Smart investors and boards of smart gold mining companies think long term and see through short-term market malaise, sentiment and SP weakness. And will move to take advantage. AMX has undeniable strategic value in Burkina Faso for an acquirer, considering the already known JORC resource in the ground and the 150km extensive shear zone and discovery potential.
A market cap of $77m and $30m cash in bank is incredible value. With drilling results immediately pending and resource upgrade soon gives AMX excellent fundamentals. Technicals looking up now which should trigger new buying positions.
Take-over or strategic partner by gold producer is looking more possible by the day. Also, AMXs northern tenements abut Vital Resources (Toronto Stock Exchange TSX )tenments which have a resource of gold/copper. They also have approx $30m in bank. If a producer does not pounce I have been thinking that a tie up between Ampella and Vital Resources could be on the cards. This would enable scale, contiguous tenments, large cash balance and AMX automatically gets exposure to TSX investors and higher valuations generally afforded to gold producers and explorers.
AMX Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
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