The "next Chalice" is rather presumptuous but I've been bought some down here and will look to add on weakness.
I think there will still be some weakness unless we have an unexpected near-term catalyst. The weakness is driven by the Symons Hill announcement which led to day-traders entering on the increased volume and liquidity.
Unfortunately these traders don't know and don't care for the fundamentals. They'll provide some overhang going forward that will need to be cleared with positive news.
I'm particularly interested in Fortitude North. I'm hoping we'll get a decent drill program. There has only been two dozen holes and I like the potential to delineate a decent, relatively shallow, resource. Overall, it's a very nice landholding with permitting in place. But the company needs to add ounces to the open pit resources -- I'm not keen at all on Red October and hopefully the company doesn't sink more funds in trying to decipher the complexity of the underground mineralised zones.
Paul Poli obviously sincerely believes in getting a 600ktpa plant off the ground (maybe his brother Tony can help... jokes), but I think the play here is to increase open pit resources and get the attention of AngloGold Ashanti next door.
Anyway factoring in cash on hand, existing resource and the potential of Fortitude North and Devon to deliver increased resources, I think it's considerably undervalued. Good hold for medium-long term as I can't see much imminent upward trajectory due to overhang.. I don't think IGO will put another hole into Symons Hill but we'll see.
