PRX 0.00% 0.2¢ prodigy gold nl

I own both ABU and FAR shares which are currently exhibiting...

  1. 27 Posts.
    I own both ABU and FAR shares which are currently exhibiting remarkable similarities in their business:
    1). Significant holdings in prospective tenements – ABU 12,000 sq km in Tanami District, (asx announcement 4 Aug 15 Diggers and Dealers Presentation) with other significant Australian holdings (over 40,000 sq.m asx announcement 19 Feb 15) and FAR 7,490 sq km in a PSC offshore Senegal. Both companies have increased their interests in these areas recently through JV’s with third parties.
    2). ABU and FAR both have unrealised losses of around $125m per the latest annual financial reports so their historical performance is not stellar. In addition both companies have in the last twelve months raised additional capital from shareholders to fund their activities.
    3).Both are approaching significant milestones in relation to their business with the anticipated declaration of commercial production for ABU and the imminent appraisal and exploration wells for FAR offshore Senegal.
    4).Both have experienced delays with these projects much to the frustration of their hotcopper followers.
    5).Both FAR and ABU’s value will be driven by the results of the appraisal/ exploration wells and processing plant/ mine, respectively.
    What is interesting in terms of comparison is that the FAR followers on hot-copper appear to be genuinely excited about the company’s prospects and are more acceptable of delays to the appraisal process. On the other hand a large number of ABU followers have lost patience with the company and directors and are questioning all and sundry, in areas on matters where comparable data and results from other experienced operators appear to vindicate comments by the MD on potential future development plans.
    Whilst shareholders are frustrated by the delays do not lose sight of the potential value of the prize. Further detailed information of the mine performance and the ABU business will be revealed within the next two quarters and shareholder patience may be a virtue with this.

    Not advice. all IMO and DYOR.
 
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