However, for the sake of balance discussion, the problem right now, is market in general doesn't like AQI.
We can hypothesise a lot into it. But being a long term holder, the issue stems not from a geographical and project side of things, but how the management is handling the communication and expectation.
Truth is, as pointed out in all announcement, they are strongly backed by the North American and Australian insto's, which means the area they are focusing on has potential.
I like their share structure. Very tight and held by respected backers.
However, they have had issues, with which I have also raised to Travis and the team
1) Timeline. They have so far been very lackadaisical in their project timeline. They have been fully accountable in their reporting. Each of their drilling programmes have been delayed and there hasn't been much communication in the public front.
2) The handling of the options. For their own personal reasons, they still have about 4-5 million of free options between the management. They converted them right when we were about to break the down trend and consolidated at a higher area. That is an extremely bad look and we have been punished for it. When asked about it, the only thing that was mention, is that the conversion was to pay for some fees and that will be the last of it. (??).
3) The results thus far has been poor. In between the delays, the two drill programmes so far has returned below average results. There is no other ways to put it. Whilst it is a big area, not having any decent hits thus far and being very passive in their exploration program is not a good look.
Technically, we are on a down trend. Needs a favorable news to break that. PoG is not going to cut it. Management needs to step up to tell the market why they believe they can go to mine with these areas. Just trench sampling and providing rock chip samples won't cut it.
They already have hinted that the structural setting is similar to those observed at regionally significant gold deposits in Moz Gros (13.7 Moz) and Meriam (6 Moz). They just need to prove it to the market. That takes time.
Look at WAF. They found their jackpot, but it took them 7 years before they hit the bonanza at M1 South. I'm hoping we don't have to wait 7 years for this, but management can do a lot to protect the share holders at this juncture than what we are getting right now.
AQI Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
