Only time will tell. AXO is a good long term stock no doubt. It's the short term (i.e next 2 months that scare people witless). If there is ever a hint of even a small capital raising, the short sellers will ravage the SP. Until a formal announcement of funding and partner, the SP should be under pressure or at best drift sideway. Think about it, at 25 cents (the prevailing support level - although it did trade at 24 cents recently), a discounted cap raising SP should be around 20 cents.
If the discussion with the Chinese doesn't bear fruit and the emergency credit facility is utilized, the SP will be battered. The lesser evil is to go out cap in hand while the market is confident and money forthcoming. Same result, SP gets whacked.
I can be sure the Chinese didn't even blink when they read the 15% ore upgrade. Perhaps a slight smirk and a raised eyebrow.
They know the old trick. Everytime before IO benchmark price negotiations, the Chinese announced some massive IO discoveries half the size of Pilbara (invariable existing about as deep as the earth's core as subsequently revealed).
AXO Price at posting:
26.0¢ Sentiment: None Disclosure: Held
