$3 Party, page-87

Confusing. I take issue in the timing and the magnitude of this negative re-rate. The only real headwind on the fundamentals here is the Hermosa impairment (announced July). The SP at the time of that ann was $3.75 and Hermosa NAV was worth 58c. Is the market valuing Hermosa at NIL (which is silly), If so the SP has now overshot to the downside 3.75 - 0.58 = $3.17.

Here's the kicker. Hermosa was 11% - 13% of the NAV. Why has it taken this long to re-rate to the downside, if indeed Hermosa valuation is the issue... As I said timing and the magnitude is all wrong on this negative re-rate.



Those that think this is just a negative market. No I would disagree. This is a big of divergence from the other miners in the ASX. If its the market they should all be affected not just S32. This is definitely getting hit harder than the others. We can all see it in the price action.


My sentiment updated from hold to buy. I see more value on S32 than its peers in the current $3.10 price range.