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Abacus Mining and Exploration Corp V.AME

Alternate Symbol(s):  ABCFF

Abacus Mining & Exploration Corporation is a Canada-based mineral exploration and mine development company focused on copper and gold in British Columbia (B.C.) and Nevada. The Company’s main asset is a 20% ownership interest, together with KGHM Polska Miedz S.A. (80%), in the proposed copper-gold Ajax Mine located southwest of Kamloops, B.C., which has undergone a joint provincial and federal environmental assessment process. The Ajax Project comprises eight Crown grants, including the Ajax East and West pits. The Company is also engaged in the process of acquiring a 100% interest in the Willow copper-gold property located near Yerington, Nevada, and it also controls the contiguous Nev-Lorraine claims subject to a ten-year lease agreement. The Willow property is located approximately 65 kilometers southeast of Reno and approximately 13-kilometer due west of Yerington, Nevada, in the Buckskin Mountain Range. Its porphyry copper deposits are Yerington, Ann Mason, Bear and MacArthur.


TSXV:AME - Post by User

Comment by DetVicMackeyon Sep 02, 2011 5:20pm
348 Views
Post# 19008526

RE: fni

RE: fniA word of caution - be very careful with restart companies like FNI since there are many things that could go wrong. There's execution risk on recommissing and if more funding is required, then more share dilution. With the project funded with quite a substantial amount of debt, the company could go bankrupt if operations are not profitable. Base metals can be very volatile and a collapse in the economy and prices negatively affect revenues. Input costs continue to increase which cuts bottom line profit. Unlike gold companies that ship dore to refineries for a 0.5-2% charge, base metal producers typically enter into off-take contracts where they only ship concentrate which translates into 65-80% of spot prices. Also, base metals are in good supply whereas precious metals are in tight supply.

I've been burnt twice so far with two nickel stocks: BEL and UMJ. The PoN isn't helping their profitability going forward so I dumped them for modest losses and reinvested those funds into lower-risk AME and gold producers. A painful lesson to learn, but one that reminds me not to invest in ventures I don't completely understand.
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