, other acquisitions on the way, Bwana Mkuba going into production, and assuming a positive conclusion to the ZCCM privatization process, I do not see this one going any lower. If all the above happens as scheduled - the net asset value of the company could easily double, triple, ... (the short-term impact on the stock price is influenced by many more factors).
Just my opinion/this may not be the situation at all ... Thus far, its my read that those with financing offers on the table are holding back until finalized - they assume no risk + acquire shares/warrants/etc. at less than market prices. FM, on the other hand, will likely wait a few weeks until all the above has been announced in order to ensure the financing is at higher price levels + use a combination of debt and equity in order to not dilute the # of shares outstanding.
DRT |
