Yes they come across as being incompetent. Seems they didn't understand, or misread their drill results over the past year or so. Talking a million oz in their presentations however, and as far as I can see, coming up with just 6356 additional indicated ozs after more than a year of drilling.
No way was I expecting anywhere near a million oz but based on their talk and inside knowledge, I was expecting considerably more than what they were able to deliver, 6356 oz!
As you say they worked on their preferred scenario at AUD $3,000 per oz (which seems unrealistic IMO) and then justifying it with a more conservative scenario based on AUD $2,500 but nothing to back it up. In the same announcement they continue to rave about the 'incredible upside' as they have done for years, well where is it?
Where's their credibility?
All that aside, I don't see a lot of downside so long as they don't continue to stuff it up from here, as there was virtually nothing factored in to the price for the MRE. I still think the share price is undervalued.
ASR Price at posting:
1.7¢ Sentiment: None Disclosure: Held
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