I think we're seeing a combination of negative factors at play atm.
1. The OGXOB options expire in November (only 2 months away) OGXOB holders (myself included) had been punting on a rising (or at least stable) price for OGX and OGXOB with a plan to sell some of their OGXOB options to fund the conversion of the balance of their OGXOB to OGX. The realisation that the SP is sliding has recently hit home to OGXOB holders and they have been selling at almost any price. The price of OGXOB falls and this in turn affects the price that punters are willing to pay for OGX so OGX falls. A falling OGX price also reduces the price punters are willing to pay for OGXOB so OGXOB falls further. A vicious circle of falling OGXOB and OGX has been created, each one leading the other lower.
2. Last mining/production ann showed (imo) a good estimated feed grade of 17-19g/t but (also imo) a very disappointing 105 tonnes processed. To achieve the initial 40,000tpa we need to produce more than that every day of operation. As i posted after that ann, it was only commissioning (transitioning to ramp-up phase) but still I suspect many others were very disappointed with the production rate to date. There was no explanation of any issues encountered that may have caused such a small qty of ore to have been processed. Some have suspected problems with the gravity plant, some have suspected issues associated with the HG ore stockpile. Others now are suspecting possible issues with mining. Any, all or none of these may actually be the reality but unless we get more solid detail announced by MP very, very soon then the concerns will fester and grow,
3. The uncertainty created by point (2) combined with the backdrop of the uncertainty of point (1) has started a selling storm. All this when the gold price is extremely strong by any standards. When does the panic selling stop? I wish I knew. A detailed, positive ann would be a good start ..l
OGX Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
