Today seems to be forming an inside day, where todays trading is much smaller or confined when looked at as candlestick trading compared with yesterday. The trend for the last week or two seems to have flattened off.
MAK would need to close above $1.80 to call the end to the bear run but you do get the sense that the bears are finally wavering after such a massive knock down from $2.70. Fundamentals indicate 2 weeks will see the end of the drilling program, tentative releases of drilling results which will provide positive boosts to a slowly rising SP by that time.
POZ IPO today shows many in the market have confidence in the Phosphate mining sector. It feels like Uranium of 2 years ago, then as now only the strong first players will survive. This has a very low CAPEX and the cash behind it to set up quickly. OPEX will drop dramatically IMHO due to the shallow pickings at Arruwurra. 10m is near enough to surface depth. The grades are great. A rail link would be the step for 4-5 years from now to drop the OPEX even further but that is not the key for today's investors. Just know that MAK will commence mining in 22 months time-April 2010! (According to investor announcements).
AEV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
