RE: RE: RE: Tell CEO to AIM-list!Mudcreeker, I reject absolutely the notion that just because something hasn't been done, we ought to assume that people with a lofty connection to all things shiny and brilliant have judiciously considered it and all other possibilities in the universe, and that other mortals should defer from examining the emperor's hemline.
The simple reason why Arian Silver is listed on AIM as well as in Frankfurt and Canada (Vancouver) is because, unlike EVERY other silver miner Arian Silver happens to be based in London. As I said before, Arian Silver is THE ONLY primary silver company based in London. London is, at least until it is inevitably surpassed by the Far East, currently the world's largest financial centre. In other words, there is only one silver company in London. To me, this is staggering. Consider that in Canada there are scores of silver juniors all jostling and jabbing elbows trying to attract retail and insititutional interest. Arian has NO COMPETITORS WHATSOEVER in the (hence pretty darn easy) struggle to attract capital inflow in London. You can dismiss the fact that they are renegades who did special analysis other companies rejected when choosing to list on AIM. They listed simply because it's their local exchange.
The solitary exception is Fresnillo. Fresnillo are listed in London. Fresnillo is not a growth silver play; it is the world's largest primary silver miner. Fresnillo was spun out of Penoles relatively recently, and they chose specifically to list in London because they anticipated that it would achieve a higher share price there. The same thing was more recently done by Barrick when it spun its African assets into a new subco, African Barrick Gold.
Listing in London is a relatively new trend for mining companies. AIM in particular has been developing a very positive reputation over the last couple of years as a place to find full value in a company, particularly a mining company. It was specifically designed to make listing a cheaper and easier experience.
It is worth pointing out that Arian's volume in London is usually about three times greater than it is in Canada.
I have a number of share dealing accounts in the UK, and it is quite a pain to find one that will permit me to trade in Canadian shares. There are a few, but the vast majority do not. I have had to open an account in Canada and one in Switzerland for lack of domestic providers. The share dealing accounts offered by all but one of the largest banks in the UK do not offer trading in Canadian shares, for no better reason than that they are crap.
If Silvermex listed in London, the first thing every analyst, every tipster, every journalist, every institution would do is compare it to the one other silver company in town (Fresnillo excepted). They would discover some striking similarities with Arian: Mexican location, a sizeable stake taken by Sprott, a strike zone barely 5-10% explored, and migration from developer to producer in the second half of 2010. They would see similar market caps. And then they would see that Arian is currently hoping to triple its inferred resource from 60m to 180-200m with its new drilling campaign. And they would ask: why is Silvermex comparably valued when it already has an inferred resource of that size, three times larger than Arian, and itself has the potential for a similarly aggressive resource growth strategy?
When they discover that there is no good reason for Silvermex to be undervalued other than a long-gone board and problems that are ancient history, when they realise that the final piece of the puzzle in prepping it for liftoff occurred barely a few weeks ago when the merger was finalised and the people arrived who will be capable of transforming the company into a major producer, then there is every chance that they will take the view that Silvermex should be valued appropriate multiples higher than Arian.
The beauty of it is that Arian is so forward-thinking with its exploration campaign and so well-marketed (the Silvermex board MUST take a leaf out of the Xcap and Edison research reports on Arian) that if, as and when it churns out these upcoming results that hopefully will clarify that its resource is more like 200m than 60m, the Arian share price will soar higher, producing a powerful piggyback effect for any other company sagacious enough to utilise Arian as a yardstick for comparative valuation.
I think the benefit of listing on AIM for Silvermex is an absolute frigging no-brainer. Due to the specific history of this company and its self-admitted need for the market to view it with eyes afresh, I can think of no other Canadian-listed silver miner that would benefit more from treading fresh ground in a new investor arena.
And my final point, already made in an earlier post. People in the UK do not invest in physical silver since the government persists in charging 20% VAT. When silver takes off, the entire focus in the UK media and retail investment community will be on silver stocks, not physical silver. With Arian Silver currently the only silver play in town (bar Fresnillo), it is about the most extreme example of Doug Casey's "Trying to force Niagara Falls through a hosepipe" scenario that one could imagine.
It is an absolute no-brainer that Silvermex should list on AIM, imho.