There are pro's and cons to every stock, the only question right now is what does ATN have?
Pro's 1) Macquarie and Warwick Greigor have invested in ATN 2) NCM's 5million Oz project is close by 3) The Geology of the place suggests there is gold (hence the existing operation) 4) They have an existing mining operation, though following old methods, but clearly it is making profit for the current owner. if you improve the operations, this would have the capacity to add 20K ounces extra/year 5) POG is just incredibly strong 6) Fact that ATN continued with the 3rd lot of payments, tells me that they feel strongly about this project. Remember they are looking at 1million Oz's as per their presentation
Con's 1) Its in the jungles, sounds too remote to set-up operation, getting a rig there took months 2) Management are keen, but they allow too many delays (maybe thats part of operations in Indonesia, but make that clear to the market). There Geo was suppose to be there when the first hole was being drilled, due to delays the geo was flown back as a result the geo could not provide any insight into the drilling results. Again they mentioned that they are almost done with the 3rd hole, well their Geo has not reported anything on the drilling on what he/she observed 3) Communication could definitely be improved 4) Generally ATN is a leaky boat, and they got 6 speeding tickets in 2010. tells me that there is lack of information flow right now, but twhen this moves, it runs alright.
Price target to me would be 7cents, then 9cents. Anyway we should have results within the next 10 days
So either bets, but I think the geology of the place has gold, what quantity is the question, which will decide the SP in the short term
Cheers
ATN Price at posting:
4.0¢ Sentiment: LT Buy Disclosure: Held
