Couple of reasons:
1. Tax Loss Selling going into the end of financial year.
2. Over-valued equity market commentary combined with some negative indicators - this may lead people to look for exits from equities in general
3. Patersons.. yeah, their Perth office has a bucket shop reputation on the east coast which they just seem to not be able to shake, which means east coast buyers are hesitant to follow them in.. so we may need some really good positive newsflow over next 6 months to shake this baby off our back.
Still a crackingly good project / management team who operationally will shoot the lights out IMO. Not particularly happy about the CR being before the end of the funded drill campaign announcements and without any participation of retail investors. Yes, an SPP or Rights Issue extends a fund raising timeframe and produces dilution uncertainty for new investors (this would have been the advice from Patos - maybe should have shopped around a bit more - lots of spare cash residing in Sydney and Melbourne at the moment) but if anything, the mining equity boom and bust showed us that looking after current shareholders is essential for small cap miners as losing just one of them can smash your share price due to selling into thin trading..
Good to see some instos in, but my experience $500k is a big lick for an insto in a small cap miner so I'm not holding my breath waiting for them to go on the bid in strength. However they are likely to put a floor under it as they will opportunistically buy if it drops as their investment premise certainly has not changed in the past fortnight and if anything has improved with physical gold rallying and looking like a good investment with current uncertainty.
