Great article and I would actually like to comment on the section about how investors in the majors don't like paying for assets which take time to be developed. I don't disagree there is likely a lot of truth in this, but it's a horrible mentality.
Right now there's a culture in investing of needing everything now, with disregard to the future. It likely comes from this same mentality in the rest of western culture but it's a very bad mentality to have. It forces management to make sub optimal choices in order to deliver a good quarterly, instead of running a good long term business that will ultimately benefit shareholders more.
In the case of mines in particular, the benefit long term in picking up high quality assets in the earlier stage of development is obvious for shareholders in majors. But I understand why they are adverse to it, because a company like AW1 (which appears to be uniquely blessed with DSO here making it easier and shorter timelines) still will take a bit of time to get developed and never in time for the next quarterly report. An announcement about x future acquisition of an existing mine can be announced far sooner.
Let's hope that the mentality does change, because I believe it would be for the better.
AW1 Price at posting:
23.0¢ Sentiment: None Disclosure: Held
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