Thank you for your very succinct and logical valid explanation. Looking at ABU from the perspective of the goldies and the gold price makes sense. However, It is an absolutely unique play and very much in its infancy, highlighted by its exceptional grades, distribution and frequency of prospects.
Geologically, this eventually will be proven to be strongly related to the structural deformation of the hosting sediments and the introduction of the quartz reefs which are now in outcrop or as sub-crops , possibly with relationships to a porphyritic system. I guess the geology team would be suspecting this kind of model at play. Much more exploration is needed to understand the geological models. Uttsy, I am digressing from the subject matter so I'll get back to our mutual posts.
What I can't overcome in my thinking is that because of the exceptional grades and the fact that this will be a very cheap open cut operation for many years when compared to other operating and producing mines, the true value of ABU has not been understood from this "its exploration" phase.
Compare this to two recent successful finds, I site, Sirius (SIR) Nickel, and Syrah (SYR) Graphite for Graphine- both commodities still relatively low in price compared to what is forecast. So, the price of both companies really reflects their exploration success. SIR in particular were also very cash poor yet it went from 5 cents to $5 in a matter of weeks after rich values and thicknesses in their intersections with what is now roughly the same number of shares ABU has in the market. SYR's story is similar. Not suggesting that ABU should be in the $5 range. But, they shouldn't be languishing at $0.40 either.
Neither SIR or SYR had and still don't have infrastructure in place to develop their ore-bodies, ABU has. Both companies will be underground operations which will take a while before cash flow is positive. One can go as far as saying that, at a stretch, ABU has already produced gold. I guess I can site many more positive facts attributable to ABU's position and I'm sure Uttsy that you and most of our posters and quiet readers are aware of many of them.
So, is the current share price of both SIR and SYR reflecting their plans to Mine? I don't believe this. If that is the case, I say to Darren Holden to hasten the release of his plan. No, I say again, I can't get through my mind the incongruity of the market's perception. But, I guess there is one advantage in the present situation, that is that the share price can be considered as a bargain.
Good fortune to you Uttsy and to all patient ABU holders.
Cheers,
Helmenesh
ABU Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
(20min delay)