The rise of ABI?
Today we FINALLY touch again the $0.095 level in ABI.
I’m checking ABI and i’m invested in since long time ago i was hoping this company to rise for few reasons:
- Junior gold producer of 18 000 Oz of gold / year
- Development potential of their properties (Especially Sleeping Giant & Barvue)
- Safe jurisdiction
- Experienced management ( Of course lot of person find than M. Hince don,t move fast and don’t use dept… but it’s not a bad choice…)
- Value of their assets (considering the merchant value of what they own, if they sold their equipment, they should get 85M$ for all of this… The actual market cap is around 30 M$????)
Actually the is lot of things who can bring some fast and significant increase of the value of this company from my point of view and here is the reasons:
- Gold price who is on the rise ($1818 US at the moment where i wrote this)
- Physical precious metal price who are sold over the spot price
- Sleeping Giant who is near of production and in active financing to bring to the next level of production
And in same time, we see some others properties in the gold sector or same area who are doing 2x or 3x they value shortly without any other reason than the gold price is on the rise.
Here is some example.
If we have a look of Radisson. I personally invest in Radisson. I like RDS and find than they get some good potential, but their not mining anything yet… they get resources in the ground and that’s it. The share price is actually at the $0.30 level after to jam in the $0.20 area and drop down in the $0.10 during the crisis.
Monarque (MRQ) who is another one in the sector, close 2 mines recently and don’t get lot of cash flow but here is the 1y graph, they are in the $0.40 level after to be in the $0.20 area and drop to $0.12 recently.
Here is the 1 y graph of Abcourt (ABI)who drop to $0.04 but is still jam in the $0.10 area.
but i think than this is changing know for the following reasons:
– They are producer of 18 000 Once per year.
– They are at the financing stage to reopen Sleeping Giant who will be able to DOUBLE PRODUCTION to approx 40 000 Once.
When i see than they are jam in the $0.10 area with all what they get and the production gap up mixed with the actual global situation in the gold market, i personally thing than ABI will definitely be able to grow and pass to the next level shortly.
As you know i get some share of this one, so my point of view is biased and my expectation too so you should do your own due diligence as usual but i just want to share my point of view on this stock.
I will continue to track the results of ABI and will be there to see where it goes overtime.