Weighting up the strengths and weaknesses are very important here. On the whole in my opinion is that the Fundamentals are strong for new acquisitions, the management has a great deal of experience between them. The management themselves are cautious and because of market volatility not willing to make uneducated pronouncements.
Looking at the market volume I think tells us what the market thinks. The market thinks that ROB is in a position to go ahead if the geologists report and other conditions are favorable. Raising capital is a good idea for companies in this position. Looking at the major share holders should fill holders with a great deal of confidence in my opinion.
Also it does come down to the region, this area of Mongolia is proven to be extremely mineral and coal rich. If the Board give it the go ahead the market is going to see this as undervalued in my opinion. It also helps that China's demand is going to rapidly increase of the next decade.
Forgetting the Chart for the moment, the Fundamentals are here for the uptrend to continue into next year. Obviously the Board has to feel confident it can raise the money, get shareholder approval and grow their assets. This doesn't seem to be an issue here as Australian mining companies are joining the international race to establish massive coal and other minerals industries in Mongolia.
"Mark Earley has a long pedigree in the coal industry, and he sees what's happening in Mongolia now as a reflection of how Indonesia developed its coal sector around 25 years ago.
"The Mongolian Government has developed a very understandable structure around license acquisition, around development and exploration, all the way through to mining," he says.
"It's a clear policy that's spelt out with clear taxes and royalties and in all, the licensing system there is very well organized."
The more the Mongolian story comes out the more people clearly are getting on board. This can only mean more growth for those who are in there. If the ROB Board take this up I think the market will approve.
Also the management are very experienced here and this may be the key factor in my opinion. The market seeks confidence in people first over anything else!
PS - This is only my thoughts and opinions. DYOR! The market is a monster but is always right. If you liked what I've said let me know by voting!
Kind Regards
ROB Price at posting:
2.7¢ Sentiment: ST Buy Disclosure: Not Held
