Not sure what to make of this company. I've been following it since the CR and recent rebound, an interested bystander at the moment.
1. From what I've read, the recent cap raise is for the completion of the Link Drive to Jericho, stated to be completed in June 2026.
But, where is it going to get the money to fund the Eloise plant expansion, at a cost of $60m over 3 years, with only $7m net profit p/a?
The residual $25m odd cash in hand (after deducting the $50m for Jericho (split as I understand $35m for the underground development and $15m for associated ventilation shafts and fans)) isn't enough, is it? Is there going to be another CR to fund all this development?
2. What's really interesting is the mirror image between the copper price and AiC Mine's share price:
Given there aren't going to be any dividends any time soon, we're all looking for capital growth.
AIC Mines have owned the mine since they bought it in November 2021, when the SP was 40c odd.
According to "techopedia" the copper price 2025 forecast isn't that much greater than current price - the May froth seems to have been an aberration:
At the moment, the SP is only 5c higher than it was 6 months ago. And 1c higher than a year ago.
Does this mean AIC's SP is going to be traded along the 30-40c range for the foreseeable future, and nothing more?
The counter-argument is that not all of those who bought at the 52c cr are numpties - does anyone have any intel on who the buyers were?
If anyone wants to share what they think, I'd be grateful.
A1M Price at posting:
33.0¢ Sentiment: Hold Disclosure: Not Held
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