Argex Mining Inc. (CVE:RGX) stock price hit another yearly high as the uptrend stretches further fueled by publicity campaigns and evaluations of the company’s potential.
RGX jumped 1.2% during Thursday’s trading session generating a trading volume of 1.8 million which was much heavier than the usual 356 thousand. The stock hit new 52-week high at 92 cents per share.
It can be noticed that the uptrend is getting steeper, which means it could soon start to burn out. That is not necessarily a bad thing – usually the daily price advances get comparatively large before the end, delivering a lot of extra value for longs.
RGX share price has been going up since early February 2012. The uptrend got sharper in mid-March when the company’s CEO gave an interview explaining the technology in research and thus advertised the stock. The company also got an undervalued rating from Ubika Research, which gave the stock another boost in price.
Argex aims to become a producer of titanium dioxide by using a novel Canada Titanium’s (CLT) closed-loop processing technology. Basically it’s a more efficient metallurgical process that allows for high purity of end product.
For now the stock price is advancing based only on the potential of this technology. The company plans to become an actual metals producer before 2015. They directly own La Blache and Lac Br?l? projects in Quebec.
Today, the company still depends on sales of capital stock to raise funds and has modest cash reserves, which means a much more stock dilution is to come. The costs of becoming a metals producers should reach around $100 million which will likely be raised by diluting the existing shareholders.
