Two comments: its insider trading. Proving it is almost a...

Two comments: its insider trading. Proving it is almost a completely different matter, as stupid as this sounds. The share price ran up in anticipation of the announcement. Regardless of company value, you cant deny the timing of events. Admittedly I came in late on this stock, but over the last two months I have captured/understood a lot.

My second comment is that there is nothing particularly special about this announcement. All they have announced is an increase to the indicated resource estimate based on drilling results TO DATE – the overall estimate of its interests remains the overall target, which in the Yuqida tenement is 570mt at the top-end. Its funny, I keep uncovering all these little truths about ORD. For example the tenement covering the 66km2 block will only give rise to minor rights of total bauxite mined. Agreement is apparently being finalised with the licence holder of this block for a direct 70% interest in the resource, but is a joint venture with the licence holder. So SARCO receives approx 50% of the 70% allowed. And remember, ORD owns approx 50% of SARCO – a JV in itself.

I worry that similar little details are being missed when considering investing in this stock. You’ll have to confirm these statements with the company – at best these are my deductions based on company statements and articles.