Chart Update, page-893

Hello everybody ...
This afternoon we had news our troubled client, Gascoyne Resources, failed to lodge it’s half year report by the March 15 deadline.

This  project was taken on as a six year commitment by  NRW :
NRW stood stoutly behind this contract  and supported GCY, even to the extent of loaning it $12 million dollars in December.

For newcomers here is a summary of the original contract:
https://nrw.com.au/project/dalgaranga/
“NRW has been awarded a 72 month mining contract commencing 1 March 2018. The total value of the contract is over $300 million, with mining taking place at Gilbey’s Golden Wing and Sly Fox Open Pits.
The first gold production is expected in the second quarter of 2018.
CONTRACT SUMMARY
The contract is for open pit mining together with drill and blast operations.

Scope of work includes

• Mine Development
• Load and Haul
• Drill and Blast

The majority of fleet used will be existing NRW plant and equipment though additional plant and ancillary equipment will also be required for the project.
Action Drill & Blast will be carrying out the drill and blast portion of the contract.
NRW will initially have some 160 personnel on site rising to a peak of 200.


But now the suspension and it seems those with a ‘bush stethoscope” to the ground are not getting much of a sense of a pulse from Gascoyne.  Therefore it is perhaps not a coincidence  NRW shares went down this afternoon after touching $2.59 this morning.

However, intriguingly, we had the strongest volume in days and a lot of it seemed to be eager buying :
NB :Off market trade for more than 200,000 shares this morning at $2.57;

Total volume on ASX 1,850,664 shares for $4,699,504....
And this was almost matched today on CHI-X which saw its heaviest NWH trading days in weeks  - volume 1,608,893 shares for $4,065,137   (VWAP $2.53084).
...the buyer is still liking after market trades over there too. $147,789 spent today after close at the VWAP price rather than (lower) closing price


(For the record: Yesterday around a million dollars was spent on CHI-X, around $100,000 of that after market
)

My thoughts are that the buyers  do not seem deterred by Gascoyne .
Perhaps they are even spurred on by the thought of lower prices?

@pbawley noted  on the Gascoyne thread the other day his estimate of the value of Gascoyne in respect of projected FY 19 earnings of $1.1 billion is  4.9%
So possibly something worth more than 4.9% of $1.1 billion is nearby and acting as an incentive for the buyer.

...it seemed to take ages to type this tonight .
I might have caught your lurgy Pioupiou .
Best wishes to all.