True value....... To continue my thought from my earlier post.....
True value for shareholders is generated through "cash flow". To generate cash flow, you must bring your project to a production stage. In order to achieve this, you must pass through the Feasibility Stage.....not a Preliminary Economic Study or a Pre-Feasibility Study......but a Definitive Feasibility Study [DFS]. And then, it must be positive. In order words, the ore body must be proven economical to justify the determined capital expenditure. And over and above that, "Transportation" is one of the greatest considerations given to iron ore development.
For most iron ore projects throughout the world, "rail capacity" is mandatory to a shipyard. And there one may find another large hurdle, in that their now must be "loading capacity". There are billions of tons of iron ore presently being proven up in the Labrador Trough, but there is only enough rail capacity to handle 20% of this accumulated resource, and there is only 15% "loading capacity" presently available at the southern ports. It is for this very reason, that the Chinese were attracted to Roche Bay......no rail requirements and govern their loading/shipping facilities.
Of all the non-producing Canadian iron ore explorers......Advanced Explorations is the most advanced. In actual fact, they are only [approx] one or two months from delivering their DFS. It is only at this stage, that the Board of Directors.....of both AXI and their strategic partner XDIP.......can make a sound judgment as to whether they proceed to the construction phase. In the case of the Roche Bay project, that might be another one or two months after the delivery of the DFS. And not only AXI, but XDIP has put a great amount of time and energy into this project over the last couple of years, to bring it to this advanced stage.
So here are the questions shareholders and potential investors are asking themselves:
Do I believe that XDIP is about to advance $5 million to AXI to [temporarily] cover DFS expenses? -- if you do not, then you should be strongly considering one of the $100 - $400 million market cap stocks in the Labrador Trough. And I truly hope you succeed in picking the one that will secure the remaining available rail and port facilities. [personally, I think Champion [CHM] is the front runner]
But to continue the earlier line of thought.........if you seriously believe that XDIP will be advancing those $5 million debenture funds in the coming days, then the line of questioning would be:
Do I then believe that XDIP is still committed to the Roche Bay project, or are they just looking to throw away $5 million? Would they not know by now, what the project entails?
Even though there are still unknowns and risk......is the reward of moving from our present market cap of $37 million to $xxx.xx worth it?
If XDIP does in fact come through with the $5 million debenture funds to AXI.......then do I believe that they will still come through with the JV and $50 million, and then the construction financing?
The investing process is really that simple......when you stop and think about! :) And as you can tell......I believe! And I'm even not that emotionally caught up in this stock......as a few are here, who do NOT own it.
Go figure!
Blessings,
Murray