The SML was first applied for on the 6th of September, 2017 (refer the announcement made by the company on that date.) It's been over five years, with little solid to show for it. The Tanzanian Mining Commission recommended that the SML be granted in 2019 (refer the company's ASX announcement on the 30th of October, 2019.) There has been, in short, a litany of delays and roadblocks.
It does not surprise me in the slightest that the market in general is yawning at the suggestion that the SML grant is imminent. It's a tune we've heard many times before. If Peak were to post an announcement today that the license has been signed off by the government (rather than simply stating that it's imminent and expected), I would fully expect a significant re-rate and de-risking of this company by the market, with a corresponding boost to the share price.
It's a given that in that circumstance, there'd be a bit of selling pressure by those locking in profits, but I'd expect to see the share price solidly up over the $1 mark within a couple of months. But without the actual grant of the license, rumours and suggestions will only buoy the stock so much and for so long.
The next week to ten days should tell the tale.
PEK Price at posting:
49.8¢ Sentiment: Buy Disclosure: Held
(20min delay)