Having had a bit of time to chew over the announcement from last night I have to admit I feel a little bit better about AIM. Clearing out dead wood should serve two purposes being (1) removing any deliberate or unintentional apathy in our board with regards to the project … admittedly they have probably been working hard however it has seemed that there has not been any real attempt by the management to create value for the shareholders; and (2) injecting some fresh blood into the company who should be seeking to actively push the project and make their mark on the company. I would hope that Nth Sound have a degree of influence in selection of management as this will serve to protect the interests of Nth Sound (and subsequently us).
I think that the statement regarding exploration around Perkoa is probably the most positive aspect of this announcement. Aside from getting favourable finance and offtake terms the only way in which the NPV of Perkoa can be increased by the company is by increasing reserves. It gives me an increased degree of confidence as this method of increasing NPV is probably the most straightforward and is within the control of AIM management. I certainly hope this exploration program kicks off sooner rather than later.
I really think that the sooner they cut and run from Mumbwa the better. This is a lame duck project and quite frankly is costing money which would be better used to increase the measured and inferred reserves of Perkoa.
Anyway, happy Easter All … I’m heading off for a well earned holiday for a couple of months so I will catch up with you all at some stage in June … hopefully to see a shareprice above 30c.
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)