Ann: Quarterly update and outlook - March 2022, page-32

I can totally relate to longer term AMI holders being upset with management.
My perspective as a new investor deep diving into the operation for the first time is that AMI is endowed with some of the most incredible growth assets but the greater business has been somewhat mismanaged.
After listening to the last half dozen investor presentations, I'm amazed that DC doesn't receive more investor backlash on these investor calls about
his handling of the Dargues purchase and subsequent downgrades.

@abovetheclouds
I obviously don't share your pessimism regarding commodity prices. There is genuine supply and demand constraints caused by the lack of price incentives given to mine's to invest in exploration and infrastructure over the past 10 years. Money printing is another tailwind that simply cannot be wound back due to sovereign insolvency risks.

If AMI was to drop to say 27c It would be sitting at an EV of approx 270 million. I'm not saying that this can't happen but if it did I would be gratefully buying more, simply because I understand the true value of the assets they hold.

I think it's a bonus that sentiment is in the toilet because the discrepancy between price and value is elastic and will one day snap back.


@speculator101
What really perked my interest was the recent 1.48 billion sale of Glencore's nearby operation. CSA copper mine has a similar gold equivalent grade, and is just over double the size. It's highly probable Federation will continue to rapidly grow it's MRE judging by the continued strong drilling results and the openness of it's ore bodies. It's not hyperbole to say that one day Federation could be a similar size to CSA.

Your right on your call about AMI being a base metals producer with some gold. Once Federation ramps up, they will probably be sitting at a ratio of 75% base metals 25% gold and silver.
Gold miners tend to trade at a higher EV to EBITDA margin than base metal producers yet this has little future bearing on this business for it's already trading at a very low EV/EBITDA ratio of approx 2.5.

I really see this as another low risk high reward play Spec but I appreciate your input. I could be wrong obviously and would be happy for someone to give me more good reasons on why my analysis is incorrect.

Their presentations are a little underwhelming and don't appropriately convey the true value of their assets to potential investors.




DYOR
GLTAH