With all the excitement at the moment in the Au/Ni exploration space I'm struggling to focus on my work...luckily I am working from home so I can work into the evening when the market closes to finish everything lol!
I bought into AZS on Monday when they initially came out of the trading halt with the strong Ni news on the first hole. The way I see AZS is as follows:
- at the current price, it is expensive - market cap around $110 million, main assets 60% of Andover and silver in Mexico. Assuming Mexican and other assets worth say $30 million (generous in my view), this would value their 60% share of Andover at 80 million with full value of Andover therefore $135 million. - This is a very high value considering Andover is not much more than a few holes in the ground at this stage. Holding makes me very nervous since I'm conservative and I want to avoid losing capital where possible (I lost a lot (for me) when the GFC hit and suddenly everyone realised how overvalued all the small exploration stock really were!). - Having said this, I see some positives with AZS - good management/geos, Creasy has already done work on the ground and retains 40% of Andover plus owns 12% indirectly via AZS (Creasy owns 19% of AZS) and most importantly as stated in the announcements there are numerous conductor plates that have been identified and it seems that where Andover is there is an absence of other conductor materials (graphite etc) so hopefully these conductor plates will turn out to be Ni/Cu sulphides. Fingers crossed!
GLTA & DYOR
AZS Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
