Correlation16 May 2018 20:53
A little bemused by the conversation regarding a possible correlation (or not) between the SP and the PoO.
One side saying there is a correlation, and the other side not.
Surely the reality is that the answer is somewhere in between.
Obviously the recent strength in the SP is not entirely down to increases in PoO - more likely its the speculative interest in the company's progress towards FOIL and unlocking the value in the resource assets.
However, it is also counter-intuitive to say that the PoO has no bearing on the SP performance of the company. We may not be producing yet, but the speculative value to be unlocked is related to the PoO.
To say that the SP performance absolutely is or absolutely isnt related to the PoO is, quite frankly, daft.