BCI Beautiful Compounding Investment, page-532

A number of factors imo;

1. IOP is down and so income from iron valley which was around $17m in Sept Quarter of 2021 will be negligible this year.
2. Mardie is in the “Orphan Period”. All the big risks have been removed to allow construction to start but revenue will be a long time coming so the upside of derisking has come and gone and now we wait till construction is finished.
3. Construction costs are escalating and the market isn’t certain how much that will affect the profitability of Mardie. Noise fills a void! The lack of clarity here leads many to sell up and sit on the sidelines until they feel comfortable enough to jump back in.
4. And finally we are in a Bear Market. The market is down by 20% which means some higher risk stocks are down by more.

A bit of a perfect storm. In the long term it shouldn’t matter but riding the waves can get a bit uncomfortable. My average SP is in the 40s. Just wish I had another 50k to sink in at these prices as I believe that once we see ponds filling and the jetty start construction, we will see a SP back above 50c. May take till Christmas but I’m a patient guy.