Powertech stock sets new 52-week low after two day drop of 16%
Shares of penny-stock company down 73% in less than 10 months; still no mining permits, revenues, or earnings to report
Posted January 16, 2008
In the last two days, Powertech stock (PWE.TO) listed on the Toronto Stock Exchange has plunged over 16% and set a new 52-week low of $1.16 (Canadian). The stock has dropped 73% from its high of $4.45 set on March 23 of last year. Powertech shares traded on the Frankfurt Exchange (P8A.F) dropped to 0.80 euros today.
It is unknown if the last two days' decline is due to the legislation introduced today in the Colorado General Assembly. One of the bills would change current state mining regulations to require proof that an in situ uranium mine operator will restore groundwater aquifers to pre-mining conditions before a permit is issued. This would raise the regulatory bar for mining companies since historical data show that most, if not all, in situ leach mines in the U.S. have been allowed to leave elevated levels of radionuclides and heavy metals in the mined-out aquifers after "restoration" efforts have concluded.
In any event, Powertech is still months away from submitting permit applications and perhaps years away from mining uranium. Will investors have the patience and risk tolerance to hold on to their shares while Powertech attempts to overcome opposition from U.S. Representative Marilyn Musgrave, numerous state legislators, the Fort Collins City Council, the Colorado Medical Society, the Larimer County Medical Society, and thousands of Weld and Larimer County landowners, business owners, residents, and voters?