Personally I believe it is not funding holding the SP back.
It is still a speculative stock, because we, the shareholding public, generally have no idea of: a) the costs to complete, and b) the time frame required to c) generate repetitive cash flows from mining
Once c) is achieved stock moves from speculative (all HC stocks are speculative) to investment grade. Uncertainty from management and speculators drives volatility. Don't beleive me?, do a HC search on BHP.........
Needless to say a re-rating will occur once the general investing community is convinced of investment grade potential (as opposed to speculative, how much will it cost, how long will it take). Probability of completion as advertised/marketed by CDU management is not yet near certainty.
Decisions made around debt, to capital structure, to time to delivery have been made and impact the above. To keep debt down and capital structure reasonable, it could be another 6-9 months before re-rate starts to occur. SP may well drop in the mean time. not good for investors, great for traders.....
(Given the stock market often values companies 2 years ahead, I like to get in early,just in case the rea affirming announcement is made tomorrow)
CDU Price at posting:
$1.80 Sentiment: LT Buy Disclosure: Held
