You’re obviously stumbled upon this one and haven’t open a position due to understanding the fundamentals.
I pushed a lot of guys at work into this one around 12c. When it edged down to below 9c a couple were concerned and I asked them a simple question “has the story changed?”. I’ll ask again ... Has the story changed?
No it hasn’t. CAY still have the exploration rights. The project is still tier 1. The economics are still robust. Nothing has changed to justify a negative impact on the share price.
One of the first things I learnt in this game is the price over the long term is always chasing the fundamentals and any short term price movements is usually noise without any justified basis.
A share price is chasing earnings over a given period of time and the difference in the broad mean time is the risk factored in. IMO the biggest risk has surpassed(permit allocation) and the road to earnings should be relatively straight forward. High tonnage, high grade, low impurity product will attract customers. Robust economics will attract creditors. DSO infrastructure isn’t expensive or overly complex.
So in a nutshell transitioning the crystallised value in the ground into earnings won’t be a complicated and drawn out process. Things will happen fast with this company and prices at these levels IMO won’t be around too long. IMO in 12 months we’ll look back and say, wow 50c was so cheap.
I was buying under 9c and I’m still buying now. Not getting caught up in the share price because I’m buying based on merit.
CAY Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
