Who is Sold on the Metalicity Share Price? (ASX:MCT)
The Metalicity Ltd [ASX:MCT] share price has pushed higher today on the back of its quarterly reports.
Despite the upwards trajectory of the gold price over the past month, MCT shares have gone into reverse during July.
Coming off its 52-week high at the end of June, MCT shares are down about 40% over the last 30 days.
At time of writing, the MCT share price is up 9.09% to trade at 2.4 cents per share.
Nothing ‘spectacular’ but well-funded
Any excitement in the MCT share price today may be from the company’s available funding.
As the explorer’s quarterly activities report contains little new information.
According to MCT’s quarterly cash flow report, the company is well funded to continue operations for the second half of 2020 and into 2021.
Potentially no new cap raisings on the horizon.
Whether this is a good or bad thing is up to you.
MCT has managed to raise around $1.4 million this quarter, bring the year-to-date total to $2 million.
The company believes they have about 3.3 quarters of funding available.
Which could indicate they are being efficient with their cash.
Certainly not a bad thing.
Phase two of drilling began at their Kookynie Gold Project in WA earlier this week.
The second phase is to continue the step-out drilling conducted in phase one.
We cover MCT’s drilling results here.
This figure above helps illustrate phase two exploration.
Like I’ve discussed previously, MCT had difficulties locating the resource at Kookynie.
Around 12 of the 44 holes never intercepted a gold resource.
Which might be concerning.
That’s not to say there are not prospects at the site — they’ve hit some very high-grade gold and operate in a historically producing area.
The concern for investors might be MCT’s ability to grow the resource enough for a decent JORC estimate.
Competition heating up
If you’re a regular reader of The Daily Reckoning Australia, then you might have read about Australia’s potential to become the new gold epicentre.
If you haven’t, I highly recommend you check it out.
Check it out here.
It could have big implications for the price of Aussie gold stocks.
The interesting thing I spotted in MCT quarterly activity report is the growing competition for tenements applications.
MCT is attempting to expand its holdings in the Kookynie area.
However, according to MCT there are competitors also eyeing off the same tenements.
Which means the applications are now put to a ballot.
Not overly comforting for MCT shareholders.
But is a good example of how competitive gold exploration is becoming Down Under.
For The Daily Reckoning Australia
PS: Check out our free report where gold expert Shae Russell reveals why Australia is set to become the next ‘gold epicentre’ — which could result in a HUGE spike in Aussie gold stock prices. Click here to learn more.