Hey Joel, I always watch AMI, however, never dipped my toe in. Though perhaps that is because I hold a mini version of it in RVR (sorry for any cross promotion). Suffice to say, when they bought Dargues, I got a bit of bile in my mouth (hence my past posts with a 'SELL sentiment'). Anyone could see the project was a fail. Why they bought it... I can only imagine it more to do with trying to fit the 'profile' of a mid teir, diversified miner, instead, of just focusing on what matters, profitability first, then.. worry about adding any 'bling'. Prob a little random, but, if AMI was going to aquire anyone, it should be RVR. Makes sense to me anyway.
Federation will indeed be a step change for the company, but.. I struggle with Dargues being such a drag. Though.. if you want a comparrison, RED had Darlot, which was basically a basket case, and they literally just told the market its closing, 'to give them enough staff to fill their new plant', but... reality is, Darlot never made the company $1. This blinded me to the valued of REDs new mine, or perhaps jaded me. In any case, I can see simlarities, as the company's share price has done well. E/V a bit over $400m seems reasonable, considering their gold production is basically 45k Dargues, which is worthless. Might as well just say 55k Gold + metals and that would be more honest to the market.
Maybe I am getting senile, but the latest company presentation does not actually show why I should invest in the stock. As in, I struggle to see how the company is going to create a step change in profitability. Happy to be swayed from proactive HC posters
Good luck and hopefully my cursory look and dismissal sees the stock fly!
AMI Price at posting:
39.0¢ Sentiment: Hold Disclosure: Not Held
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