Gediminas Jasionis
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Good News Fail to Make a Noticeable Impact on UC Resources Ltd. (CVE:UC) (PINK:UCRLF)

by Gediminas Jasionis Apr 27, 2011
uc_chart.pngUC Resources Ltd. (CVE:UC) (PINK:UCRLF) stock showed a positive reaction to the company's latest update on operations, but the price still remained beaten down.

UC went up 14.29% on Tuesday, carrying a trading volume of nearly 6.6 million, close to 14 times the 90-day average value. Despite the healthy interest from traders, the price remained at the major resistance at 8 cents, poking above this level only intraday and falling back down by the end of trading. This has demonstrated a significant weakness, as related news was mostly positive. A further reaction is pretty much unpredictable due to the volatile nature of the stock.

The increase in the trading activity was caused by UC Resources update on their activities on La Yesca gold and silver property in Mexico. The company stated that cash flows from operations have turned positive and continue to improve on a weekly basis due to mill changes.

uc_logo.jpgTons processed per day are still not optimal and the company expects to deal with this issue over the next quarter. The mill could be processing up to 250 tons per day and currently runs at barely half the capacity.

UC currently carries a market cap of $15.3 million, which is below the last reported net tangible worth of $16.7 million. The last number should also be altered by the additional funds the company reported to have raised over the past half a year. Around $2.34 million were added to deal with the lack of working capital.

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