At this stage if I was a buyer I would not buy any of the three until the quarterlies come out (PLS, AJM or A40), if I had to buy any at this stage it would be PLS as I feel that they are more advanced.
I have AJM from their Haddington/Bald Hill days. The fact that I have AJM but would lean towards PLS and hold off on A40 (all at this stage) is not inconsistent its just a result of my purchase/holdings over the past 10 years or so.
AJM have to prove themselves and commission their plant and yes they do have a lot of debt and that debt should be paid off relatively quickly with a producing plant.
A40 will still be moving dirt (with there much higher strip ratio) long after any debt is paid off by AJM. This strip ratio is a cost burden that can not be repaid like a loan can and will hurt the margins going forward.
At this stage I do not know how the relative costs will compare between the three companies and I have said on numerous occasions that it will take 12 months or so before meaningful comparison can be made, until then its gambles and guesswork.
Cheers
Newbie Thomas
A40 Price at posting:
25.5¢ Sentiment: None Disclosure: Not Held