The last few days Tournigan Energy Ltd. stock (CVE:TVC), (PINK:TVCFF) is advancing steadily and on rising trading volumes on the TSX Venture Exchange (CVE).
Yesterday’s turnover was almost three times the daily average and the shares witnessed a 7.25% rise in value.
There might be several factors that contributed to such increase in the share price. A week ago, Tournigan Energy Ltd. (“Tournigan”) reported high discoveries of both uranium and molybdenum from the conducted metallurgical work on its Kuriskova property.
The test work is a part of the ongoing Prefeasibility Study for the Kuriskova uranium project in Slovakia. The results indicate uranium and molybdenum recoveries of 94% and 98% respectively. Resource drilling is being planned to be performed shortly on the property as well.
Investors might have been stirred by the announced also last week news that 10M common shares and 5M purchase warrants of the company have been acquired by Mega Uranium Ltd.
The rising during the last month uranium price could have supported the positive move of the stock price too.
Besides, just before New Year Tournigan informed about the completion of a public brokered offering for total proceeds of $12M. The company plans to use the funds raised from the placement for the advancement of the mentioned Kuriskova project and for general working capital.
This will no doubt help Tournigan improve its financial state, which indicates that the company needs to generate further cash for its activities. At the end of June 2010, it has reported a cash of $2.14M and a negative operating cash flow of $0.71M. For the nine months ended June 30, 2010 Tournigan incurred a net loss of over $5M.
These considerations show that it is quite risky and uncertain to predict the future change in the share price and to say for how long the current surge will continue.
