significance of the directors buying, page-14

Simonh Good research and good posts by a number of people in recent times. I too think that there is more significance in the fact that a number of the senior staff have purchased significant numbers of shares all within a short period of time. Whether my gut is right or it is just the directors taking advantage of a depressed price, only time will tell.

One thing that is almost granted is the fact that they are on track to announce a resource of 600,000 tonnes of Cu and 500,000 ounces of Au. To put this in perspective if this is achieved and we adopt the Bell Potter rule of thumb methodology then, by my maths, we are looking at a share price value of approx 15 cents. The current share price is then a massive 55% discount to its potential value.
The EV price per tonne of contained copper would also work out at about $110 which is very favourable to its peers and indictaes the SP is undervalued.

This combined with the fact that the resouce is at a shallow depth and should be able to be mined by low cost open pit methods makes this a no brainer. The directors see this so why doesn't the rest of the market.

Fortune favours the brave, the fundamentals are still OK it only takes a bit of confidence in world events to get this moving again - OR one big announcement. Which will it be?