A1M has broken an ugly two year downtrend on recent Cu discovery announcements. Long may this continue!
Drilling success obliges further drilling to define orebodies - a nice problem, but still a problem - certainly a better outcome than proving sterility.
Also emerging is genuine optionality in the concentrator feed-mix. Lens 6 is high grade and very deep. Elrose Levuka North and Maceys are shallow and of moderate grade. Then Sandy Creek has an attractive high grade centre with little overburden, going on just the section we are shown. Jericho is much bigger, further out.
My point is, AC & team can now juggle mining sequence between a number of orebodies to maximise cash flow, concentrator utilisation and facility development.
Eloise operations last Q were cash flow positive. I se this widening considerably, given the above flexibility. The funds will be directed to capex, easily justified by the larger resource. A1M is dying to install an X-ray sorter. Ditching barren rock pre-concentrator would bring immediate benefits.
AC mutters there is interest in financing development. If he plays his cards well, which he shows considerable skills at, A1M will flourish mightily.
Current market cap is a mere $161m. Given the prospects, upward re-pricing is imminent.
Ash
A1M Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
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