No doubt people are accumulating AMX shares ahead of a possible takeover offer given the current share price. Even I am thinking about doing this, and bought some AZM for that reason. I would not want to be stuck in either AZM or AMX if they tried to develop their deposits unless they found a heap more oxide ore at high grade. Getting the funds in this market to do more exploration by AZM and AMX is likely to be fairly dilutionary for shareholders, especially for AZM.
To me these companies are near their end even if many shareholders do not want to see that happening. They are likely to be taken over or merged sometime in the next 18 months or sooner.
Even PVM with around $120m in cash decided to merge with another goldie to acquire their cash in order to develop its gold deposit. The deal is being finalised - a 50/50 merger with no premium.
Costs are rising and returns from most goldies are slim. Have a look at PRU's cash flow and quarterly reports for the last 6 months and you will get the picture - even producing at 200k ounce pa does not provide them with much surplus free cash flow.
But I may well be wrong as I often am.
loki (yeah - I am a gloom and doomer type.)
AMX Price at posting:
37.5¢ Sentiment: Hold Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)