Last Friday, Excelsior Mining Corp. (CVE:MIN) (PINK:EXMGF) recorded one of the busiest trading days of the year but the price still didn’t manage to break the closest important resistance.
MIN added 3.45% last Friday before hitting the ceiling at 60 cents. The resistance there has been holding for quite a while, thus it is unlikely for it to fall without any news in support of the price movement. 646 thousand shares changed hands during the run-up, which was significantly above the average 123 thousand.
If the stock doesn’t break out it is very likely to gradually roll down as it happened in June this year when the price action formed a similar situation.
The current market cap of 33.2 million is more than three times the net tangible worth of the company. This is yet another thing stopping the share price from further appreciation – exploration stage companies with no revenues rarely have a P/B ratio larger than 2.
Excelsior had no news since July 19, 2011 when the company updated mineral resource estimates at the North Star deposit on Gunnison Copper property in Arizona. Excelsior then said that new estimates show indicated 3.21 billion pounds of copper oxide, or 12.2% higher than previously thought. Inferred resources increased to 0.88 billion pounds. Both were calculated at an optimistic 0.1% cutoff.
