AXMIN Inc V.AXM.H

Rick Rule quote

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Axmin's land holdings extend over 140 KM along a new gold belt. A new discovery there is certainly not baked into the current share price.

 

Jim Sinclair’s Commentary

The following excellent observation is a quote from Rick Rule:

As experienced junior gold speculators know, nothing adds to share value like discovery. Speculators will fondly remember hundredfold profits from discoveries like Diamond Fields and Arequipa. We are now truly in a discovery cycle, one fueled by sustained capital investments in unprecedented amounts. Better yet, we have been able to explore frontier terrain that was off limits due to politics or social turmoil. This will add spectacular real value, and this prospectively is discounted in the current market.

These discoveries will lead to corporate merger activities. The large intermediate and major mining companies need to acquire new economic projects in order to continue to exist. Every day they produce, their business gets smaller. The twenty-year "bear market" in gold equities that ended in 2002 constrained these companies’ ability to explore, so now they must acquire. As a consequence of the improved corporate cash-generating capabilities, they can afford to both acquire other companies as well as develop the projects they acquire. They can afford to acquire each other, too, eliminating wasteful duplicate general and administrative expenditures and enhancing shareholders’ returns.

Discoveries and takeovers add liquidity and hope to a market lacking both.