Timing is everything. Is it better to chew funds over a longer period just paying wages and keeping the lights on or should money go into the ground to progress / find projects? PEX would be the opposite to ARD in that over 70% of funds go to drilling and they have found 3 deposits. ARD would be lucky to spend 50% of funds in the ground?
It is a curse of the resources game that you can only get funding for projects when prices are good which leads to projects coming on stream just as prices fall and companies go under.
Are there non core assets that could be dealt to free up capital?
I have been hearing people say that silver is due for a rerate ever since the photographic silver market vanished. As much as I would like to see silver rerate has it just become and industrial metal? Anyone who holds ARD is really here on the hope / belief that silver will rise and Kempfield will become very valuable.
The fact that they are running out of money is suppressing the share price but it does seem cheap to me too.
ARD Price at posting:
1.8¢ Sentiment: None Disclosure: Held
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