Multi bagger x100, page-232

Great post ozblue... as usual.

When we look at what we have in the ground it is absolutely staggering that the company has a current MC of around 40 million. It's why I keep buying along with a lot of LT holders.

What is not said often enough and probably supports your idea of a 2Mt mine is that we have 26Mt of mostly indicated resource in such a small area of about 1 KLM x 300M. Not only that but it's also shallow, meaning a company with the experience of AJM could get it out of the ground very quickly.

What I'm becoming more interested in is the best way to get a mine financed for maximum shareholder value. That is one issue I have with the neighbours. They may get a huge mine going but how much will ordinary shareholders benefit in the long run.

If we had a MC of 100 million and a 2Mt pa mine cost 150 million that gives us a market cap of 250 Million. My MC target is around 100 Million by the time the FS is finished. So the question is, could it be financed by a CR using existing shareholders and a rights issue with a few larger investors taking up the balance.

Shares are as much about shareholder value and protecting it as about the growth in MC.
The reason I moved more into AJM is I not only think they are grossly under-valued but I also somehow trust management to look after existing shareholders. Time will tell.