Sipa Resources closed nearly 80% higher on Friday after reporting results from a partially completed drilling program at its Kitgum-Pader nickel-copper project...

John Robertson

PortfolioDirect

Sipa Resources closed nearly 80% higher on Friday after reporting results from a partially completed drilling program at its Kitgum-Pader nickel-copper project in Uganda. The majority of results are still to come. Sipa Resources has been one of the stocks in the PortfolioDirect exploration (Phase I) model portfolio. Without strong follow through results which clarify the size of the potential resource (as well as the grades), similar exploration results as these from other companies have resulted in prices retracing subsequently. One reason is the financial capacity of companies to go the next step. Sipa had $1.1 million in the bank at the end of December with expected expenditure in the March quarter of $1.3 million. After Friday, the price has reached the upper end of an established trading channel which probably warrants cutting back on this position.


1 topic

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.