TSXV:AXM.H - Post by User
Comment by
Poriemonon Aug 26, 2016 11:11pm
289 Views
Post# 25182737
RE:What you guys are missing..
RE:What you guys are missing..Not sure I follow on the income stream only paying AXM's operating costs for a couple of years. Based on their annual 2015 FS, it looks like their annual costs are approximately $400k, and their revenues are on track to be roughly $2 million, giving you roughly $1.6ish million in profits (USD). I'd hope to god that after scraping the bottom for a couple of years that management knows better than to ramp up their G&A.
$1.6ish million USD is roughly $2 million CAD, which gives you a P/E at a market cap of $8.5 million CAD of roughly 4x. Not a crazy valuation by any means and definitely gives AXM a lot of time to wait out the rebels and hope for better. That being said, unless some amazing news comes out the run in AXM doesn't really have anywhere to go. There's no future royalty streams coming online, and unless there's an end in sight with the rebels in CAR I get the feeling management will use the royalty stream to fund future exploration elsewhere. Not quite the "sure thing" that pumpers would have you believe, but when it was trading at sub $0.03 was definitely quite the discount.