RAP 0.00% 20.5¢ resapp health limited

Ultimate SP value for both comes with cash flow generated from...

  1. 4,702 Posts.
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    Ultimate SP value for both comes with cash flow generated from sales of product.

    Of course this is true, but can I point out two very important deferential factors between the two sectors.

    The first is cash burn. Most spec mining stocks have their hand out for more cash every 6 months. Developing a mining company from its infancy requires tons of cash. And, I've noticed mining executives pay themselves handsomely. In fact, it's very common for spec mining execs to move from one failed company to the next, each advertising false achievements, and landing no more than another pay check. Rarely have skin in the game, even more rarely skin bought on market. I can list many failed spec miners that I have been involved with that fit this profile.

    The other important difference, is that a company with a new technology, dictates the market price of their product. If I invest in a new spec ion ore Co, I can find as much as I like, and recover as much as is possible, but in no way can I dictate the price I can get for that ore. With ResApp, as with something like cochlear, when you have no competitors, you totally dictate the price. The price is what you say it is. Of course there are other factors that influence what you can charge, but largely the ball is in your court.

    I will say, ResApp operates on remarkably low cash burn. They also have potentially very disruptive technology.

    You are correct though, revenue will dictate the future SP. Until then, the market speculates on what that revenue will be.

    To use another mining analogy (or similarly?), our rubies/diamonds have been sent o the gemologist for grading. I suspect the report will (eventually) tell us that we have a ten carat, colorless, free of inclusions and blemishes, preferably princess cut show piece.

    An update on the CR to enable entry into the European market is long overdue. (to end this post on a sour note).
 
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