I also think this will turn shortly - seems to be one large institutional seller that's just killing it & getting out at any price - we should get their notice of change in substantial holding in the next day or two. I don't want them to sell Mt Muro as we were told it can produce at cash costs of $900/oz and I can't see any reason why this still doesn't hold true - OK the waste stripping there has been very underestimated but hopefully we are now being given the true picture that this exercise will be completed by December when it should then become clear sailing - better to have two producing assets than one - especially when one is copper and the other gold/silver. Waste stripping in getting down to the ore is like a capital cost although everybody writes it off when incurred these days - an extra $30mil for this shouldn't be the end of the world as Mt Muro should produce up to $70mil in net cashflow per annum when they are producing 100k ozs each year. No distressed asset sales please. Don't like trying to catch falling knifes but this maybe the exception - but obviously safer to wait for confirmation of the additional funding as financiers might get scared about the $40mil market cap.
SRQ Price at posting:
8.4¢ Sentiment: LT Buy Disclosure: Held
