My take: The stock tanked >30% after the release of the June quarter results (which contained guidance for FY22). Dargues was dragging the chain but mostly I put the drop down to the delays in accessing the high grade material at Kairos and the forward guidance for FY22 (I think most ppl expected Kairos to make up >50% of material milled at Peak and thus much higher production and margins). I also think they went conservative on guidance to reset expectations given historically they’ve not met the guidance they’ve set.
Now you’ve had Dargues get back on track and a real base metal rally which the company will benefit greatly from (zinc in particular as you mention). The production profile is headed in the right direction as Kairos starts to make up more and more of the feed at Peak… and Federation comes closer to reality. These two recent high grade discoveries will drive a material step change and margins/cash flows.
AMI Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
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