AW1 4.17% 10.0¢ american west metals limited

Not Investment Advice: Just some interesting analysis that I...

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  1. 107 Posts.
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    Not Investment Advice: Just some interesting analysis that I though I would also add to this post stream:

    Currently, the company has 436,859,655 issued shares valued at $0.115 each, resulting in a market capitalization of $50,238,860.33. If 76,268,355 new shares are added at the same value, the new market capitalization would be $59,009,721.15.

    With current cash holdings at $4,061,000, the new cash holdings after the addition of shares would be $14,061,000.The current market cap to cash ratio is calculated as $50,238,860.33 divided by $4,061,000, resulting in a multiple of 12.37. After the addition of shares, this ratio becomes $59,009,721.15 divided by $14,061,000, which is a multiple of only 4.20.

    This indicates a significant strengthening of the company's position, as the market cap to cash ratio decreases from 12.37 to 4.20. In other words, the company's stock which is currently trading at a multiple of 12.4 times the cash on hand, will reduces to only 4.2 times the new cash on hand after completion.

    IMO, it suggests that the current stock price of $0.115 represents a good buying opportunity.
    Last edited by Danniel: 21/02/24
 
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