In terms of the share price performance, it is doing no worse and no better than its peers. As you will be aware, the market has been in the doldrums and will remain so until some sort of lasting resolution to Europe is forthcoming (which it looks like it may started thankfully)
Once a longer lasting response to Europe is in play , we should see substantial "sidelined cash" move back into the explorer/developer gold stocks like AMX. There could actually be quite a rally on the cards if the right news comes out of Europe this week.
I also take the view that the whole West African gold sector got ahead of itself for a while to be honest, and I believe that valuations currently given by the market reflect no blue sky premium , just know resource/mining metrics. The West African region valuations were out of sync with the rest of the world and have come back down to earth.
Most price targets out there were predicated upon AMX delineating 3Mozs. I believe the new resource upgrade will go a long way towards much higher targets and expect the 4 Moz mark to be reached sometime in the mid 2012.
New discoveries will almost certainly push AMX over the 5mil.oz mark in the next 12months.
Today's prices as such , will look like a gift from the heavens once 4mil.0z+ is acheived.
I reckon an average sp for amx above $3 will be likely for 2012.
Ps. There is a lot of takeover talk around again involving AMX,Newmont and Barrack. I am always digging for more info about potential interest in AMX . Will keep ya'll posted as usual with my findings.
AMX Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
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