Why The Needle Is Not Moving On Inca Minerals?

Exploration company, Inca Minerals lately completed the successful raising of $59,500 to fund support zinc-silver-lead projects in Peru. In the announcement to Australian Securities Exchange, Inca Minerals Limited (ASX: ICG) highlighted that the company has raised $59,500 through the placement of fully paid shares and options. It translates the issue of 12,950,000 shares at an issue price of 0.4 cents per share and 1,540,000 free attaching option, at an issue price of 0.5 cents per share.

The company told the proceeds raised from this placement will be utilized in the exploration activities of company’s Zinc-Copper focussed projects in Peru and Polymetallic projects in East Timor. Further, the Company completed capital raisings in August and September 2018 raising $982,949 through the issue of 196,589,818 fully paid ordinary shares and 169,089,818 free attaching options.

Inca’s main focus is the exploration of its Peruvian projects with objectives being to find, develop and/or demonstrate the prospectivity of projects to potential partners. Moreover, Inca’s South32 partnership in Peru demonstrates the other essential projects that the company is engaged into. Inca has two projects in Peru that includes Riqueza and Cerro Rayas, both located within the Prolific Miocene Porphyry-skarn Mineral Belt of Central Peru.

As per the Inca’s Independent geophysics report, Riqueza has a target area with potential to host CRD skarn Zn-Cu-Pb-Ag mineralisation having a footprint similar to the giant Antamina Cu-Zn CRD-skarn deposit. Whereas at Cerro Rayas, geophysics and drilling is planned to be undertaken by Inca in 2019. The company stated Geophysics could set Cerro Rayas on a similar trajectory at Riqueza.

Inca’s East Timor Projects includes Manatuto, Ossu and Paatal. Manatuto is prospective for Ni-Cr-Au-Co with known Cr up to 51.3%; Ossu is prospective for Au-Cu-Ag-Zn-Co with known Au up to 10g/t, Cu up to 10% and Ag up to 70g/t; and Paatal is prospective for P2O5-V with known P2O5 up to 32% P2O5 in unconsolidated sediments. East Timor has not been explored post-independence and Inca is the “first mover” in that region. Inca has lodged an application for all the three projects, Manatuto, Ossu, Paatal, in order to cover known ultramafic sequence and known mineralisation.

For the year ended 30 June 2018, the Group incurred after tax losses of $1,272,175 compared to the loss of $1,354,138 in FY17. On top line front, the company posted revenue of $83,974, up from previous $14,102 in 2017. Moreover, the Group had net cash outflows of $2,371,540 compared to previous corresponding year’s net cash outflows of $2,980,475. The management advised that Inca will continue to seek opportunities for acquiring or farming in to new tenements, and to divest or engage in a joint venture where it benefits shareholders.

At the time of writing, Inca’s stock price has been noted to be trading flat at $0.004 on December 13, 2018. Looking to the historical performance of the company, we can see ICG share price has drastically fallen 27.00% over the past one year. Further, in the past one month, the negative daily price change has increased to 20%.

It seems that the stock is yet to gain attention from investors while it aims for a better exploration scenario, negotiating partnership with South32, and so forth.


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