After scoring an impressive six-month high by jumping a staggering 32% on Tuesday, Ruby Creek Resources Inc (OTC:RBYC) somehow failed to keep momentum yesterday, eventually falling down 3.45% to $1.40 per share. The latter is still considerably higher than the figures achieved prior to Sep. 13.
So, despite the small step back, RBYC stock is still going strong. What might have paved the way for this market performance appears to be a set of two back-to-back press releases which popped up on Sep. 12 and Sep. 13, respectively.
In brief, the company first revealed it had retained a South African mining engineering company to explore RBYC’s Tanzanian properties. A day later, the company proudly announced it was to acquire the mining and mineral rights for seven additional properties adjacent to the Gold Plateau Project previously acquired by RBYC. Provided that the new sites prove to be containing substantial deposits of gold and/or other precious metals, RBYC stock will stand a good chance of going to the stratosphere. However, the company has a long way to go before scoring that high and this way involves a successful collaboration with the South African enterprise.
As seen in RBYC’s latest submitted 10-Q form, the company finished the quarter ended May 31, 2011 with:
- $2.5 million in cash;
- positive working capital of $1.37 million;
- a quarterly net loss in excess of $1.7 million.
Even though RBYC seems to have the resource to continue running at a loss for another quarter or two, there is no guarantee that it will manage to strike gold at its Tanzanian properties for the time being. Sometimes, it takes ages to get to that stage. What is more, investors do not seem to dispose of any unconditional evidence that the Tanzania-based sites will eventually turn into a goldmine.
