The short term issue is simply. Debt and raising numbers need to get done. If they go to funds and slam the placement away, then the stock will rise. I think they will do a part SPP to give everyone a chance to average in. The gold price is fine regardless of the recent US$ price drop. Its still A$1650 and that's a home run for EAR. As i have mentioned before, there is no hurry to own it given production comes next year, but the price action is suggesting its oversold. NST's average entrance is 30c, but they wont care. They are looking further out and have now got their foot on the neck.
This will be a bargain if you take a view out over the next 3-6 months as they get closer to production. A placement around here would be a cracker outcome for investors as its half the NST buy in price and i assume they will top up.
EAR Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
