I think metallurgical issues are more than built into the share price. Arguably they were already built in when more capital was raised in March at $1.30. Hopefully you can confirm this tomorrow with a HC posting after your broker gets back to you.
There is no way Paul Kitto would have bought another 800k shares at 40c if there were new issues since then.
All gold stocks are getting smashed. AMX may well be down another 10% tomorrow if recent history is a guide. I'm not sure what the answer is - whether it is best to average down or wait for 30c (a distinct possibility).
If AMX eventually becomes a producer, then this is a ridiculous price per resource ounce, and fortune will favour the brave big time. Also, I'm not aware of any brokers saying to stay away. My broker is Macquarie and they think it's worth north of $1.
Merrill Lynch came out today with a $2000 gold price forecast for later this year, based on QE3. They reason "helicopter" Bernanke is ideologically wedded to devaluing the US$ as a way of avoiding another recession.
Umizoomi
AMX Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
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