Amidst all the angst of the capital raising, I visited a person whom I know who is a prospector and has been to ABU's mine site. He is also friends with 2 drillers, whom I've met previously, and who have worked at ABU's site and also at Central Petroleum's oil and gas field.
Central Petroleum, CTP, has had an extremely turbulent time with its shareholders and Hot Copper posters over the last couple of years. Numerous shareholders had been calling for the sacking of the board and the HC posts had been particularly nasty. The share consolidation that took place a few months ago, which took CTP's share price from 3.7c to 37c almost caused a storming of their head office!
But as my acquaintances said to me during those turbulent times, nothing has changed about CTP's assets, they are sitting on a huge oil and gas reserve which one day will be in production.
With CTP now having oil flowing, and a sp that has risen from 37c to 55c in the last few weeks, the shareholders are much happier. CTP looks like having more drilling success coming up, leading to a much higher sp. And low and behold, Richard Cottee, the chairman, is now seen as a "wonderful, visionary man" by most of the shareholders, who now believe that he may develop CTP into a hugely successful company, like he did with Queensland Gas!
These acquaintances of mine are saying exactly the same about ABU, as was the case with CTP. Despite the hostility that the cr has caused, ABU is still sitting on a significant Gold discovery that will be in production before too long.
These acquaintances have no doubts that ABU will find more Gold, that the company will be successful, and that the sp will rise significantly.
Like CTP, ABU has taken a long time to deliver a much higher sp and to become a producer. But I believe that both will happen some time over the next 6 months or so.
Of course CTP, or SLR, or a range of other stocks may outperform ABU during that time? Oil and Gas may be more loved by the market than Gold? Who knows?
But I am maintaining the faith and holding onto my ABU stock for the longer term. And so are my prospector and drilling acquaintances!
Go ABU!
ABU Price at posting:
2.5¢ Sentiment: LT Buy Disclosure: Held
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