This week alone the South America-focused gold explorer has more than doubled in value and over the last three months the stock is up almost 500%.
The reason? A simple show of faith in the management’s strategy, which has seen chief executive Glen Parsons and the team focus their efforts on the company’s properties in Peru while political machinations play out in Argentina.
Two pieces of news out of Peru have seen the share price rocket recently.
The first revealed the start of drilling at the Condor de Oro gold, copper, silver project, in which Mariana can earn a 51% interest, while the second publicised plans to earn a 70% stake in the Soledad project after completing its due diligence.
Ever since the nationalisation of Repsol’s subsidiary YPF last year, investors have been unconvinced about putting their money in Argentina, which saw Mariana fall out of favour with the investor community.
Mariana was a bright spot in an otherwise dour week in which the FTSE AIM All-Share simply marked time.
The shares rose 70% over the week after it said it was acquiring a 49% stake in three loss-making African agricultural businesses. However acting chairman Mark Pajak thinks with the introduction of a little working capital, the businesses can quickly become profitable.
On the rebound also has been Plethora Solutions (up 30% this week), which is close to getting onto the market its pioneering treatment for premature ejaculation.
Last month’s £4.4mln cash call eased a lot of the worries over the company’s future. And over the past three months the stock has surged 280% and is up more than 900% in last six months.
The company will pay a lower-than-expected $4.5mln up front, settling all tax demands arising from audits carried out to date.
It had been warned it could be liable to pay US$9mln for 2007 and 2008 and it believed a similar amount would be demanded for 2009-2011 and beyond until a resolution was agreed by the government and the oil industry.
That said, it seems to have sorted out its short-term funding needs and appears close to putting in place a longer term funding solution. If this does occur then analysts believe we could very well see a Mariana-style rebound.
And RFC Ambrian in a note published earlier points out a $1mln loan from its major investor comes due in September 2014.
“We have chosen to rate Uranium Resources as a hold until a clearer picture on funding through 2014 emerges,” said analyst Duncan Hughes.
“We believe the roll-front uranium mineralisation has real potential, but probably requires the arrival of a strategic investor to allow the company to progress the project further.”