Yes, Gooch, Its the sad/ironical thing about having a resource, people with abacasus's have some numbers to multiply, and they think this gives the value of the company. But for many companies it is best not to have a resource, not to go into PFS/DFS, but rather to just to drill out in many respects.
This however is not acceptable, and one must start to stake a quantitative base for the valuation of a company. For some companies the resource figure is as good as it gets, and it gets smaller when reserves get announced etc, and there is not much exploration upside.
With AMX, as they have tried to communicate, has a tremendous exploration upside over 150 kms of mineralised structures (!!!), far more significant than its current resource over the 5 km length. What is the probabilty that there is another 5 million ounces along parts of the other 145 kms of mineralisd structure? Whats the probability of finding another 5 km continuous portion which has 3 million ounces anywhere along the other 145 kms?
So the biggest risk is not the resource growing, but probably the POG. And to see George Soros and John Paulson diving significantly back into gold is very revealing by too investors who have been around a bit. Soros has doubled his investment in the worlds largest gold ETF in the last quarter.
In addition there are good signs of continued Central Bank Buying.
The political circus in the US is set to continue with the elections and will give very few smart investors any confidence of strategy, purpose and delivery of growth in the US for several years. The US will print more of the fiat currency.
The European politicians will come back all afresh from their holidays (except for Hollande, who had to interrupt his holidays due to renewed riots in the outskirts of several key French cities, which will continue and probably grow as the already under privileged migrants find out there lot is getting worse everyday). Printing money will be the lesser of the evils to get out of the present quagmire. Interesting to note that a lot of smart French are now migrating into the developing West African former colonies, as are the Spanish and Portuguese.
We live in interesting times, and I know where my money is and I can sleep at night.
AMX Price at posting:
56.0¢ Sentiment: Buy Disclosure: Held
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