IMHO the heading of this thread refers not only about mining, but the process of a possible BAR re-rating.
If it had not been for the MIN sell down, I expect the current lift would be starting from a base of twice the price it was. The BAR sell off by MIN, was just a change of focus for them. BAR was not the only promising non-core stock sold off by MIN and I doubt the fundamentals of BAR had much if anything to do with the decision. The BAR SP was just collateral damage, but it did give everyone who has been following BAR the opportunity to buy cheap. That has taken the rocket out of the current turnaround, as anybody who understands the value BAR has in the ground, probably already has their fill.
Now, the recent lift in SP has attracted the interest of gold spec bargain hunters new to BAR. There is a bargain to be had with BAR atm just on the gold position alone. There have been enough holders who have been waiting to offload, to keep a bit of a lid on the SP, but you can see those long standing sale orders being chewed away by the new interest. Then, there should be little holding the SP down so we might get to where it should have been before MIN sold out.
Then, if there is any movement on the cobalt scene, or some good gold results, that rocket will surely ignite.
I expect my dilemma will soon be, do I take some profit and reduce my overexposure to BAR when there is a 3 in the price (assuming that like each time in the past that the SP will settle back on the lack of news) or take the punt that I won't get an opportunity to buy back in before we start making multi-bags.
BAR Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
