The stock is being shorted because the company has decided to wait until the end of the month to release details of grade, quantity throughput and sales price per ton.
Once we get this data we can make a reasonable estimate of forward EPS and confirmation that the company is on target to be cashflow positive early 2013 and that a CR is not neccessary.
If the company was really concerned with supporting the shareprice it would release the above info on an ongoing basis rather than wait until the mandatory quarterly report. The longer that the SP is held down the greater risk of a cheap buyout based on the 30 day SP average. (Check the SP chart above)
I note that the company has opted for the less rigorous Australian disclosure rule (see recent ann) rather than the onerous Canadian standard wich includes management discussion/analysis & future spending. One would expect that the company would use the Canadian standard in consideration of the recently acquired L1 shareholders. The side benefit would be a more informed Aussie investor.
With kind regards Moorookamick
GXY Price at posting:
17.8¢ Sentiment: LT Buy Disclosure: Held
