Starting to look like not much at the Yandal but a few rock...

Starting to look like not much at the Yandal but a few rock chips on the surface. So what... yet another overpriced project ( the third? not counting that expensive anyox disaster) with 'high grade indications' that turn to dust on drilling which makes one wonder about the geologist making assessments and/or targeting the drilling. Never mind the arguably profligate spending here that is WAY above the pre-acquisition option requirements, which now puts the board in a sticky face-saving position of having to exercise the option to save face or admitting they went in too hard..

And hence RNX has an EV of around $2m for years on end with no end in sight, yet has title to a safe $100m NPV project and a myriad of other companies sit with market caps of $12m to $25m in Canada alone and no viable projects nor even a resource that they have drilled out. examples like MEI with a cap of $16 and nothing by exploration ground in Canada, BSX with a cap of $12m and nothing that looks economic never mind a resource, NVA with a cap of $17 and nothing economic and no resource in Canada, ADV making an aquisition in Canada, no resource or economic discovery and a cap of $18m, ODM cap of $23 and nothing economic, no resource, SUP with only 2mt@17% Zn in CAN and a cap of 24m, RTR looking to make and acq in CAN and a pre-acq market cap of 27 and no resource or income on the books.

Discrepancies like this can probably be assessed as shareholders belief in a boards ability to deliver value, share price growth and act prudently. Why else would this company constantly be valued as a shell?

Many project vends are now hugely overpriced which is why so many company directors would rather spend their time finding projects in their private capacity that they can then vend into public shells like this for a massive price tag (where did we see that last? lol) .
Vends like that have a net negative effect on the share price as equity is transferred away from the shareholders into the hands of the vendor (and management's options for doing the deal) and that is why share prices continue to sink (the negative asset value proposition). This Yandal vend appears to have sucked even more equity away from shareholders on the back of the preceding overpriced vends oterhwise why would the SP be trading well below the vend price?

Of course it would have helped if multiple prior placements of shares had not been placed where they were immediately sold, or the SP held down for accumulation where those shares were quickly offloaded for a quick profit. But the writing is on the wall for this company. Nothing but a shell again for a repeat. Such a waste.

Given the recent continued offloading on the back or other recent 'prescient' selling, it is not a good sign of a great result from this unnecessarily large initial exploration campaign.
Assuming they have no major discovery intersect, and lets face it... 'the market' is clearly telling us this is the case just as per Coralie Jean, then there are two ways forward now:

1) it will be treated as a shell again for yet another high priced vend leaving nothing on the table for shareholders (this is the 'new normal' on the asx) and associated placement for a subsequent mini P&D

2) Given they have already spent more than required and appear fixated on Kalgoorlie, what I call the 'face saving option' will be exercised: they will complete the acquisition and go for broke with a RC drill campaign. but god knows how that will be financed given the company is yet again a shell. One has to wonder why not even NST is interested in buying shares on market.