The point is we know nothing until the auction results, good bad or indifferent. It is now speculation and we hope mad fear doesn't take over. If buyers are seen playing golf and touring, what else are they going to do at a resort, sit around on a stool all day drinking coffee after having submitted a tender application offer when there is tourism around.
Now what does Arena do on Monday if they still hold, that'll be a good judge of things for sure
Not that Arena has problems here with an exercise price of 6.2c and most of them went for a large profit anyway. The difficulty is now for traders, especially those with a higher VWAP of course looking for some stability when nobody knows what the auction results will be. Those who bag companies are salivating.
The problem here is a new entrant on the auction scene with over 400,000 carats for sale when someone puts a ludicrous figure on sale results based on hearsay from a couple of shifty traders taking the mickey out of someone supposedly a journalist looking for glory from his company to jeopardise the auction process as it just begins. No research just using the name of his company who are of course now implicated. What are facts to do with certain journalism?
Mustang doesn't quite the have man power at present that for example, Gemfields had and this is their first auction for rubies under the new era. Mistakes are made along the way especially in the sorting and grading not quite right. The last 200,000 carats were found rapidly with new discoveries and different categories for sorting and grading challenges. For future work Mustang are preparing for the installation of optical sorters at Montepeuz and conducting test work with the Tomra Sorting Solutions, a global leader in optical sorting as they move onwards for their next auctions.
They now have a range of rubies for everyone one and some will need heat treatment as you see some pink around here and there. What may be seen as challenges for some can be opportunities for others. Of course what we and big buyers are looking for is big gun rubies to make a presence on these tables.
If we don't get a trading halt then there might be a delay in the auction results coming out as was indicated in the lines in one report to organise settlements and I guess to look at off the table offers for bulk sales if they re in the offering. Time can be a healer sometimes, especially if information can come out to steady the ship. Mustang is here to stay.
An opinion of course and good luck..
MUS Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
