Still A Value Proposition? There is no question that now a poor time to sell anyone's ABI position. But I would not blame anyone for making the attempt.
However, I still see oportunity here despite what appears to be a certain amount of deliberate management intransigence. I want to see the details of the company's operation in an language that I can better understand. As a shareholder, I have that right! So do to others.
From Dany's last e-mail, I got the idea that management wasn't sure it had enough new information regarding the SG mine to justify any immediate press release. Dany must be pressuring Hinse for something to get ABI investors a little more excited. It appears that there is little of substance new to report.
I understanding from Dany is that the company is still struggling with remedial measures to make the SG mine more ameniable to further stope development. He mentioned something vague amount many issues relating to excessive underground rusting which may pertain to old reinforcement in the structural foundations made of metal.
But he was unclear himself as the specificity of the problem as the problematic issues weren't properly explained to him at the time.
He did mention that he felt a little in the dark about the present situation.
Suffice it to say, in my opinion, there are many issues still remaining underground that need to be addressed, before much further stope develop will properly proceed. Safety may be the main issue. But I am merely speculating at the present time. We need more company information!
Based upon my present supposition, we still have many months ahead to buy cheap shares as I don't expect any good financial news coming from the Sleeping Giant until sometime next year. It would appear that SG mine development is far behind schedule.
However, I don't blame Mr. Hinse or his team for that kind of issue. As we all have discovered, underground mining, especially re-opening old mineworks is problematic at the best of times.
At least we have had no seismic issues such as those that IamGold faced at the Westwood mine. That kind of safety issue leads ultimately to mine closure. It may be just be too unsafe to mine at all!
It is unfortunate that the company has not found the means to get the Barvue silver/zinc mine operational. It would be primarily an open pit mine which would be pose fewer problems as the resources there would be more easily exploited.
Perhaps management should have started the Barvue mine going first? Perhaps they could have sold some kind of limited silver stream to a royalty company?
Money received upfront with a sold silver stream should easily fund the 40 million dollars needed.
But hindsight is 20/20. We could call it Hinse sight, not insight!
(I couldn't help making the wise crack. LOL)
But it's certainly not too late to consider such an option. It's odd that the Hinse family has not already proceeded in that direction.
Does the Barvue mine hold so little value to a third party as a potential silver stream? What is the problem? Why don't they proceed with this most obvious option?
I still intend to keep adding to my position since I still see longer term value here and have no use for any tax loss this year. Sadly I have had no significant gains.
Oil stocks and the tech sector seem to have done much better. But there appears to be no immediate need to rush to add to anyone's position.
Now may be a time to raise some cash in the expectaton that a market correction may be coming.
But no one has a crystal ball and borrowing cheap money may yet remain easy for many years still to come. If management makes good use of this time limited opportunity, then maybe they will be able to speed up the development at the Barvue mine.
However, profits, as always, are the major consideration. If Abcourt hits pay dirt in gold at the SG mine, then we should all do extremely well!
All three mines should then soon be up and running. At least that is the hope if not my expectation!
Keep well!
All the best! Java