"Can someone please explain how and why if the historical drill results were so good, how did Tolga and company pick it up for such a cheap price.??????????"
As far as I know, wasn't Tolga and company, was pretty much just Tolga. The directors who had mostly self funded started shopping it around and didn't get much interest until they got to BW Equities and Tolga just happened to be there at the time and recognised the potential. Ofc he didn't simply give them a blank cheque based on a powerpoint presentation. Did his due diligence, visited the project (think i posted a photo couple weeks back)...did the hard yards.
Everyone else had to rely on getting an allocation on IPO. Luckily I'm one of those people that doesn't spread himself thin across various brokers and stick to BW Equities (and comsec for free IRESS lol), so managed to get a decent slice of the IPO pie.
"How does a stock with excellent historical results and being a porphyry deposit list for a $40 million market cap."
They can either take the very hard route, and probably doomed to fail, by trying to list it at a value that assumes exploration success. Using this approach, unlikely any broker would be interested and they may never have got the required spread. I as an investor definitely wouldn't have applied for any shares. Result of a potentially unsuccessful listing attempt would be disastrous, ie no successful listing = no money = having to give up the project or doing another round of very cheap seed (diluting the directors) and having to wait another extended period of time to try and list again...probably using the 'easier route' anyway as below.
Or take the easier route and list it at a value more appropriate for an exploration play knowing that eventually it will get rerated by the market to a much higher value anyway as long as the exploration results stack up. With such a good project, result...successfully listed and away we go.
"Why did the previous owners let it go so cheap?"
Don't worry, they get their slice of the pie (a royalty) when it gets into production. This was actually covered off in detail last night at hte MMC preso by Chris Wanless, including the extensive and exhaustive process that they had to undertake to get this all together and why it had never been successfully done by one company before, though attempts were made, including by Kennecott (Rio) themselves!
"Why did the previous owners not mine the deposit?"
The answer is in your question...'owners' ie more than one...in fact much more than one. I expect none of them have a clue about mining. And the likelihood they could collaborate pretty much zilch.
Cdchi1
AL8 Price at posting:
$1.99 Sentiment: Buy Disclosure: Held
(20min delay)
