Esh.,
I understand you’ve seen this setup before but all indications are that Management want to take this project to production. Mining permits have been secured, the team has been assembled, solid grades have been established at depth, funds have been amassed to build a good size mine, and early works have begun. Is there information that you are privy to that tells you this project will be taken over for a song? Management’s actions suggest we’re full steam ahead building the mine and further proving up the resource and regional potential.
I don’t think share price action, in itself, warrants the conclusions you are coming to. Sure, there has been some Institutional accumulation as the price has fallen but that’s not entirely surprising given the risks at hand and the fact we are 18mths minimum away from earning a buck. Macquarie sold out at 40c but they also pointed to grades at M1 being half what they originally expected.
On reflection, everything that has happened in terms of share price, trading activity, profit-taking, the excessive issue of Equity, the whole lot can be seen as a function of the Risks at hand.
I believe Management are going for the bigger prize here, and that is a beautiful new mine in a new mining district brim full of potential. If we’re lucky the situation in BF settles down, and in two yrs we have a 3-4 bagger with potential for more with time. A takeover with 50% premium isn’t a bad result either given the general market circumstances. It would be a shame but not the end of the world.
I suppose what I’m asking is for proof in support of your cheap takeover proposition. I don’t believe the share price action is proof enough in this instance.
WAF Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
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