RE:RE:Comparison of Excelsior to Arizona Mining (TSX:AZ)
In fairness, AZ has a deposit which is growing in size with impressive drill results extending the size of the deposit. It is quite likely that a few years from now the deposit will be considerable larger and considerably more valuable than it is today. The drill results announcements provide excitement to the shareholders and attract mining media attention.
MIN on the other hand has a fixed and well defined deposit. There is no growth in its size taking place. No drilling excitement. Everything has been plotted out, cost of the mining operation, earnings year by year, and lifetime of the mine. Yawn. Boring, boring, boring.
Is AZ over valued? Probably. The drilling excitement attracts hot money which can quickly disappear. They are rapidly burning through money and will need to continually print shares to raise still more money. They talk of a mine in 2020 but that's probably optimistic. The permitting may have issues and there are many risks ahead. MIN is a safer bet because it is at least a couple years ahead of AZ in a mine development cycle with the permitting almost done and financing the only immediate obstacle ahead - and a small financing at that compared to what AZ will someday have to raise.
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