Well personally I bought my first parcel of ABX today (potentially first of many pending further research). I thought I was done buying Bauxite stocks (holding MMI and PBX) until I came across this little unloved gem.
I can understand that 2017 was a pretty frustrating year for holders in terms of share price, what I don't understand is everybody's assertions that management can't sell considering the ann dated 22/12/2016 ABx bauxite sales strategy avoids market glut problems. In that ann they very clearly said they didn't plan to get into the metallurgical market until 2018 as they expected prices to be higher by then. In fact I'm guessing that might be what started the share price slide (people thinking their money can work better for them elsewhere for a year or so).
So for me looking at this I see a company actually making money (the cement/fertilizer business alone financially justifies current MC), with a big pile of higher grade Bauxite ready to sell whenever they decide the time is right.
Then there's the ALCORE stuff which has potential to add massive value and looks very promising.
So I understand why this stock is unloved and I don't see it rocketing off anywhere in the next couple of months but I do see this company as massively undervalued and the market always corrects itself eventually. But then again this is just my initial analysis so LTH feel free to correct me.
ABX Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
