"Us poorer plebs can not afford to tempt fate being overweight in companies that have no revenue stream and are operating in Africa...
Those who took large bets on BSR, AZM and NMG (to name a few companies) as their share price fell from their former glory have not been rewarded for their risk taking so far."
My comments:
1. There are many African nations. Africa is not an uncivilised backwater. Just look at Tanzania as an example. It is probably a better place to invest than Australia. Rule of law applies in Africa and in most cases political risk is minimal imo.
2. Juniors in EVERY country proving up a resource with the aim of moving into production by definition have no revenue stream. If that is too risky for you, fair enough. But that does not mean a quality gold resource of millions of ounces with huge exploration upside like AMX has should have been valued by the market as being near worthless. In addition, AMX has about $40 million in cash to fund its exploration which takes care of the "no revenue stream" for some time.
3. It is NOT just African gold juniors that fall "from their former glory." Investing in junior gold companies is not easy otherwise everyone would be millionaires. The art of being a successful investor in the gold sector is in correctly working out which companies are seriously underrvalued and which are not, which junior gold companies have quality gold resources and which don't imo.
4. AMX is a cashed up junior that has quality gold resources and was ridiculously oversold imo. We are now starting to see evidence of that by recent market action.
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