I suggest others might want to consider a subscription. They are well connected and get regular access to MD's and directors.
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Ampella feeling short-changed Michael Quinn, 21 June 2012
Paul Kitto ... let's not forget the potential.
GOLD explorer Ampella Resources is being “shorted”, according to the company’s managing director Dr Paul Kitto, but with Kitto extremely confident about the prospectivity of Ampella’s ground in Burkina Faso, those that hold their nerve could see the current situation as one of great opportunity.
The company has had a disappointment or two in recent times and this combined with the West African gold space falling out of favour has evidently seen shorters sense an opportunity.
Asked how these sorts of situations can typically play out a fund manager told HighGrade:
“Normally ends in a trough, most likely below where it should be. The shorters will push the price down and the rest of the market’s momentum will keep the downward pressure going. Once it is at a level that the shorters believe is ‘low enough’ they will pull out and the stock will tend to drift along for a while until either new news picks it up or the general market starts picking up.”
A big plus for Ampella despite the selling of its shares is its cashed-up funding position – currently understood to be about $A40 million – allowing it to continue aggressive exploration without having to contemplate raising equity with a weakened share price.
Kitto is adamant the company’s ground has huge potential, and says investors may have forgotten this as Ampella concentrated on drilling out its initial Konkera discovery and market focus turned to project development.
While metallurgical issues have more or less seen first gold production now being flagged by Kitto for 2015 – though Kitto dismisses concerns over the metallurgy by pointing out it is only for part of the orebody and can be relatively easily treated in any case – promising exploration at the likes of the Doubema, Foumbiri and Wadaradoo prospects reflect some of the potential that could come to the fore in the months ahead.
Respected funds like Accorn and Taurus have evidently continued to be positive about the future, with the latter now holding more than 10% of Ampella’s stock and a seat at the board via the recently appointed Michael Anderson.
The well respected Anderson, who until recently was the managing director of Exco Resources, is certainly optimistic despite the tough times at present.
“It’s at times like these that I absolutely do not miss being an MD,” he told HighGrade. “The market can be so brutal, but the answer is always the same; stay focused on the things that you can control, keep doing the right things, and you will eventually be rewarded.
“It is already clear to me that (Ampella) is indeed focused on the right things; that is, demonstrating the full potential of its project(s). Importantly it is well funded and a number of key investors (not just Taurus, but also Acorn who recently went substantial through on-market buying) have taken advantage of the current opportunity.
With plenty of news flow to come, and lots more ounces to find, I am confident that it will ultimately play out well.”
Enjoy amx holders - thegooch...
AMX Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
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