What a week for GPR. Hits 4.1c on day of this announcenent only...

What a week for GPR.

Hits 4.1c on day of this announcenent only to drop to 3.0c.

Sure there was some pullback given the steady build in price until release of PFS but undoubtedly the suspension of KGD spooked a few people to see it drop to 3.0c.


We did see some support to 3.2c on Friday and buyers that day and long term holders like myself would have been buoyed by the CEO buying shares on Friday.

That gives me comfort that the KGD suspension does not affect GPR.
Plus we also have Sophisticated Investor issuing an 8 cents valuation following the PFS announcement. And other favourable press reports.

For me low 3 cents represents huge value and I await with interest the coming week's trading and hopefully clarification of why KGD was suspended. My view on why the suspension happened is as follows and I welcome any alternate views:


WHY WAS KGD SUSPENDED?
I note some suspensions by ASX under listing rule 17.3 gives the reason why, usually if they have not complied with a rule as per:
17.3.1 The entity is unable to, or unwilling to comply with, or breaks, a listing rule
But no reason was given.

I also don't think 17.3.2 or 17.3.3 applies so maybe the suspension falls under the final clause:
17.3.4 It is appropriate for some other reason

So what could that reason be?
Looking at the ASX listing rules I went to Chapter 12 - Ongoing Requirements and note the following rule:
Level of operations
12.1 The level of an entity's operation, must, in ASX's opinion, be sufficient to warrant the continued quotation of the entity's securities and its continued listing.

With Woodlark being the major asset of KGD but increasingly under the control of GPR after satisfying Tranche 2 requirements (increasing to 93%), maybe 12.1 is applicable here.

So that is my take. Let's see what transpires this coming week.