facing the music

One of the most valuable lessons I learnt in the past is to refrain from continualy ramming my own perceptions of the quality of a stock down peoples throats whilst the market judges it differently.

When you believe in a story and go down a path of sharing that belief with people, you do so with the best intentions at heart.

When things are going well this belief is usualy accepted and appreciated by others. When things are going bad a dose of cold hard reality comes back the other way.

I fully respect the attitude some on this forum have directed at me during the past few weeks. Rather than poor fuel on the fire I decided to stay out.

I can't defend the announcements, I can't defend the perceptions they have created and I won't defend the criticism leveled at me by others.

I will however defend the qualities of the project, the confirmation of its potential and the belief driven appreciation this stock received during a time when each step the Company took carried with it an additional tick in the box with respect to upside and scope.

ARM has over $20million in the bank and a current undiluted market cap of approximately $45million thereby attributing $25million in market in enterprise value to its projects. At the peak of the share price run its projects held approximately $100million in enterprise value.

The information, although difficult to understand, released by the Company with respect to its drilling activities at Capricorn Southeast for me improved the prospectivity of the target area.

The biggest fear I had with the first drill campaign which was focussed on the hardrock targets was the possibility that a large portion of it could be surface enrichment. My Second biggest fear was that should the Company only identify lower grade intersections of between 10%-20% within the bedrock that this may not be upgradable to a usable product.

Both these fears have been torched. Mineralisation does run to depth and preliminary beneficiation work would suggest that thick zones it may be upgradable.

At a $1.25 or $100million market cap ARM still had this work ahead of it. Now at $0.43 and a $45million market cap ARM's exploration results to date have removed some of its risk from the projects potential viability.

So in a nutshell the Company would appear to have less exploration risk moving forward and yet its projects have only 25% of the enterprise value they once had.

The market has delivered a very strong message and verdict.

But is this verdict on its projects or is it on Management?

I think the project is improving.

I am a buyer at these levels and have been a large buyer for the past two weeks.

IMO
DYOR