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For those unaware of the economics of physical mining: It's not uncommon for exploration companies to find large deposits (or potentially large deposits). The
by nl 3y ago
For those unaware of the economics of physical mining:
It's not uncommon for exploration companies to find large deposits (or potentially large deposits). The issue is usually that the investment required to extract these minerals is large. Depending on the cost of capital and the risks involved this may or may not happen.
Since there is already an existing mine one would think it reduces the risk. But the article doesn't have enough details on the concentration or distribution to know for sure.
Looking at the stock price[1] you can see the jump when the discovery was announced from ~$11 to ~$18. A great increase, but you can see this isn't exactly a sure $37B pay-off.
[1] https://finance.yahoo.com/quote/METC/ https://finance.yahoo.com/quote/METC/
- defrost 3y ago> But the article doesn't have enough details on the concentration or distribution to know for sure. I linked to the Technical Report (that has exactly that infomation) 80 minutes prior to your comment, you may have missed the link: https://ramacoresources.com/wp-content/uploads/2023/05/Weir-International-Brook-Mine-Assessment-05.03.23.pdf https://ramacoresources.com/wp-content/uploads/2023/05/Weir-...