I tend to agree with you in the fact that some people are probably a little scared of the management given that the stock did fall dramatically after Ellendale. However saying that, that is the market. Not every project is going to end up as a mine and management can only evaluate and then decide on what is best for the company.
This project seems to be ticking all the right boxes so far (not saying that it is going to be a mine) So as the results come in people are starting to get a bit more confident. The next announcement should be the resource statement if previous announcements are anything to go for. They have said that the drilling as confirmed further extensions doubling the size of the ore body and also that the high grade intersections have been confirmed. (Check the announcement in July where these high grade results were not included in the resource statement) Now these results will be included in the resource statement and the extensions will also be included.
This should se at least a doubling in the value in ground to around $1.4 billion.
Infrastructure is close and the area is not difficult to mine. Another set of boxes starting to be ticked.
Once people see a measured reserve then I think you will see this stock moving up. Then you will be able to say that it is fully priced then.
My opinion only so do your own research.
CQT Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
