The problem leannedawn is that short term there cant be much downside. If they process the first run of ore and it comes out at 2 grams a tonne then the company can say it was just using low grade ore which is standard practice to check the plant was capeable of treating the ore, so that wont be perceived negatively by the market.
On the other hand if the ore grades over 12 grams a ton then the sp will skyrocket.
SO anyone purchasing for a short term play at the moment does not have a lot of risk of the sp tanking IMHO but there is plenty of short term upside
Longer term I concede the risk increases as mine production rates will need to match forecast production and there are some on here with exagerated expectations of Tons per annum throughput, not realising the difficulty of mining the almost horizontal veins. Guess Robert is looking for litle puffs of white smoke coming from the little chimney smeltering the first dore
MCO Price at posting:
49.0¢ Sentiment: None Disclosure: Not Held