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11.0¢ american west metals limited

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sagaro

393 Posts.

18

21/08/23

08:31

Post #: 69447127
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Originally posted by LJohn: ↑

Short term challenges?

Their last drill results were bad - 1% of 18m down 390m hole and people said it was a success? Check out the forward-looking statements used compared to other miners.

They have less than $10mil of cash, trying to do Diamond Drilling and RC, so obviously burning cash with sub-par results. Given the season will close soon in Canada, expect a CR whilst they can, rather than raising cash after months of dormant drilling and no news. 29Metals and CXO had 40% discount to raise cash in this environment, so I would assume $20mil at 40% discount here - around 16c to 18c. Expect it to be after next set of results.

Also have you seen how remote the location of mine in Canada? It would need to be bigger than Tier One to be feasible for capex, which would be $2b-$3b alone given its location. No way are they going to have to build all that infrastructure required in remote Canada without the find being above Tier One. Then there is the fact its 390m down in frozen ground...

At $3b capex, that is 10 years payback....on a 15 year mine, makes it unprofitable.

At these levels, it would be more capex than actual revenue by a factor of x2.

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What an expert analysis...I should print it out and frame it.
LoL
don't give up your day job...

AW1 Price at posting: 30.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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