c'mon peter, show us ya willy!!, page-5

Can't quite figure this one out either.

I saw a presentation from the company back in August (Canary events) and was pretty impressed with what they were trying to do. Not the mind blowing stuff that speculators drean of, but profitable and what look to be very low barriers to get things going.

Sure, the resource now is kinda small, but look what little they have to do to get it up and going.

Very low capex - perhaps less than $8m
Low mining costs to produce a beneficiated product
Local sales - no need for much infrastructure (eg port, rail)
No need for a full scale permit to get going.

Add to this the recent announcement of the Olympics (and I think the world cup as well) and the increased need for infrastructure.
A government promoting local industry (they even begged Vale to increase local spending).
State funding available for this type of project (but will still probably need to raise equity)
A very low number of shares.
Perhaps even the potential for Gold in the same tenements.

And the defined resource is more than adequate to support 10 plus years of this low level production (1-2mtpa) plus there is upside on exploration.

This one isn't going to be a 10 bagger with this profile, but I don't see any reason why the expected free cash generated from their operations shouldn't support a SP 4-5 times the current SP.

Given the lack of constraint to get this going and the short predicted time to do so, why is the SP languishing so?

Australians uneasy about investing in overseas projects?
(I read a report this week citing this but I can't recall where right now)
Can they really sell the stuff?
Is what the company telling us complete BS, and this will never get up or even at the top range of their estimates?
Is management capable of doing this?
Is there more just more interest elswhere?

I don't know. It looks good to me - everytime in the last few weeks the SP dipped into the low 30s I tried to pick up some more.

Wouldn't mind hearing the case against.