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A40

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It’s still largely related to market sentiment which is beyond...

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Xjquan

94 Posts.

44

05/04/19

09:27

Post #: 38007828
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Originally posted by kropka: ↑

@Xjquan

We do not know what monthly arrangements are, but going by info provided we can only assume that our production will be around 40 000 tons p/month.

Under current agreement of between 80 000 - 10 000 for 2019 let's assume selling around 22 000 - 23 000 T p/quarter we are left with +/- 16 000 T a quoter in stockpiles.

We do not know new selling price but production costs are still on upper level so the question is how long can we keep going without CR with production of 40 K tons and payment for only 22K tons p/quarter.

IMO this explains why our SP is trading in this level.

There is no question about potential of BH or our BOD and until we get second off take and on good terms with quality partner, I am not expecting any improvement in SP.

I also doubt that MC will rush into any "cheap" agreement just to make shareholders happy as this could be short term gain and long term loss which I do not want to see.

It is frustrating seeing for months the same SP but in the past 19 years I made 2 costly mistakes.
After months of hardly moving SP I sold out once it went 20% up just to see a year later missing on several hundred percent increase.

In both cases it was similar story: great BOD and potential.

Everyone could have different strategy and I understand those who are eager to sell on any SP improvement.

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It’s still largely related to market sentiment which is beyond our control. Offtake price is a reflection of market sentiment too.

In the meantime, if the mine can function at a production rate and cost as per the guidance, I m happy to continue holding.

A40 Price at posting: 18.0¢ Sentiment: Hold Disclosure: Held
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