Taurus will be working behind the scenes to drum up some sort of takeover that gets them out at a profit.
If they buy up to the 19.9% limit they have to make a takeover offer if they want more, unless they wait for 6 months before buying more (there is some sort of creeping provision in the Corporations Act where they could buy another 5% each six months thereafter (I think) without making a t/o offer.
This averaging down strategy is not without its own risks. If the POG swoons down to around $1400/ounce that will trigger a heap of selling which they will not be able to soak up in the short term.
Obviously AMX is a trade gone wrong for Taurus, and the sooner they exit AMX the happier they will feel. Others will know they are under pressure and feel no hurry to make a substantial bid unless the POG picks up or they find a lot more oxide ore, which means more $$$$s to be sunk into AMX by shareholders who contribute.
Given the way goldies are heading I am only willing to commit some funds here at under 30 cents. There will be plenty of cheapies to pick up in June-August, so why hurry now? Look what GRY's BFS has done for its share price - almost nothing.
loki
AMX Price at posting:
36.5¢ Sentiment: Hold Disclosure: Not 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)