Investor confidence in Nautilus Minerals, the company that wants to use the Pacific as a testing ground for experimental seabed mining, has slumped to near record lows.
Nautilus share price over the last three months:
The shares in Nautilus have not only lost all of the price gains made after the favourable arbitration decision in October, they have continued tumbling.
But the investment media, so quick to shout about price gains, is not writing about it!
Any experimental mining is at least 3-4 years away, and Nautilus still does not have the cash to fund the construction of its mining vessel. Add to that the mounting public opposition in Papua New Guinea, the government reluctance to throw tax-payers money at the project, the threat of court action and increasing belligerence and community mobilization in other Pacific countries and the future does not look bright for Nautilus Minerals.
They say the markets do not lie and they paint a very ugly picture indeed when you look at the Nautilus share price over the past 10 years:
Cost cutting measures mean cash operating costs in the first three quarters of 2013 were down to $12.7m from $20.8m for the same period last year. How But how much longer can the company continue that sort of outlay when the opposition to their plans for open cut strip mining on the sea floor just keeps mounting...