I did a search here but didn't see any discussion about Carbine Resources. I bought it in March at .15 and it's around .05 now. Suggestions appreciated.
I make no claims to being an analyst of any stripe, so don't put too much into this as I've only spent about 15 minutes reading through their reports. However, unless I'm missing something it doesn't appeal to me.I am a mildly conservatve trader, and though I like startups and new ventures, if I don't see results I tend to walk.
Here's how I take it: They're sitting on approx AU$6 million in cash on the half-year, a decrease of $2.5M for the period. They've sold a mine/claim to Phoenix (I would assume to improve their cash position and extend their horizon) + exchange for stock at approx 0.20/share. Increasing liquidity is neither good nor bad depending on the purpose, but the stock prices has fallen FAR off this mark since that time. (I'm sure Phoenix Gold is none too pleased!)
$3 million in exploration costs against a grossly insufficient revenue of $259,000 says to me that they'd better strike gold soon or trouble lies ahead. They have some cash reserves so they have some time but at their present burn rate, not long. I suppose it all comes down to the analysis of those recent drilling cores. If they've found gold deposits and can reach them economically then all's well. If not, I reckon they'd better have a backup plan and another source of revenue.
Bottom line: I see a struggling company. I suspect the dramatic decline in stock price over this term suggests others agree. If it were my money, unless I had reason to suspect they were on the verge of a large strike, I'd watch for any rebound (however slight), take my losses and move on.
Would appreciate others' thoughts here.
At the time I bought it I was told that Rick Rule liked the company, but of course things change. I guess I'll hang on to it for now or until I find something that seems like a super deal.
it's very early exploration. they had some good hits, and they have a new geologist. this will take time and patience