Two lots of news out this week indicates slow but steady progress. Some news about the Mmamabula West Project should be immanent - understanding the commercial terms will be key.
To a large degree, AFR's fortunes are currently tied to FQM - the 53% partner at Sese. FQM had a great quarterly announcement yesterday with its share price up 9%, and their deleveraging process continues. Their capital programme is fully committed for the next year or two with the Cobre Panama project due for completion in 2018. It seems to me their $3M commitment to Sese is a placecard holder while they finish off Cobre Panama. I would think they will re-focus on Sese later in 2017 in line with the expected further financial commitment to it. I recall the AFR annual report last year indicated an ultimate value of Sese project to AFR around $250M so I can wait...
If the Mmamabula West Project has a similar value creation, then AFR's MC will be well north of $30M. We might just need to wait until 2018, but the wait will be worth it. I continue to accumulate at current prices.
AFR Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
