stats and value
In all fairness to Venman,he did qualify his claim by stating that no DFS has been done so he simply used the raw data. Whether that is an accurate way to base an estimate, is, as you point out , subject to dispute.
The challange AXI faces is that the ore grade is relatively low, and the extraction and transportation costs, I believe do not make it economically feasible in terms of selling ore. There is plans, I believe, or at least preliminary plotting to pelletize or concentrate the ore on site, thus reducing the transportation costs/tonne and gaining a premium on the product. A great idea, but one that has not been demonstrated, so far, to be economically feasable in terms of the cost associated with it vs. the premium demanded. Lots of bru ha ha, but little fact.
A few years back this stock shot up about the same time of the year to some $3.00 and a whole bunch of investors got burned. When the market sank in 2008, it had already dropped back down, and the general market correction sank its value.
My point to Venman, was that while a large number of people claim to do in depth DD, the fact is you could just as easily have devined the rise from looking at BIM's rise. I am well aware of his claim that an intelligent investor would recognize the differences. Just as an intelligent investor would recognize the fundamental differences in such things as the grade of ore.
Is there some real reason for AXI sp to climb? Is it presently undervalued at this juncture in its development.
Or is the rise in sp really related to nothing more than people who are holding long because they are believers and holding the price up. Or some large players are holding the price up , and doing a little range trading to aid in their efforts. I am not going to try and guess the reason why Mr. Dwek who is a large shareholder, and has been in since the beginning, is unloading shares at the .80 range, but I would think as long as he continues to do so, there will not be much climb above that...I also have to wonder why he would sell when all the experts here are saying the sp is so undervalued and hold long....although I am sure there are those who will post the definitive answer backed up with facts. Mr Dwek is a smart man, and given the choice, and I think we could learn something from him.
This is a great little stock. Nice variance, Occassionally good volumes, and the potential of a long term rise.
Looking at the chicken bones, and reading the tea leaves I have to conclude we will have to wait and see.