We should get a May update on production this coming week. AXM have turned on an operational level and if they can come up with a solid production report with a favourable outlook without hiccups then the share price will rise significantly imo.
Continual raisings and delays in production start-up have really punished the stock. They even got caught up in the credit crisis by getting into debt with very unfavourable terms. It is completely unloved right now and has been smashed from a high of $1.40 in late 2007 to 20c now.
I see a few positives now:
1) I dont believe they will need to come back to market for a raising any time soon. Operationally have turned around and should be cash flow positive from now on. Production update this week will be key here...
2) Completely unloved gold stock. If they can come out with positive announcement this week that will be a couple of positive announcements on production in a row and will mark a turnaround. Share price performance should follow.
3) If they can get to production rates of 150,000 p.a. or thereabouts fundamentals look cheap compared to peers
AXM is a contrarions dream stock with the gold theme tailwind behind it. Can they deliver this week???
Looking to buy on confirmation.........
AXM Price at posting:
16.6¢ Sentiment: Hold Disclosure: Not Held
