PRX 20.0% 0.3¢ prodigy gold nl

great link reiner and comments always chuk...

  1. 222 Posts.
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    Just playing devil's advocate here, but:
    - the market knows how good OP is
    - the market knows how good Darren Holden is
    - the market knows its the best time to be a lowcapex high grade producer (as per Lasonde's presentation)
    - the market knows ABU is best emerging Aus explorer etc

    that is why its already capped at $150m!

    I like to also look at what else the market is telling us:
    - the shareprice refuses to rise on continual good news
    - a large shareholder is selling (why is this so if ABU is so good?)
    - a large shareholder is selling on the market (why can't they find a strategic block buyer instead of the drip-feeding if ABU has so much potential?)
    - TANAMI has been an unmitigated disaster for well over a decade (there is no disguising this fact)
    - Twin Bonanza has minimal power, water, infrastructure etc
    - there is massive execution risk (plans written on paper almost never materialize to realistic expectations)
    - there is still no mining licence at OP
    - there is still no native title permission etc at OP

    I think trial mining is definitely the right strategy from Darren as market will only believe it when they see it.

    So playing devil's advocate here, I am just not convinced (even after a resource upgrade with Golden Hind) that the share price will budge much in this market until people see the liberated high-gravity-recovered gold sitting in that little store-room that they have in the picture of the corporate investor presentation.




 
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