Relying on the goodwill of those holding your company's proverbials in a vice is not a good investment strategy. Especially when they have form in cashing their chips with scant regard for the existing holders of the company. Perhaps they're just waiting for nascent signs that the mine is a profitable or even going concern before collecting, until that point rinsing AJM for their 15% each year is a more profitable strategy. Things may become clearer soon, but the PLS situation seems to imply cash is not easy to come by, even when you're worth four times as much as AJM and in need of a third of the amount... Hence why I sold my remaining holding on todays small bounce. I've learnt the very hard way that capital preservation trumps 'being smarter than the market' every time. I sincerely hoping I'm wrong and rue getting out at the bottom, but I'd much rather a higher chance of a good if reduced return on investment over the real possibility of a complete loss. It also seems likely that there will be better bargains in the lithium space once the current storm passes and the EV demand side is proven with consequent recovery in spod. At the very least I need to see management deliver on their guidance having been so woefully wide of the mark last quarter - I won't risk reinvesting until I see them achieve their sales forecast and much nearer to their projected costs, and without more unannounced capital spends on 'fixing' a plant that is meant to be in commercial production. All of that is also despite the ugle macroeconomics and ongoing trade war, which I have personally discounted as political posturing that will hopefully recede with the next US election through expediency or a change in administration. Those who spotted the opportunity in gold miners are truly the smart ones ATM.
AJM Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
