Further to this we should get the initial results of the grade from the infill drilling within the next couple of weeks.
This will define the quality of the ore at the location of the infill drilling, which will determine the grade premium the company should receive.
Higher grades literally mean extra money for zero additional work or capital outlay. This has the potential to have a significant impact on the profitability of the mine, especially in the early years (appealing to off take partners, loan payback etc).
I would say the only reason you should be worried about any drops in price is if you need to sell in the near term.
If you don't need to sell, then you should be fine, and it is just a matter of your pride of not picking the absolute bottom of the market.
As Burty suggests, if you have the funds, risk appetite and patience, then you could consider this an opportunity to either increase your holding or average down, depending on your average price.
Small price changes down at this level can result in large percentage swings which can have an impact on the number of shares you can acquire down at this price point.
But the risk is whether the supply will actually come into the market to fill your order.
Last week I purchased more shares through my SMSF at $0.165c, and then the SP went down to $0.14c.
An extra 15% or so more shares would have been awesome, but it could have gone the other way and my order not filled, which could have meant I had to buy at a potentially much higher price.
My investment horizon with AKO is to hold long term and receive dividends. Obviously, you need to keep abreast of developments with the company, and things could change, but that is the risk we take.
AKO Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
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