I think 1.5c is very optimistic if you are looking to buy at those levels - It's more likely we will have material updates from Blackwood before the SP has had time to slip that far.
Yes it's curious why they did not take the oversubscribed offers - it was clear that they were going to have to deal with further dilution at some stage with their cash position. Maybe they had not anticipated Forrest et al carrying on like they are with the River Sands lease and having it still tied up. Gave the company a ring the other day to check in on things and they are pretty confident that everything will play out in their favour eventually and that it shouldn't be a much further drawn out process for the sand project to be back on the table.
My opinion is that the market is valuing the sands and uranium project at next to nil atm due to the administrative issues, and the company's valuation at the moment is being marked as the spec value of the gold project. This isn't surprising given the company's ability to self-sustain by development or sale will likely depend on the outcome of Blackwood's drilling.
That being my opinion, I also think the market is asleep to the mid-term value of all 3 projects.
CXU Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
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