I don't agree that the deposits have lost their value. Wiluna is a world class project. In fact, it's value has grown substantially with the rise in spot/longterm contract price. That is obvious to anyone with basic math skills.
------- However, there are 2 issues:
1) A disastrous management, who's personal interests might not align to ours:
- I think competence and skillset is part of the problem.
- I think the incentive structure is wrong. Part of the problem is the sheer size of RH's salary, it dwarfs any other incentive. Where is the counter incentive big enough to motivate him to develop this project and do himself out of a job, like Mike Young.
2) The loss of our uranium mining permit, and the fact that we are now stuck in a uranium mining ban regime, due to management's actions.
-------
Unfortunately, this is what the market sees. But, with these two issues removed, TOE would have a market cap of +$750million, easy.
Now, it is true that CXU is in the same position as us, and yet it responds to changes in market conditions a lot better than TOE (as we see today). This leaves us with only one explantion...managament. It all comes back to the issue of management, I believe.
TOE Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)