Having digested the news during the day (not greatly due to work commitments), and then reviewing the announcement this evening, I definitely think this is a pretty good deal.
A few points.
1. Good industry (coal) 2. Nearby infrastructure seems good, and upgradable. 3. Good and experienced management 4. Aggressive exploration program and expectation of JORC resource within 6 months 5. Immediate start on geology and drilling to commence soon.
The drop in price today could be due to a couple of factors, in my opinion.
1. Capital raising announced on page 8 of todays announcement - at 3c. Not sure if this is open to all holders, or just sophisticated investors? 2. Potentially a lot of stale holders who were happy to sell out whilst the opportunity presented itself. 3. Day traders being caught once the volume and depth dropped and being forced to sell lower, thus pushing price down. 4. people who may have bought at 1-4 cents in the past months happ to lock in profits.
Either way, I'm happy to sit and wait a few months as the upside, in my view, could be quite reasonable.
Cheers
Doyle
PZR Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
