GREY:ALXDF - Post by User
Comment by
Poriemonon Jul 28, 2016 12:21pm
150 Views
Post# 25092202
RE:CURRENT CORPORATE PRESENTATION JUNE 27,2016
RE:CURRENT CORPORATE PRESENTATION JUNE 27,2016Good to see another oldie return to the board. Unfortunately, the share count between then and now is fairly dramtically different as well (roughly triple), and was before the full extent of the bear market in gold was felt.
Personally speaking AZX has always been subject to the whims of the market and I'm sure you can recall as well as I can all the times that AZX fell to sub $0.05, rcoketed up to $0.10+ only to fall back to somewhere inbetween and stay there again. Heck, I made a downpayment on a house on one of those runs.
I really want to say that this time is different, and I think drilling beside what is currently a very hot zone is prudent from a marketing standpoint (never mind the potential resources). My biggest concern at the moment is that the new private placement shareholders are obliged to hold their shares for 4 months from the date of issuance. Date of issuance is roughly end of June, which means they have the ability to sell end of October.
I wouldn't be able to tell you how many are likely to sell at that point, but being a run up in shares where some (FT shares) were already issued in the money I certainly don't think all of them will hold (I do think AEM will hold, and anyone else who purchased the FT shares for the purpose of a tax reduction in the current year). This is more than 60 million shares that are currently restricted from being sold.
This gives AZX a collar. If they don't come out with a meaningful press release before those shares can be sold, I fully expect the share price to come down regardless of how undervalued the company is. If they can break through with a meaningful discovery that will result in tangible future cashflows that they can use to explore and develop the rest of their properties without dilution - sky is the limit.
I'm interested in everyone else's opinion - I'm clearly bearish and have been wrong on my bear calls in the past (ie AZX May of 2016 I predicted no meaningful move in the share price above $0.06. Clearly I got that one wrong)