Remember, the sp is merely a function of sentiment , not an indicator of intrinsic value. Thats why its a buy for the funds down here.
If you work out the value of gold in the ground based on industry average on $100/oz , you get $400mill intrinsic value or fair value of $1.60 /share , purely for known ounces and no premium for the remaining land holding.
Some recent takeovers have been valued at gold in ground much higher than $100/oz . Fronteer was taken out for $500/oz .
If they only paid $150/oz for amx having 4mill/oz - you get around $2.5/share, and thats throwing in the rest of Batie west for free !(which would more than cover any capital expenditure required in the long term)
That leaves plenty of headroom for profitability, for any major making a bid all the way up to $2.50
AMX Price at posting:
76.5¢ Sentiment: Buy Disclosure: Held
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