I've been quietly bullish on AQI for the past 2 years. The expectations by retailers, whether the strategy was to invest or to trade, has seen stocks like AQI pushed under the rug by retailers the past 2 years.
The first drill results, were disappointing but as I have been discussing with Travis and other holders AQI offline, I think the general focus in market seems to always look into big numbers but not truly understanding the mineralization and general formation of the area.
The Pilbara hype provided a lot of traders opportunity to make money, but how many of those will eventuate?
AQI is a long term hold for me, and I truly believe in their team's exploration knowledge. Running through all the information publicly, talking with people who has good understanding of the geology, and also lastly with Travis and Marcus. I understand their strategy is to be more a project manager than it is to move into a producer. I am keen to see how they take these two projects further and enhance share holders value.
Verdicts is out at the moment on that but what is pretty clear, is that there is a general consensus amongst the lot that have researched through the region, is that there are deposits that will be a company maker under AQI's leasing. They have done extremely well over the years even before Barrick got on board by getting to know the people of the land, and developing rapport to obtain license for this exploration. The foundation has been laid out over the years and we are definitely hitting the mid stride of their exploration program.
It will likely take the complete term and funding of Barrick's JV to achieve success, which is, after all, part of their plan and to be expected during the initial conception stage. My strategy will continue to be trading the cycles whilst holding a big parcel for long term. The period of October/November was great accumulation and I continue to hold big parcels from their previous placements. Will wait for results before deciding on a position rebalancing.
Today's price action is indicative of a fund manager/broker increasing/entering their position. Retailers are yet to enter the full hype phase but couple with gold price being on the uptrend, any decent results mid January release will see a rerate for AQI to previous highs. Fully cashed up, and backed by strong investors, with prospective lands. Time will tell.
AQI Price at posting:
21.5¢ Sentiment: Hold Disclosure: Held
