I think there will be a big battle between profit takers vs FOMO.
The sp has ran from 0.06 to 0.02 in no time. Some might have taken profits but many still shocked last friday and forgot to take their profits. I am sure many will take their chances today.
Now, there is other view. Those that looking further ahead. The SI had more than 4 months (from CR in June to actually put in the $$$) to assessed the situation. We all know how the sp went since getting out of suspension 4 months ago. One would wonder why the SI still going ahead by investing further $2.5m in the last two weeks when the sp clearly way below CR price. The volume recently has gone up to the moon too. The project risks must have been de-risked significantly in the background that the SI could see that we retail investors can't.
If we go back 11 months ago, all was well except the money from pak marthen. Now we have got the money (via CR) and most of the boxes have been ticked, i.e fund raised, earthwork in progress, ore supplies secured, smelters are paid and coming and few others i can't recall. DSO permit is imminent which means cashflow about to flow in. US$1-1.5m/month is about A $20m/a (middle point). I dunno what is the P/E ratio for a similar industry as gmc, say ratio of 5 will get the market capital (MC) to A $100m. As per friday closed, the MC is at $43m. So still plenty of room to go up just from DSO. Please note, GMC may need more cash to complete the smelters construction, however, i believe the cashflow from dso will help greatly if not entirely finance the remaining cost of construction. Just from memory, the construction need about $21m, we have raised $12m. So short by $9m. Construction may take up to 6 month and more than likely be financed via dso.
Once we are in production, this will fly. Did i mention gmc excempt from paying tax for 10 years?
So, for those that come late, there is still plenty of upside.
With the above in mind i think it will be an interesting day today, i.e. profit takers vs FOMO.
I believe all LT holders and new comers will benefits from the stock.
As with trading, please do your research and trade responsibly.
Goodluck all.
GMC Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held