The RTR share price has climbed from 38.5c during the day on 17 June to 58c at close of business yesterday (25 June). Up over 50%.
This has increased RTR's market cap by $120m to around $356m. While RTR has many projects on the go (eg Western Queen, Braeside) and results for some are pending I feel the large $120m increase must reflect optimism about Earaheedy (25% owned by ZNC) as this is the project most likely to move the dial by this much.
We have seen in the past how the RTR share price has been a very good indicator for good/bad news. On 6 April RTR was up nearly 30% in a day before a 'please explain' from the ASX led to a trading halt. Later the RTR shares surged. Likewise RTR's share price was bubbling along at 72c before it experienced seven out of 8 down days leading to the 2 June follow up Earaheedy announcement that was ok, but not the 'hit it out of the park' announcement the market was hoping for.
Perhaps oddly, the ZNC share price has often not reflected what is happening with RTR. The 50% increase in the RTR share price has been accompanied by a 15% ZNC increase over the same period. A period which included particularly good news at Split Rocks which in my humble opinion was worthy of the ZNC increase (3.5c a share) on its own. Also, on 6 April when RTR was zooming nearly 30%, ZNC shares fell.
Readers of my posts would know that I have found the disconnect between the RTR and ZNC share price quite odd. ZNC has clearly underperformed since Earaheedy has become a major discovery.
Given the above, I think ZNC shareholders should feel positive about some good announcements regarding Earaheedy soon and hopefully a little share price catch up with RTR may be in store.
ZNC Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
