By Gediminas Jasionis
Date: Oct 19, 2010

Legend International Holdings, Inc. (OTC:LGDI, LGDI message board) stock is losing the short term momentum it had built up at the end of the last week when it broke resistance at $0.82. If the price won't retrace below it, the general uptrend should continue to produce gains for the shareholders.

Since the market cap of $192 million is around 2.5 times the net tangible assets, there is not so much space left for further appreciation, but the base for this rally lies in the recently published update on operations, which makes the further price climb feasible.

The latest update stated the company is still conducting Feasibility Expansion Study on their Paradise Phosphate Project. The management is also in talks with potential equity partners in attempts to finalize the financing strategy suitable for the project. The exploration stage mining business still has around $50 million in cash or equivalents that they can burn.

The full feasibility study should be completed by Q1, 2011. Until then, any greater price moves are likely to occur only on announcements related to partnerships or the funding.

In the meanwhile, the price has been building an uptrend since mid August. There are no reasons for it to retract far down as the update from operations was positive, the company is making progress, they have enough cash to finish the feasibility study and even start preparations for mining operations.

Furthermore, additional cash are likely to become available once the study is complete, especially knowing that one of the shareholders is India's largest fertilizer cooperative Indian Farmers Fertiliser Cooperative Limited.