I'm aware that the low SP is the result of supply and demand dynamics. I guess my concern is why aren't investors falling over themselves to buy DRG given we have soft coking coal close to the Chinese border?
I have a number of reasons but I will only present one.
1) The poor quality of communications being released from the company.
Let me explain further. The company said on a number of occasions in the last announcement and on BRR that they are excited to have found coal in BT01, SOME 3.5KM AWAY FROM BTE001, claiming that they might be part of one big seam. What they failed to explain is why three holes in between didn't return anything significant and why other holes selected from geophysics also didn't return anything significant. The market doesn't like spin. Do they think the market wouldn't see these holes in between.
I could go on but I wont. The poor announcements and delays have hurt the SP. Until clear, timely and concise announcements are released, the SP will continue to drift lower.
DRG Price at posting:
44.0¢ Sentiment: None Disclosure: Held
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