The shorts are not going to be scared at all until they get any information about the progress of production figures. Gold can go to 1320 or higher in the short term but I doubt the share price will move at all.
We all know BDR is trading well below book value. The share price should not be at 18c but it is.
At the moment it is not about gold price. It is all about BDR gold productions & the cost of production. If management meet their guidance, the share price should rise from here. We will only know at the end of January 2018. That is a long time in the markets.
The shorts have 2 more months to cover. Till then a lot of tired & frustrated bulls will capitulate one after another. Those games being played everyday........not everyone can handle. The share price is in a deadlock. No one wants to buy higher, very few want to sell lower. The shorts are a little scared to push it any lower. I wont say it can't be done but it will be a mighty dangerous business to push lower.
The shorts want to cover below 20c as much as possible. The more time they have the better it is for them, as some people have to sell sometimes, no matter what.
A lot of people who want to buy are waiting for the production update. I am fully locked and loaded. I already own a lot more than I should hold in one single company. I might be able to buy some more and am very tempted at these prices. But I am also waiting for the update. 18c...I shake my head. I am sure there are 100's of other people who see this as a good value.
Yes, If senior managements or directors buy some shares on the market before the black out period resumes, that will a big big warning sign to the shorts. Or the management can give a brief business update, nothing wrong with that. ( The other day I saw EVN giving OCT months production figures)
I don't expect management to make it a standard routine. But in times like this where it is more about a confidence and trust issue which has caused the share price to detach from the gold price........ management need to update shareholders to regain the confidence. I bet if the management come out with an announcement in the first week of DEC saying we have produced approx 35-40k so far, the share price will be above 23-24c in a hurry. With a gold price above 1300 and expectations of 55-60k ounces for the December Quarter almost confirmed, the usual end of January rally in gold, the share price should be around 29-30c by the end of January 2018.
I urge all concerned shareholders to send an email to the company requesting production updates ASAP.
BDR Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
