I sold out most all my shares a couple years ago around 50
I bought them all back and then some under 20. It is amazing but, on the verge of getting the permit, with now 2 viable producing projects, gold 40% higher, and the company agreeing to have a JV partner buy shares at 25 cents that you can now buy the stock 95% lower than where it was when all they had in the works was BHJV and the drilling.
You have a better entity at a lower price but, because of the sentiment nobody wants to own it. It's kind of amazing.
Some guys here suffer from now-sickness. I would rather buy a miner when 'the whole sector is close to unprofitable' (as mentioned in a recent comment) than when the opposite is the case. I'll not listen to the contrarian indicator-people here and buy the topping sectors. Things go up-and-down. Has always been the case and always will.
Just remember to scale in gradually. (And spread the investment on several miners, not only one)
For instance, when a sector is thriving, everywhere good profits, optimism and huge production/turnover. -What happens next? OVERSUPPLY (And over-investment). The mechanic behind business cycles. Where in the cycle should one buy shares.. Right, when there soon will be undersupply and under-investment.
There was a very real chance of insolvency if the permitting process dragged out any longer. That is what was being priced-in. Now that they have $2.5M of available capital, they are assured of surviving until they can get some income from BH. I really like that they aren't sitting back and got a second project going. Would have been nice to use BH profits to develop LM, but you can't argue with yet another deal where the partner pays all the pre-production costs.
They still have other assets they can develop on their own if/when they have more free cash flow.
You are very observant in how it is all about perception and how a junior miner in the exploration stage can get overlooked. The Bid stood at .20 with 18,000 shares for most of the day. Nobody took the MM up on selling at .20 today. The price didn't seem to do anything, but that was a big psychological barrier that selling dried up with a big .20 staring potential sellers in the face. Volume was low as most buyers were holding out for .20, also. Once buying begins at .21 and .22, look for .25 to be hit quickly.
I look at market cap and I think a market cap of $20M to $25M will be reached when the water discharge permit is finalized and the new JV is finalized.
I agree, once the buying gets past .21 or .22 things should become interesting. In light of the current events, I do believe management has made some good deals and decisions. I am however concerned that there may still be a possibility of a reverse split.