I've been buying some of these lately. It reminds me of YTC at Hera around 7 odd years ago. I was a YTC holder and I recall they very nearly went broke with initial commissioning issues at Hera. From memory Glencore helped bail them out with a hugely dilutive share issue and the share price plunged to just 1 - 2 cents. Then Hera started to hit its straps and they were literally printing money mining the high grade Zn ore with Au/Pb credits. The share price rose to around $0.90.
The current situation seems similar to me and IMO Federation may prove to be a money printing machine, particularly if we get a spike in the Zn price.
One other thing that interests me at the moment is that the Hera processing plant is underutilized - IMO it would make sense for AMI to bid for PEX and then processes PEX material at the Hera processing facility. Are there any obvious flaws with this logic?
GLTA & DYOR
AMI Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
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