Ann: Strategic Alliance to Acquire Gold Ore Processing Facilities, page-11

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Meteor

13,592 Posts.

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04/05/20

16:30

Post #: 44425303
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Originally posted by JandJ: ↑

Typical ann from these guys, it only makes any sense at all for us retail SHs when read as an addition to news flow over the last few years. I expect that what is written between the lines will be meaningful to those who move in higher strata.

AMG reaffirms that their priority is the Cloncurry Golden Mile & Mt Freda gold project which they will bring to production this year - recall that, over the years, it was always the main play to bring in a cash flow from Curry to action the exploration in SA.
Now they want a JV to do talkies with another company about a gold plant to use at Curry. This ann tells us little about the new partner Activex Ltd AIV, but AIV's Q is informative.

IMO they seem to be land bankers, and probably shrewd ones at that. Under Financial (in AIV's Q report), they say --

"As at 31 March 2020, the Company had approximately $176,000 in cash and has access to an undrawn facility of $2,600,000, pursuant to the $5 million loan facility agreement entered into with Star Diamond.
On 24 January 2020, the Company announced the extension its on-market share buyback program for a further 12 months from 10 February 2020."So they are going into debt to buy back their own shares - that can be problematic in times of crisis IMO, as seen with Boeing and Qantas et al who depleted their liquidity with buybacks and are now holding out their hands for a Govt bailout. However to attract a loan from Star Diamond (the Canadian diamond miner who does JVs with RIO) is a strong point.

AIV has some interesting tenements SW of Cloncurry, which are under explored I expect, and might be attractive to AMG on a 75% JV basis. Perhaps also AIV sees a 25% stake in those tenements as good given that the AMG team are the 'Masters of Curry'.

Their board is ethnic Chinese biased, with language and experience skills which will assist deal making, the chairman is described as 'creator and facilitator of two-way cross-border investments and trade.' -- so are those the skills AMG is looking for to aquire a new Gold Plant, having sold the one they had to PNN last week ?? !!
http://activex.com.au/company/team/

So far the talk about a 75/25% deal is all mumbo jumbo, with no reference to how Capex or Opex, or Profits will be shared.

I too have left the room, having abandoned my plans to double down, and taking a sad loss but also my remaining capital to cash.

Sincere GL to all holders.

Expand

JandJ, I had a bit of a look at AIV - it appears the Top 20 own over 97% of the shares, the Top 6 over 83%.

It is basically a Chinese co with the two top shareholders directly and indirectly owning the vast majority of shares although the 2019 annual report says they own zero!!!!!!!

ASF owns just under 20% of AIV and appears itself to be a Chinese co - join the dots! It is lending money to AIV at 12%!!

My take - should not be a listed co, IMO, and probably a good alliance for AMG as there won't be any hassles - the top guy says "we r go" and they are away!!

Last edited by Meteor: 04/05/20

AMG Price at posting: 4.2¢ Sentiment: Buy Disclosure: Held
4 Upvote

2 Great analysis

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Ann: Strategic Alliance to Acquire Gold Ore Processing Facilities, page-11

Top Stories

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Vulcan appoints investment bank and M&A veteran to board

Utah authorities sign off on Anson's lithium extraction plans at Green River

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

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