Far East Capital Newsletter
Legacy Minerals will be testing for “an elephant” soon
23 Sep 2023

In This Issue

Legacy Minerals will be testing for elephant soon

We are seeing continued sensitivity to interest rates in the market with last week's falls being attributed to a better performing US economy, leading to upward pressure on interest rates. We are not talking big numbers here, but the lack of any other active dynamic in the markets tends to amplify the movements as traders seek to foster volatility.

Asking the question of how far our resource market can fall, we need to look at the different sectors and commodities. Though, there is plenty of variation in performance in each of those. That brings us back to the earlier observation that this is a stock pickers market rather than being trend driven. There are plenty of stocks bouncing along the bottom but good news flow tends to be used as exit points out of what are commonly called lobster pot. We are not seeing any momentum building. It is more a case of shuffling, and waiting.

Legacy Minerals (LGM) is another modestly priced exploration company capitalised at $14m. Since the IPO in September 2021, it has traded in the range of 12c to 21c, with a reasonable degree of volatility that has provided some trading opportunities. Most recently it has traded up from 13c to hit 19c, in an otherwise weak equities market. Volumes have been tiny, but there has been some interest that dates back to late August when the Company announced a resistivity anomaly at its Breccia Sinter Prospect, Baulora, in NSW.

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