The underperformance of the share price relative to the...

The underperformance of the share price relative to the increasing price of oil is probably still due to stale bulls taking the opportunity to cash out since the cap raise in November 2019 at $0.93. Lets not forget that 300 mm new shares were issued back then and the largest chunk to new investors. If memory serves me correctly, less than 25% of those shares went to existing holders.

Since that date the window of opportunity for any of those new holders to take a profit has been fairly minimal with approx six weeks early in 2020 when the share price spiked and then plunged as a result of Covid. The share price has only consistently been above one dollar from the start of this year and having been locked in for a year with a low share price many of them might now be relieved to be able to sell at a moderate profit with their 50% reduction in CGT. If so, this may continue to be a drag on the share price for several weeks more, notwithstanding the increasing oil price.

ANZ