Nothing is wrong with the project. Qatar Steel pulling out of purchasing a 50% stake for US$375 million is what has caused the share price to crash. Given the negative sentiment around iron ore at the moment the market is not willing to hold on and reap the potential rewards due to the uncertainty.
Once they secure a new partner and get the project back on track I cant see why this shouldnt atlease reach $1 again. The company reports there has been strong interest at this stage so I'm hoping this wont be a problem. As I metioned in previous post George Soros and Ken Talbot have bought in at much higher levels so they obviously see the value of this companies assest.
Given they have 23mil in cash (16c per share) which will last them the next 3 years surely they can ride this out and see the share price reflect the real value of their assests.
SPH Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
