They have given a 12yr guidance with a NPV of 131 million (which equates to 9.7c per share) which wont change for a least 4-5 years. I can understand why people would not want to hold on when there is only about 3c capital gain in SP from where it started this morning. Thats hardly lighting the world on fire. I cant for the life of me work out why they went with a BFS based on 15% of the resource - whats the point of underselling yourselves. Also their profit assumes 1. that the tungsten price wont tank, 2. increased interest rate on funding (which is likely given the world wide inflation).
I am always guided by what the market does and for months leading up to this report the SP has been unable to advance desptie the CEO coming out and virtually telling us a while ago that the company would be valued at around 150 million. Then it sat all day at the low (6.8 at the time) on record volume - not a good sign. I dont think it is trading at fair value BUT I can understand people selling. There are much better short term options to park your money.
EQR Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
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