Great question. My personal thoughts are it is a number of issues, all which have nothing to do with the quality of this resource. 1) I think there were a lot of long term smaller holders that are using any upside news to sell because of exhaustion and concern about iron ore. Some of them bought in for the gold story that was discontinued. 2) The story is not so well known in the market just yet. 3) The huge negative sentiment around iron ore at the moment is hurting everyone. 4) The marketing of this resource is still very technical and there has not been a lot of clarity on how they will fund the startup of the mine. (an update on the project plans would be good)
I think all of these topics will become clearer (even the direction of the iron ore price) in the coming months and this great company will re-rate.
I remember thinking the same on Mt Gibson many years ago and wondering when that was going up and why others did not get the story and then almost over night it shot up.. I believe this will be the TAW story as well even with the current negative sentiment around iron ore prices.
Do your own research.. Not investment advice.
TAW Price at posting:
2.1¢ Sentiment: ST Buy Disclosure: Held
