I can't believe my luck to buy back in at these prices. I was actually was one of the first to get excited about the Nuurst project back in June when the SP was at 1.6c (see my posts further up in this thread).
My mistake was that that I sold out at 2.8c because I was worried about the share issue at 2c. I figured it had a good run and I thought it would drift back to the issue price where I'd buy back in. Well the sell-off didn't eventuate and the SP went from strength to strength up to 9c. I've been waiting for a suitable re-entry ever since but didn't have the funds when it was back to 3c last week.
My initial calculations were for a $1.3 billion profit from the assumed resource and an estimated SP of $1.10. Since then:
Nuurst has not only been confirmed but is much larger than initially thought.
Plenty of cash in the bank to move forward.
Nuurst has been de-risked considerably. (almost a given it will go ahead).
They are looking around at other opportunities in Mongolia.
No problems raising cash even in current global conditions.
The cap raising at 4c may seem to be the elephant in the room but I would like to make these points about it:
It didn't drift back to CR price last time so may not this time.
The same brokers are involved (DJ Carmichael Pty Ltd) so hopefully the same investors are involved - ie. investors who can see the long term potential and not dump at the first opportunity
These investors happily bought in at 4c when the SP was at a low of 3c only last week - they obviously feel strongly about the future and that the SP won't be back to those levels again.
In summary, it is for the above reasons that I'm happy to buy back into this company at these levels. Yes, it may drift back a bit due to the cash raising but I'm not going to take the risk of it taking off without me (like last time). From here there is minimal downside but enormous upside.
TVN Price at posting:
5.1¢ Sentiment: Hold Disclosure: Held
