Its quite possible this is the start of a breakout to the next level, but I suspect without news it will range for a bit longer given the recent placement.
An access agreement for Mt Mulligan and we have a completely changed scenario. I personally think the risk/reward incoporated into current prices implies very low likelihood of them getting access whilst the rhetoric we seem to be hearing from the company implies otherwise.
On that basis I still rate them as a buy at current price, but its quite possible they will drift around for a while longer and be available at better prices before news comes out.
But we shouldn't forget that we're talking about over $50 billion tonnes of steaming coal currently being priced at circa $20 million market cap. So there is very good upside if they announce an access agreeement.
MNM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
