TSXV:AXM.H - Post by User
Comment by
Thedondomon Jun 04, 2020 12:01pm
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Post# 31111918
RE:Senegal value
RE:Senegal valueThis is what I have said from day one and what got me involved in AXM. Those 17 targets have huge value because tens of millions of dollars in drilling, trenching, sampling, have gone into them over the last decade. Teranga has a very clear idea of what's there becasue they spent several million dollars renewing the lease in 2018 without even working on it until recently, and that was $1200 gold and $50 oil, not $1700 gold and $35 oil as of today. Area is more lucrative and more valuable.
How much do targets go for? Well just compare it to other companies on the TSX/TSXV. The average mining royalty ranges from $500k to $2 million in terms of value. Axmin has 17 of these targets and they got a 20% interest in that 338km2 package. Passendro is slightly larger at 355km2, which you can see from a map is massive. But The Senegal claim runs through the Greenstone belt, and there are numerous producing areas on the North and South(TGZ) end of the claims. Right now I bet AXM could get $25-30 million USD for the 20% interest and 17 royalty targets as is without any new production. Why? Because each target can produce 400,000 to 500,000 ounces as per the old geologist which has been proven through Gora. Look up the 2015 43-101 on Gora, Teranga said only 125k ounces exist on that target, but the geologist under George Roach said each target is much larger and he was totally right about that. So paying $25-30 million USD for the ability to get 10+ times that in royalty payments is a heck of a deal.
The Central African Republic is obviously the big prize here which can take the stock into multi dollar range, hence the vultures trying to spread defamatory statements. But they can try all they want, Axmin is a clean company with a great safe asset in Senegal. Right now most of the stock value is potential from Senegal and no value is being given in regards to the Central African Republic. Yet we saw in 2019 that a peace deal made us hit a multi year high. Imagine when everything settles, which will happen, we just don't know when.
But Senegal will take us back to a much higher price while we wait for Passendro to get going. When you add both projects together, the payout is mind blowing. Lets sit tight and an update will be out in 11 days or less as per the last news release.