|No it is not the first time he does it. |
A while back, he was questioning some of Orbite's PEA data and estimates on silica (a byproduct of th SGA plant processes). In that case, he was indicating that Orbit had estimated the price of silica at $25/kg while in fact the PEA clearly states $25/ton. In the same analysis report, he completely ignored HPA planned production. There were other errors and omissions.
Last week, this guy said that Orbite had only $1.2M in cash, while the real figure was around $69M. His latest report dated April 9th at least corrected that one. The same April 9th report attempts to discredit the Siemag acid process. By the way, his latest reports including that of April 9th still do not even mention HPA (he does not claim HPA pproduction will not happen or will not be profitable, he does not say anything at all about it). The same latest report does not mention th MOU with Rusal. Nevertheless, he puts a price target of $0.90 for Orbite.
Now, it is an analyst duty to be critical, even skeptical. As an investor, I want people to ask tough questions. When people raise doubts about the availability of natural gas where Orbite operates and ask questions about the cost of other energy sources, I listen. When people such as Kaiser question the use in the PEA of the highest prices in years to estimate revenues from rare earth, I listen. I want to know about the risks when I invest. That helps me decide how much of my hard earned money is worth putting in this or that, balancing risks with potential rewards.
What this guy working for Byron Capital did however is not good analysis, it is just an attempt to create doubt and fear. If he had the facts and data to back it up, I would listen: he does not.