Hi @Chronos-Plutus
The only conclusion I draw from your post, other than you made a profit on your recent trade, is that you are of the belief that prices are heading lower in the foreseeable future!
Cheers,
Rob
Recently I sold my holdings in AMI @ 44cents. I had bought in @ 35 cents. 25% return in a month or so, not bad.
Hi @Chronos-Plutus
The only conclusion I draw from your post, other than you made a profit on your recent trade, is that you are of the belief that prices are heading lower in the foreseeable future!
Cheers,
Rob
Unless POG dips significantly then AMI will likely hold its +40cent price.Hey buddy,
Yeah; I think AMI may drift back down to the mid 30s. I only sold because of the massive 25% jump in one day. I thought it was a bit of an overreaction.
Unless POG dips significantly then AMI will likely hold its +40cent price.
AMI just announced its maiden JORC-compliant Indicated and Inferred Mineral Resource Estimate for its Federation deposit of 2.6 million tonnes at 7.7% Pb, 13.5% Zn, 0.8g/t Au and 9g/t Ag. It will use existing infrastructure to process this planned new mine so has more price in outyears.
More importantly, significant additional plant upgrades have been completed on budget, so ore processing costs and flexibility are now in play.
Added to that AMI will soon be producing from its high value Kairos deposits, and the remainder of 2020 will deliver strong returns, especially as their hedge book will no longer be out of the money.
AMI has no debt and a cash balance of +$50m so is likely to declare another 2cent dividend later in the year deriving a grossed up yield of about 6%.
AMI announced their Quarterly Activities Report yesterday but barely bounced given that at the same time POG was on a roar.
Good news items:
- ASIC now at about A$1100/oz, giving a margin of almost A$1500 with gold sold into an average $2600/oz last quarter
- Hedge book closed out, leaving AMI selling into spot market with current prices likely to remain around A$2600/oz given strengthening AUD
- Cash balance at $79M with no debt
- Further high grade gold intercepts, plus Kairos decline now at target depth - in production by year's end
AMI will commence mining their Kairos deposits in the June quarter. Until those results are on the balance sheet, then any significant movement in share price will likely be due to more good drilling results, such as those from last week:Been attracted to AMI a few times over the past few years but never ventured in. Haven't read anything about it lately but will.
'betweenthelinesfinance' on Patreon has just put out a vid on AMI. He holds some shares and says he might buy more when he reads the forthcoming scoping study for the 'Federation' deposit in a few weeks. Some wonderful drill intersections with strong Zn/Pb credits. He mentions the Dargue acquistion and how the market lost some confidence thinking AMI overpaid.
I like that the m.d has a mining engineering degree (i.e not a geologist), hands on operational roles, including with BHP and that AMI fared well after his appointment as did the previous company he headed, Stanmore Coal (SMR)
I notice on the daily chart that the price in March filled the breakaway gap @ 0.35 from beginning of June 2020! No firm opinion on the chart yet but looks a fair chance of challenging 0.40 again then breaking through the 8-9 mths downtrend resistance line currently cutting in at 0.40+
Interested again
Not Held
Daily
View attachment 122379
AMI will commence mining their Kairos deposits in the June quarter. Until those results are on the balance sheet, then any significant movement in share price will likely be due to more good drilling results, such as those from last week:
View attachment 122427
The other big price mover for AMI could come from POG, which may have finally turned the corner.
AMI has no debt and a solid and successful exploration record for a minnow.
Aside from that, it made the clever long term decision to invest heavily in polymetallic production facilities a few years ago, so will be able to take advantage on the present trend of increasingly higher base metal prices.
They've got no debt because they've been mining pockets. I considered buying this in late 2019 and I'm glad I didn't.
If that is the case then Kairos will substantially change that situation. Then there is the Great Cobar PFS due at the end of the year.
So right now AMI looks to be a substantially better an investment proposition than any time in recent years (given also that Dargues has been paid for and had a subsequent resource upgrade).
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?