Just a quick message to Ensordoone..thanks for your feedback. Yes AMI is the standout, and I agree with Amok...in 10 years they'll be still around, and I believe going even better. The stopes they are following are all open at depth, save Chronos which is open to surface, gold is in rich supply, base metals abound, only three of the 6 mines in the Peak chain operational at present, and with exploration planned. There's far more in the wind, but only so much can be taken on at once. The Company has to optimise mill throughput first, then develop the plans to extract as efficiently as possible, what is currently being mined so as to ensure mill feed meets the throughput. Coupled with this they are exploring from the current mines to extend the resource, right where they are working. This couldn't be more sensible because they know the resources are open. The word they used was 'delineate' which means outline and other synonyms...is it really exploring when you know it's there. Let's not squabble over words, regardless, I can't think of better plans...beats drilling other areas, that may be hit or miss. They hit two large blocks first up drilling 22 holes a few cms in diameter and only 50m long. They will hit next time, and again and again until all of Chronos, Peak and Perseverance are fully defined. The stopes are there.
Of the other companys I post on...VRS I think is a really safe bet. It's market cap is about 8 months income, in a safe industry, large ongoing contracts, 0.5c fully franked dividend ex around end August. I tipped this to mates who got set at 16c about 6 - 8months ago. Revenue now tracking at $125 mil p.a. It will show steady growth so is a low risk investment.
I have also posted on CTL. Currently under voluntary suspension, the wait to the quarterly isn't far away. That will be telling. The potential is there, if it is managed properly.
Back to AMI wasn't low risk, but it is now. I don't think it will do what RMS did..7c to $2 then retreat cos the resource wasn't as rich and costs blew out. That's the other advantage AMI has. It took over an inefficient Peak, realised immediately it had to create efficiencies...and having learned the lesson, I don't believe it will allow costs to blow out into the future. It had $85,000 oz hedged at $1700 an ounce on 10th April. Since then its sold heaps and has 76,000 hedged at $1727 an ounce. It is watching its pennies! It's looking for efficiencies in its mining, extending its resource through exploration/delineation, maximising its milling aiming for capacity, and on the Corporate level has been outstanding in buying Peak, paying off Glencore, extinguishing the Investec debt, building cash reserves, and I still wonder why they need revolving credit (which is probably a good thing anyway) when in about 10 days, at current rate of net earnings, we'll probably have $100 million in the bank. There is soundness at all levels. The business will continue to grow, the share price undervalued.
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