Yes, I see what you mean with the other opportunities around at...

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white_man

180 Posts.

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26/08/22

13:20

Post #: 63343705
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Originally posted by Exised: ↑

Things turn out best for the people/companies that make the best of the way things turn out. At this point I'm really just making the best of the way things are turning out in this sector. AIS no longer stands out like a sore thumb in its undervaluation because the salience of other undervalued miners cannot be ignored. There is no moat in mining and AIS is really only valued relative to its peers at the end of the day.

Doesn't the revised guidance for FY23 EBITDA of $140-$170 million equate to a profit similar to what we saw in the 2021 FY results of $61 million even if the price of gold, copper, etc stay at these levels? This is a good point but not on a per share basis. The recent share consolidation hides this impact quite well.

I agree that the future of AIS looks promising. That is why I plan that it remains in the portfolio albeit in a much smaller original holding but with an extended timeframe. With that in mind, AIS now presents an Opportunity Cost issue to me personally. If one tweaks his investment thesis from growth to Dividend/Production profile then there are plenty of other miners out there worth investing in and have suffered the same SP devaluation thanks to the metals price action. https://en.wikipedia.org/wiki/Opportunity_cost The proceeds from the AIS reduction will be invested to those...

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Yes, I see what you mean with the other opportunities around at the moment.

I'm quite bullish on copper stocks given copper may be beginning a wave 3 up which may see all time highs so I would imagine OZL, AIS, SFR, 29M would stand to benefit. Isn't AIS still to most undervalued of these 4?

I have no idea what GOLD is doing or where it is heading - I studied the charts and it's too had to say where it will go with any high degree of confidence. ZINC well that's a new one for me to start looking at.

Thanks for you invaluable input as always Exised

AIS Price at posting: 45.0¢ Sentiment: Buy Disclosure: Held
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