RNS released today (see here) did not provide the awaited results information.
Strange that RNS provides no tangible news and situation today is the same as yesterday yet significant downwards market movement.
The share price during initial trading dropped significantly. In my opinion short term traders getting out and moving on to the next El Dorado.
Investing if you want to make significant returns is about looking to the future and spotting the opportunity. Get in early and hold.
The RNS had one piece of significant news that seems to have been overlooked by the market. A new ICOG target identified. The newly named Grace prospect.
‘The newly named Grace prospect, east of Clarke prospect has returned highly anomalous Molybdenum assays, typically associated with Iron-Oxide-Copper-Gold (IOCG) mineralisation.’
The game changer for Cobra Resources will be if they make an ICOG (iron, oxide, copper, gold) discovery. These are typically world class deposits.
Cobra have 4/5 potential ICOG sites. These sites have similar geochemical signatures as BHP’s Olympic Dam Project.
The BHP Olympic Dam project also located in South Australia is the fourth largest gold mine in the world.
The Olympic Dam gold resource statistics are impressive.
The Australian Government as part of its Accelerated Discovery Initiative is looking to co-fund Cobra’s ICOG exploration activities in South Australia.
The fund asked Cobra to provide more information as part of the next stage with regard to their funding application. The ADI wouldn’t ask for this information unless Cobra were in a good position to secure funding.
For details about the South Australian accelerated mining programme, see here.
For a small market cap business the impact of an ICOG mine could be transformational.
Some questions indicate to me this is a minor blip in the share prices trajectory.
- Why have Cobra recently issued an RNS regarding a block listing of warrants? You wouldn’t do this if you expect the share price to remain at these levels as the warrants wouldn’t be exercised.
- Results RNS still awaited. Why have investors who jumped onboard waiting for this information jumped ship?
- Why have some investors been buying £100k+ of shares at above the placing price? I would not be surprised if later today we find more large trades have taken place.
- Share price is currently below the placing price. Placing was oversubscribed. This indicates that those who participated in the placing believe this share price is a steal.
- Are some churning shares to pay for their placing shares?
- Latest RNS indicated that potentially Barns and Baggy Green resources would increase based on increased knowledge.
- Only negative in the RNS was in some areas, 3m of sand prevented the technology being used from establishing if gold below. Would you if this was the case, now implement a different technology?
The share price is still on its path to deliver for long term holders.
I am not selling, as since this mornings RNS the reason to buy has become more compelling.