How does the value of a company increase when it sells the best part of it's only major asset with no guarantee of further income? remembering said company gains 4m in cash, but burns over a million a year in administration fee's. Do you really think they will put that cash to good use, or keep paying director's fee's and releasing useless quarterly activity reports?
Just think for a second why they NEED to sell the asset? To buy another asset? To fund exploration even though we have a proven MEASURED category JORC resource(that had million's spent on getting it to JORC) in the northern tenements with a previous mining operation? To fund a mining operation given that 4 million will allow us to have approximately four Chilean workers and three shovels for mining? Or for Administration costs?
I just don't see the need for asset sales in a depressed market unless it's really good deal, and this is not a good deal.
With no debt, no future spending commitments; ADY should sit on it's hands and wait for a good deal. Then when the market returns start looking for a JV. If they then can't get a deal then, do a deal like the one proposed by Icarus.
ADY Price at posting:
3.5¢ Sentiment: None Disclosure: Held
