Hello Aimone, you ask "why has ard dropped so much"?
ARD was initially recommended by one of the popular "Stock Pickers" at around 24 cps. About a month or so ago, after ARD had fallen around 40%, the Stocfk Picker recommended getting out of the stock as "nothing was happening". The herd followed this recommendation and the price fell even further. When Stock Picker initially recommended the stock the price of silver was around $40 per oz, the recent ARD lows were when the silver price was around $28 per oz. So the answer to your question is falling silver price and delays by management in achieving their promised DFS this quarter.
The value of ARD is extremely sensitive to the silver price. For example conceptual modelling shows that each $ change in the silver price impacts ARD's potential pre tax profit by A$20 million. I think the break even silver price is around $18 per oz. At $32 per oz silver the payback period is likely to be around 4 - 5 years of an 11 year mine life.
My view is that the SP of ARD will remain within a few cents of current levels until the DFS is ready then there will be a readustment. I am buying ARD around the 12 cent level in anticipation of a positive DFS.
None of the above is investment advice and figures that are not published facts are pure speculation and cannot be relied upon whilst forward looking stateements might be completely wrong.
ARD Price at posting:
13.0¢ Sentiment: None Disclosure: Held
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