how many ounces, page-121

Bm3121, all is not so bad!

With investing in shares you have to take the good news with the bad, especially with a spec stock like ABU.

Whilst ABU has continued to make excellent progress, and has made numerous positive announcements, the sp has languished, but so have many other gold stocks.

Firstly ABU's sp had to endure Tanami Gold's big sell off of shares so that they could raise some capital. Now ABU has faced another sell off due to it falling out of the ASX 300.

But remember that some entities bought those 60 million shares at around 3c. They haven't bought them because they believe that they will lose money, they bought them because of their belief in the ABU story, and with the intention of making money!!!

Yes, many companies inflate their worth and successes, and many average "mum and dad" investors get burnt. ADN is the classic example where recently it ran from 4c to 25c on a few drill results and some over-inflated announcements. With ASDN's sp now 7c, many investors are sitting on huge losses at the present time.

ABU's story is far better. I personally know some miners who have a lease near ABU's and have been to ABU's mine site, and have had discussions with ABU staff. They're belief is that ABU has been honest in their resource estimates and all other announcements, and probably, quite conservative. And they too, are ABU shareholders.(their own very small lease has an estimated 230 000 ounces)

Bm3121, ABU is a well run, well managed company whose announcements have been constrained, professional and conservative. ABU has a huge gold resource, with plenty more ounces to be added, when more drilling and investigation is done.

So in the long term I strongly believe that ABU's sp will rise dramatically, and I am holding out for 10c+ at some time in the next 12 months.

But in the short term, ABU's sp has had to endure the huge drops in the POG from USD $1700+, several major share sell offs, traders taking profits, market manipulators, charts indicating to sell, stop/loss selling, and poor market sentiments for gold stocks in general.

And ABU may just be unlucky, or one of those types of stocks that is out of favour with the market for a very long time. And there may be more pain to come?

However, hold the faith, at some stage ABU's time will come. Those who bought the 60 million shares at 3c, they are the ones who can spot a bargain!

ABU will be making seriously good profits in the next 12 months or so. Somewhere in the range of $30m to $60m. Plus their resource size will increase, after more drilling, particularly deeper drilling.

On a p/e of 8, ABU's sp should be in the 8c to 16c range based on predicted profits.

So whilst some investors are gloomy at the sp, smart investors are adding more shares to their portfolio at these prices. And some 87m shares have been bought over the last 2 trading days!

As a long term investor, I am not too worried about ABU's current low sp, I can foresee plenty of upside in the future. Of course the sooner that ABU's sp breaks 4c, and heads further upwards, the better for all of us!

ABU is slowly building into a solid 20 year+, mid-tier gold mining company. Whilst the company's progress and the sp rise, may seem frustratingly slow, all is going to plan. These things take time, but better to do things right the first time. The transition to full on mining, and good profits, is not long away,!

I'm looking forward to some more positive announcements about the grades obtained in trial mining, and the amount of gold to be poured rising to well above the forecast 3000oz!

Go ABU!