I found this in my morning reading and the date is recent, like jan. 17, 2013. It isn't that earth shattering but it does reflect the real world for junior gold stocks presently. I took the suggestion that we just have to wait for markets to turn around as what is important, at least for me. In the meantime, drilling and finding more gold will help.
There are three factors that are needed to help out its share price:
- Improved market conditions. A lot of financial issues can be solved just if the juniors begin to rally. Looking back to 2008–2009, there was a real V bottom in many juniors because the selling dissipated and most investors left. That set the stage for a turnaround. Overall market conditions are critical for individual companies to succeed.
- Resource increase. If there is new drilling success, it will be reflected in the share price.
- Secure financing. In the current market, it doesn't make sense to finance at $0.03/share or $0.05/share, because it's too dilutive. Castillian is under the Forbes & Manhattan umbrella and may be able to tap into corporate resources that other juniors cannot.
The three conditions are related, especially with improved market conditions that could create a snowball effect. With improved market conditions, then the stock goes to $0.10/share. Financing becomes easier and the company can drill. And that creates a positive feedback loop. A lot of times, you just have to wait for the market to turn around to get things moving.There are three factors that are needed to help out its share price: