I don't like the high volume. Suggests traders getting in early and may well play with the price, run n pump a couple of times today.
On the positive side, there is no reason TPL shouldn't re-rate to a higher price and i think it would sit quite comfortably and not be out of place in terms of market cap, if it was to consolidate between 3-4c, in the lead up to Mongolia, Canning Basin etc
Let's remember that CEO traded to 8c upon the announcement of the options agreement in Mongolia. That was BEFORE drilling. It was only after a couple of holes came in that they re-rated to much higher levels.
A realistic target this year for TPL is probably also around 8c. If any drilling takes place, then that will determine if the company is worth more or not. There's also Canning Basin to consider, which I think is being given an EV of $0 by the market currently.
TPL Price at posting:
2.6¢ Sentiment: LT Buy Disclosure: Held
