I'm Sorry, But What The Hell Do We Got Here?I am truly impressed at the massive 3 year head and shoulders that has been forming on Greenland Minerals, traded OTC as GDLNF. We have just completed the second shoulder. Where do we go from here? Probably the depths of hell (by which I mean fractional penny land).
On November 9th the price was knocked down -50% below previous lows after Greenland banned uranium mining. So there is no potential for Greenland Minerals to extract any minerals in Greenland, at least until the island or Denmark's next election. The reason for the ban is sort of ambigious... it either has to do with partisanship, environmentalism, or Greenlandic independance.
The company is pursuing a legal route through Denmark, arguing that uranium is only a biproduct of the rare earths mined at Kvanjefeld, which has one of the most lucrative deposits of uranium and rare earths on the planet. So the company is inherently valuable because of its resources and the amount they have already invested in assessing the site. The previous government was considering approving the development of an open-pit mine, but the site has never been developed. Thus it has never been productive. Greenland Minerals has spent hundreds of millions of $ to develop a non-productive site.
Now I would like to call attention the earnings report that will be released this Wednesday. Look at previous earnings reports. Now imagine what this one will look like. Negative money is a bearish indicator in my book. I'm curious to see where this one will go. Stay tuned.
