VMC results drive shares up more than 20%
Event: drilling results
As the market opened today, we reported that Venus Metals Corporation Ltd (ASX:VMC) had reported impressive drilling results, a development that could reignite interest in the stock after a lull in recent weeks.
Bonanza-grade gold intersections had previously been reported from Stage 1 and 2 reverse circulation drilling at the Currans Find North Prospect in Western Australia between June and August.
Today’s Stage 3 results confirmed the presence of two stacked lodes at Currans North and show an increase in gold grade and width in the Upper Lode.
The results also demonstrated that the gold mineralisation remained open at depth and down plunge.
Finfeed’s take - 10.00am
‘’Impressive drilling results released today by Venus Metals Corporation Ltd (ASX:VMC) could see the company’s shares start to recover some of the ground lost in recent weeks as they retraced after surging in July/August.
‘’In recent months they have run on the back of promising exploration results, and today’s news builds on similar data that triggered a doubling in share price between mid-June and early August.
‘’It was arguably just a combination of volatile equity markets and profit-taking that saw a recent retracement in the company’s share price, and it wouldn’t be surprising to see a recovery.’’
And what a recovery it was.
After the company’s shares closed at 19 cents on the previous day, they opened at 20 cents with solid buying around that level and up to 21 cents by midday.
However, as investors had a chance to digest the quality of the drilling results, high volume buying emerged throughout the afternoon, and around 2 PM the first trades started to go through at 23.5 cents.
This represents a gain of 23.7%, but the market is yet to close and with today’s trading volumes of more than 1.2 million (as at 2:15 PM) being in the top five biggest days of the year, the share price could push up further.
It is worth noting that the August peak of 28 cents was the highest the company has traded since 2016.
Consequently, even a close around the current trading range certainly leaves it within striking distance of hitting a long-term high.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.