The profit taking after the announcement was to be expected, especially as there was an increase in volume before the announcement. No matter how you try to keep it quiet, there is always a chance of a leak somewhere. The important thing is for the share price to build on this and establish another level.
The other very bullish news was the Chairman, Rick Allert's address, second last paragraph which stated;
"Another encouraging factor is that the Company continues to receive expressions of interest from owners of major Chinese steel mills who are interested in becoming corner stone investors and possibly provide infrastructure finance and enter into off-take agreements. We will progress these negotiations as appropriate."
Firstly, comments from a person of Rick's stature has lots of credibility. Secondly, the fact that there are Chinese investors interested means that the iron ore is of good quality, and the Chinese obviously believe that this project has a good chance to get off the ground. This means that WDR is in the radar of Chinese companies and this can only be good for the long term. Its a long term play, but well worth being patient.
WDR Price at posting:
41.7¢ Sentiment: LT Buy Disclosure: Held
