LP, I would be interested in your thoughts after the best week in ABX trading history. Have you taken the opportunity to trade out or are you going to stick with us and ride this baby up to $1? I would also be interested in your (or anyone else's) critique of my post above. I appreciate the 10 upvotes but not one poster offered their views on Alcore's future. I love the rare earths story as well but I think Alcore will be even better. If no one thinks I'm being overly optimistic, does Alcore really deserve a valuation of Nil before the pilot plant is finalised in the next month or two? If the pilot plant is successful, what is a realistic valuation for Alcore at that time, as opposed to its valuation after it starts production in a year or two's time?
I sometimes compare Alcore to Hazer Group (HZR) who is on the cutting edge of hydrogen tech, but is encountering some issues finishing their commercial demonstration project. Hazer is valued at $150m for that one project. ABX is now valued at $40m (at 18c) and has 3 projects. It is not clear that the hydrogen market is going to be viable and able to compete with solar+batteries. There is clearly an established market for ABX's 3 projects - bauxite, rare earths and aluminium fluoride. And yet HZR is worth almost 4 times ABX. They are a bit further along than Alcore, but Alcore will largely close that gap in a month or two with the completion of its pilot plant, as they will not need to build a commercial demonstration plant. The next step for both companies after finishing their current plant is a production plant. I can't explain the difference in valuation and continue to believe the only explanation is that ABX continues to be massively undervalued.
ABX Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
