No one knows the future so all buys and sells including mine are a form of speculation.
I just think that price has reached a level that borrowing from the guys at 'gotgold', is stupid cheap. So I bought.
Let's say my worse case scenario ( or close to worse case scenario) happens and Amx raise 25m at 25c right now. That gives us roughly 350m shares trading at 25c = 87.5m market cap. 50 odd million cash on hand = still stupid cheap.
Just because a company will eventually need to raise capital does not mean the share price needs to see a never ending down trend. The company still has an inherent value - being a 3.1m oz resource, prospective tenements and a given management to make things happen.
If it goes lower ill look to buy more because I still believe it is stupid cheap at these levels and an inevitable cap raising for a company holding 30n is not an inherent death sentence. Certainly not when they are holding a resource and tenements of this quality.
Furthermore, someone posted that the gold price will not effect Amx. I disagree. Personally I believe gold will continue to move higher and if we do get an upshot in gold, I think it will help Amx because the operation, rightly or wrongly is currently assumed to be marginal given well published metallurgical issues and the effect these issues will have on production cash costs.
AMX Price at posting:
31.5¢ Sentiment: LT Buy Disclosure: Held
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