I asked Jeff Wilson “How has the recent market action impacted your company and what’s your outlook going forward”
In current markets conditions where access to capital is so uncertain, especially for junior explorers, we believe it is imperative for us to continually revisit budgets to ensure we are as streamlined as possible in our G&A and overhead. Where possible we continue to reduce our burn rate in order to preserve the Company’s treasury. It’s our belief that cutting overhead items to allow capital to be allocated toward the areas that can generate news and advance projects and Company fundamentals (ie – exploration) is the best use of capital, in spite of how the market may or may not react in the short term. We do not advocate going into complete “hibernation” during bad markets, as this gives investors no incentive to buy or hold the company’s stock. Rather, we seek to continue project advancement as efficiently as possible. We also see great opportunity in the M&A space in these times, and given our strong management team and tight share structure, believe we could be an attractive suitor for undervalued assets. Building a solid foundation now for the best growth when markets return. As a newly listed company with only 25.0M shares issued and outstanding, and 50% of the stock controlled by insiders, Management, and founders, we’re mindful of unnecessary dilution, not only to protect our current investors but to allow the company the best leverage possible when it comes time to raise funds.
Jeffrey R. Wilson
President & CEO
Precipitate Gold Corporation