valuation discussion thread, page-17

I think we all need to step back here for a second and analyze what is indeed fact, speculation, opinion and downright rumor.

FACT:

- The ZFX is considered to be less than adequate by the AGM board, the finance houses, the brokers and the market in general given that the SP is trading at 16 cents over the 90 cent premium offered by ZFX.

- Jubilee with similar sized Ni resources to AGM was valued at $2 billion during it's take over, thus in retrospect the ZFX offer is nearly 66% short.

- Production will comence in the near future, selling to a client who's already established a 100% offtake agreement such that income is not a question.

SPECULATION/RUMOR:

- AGM is sitting on a much larger resource than currently published, how much larger is indeed the billion dollar question. Continued resource upgrades and an expanded exploration program (as the mill will be complete by this time, allowing the AGM board to return to their expertise which is EXPLORATION) will put this speculation into fact, be it a positive or negative outcome.

- CURRENT market climates impact upon those not holding for the long term (though I could have sworn I saw a post by Muela stating "in the long term ZFX was a good buy" so even he may be swaying from his trading credential), will the Dow Cloud really ruin the Australian resource tea party? Or will te "decoupling" from the US market actually work in our favor?

- Further suitors are inquiring into AGM, if it is indeed "for sale" then why sell to the first bidder?

- Jinchan SELLING to make an estimated $50-$70 million profit. I question this as their stake in AGM was more of a sureing gesture rather than an "investment". They wanted their Nickel delivered to them on time, I don't really think they're in the trading game.

- The AGM board selling or looking for positions on the ZFX board.

Of all the listed speculations, the most probable in factoring in the SP is the further exploration and further value - which indeed the only thing that most have to support this stance is the same stance that AGM has been trading upon "trust us, we know the province, we're the experts". And with this I feel that most AGM holders will have to trust their own judgment and ask just what price can they put to their trust in AGM?