Gets kinda lonely in here, nobody to listen to my mad ramblings..... but since you're here please pull up a seat for a chat.
Like gold stocks do ya? I know a bit about gold, though my wife doubts it when she looks at the monthly share summary statement. I tell her "luv, this is a value investment. Nothing sexy but great value, you just need patience". She says with a look of disgust "sounds like you in the bedroom". If she was a share trader she probably add "don't you know the trend is your friend...Idiot!".
Poor ADU has been drilling and plugging away now in Ghana for so long that everyone has forgotton about the great drill intersections of the early days. The thick lodes of surface oxide gold that promised millions of cheap ounces and sent the share price racing with anticipation. Alas as the years passed and the project matured people got bored and left for more exciting stocks. Where a good drill hole raises hopes of big find rather than the boring certainty. AS the French say "the walk up the stairs is the best part of an affair!"
Well an interesting thing happened to gold stocks just this last few months... the gold price went ballistic and the juniors got carted to the dog house. The dog house is a flea infested and all together sorry place to end up, trust me I know. In fact many companies never make it back, which is why it's so important if your going to give money to someone in the doghouse you pick someone who is going to come out! Many juniors with a few flash drill intersections but without a critical mass of resources and many years work still ahead may rot in the dog house forever.
The market has changed and some good drill results just won't cut it any more, dead money walking mostly. What you want is at least 2M oz resource, 1M Oz reserve with cheap Capex, well loctaed infrastructure, low soverign risk, easy opencut oxide ounces, fully permitted and BFS done ready to press the start button. Something that a major will take off your hands for say 2-3 times the current price because even if they found one tomorrow it would take 7 years to get there. Just to make things a solid bet in these shaky times, cause no-one likes risk these days, it would be nice if the major had already signalled their intention by taking a signifcant stake on market.
In fact, just exactly what ADU has got to offer and not many (any) others. I find in humerous that ADU is so far off the radar that since the LGL/EQI tie-up the hacks have mentioned every other possibily but ADU in the many articles about West Africa consolidation. Frankly ADU are the cheapest ounces, most obvious takeover candidate in Oz, already owned 10% by EQI (since last Sep at 63c when gold was US750/Oz) who just happen to have a perfect size plant from Kirkalocka becoming free in May with nowhere to go!!
I mean really, the new reserve has the company valued at AUD$80 per reserve Oz compared with EQI valued at AUD$500 per reserve Oz. Tell me Juk, where is the risk and how cheap are those ounces to LGL at thrice the price??
Well thanks for the chat, I certainly feel better for it. Stop by again some time. Cheers.
Goodluck
ADU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
