Premium Exploration, Inc. (CVE:PEM) (PINK:PMMEF) continues to trend lower on increasing trading volumes since the company published third quarter results.
PEM pulled a 1.79 million trading volume on Tuesday as the price continued to trace lower. Wednesday’s trading showed a sign of indecision with a doji candle defining the session, but the share exchange rate remained significantly higher than the average of 292 thousand. The stock price is committed to the downtrend and has broken consolidation period multiple times just to go lower.
The latest increase in selling pressure was not induced by news, but rather a technical break down after yet another short consolidation.
The price broke lower even though the company had rather positive news a couple of days before. On December 1 Premium published a press release announcing multiple new gold discoveries in Deadwood zone on Idaho Gold Project.
Six new holes drilled returned indication of four zones of gold bearing host rocks. The discovery was made under a drilling program aimed at identifying gold zones on 180 km2 area of Idaho Gold project.
Traders are likely fixed onto the negative changes depicted in their third quarter financial report:
o Working capital decrease 50.6% to $2.46 million;
o Net loss increased 1.75 times to $7.1 million;
o Constantly issuing more shares – dilution rate reached 14.9%, with potential increase to 38% if outstanding warrants and options get exercised.
