Chariot Corporation (ASX: CC9) shares are up another 36% today. That makes it 280% since the IPO a month back. True, that actual IPO wasn’t hugely successful but still, that’s a pretty good rise in the price since then. Given that nothing has actually happened since then - nothing in the sense of nothing definitively found so far -then that’s a huge amount of hope being built into that CC9 share price already. It’s not entirely obvious that a successful find would drive it further that is. Unless it’s of truly outrageous size we might even see a fall on the announcement of any results. Weird but true here.
The latest announcement we’ve got is: “Chariot Corporation Limited (“Chariot” or the “Company”) is pleased to announce that following completion of site preparation and the earthworks required to support the drilling program at its flagship Black Mountain Project in Wyoming, USA (“Black Mountain”), a Boart Longyear LF90 surface diamond core drill rig (“Drill Rig”) has arrived at the site. Drilling operations will commence immediately with the first round of assay results from the drill cores expected in January 2024.” That was a couple of weeks back. And it’s hardly unexpected news. The entire aim of the IPO and find raise was to be able to do this. So, they IPO’d and they’re doing this - surprise, eh?
Chariot Corporation share price from Google Finance
As we said before about Chariot Corp: “Chariot Corporation (ASX: CC9) shares dropped 43% on their IPO today. True, CC9 shares then rose a few percent from that dismal opening price but there’s a lesson here. Even in the current white hot heat of the lithium exploration market not every offering succeeds. This despite the prospective exploration area looking good. Despite even that US political pressure to find some lithium within the US as economic nationalism takes hold. Even then a decent enough prospect can be mispriced as it seems to have been here at Chariot.”
So, losing near 50%, that might be recovered - that accounts for 100% of that near 300% rise. It’s the other bit that puzzles. There is no news - other than that drill rig arriving - to make this all so exciting. Yet it obviously is so exciting. We suggest that this is hope and dreams about what the drilling results are going to be already being included in tje share price. Which is fine - it’s the future that determines share prices after all. It’s just that we see this time and again. High hope values and drilling results rarely live up to them. Sometimes they do, sometimes, but by no means always. It’s entirely possible that CC9 shares will fall on any announcement of drilling results - unless they’re truly, magnificently, splendid.
