Mgmt should stand their ground with current mine plans imo. The market just isn't interested in smaller operations (see AZM, it got punished for announcing a sub 100k /yr operation)
AMX can make it happen. The have all they need at Batie with decades of mining potential and mutliple deposits likely still to find.
Starting with a smaller plant will only get them started mining on the back foot and could leave a legacy of inefficent cappex spending as they try to expand with the growth of the camp. start big , stay big, get bigger.
What any long term investors need to be aware of , is the heavy dilution that could likely occur during the funding phase of development , which might not be that far away. Luckily at these prices , its easy to get your average down, build up your holdings for cheap and make any dilution a moot point. Thats how I'm playing it anyway. A firm believer in gold and AMX.
A rising POG back to $1500 sure wouldn't hurt either.
Broker update (are they worth the paper they're written on?)
Credit Suisse 18-Jul-13
Exploration success has been extensive and the company has been actively reigning in costs, but the stock remains for the brave who are willing to wait for the future market support required to bring these resources to production, says CS.
The broker warns its current target does not reflect the substantial dilution that would be required to secure sufficient equity and if you are willing to make the bet, the broker sees a number of less complex and more advanced opportunities to choose from.
Still, a market cap of $27.3m, cash of $21.7 and a 3.25moz gold resource is not bad, especially as more gold is regularly being discovered.
Outperform call and $1.00 price target maintained.
AMX Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
