I would suggest that the market for Melbana is not reflective of its true value and it is very doubtful that a six time increase in reserves is recognised (and/or improvement on the 5% recovery rate) or the recognition of contingent reserve likely.
There has only been one occasion since 29 August where the daily volume has exceeded 22m. The shareholder base is very open with AP the largest shareholder with 5% and from memory the top 20 less than 20%. In such circumstances it is not that hard for a few to manipulate the SP.
It has been obvious for the past year that most sell orders (currently 20m) are there for effect. There as been a seller of 1m at 6.2c on CXA for the last week, who pulls the order if it gets close to being fulfilled.
If there telling the truth the biggest sellers in the past few months have been GB and FRSU of 10m shares past.
Melbana is on some of the institutions radars and it will probably take the McDaniels upgrade report before they become involved.
MAY Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
