"Kinross bought Redback...for $7.1b they bought (approx)
6.5 M ozs Meas and Ind Resources @ 1.8 gpt Au 1.5 Mo zs Inf @ 0.86 gpt Au
Put this all together and they paid $880/ozs."
Kinross overpaid and its shareprice has been on a downtrend since then - it has probably halved. They are finding more gold but it cost a lot more than they expected to develop it, (and extract it?) than they expected. And there is considerable country risk which is becoming more recognised as a major factor by the market.
Red Back Mining had an operational mine, AMX does not. Does AMX have a reserve? The average grade is lower than Red Back Mining.
A takeover will have some premium but forget about comparing AMX with Red Back.
The only thing holding up this puppy in the current market is takeover speculation. In the absence of this AMX is likely to be back under $1.00 today. Same goes for GRY which is getting some of the t/o speculators on board. PIR is also losing some of its glow, but more likely because of problems in Mali and the downtrend in goldies generally.
In the near term a takeover of AMX at around $2 is a possibility, but not much higher. Is it worthwhile to gamble buying AMX now or later on when the general markets have lost more of their glow? Seems to me that it is best to just wait and see. There are now so many other cheap goldies out there, many of which are operating profitable operations.
loki
AMX Price at posting:
$1.05 Sentiment: Hold Disclosure: Not Held
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