Who are the recent seller? Panic weak hand or institutions?
For our retail investors, the PR of 9th July is a news, but for institution investors, the PR of 9th July was not new.
How can I say that?
I have at least three reasons:
1, in the PR of 9th July, "it said The Company is currently enhancing the operations team in the DRC and exploring financing options with major stakeholders to ensure that the short, medium and long term strategies may be carried out successfully". That means it already reported Namoya issue to the major stakeholders and looking for resolutions together. But the trade volume very few before 9th July. That means the institutions did not sell because they did not think the Namoya issue too bad comparing to BAA price at that time. If institutions don't want to sell before 9th July why they want to sell after 9th July at a much lower price?
2, "on 28-30 of May, Investor/Analyst Twangiza & Namoya Mine Site Visit". "Commissioning commenced in May 2014 and continued through June 2014.", "Since the start of commissioning, the operation of the CIL circuit has been hampered by the excess quantity of fine material". So, the Investor/Analyst already saw the namoya issue on 28-30 of May. but we did not see big trade between 28 May and 9 July. That means institutions thought Namoya issue is not a big deal.
3, Liberty attacked BAA after Investor/Analyst Twangiza & Namoya Mine Site. How could Liberty have chance to win if Namoya was very successful on Namoya commissioning? So, Liberty tried to use the Namoya setback to take over BAA, presumably institutions were unhappy with Namoya setback. However, Institutions showed even much more strong support to BAA Board because Liberty has no BAA shares, so no BAA shareholders interest.
Who are the sellers? Now you have the answer!
AI
