News: NWH NRW Holdings To Support Gascoyne Resources With $12 Mln Loan Facility, page-27

Hello everybody.
Motley Fool, has an opinion on why the price went down on Christmas Eve:

https://www.fool.com.au/2018/12/24/...oldings-and-vocus-shares-dropped-lower-today/
“The NRW Holdings Limited(ASX: NWH) shares price has dropped over 5% to $1.47 after agreeing to support Gascoyne Resources Ltd(ASX: GCY) through the provision of a $12 million loan facility. The contract services company advised that the loan will be used by Gascoyne Resources’ subsidiary GNT Resources to meet working capital requirements and will be repaid through instalments during the second half of calendar year 2019.




But I think they got it partly wrong;
1) the  price actually dropped to $1.40 NOT $1.47 .
2) this was the same day as news of the loan
3) the loan is to meet working capital requirements
4) the repayment is to be via instalments in the second half of CY 2019
5) I disagree news of the loan is the reason the price dropped.
As posted previously I think it was a shorting attack .


That it’s a $12 million loan designed to effectively give Gascoyne an extra 75 days infers  NRW has simply agreed to let Gascoyne run one quarter behind in its payments for the next two or three quarters.
(Assumes a $300 million contract for 6 years is worth $50 million pa or $12.5 million a quarter.)



I did a bit more reading on Gascoyne history and the intensive recent studies into the REAL facts of the resource ( there may have been pie in the sky served with many previous estimates about nearby prospects ) ....
It was published on November 28, 2018
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4g++wRGZp/Rgke92GA==
I believe NRW trusts the people who did the research and therefore decided to continue working at Dalgaranga  for at least a year because now,  even in a worst case scenario , it has confidence there will be profit.

This confidence should help GCY prices .
It should also cause the price here to increase by 5% ( or much more if you start at $1.40 or even $1.47 !)
Coincidentally this is what has happened today