There seems to be problems.
Low grade drill results.
Delayed feasibility.
35c to 18c share price, at a time when the copper price is going gangbusters.
This is clearly a red flag, if everything was good, and with this copper price, the share price should have doubled, not halved. It's a clear indication, and doesn't take a genius to interpret.
It looks like they've canned the idea of a new plant, and are now going to refurbish the old one.
Another red flag, because if grades were great, and the IP solid, and the copper price very high, then they'd build a new one, not doing so may mean they see a higher risk now because of the poorer drilling results at Nifty, and so they don't want to risk the extra capital on a new build, because Nifty may crucify them, like it's done to the two previous owners.
They are now talking more about their other deposits, and drilling there.
Just reading between the lines, I'm not getting great confidence about what they are finding left at Nifty, and so they are spending more time hedging their bets, by exploring more of their other tenements.
Top 20 holders have sold down significantly since the last top 20 was posted, this clearly show a weakness in confidence and timeliness with their results so far, the senior holders may also be getting a little more nervous and hedging their bets, so have sold down.
There are red flags going off everywhere here at the moment, and not just on the charts.
Keep an eye on corporate movements, if directors begin resigning then you may be seeing the beginning of capitulation.
The highest copper price we have seen in a decade and their share price has halved - not good, and a clear indication, and a big warning for new investors to be wary.
I am down here at the moment, I invested too early, and I would suggest to any new investors, they wait and look for ALL the indicators (fundamental and technical) to turn around before diving in.
It hurts me a little to provide this analysis, because I like these guys, and I like the technical skills of their management, but sometimes there are projects and deposits that can challenge even the best, and that is when we need to become heavily objective.
I've got my fingers crossed for them though, and for my investment.
Gw
Expand
(20min delay)