My view is that this company is undervalued, and although there are cyclic, or external factors that influence what we sell if we are still able to turn a profit when prices are low that speaks to the quality side of the company. Especially one that conducts underground mining, a more expensive activity. The financials have been impacted by spend on upgrades, new inventory, etc. All of these are done to set an increase in profitability going forward and a change in cultural approach to how the current functional mine was run. This is generally an approach I personally take in my own work, buy quality for your people and they will more likely deliver quality. Don't make it hard for them to do it (contrary to the old proverb which is sometimes misused in instances like this). The cost of substandard or old equipment is glossed over in opportunity cost.
An unfairly beaten-up company, with a stronger story and underlying numbers to boot. A rather rare opportunity even in the space, a small-mid tier copper producer. Not many others to speak of. Expansion and growth evident and underway.
Even though we can see the numbers of copper and the likely shortage, I still do not prefer to speculate on such things when purchasing a company. In any case, new material is likely needed. We can recycle what we have but we have new development occurring in countries that most likely do not have the copper to recycle in the first place. Additionally, with not many substantial discoveries in the past few decades where is that supply coming from? Currently, those mines that are expanding their resource with further exploration. So, on that side you come to the question, "Ok, so who is doing the best job there?". In this market cap-sized space, I challenge anyone to find another that is doing this better than A1M.
The copper price appreciation is something to be seen as a "bonus" in my eyes.
The shorting strategy seems similar to my initial guess. The raise and something I didn't factor in, depreciating copper price, which they no doubt capitalised on as a one-two punch to keep the momentum going. After the large trades yesterday, it appears we hit a solid bottom. Instos topped in at 52c and I'd wager have taken the opportunity to take trader's shares on the way down to increase their positions at a discount. Instos like raises and don't like buying on market if they can avoid it, but in instances like these I think they'd be too tempted not to take advantage. They tend to have longer term vision over your standard retail holder, something a retail holder could benefit from focusing too much on some short-term movement.
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