RE:RE:Argonaut Gold"You forgot to address the main issue, the probability of a reverse spli."
So thats the main issue facing Argonaut. What can i say you should stop making idiotic posts here and go learn the basics of how the stock market works. The amount of shares really dont mean much in the big picture i dont know why some people worry so much about that.
What matters most is what price you buy or dont buy shares at based on where you think future performance will bring the shares.
In Argonaut we have a current production that should be approaching 300 000 ounces per year. The competion down the road produces 500 000 ounces and had an average market cap. of $7.2 billion in the last few months. 60% of that equals aprox. $4.3 billion. or around $4.30 per Argonaut share. That is nearly 11 times the current shareprice.
If they were to do a 10 for one rollback and we ended up with 100 million shares the market cap. should still be the same based on profits. You may have 1 tenth of your current shares but they should be worth 10 times as much.
Am i saying Argonaut is going to go to $4 per share in 6 months. No but i wouldnt be surprised to see it at $1 dollar or more and maybe even $1.50 or more by the end of the year. That would be a 4 bagger from here. No guarantees but i think there is a very good chance to make money this year on thisstock at todays prices.
The problem on this board is that there are a lot of longtime and even more recent bagholders here including me although i am not down much relatively on my roughly 210 000 shares. There has been nothing but bad news for the last 2 or 3 years and even though now there has been a lot of good news with Magino complete and running at full tilt and the $80 million financing the shareprice hasnt gone anywhere and the bagholders are getting impatient and complaining.
Like many others i have played these gold stocks for many years. Through taking a lot of beatings over the years i have learned that the best time to buy a gold stock is not when they start construction of a mine as there will usually always be delays, and cost overruns and more dillution and loans which will usually drop the stocks shareprice substantially. Not to mention you have to wait years for the payoff.
Now is the time to buy for Argonaut at these prices. The $1 billion on Magino has been spent and payed for. The mine is running at full tilt and producing a lot of profits. Florida Canyon is doing better and the Mexican assets are still producing good profits at these gold prices.
The market hasn notice yet but in the next quarters and especially by the end of this year it will. Of course there are no written guarantees. If some unforseen problem comes along things may not work out at least in the short term.
Looking at the big picture we now have a 300 000 ounce gold producer with $80 million in fresh financing that should bring in Free Cashflow this year of aprox. $250 million Cdn. with a current market cap. of aprox. $400 million Cdn. or about 25 cent per share Free Cashflow for shares that currently sell at 40 cents.
I dont care what anyone says i like those odds. And psycho01 {An appropriate name for you} if you dont like those odds instead of buying into Argonaut maybe you should go buy some Tesla shares. Tesla had a around $900 billion US a month ago and now after there latest fiancial report the shares are down by one third in one month.
Tesla was a market darling way over hyped and way over priced and now reality is starting to hit as there i no way they can ever make profits to justify the shareprice they had.
Argonaut on the other hand is a beaten down miner with a very small market cap. which is now producing lots of profts and it shareprice will soon reflect it.
Good luck to all.