For this reason, perhaps, the company has concentrated its endeavors in May on raising additional funds. The efforts led to a run-up in the share price indeed, but the rise was not dramatic.
BCD is currently worth $0.12 – this is the price from last Thursday. At the start of the month, the stock was traded at $0.09. We have a 33% increase over that period. At the same time, the trading volume stays very low. The average turnover for the last 30 days is below 52 thousand shares. The latest volume was only 12,5 thousand. BCD seems to be an illiquid stock, and in little demand by investors too. Why is this so? Perhaps, the company’s directors will have to do something to change it.
Still, now and then, the shares have their moments of glory. In the beginning of May, BCD marked a turnover of 461 thousand – a record trading activity for 2011. But these are rare occasions.
The positive developments from this month might aid the performance of the stock. As mentioned, BRC secured additional funds – the company raised a total of $850 thousand by closing two consecutive financings. The second one was a non-brokered private placement and was announced last Friday.
Earlier in May, BRC announced that its joint venture with Rio Tinto Minerals Development Limited discovered high-grade hematite – a form of iron ore – in the exploration areas in the Democratic Republic of Congo.
Unfortunately, the fundamentals of the company still look fragile. In the end of 2010, current assets were only $0.15M, while current liabilities were $1.36M. Even with the mentioned financing for $850 thousand there is still a working capital deficiency.
BRC is an African-focused diamond explorer, has not progressed to the production stage yet and is not earning any revenue at present. The company reported a net loss of $0.92M for the fourth quarter of 2010. For the whole past year, the net negative income was almost $1.57M.
Finally, we notice rather unpleasant stock dilution over the last year. The weighted average number of common outstanding shares jumped to 89.4M in 2010 compared to 32.7M in 2009.
