is that company WAF @eshmun?

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azlans

162 Posts.

01/03/19

09:59

Post #: 37615923
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Originally posted by eshmun ↑

Yes it is not a given but it tends to be the case. The value of the company is not large on a peer comparison basis so if they can produce a fundable DFS with the money they now have at hand then the price should rise before money needs to be raised again. That is still quite a big if.

I'm invested in a gold developer in West Africa that is fully funded to developememt, in fact it raised about $100 million more than the pre-production DFS CapEx suggested was required. It currently has $66 million in the bank before debt draw down and it unfortunately for various reasons blew its registry out to 864 million shares with a large equity component to the mine debt funding deal. This company is fully funded, has great project operating cost metrics and has plenty of cash in the bank with first gold forecast for 2020 but its share price has struggled for reasons relating to security in the country and other less transparent market mechanisms which I put down to manipulation in the lead up to a takeover that I think will eventually happen.

If AVZ progress to mining via normal funding routes then shareholders will need to expect that significant amounts of equity will still need to be issued so for the share price to rise in the longer run the DFS will need to lift the market capitalisation of the stock quite considerably. From my passive observations from the sidelines, most good announcements with this company have not led to sustained share price rises. If this pattern continues one would need to conclude that there might be more downside than upside in the medium to longer term.

Something really needs to spark a decent rerate on this stock.Esh

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is that company WAF @eshmun?

AVZ Price at posting: 4.4¢ Sentiment: Buy Disclosure: Held
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is that company WAF @eshmun?

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