sep q report ?, page-20

Wow U812, you are very ambitious even thinking about dividends from ABU!

I agree that the stock is worth a big risk of capital at these prices. However the sp needs to achieve certain stock broker, target price milestones in the future:
Canaccord has a target sp of 6c.
Patersons has a target sp of 7c.

Once ABU has achieved these prices, then it should move on to my initial target price of 10c, at some point in time, hopefully sooner than later, .... and providing that all has gone well with the mine and the company, ... and providing that the share market or the POG hasn't crashed.

When ABU is producing serious quantities of Gold, up to 100 000oz per year, then the sp should be re-rated much higher. But the money obtained from mining will be used to invest in more equipment, larger processing facilities, more drilling and intense exploration of other areas of their vast holdings, like Kroda.

ABU is aiming to maximise profits, minimise costs and produce as much Gold as possible, without the need to go back to the investors seeking more money. It has a loan facility already in place if it requires more funds. This self-funded, staged approach to exploring, developing and mining their multiple leases, is a conservative, prudent approach which should impress stock brokers and big investors alike, in the future.

However such a process means that paying dividends to share holders would appear to be off the agenda for many years to come!

But on the bright side, if ABU does reach a sp of 10c or even a sp of 20c over the next year or two, a 300% or 600% capital gain, imagine how long that CG would take to achieve through bank interest, currently around 4% to 5%!

All is looking great for ABU in the future. Hopefully an announcement will come out soon about how much Gold they have produced and sold in the last month or so, and that they have been achieving some astonishing head grades in the trial mining!

Go ABU!