The positive is that the RXL share price is now out of the “very painful zone” but I totally agree that it is still very cheap. When the share price was hovering well below 15c my thoughts were that either:
1) there were problems with the project, or 2) there was a problem in marketing the company.
Although RR always appeared to be a highly competent Mining Engineer, and would have probably been well suited to bringing Youanmi into production from a technical point of view, the objective truth is that the share price slid under his leadership and RXL could not catch a bid no matter how high the POG went. I don’t think it is a coincidence that trading volumes and consequently the share price have responded very positively to the appointment of Phillip Wilding. The under subscribed last CR was probably a pivotal moment in RR and RXL parting company. I believe that RR has a strong belief in the project and has not sold any of his RXL shareholding. In a way he is a scapegoat as the Board lives on and that can be argued as being unfair.
A late stage developer with a pre-tax NPV of $1b should have a market cap in excess of $200m. When I see the short term share price movements of other juniors on my watch list I anticipate that the $200m market cap is coming and coming quickly.
RXL Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)