I suspect that the market has not appreciated the significance of the trading halt. I earlier pointed out that BBX is not in the habit of calling Trading Halts. The ASX listing rules require that a company call a Trading Halt to manage continuous disclosure under circumstances where a reasonable person would expect news or developments to have a material effect on the share price.
I assume that the directors thought that reasonable people would expect the Exploration Update to have a material effect upon the BBX share price. True, it could be a negative material effect but in the context of the announcement it would more likely appear that the directors believed that the exploration update would have a positive material effect. So what is the significant event(s) in the Exploration Update?
More than likely it would be contained within the highlights;
* bulk sample recovery from Tabocal of 206.9 g/t - more than likely representing only partial recovery values.
* grant of exploration licences - facilitate the completion of the planned drilling program.
* commencement of pilot plant test work - facilitate testing of surface samples and drill samples.
Sounds more like all systems go. Perhaps the apparent negative perception that perfecting the assay technique is either proving to be elusive or undeliverable is an unreasonable assumption.
BBX Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
