RE:RE:Get ready Reachme wrote
Don't expect anything good to happen here before 2023 especially if Gold drops again below $1700
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That sounds about right to me. The good thing is 2023 is less than 2 months away.
The problem on this and many message boards is that there are some posters who watch the share price by the second and see conspiracies behind every drop in the share price. Yes there are many here who are massive bagholders with this stock. Having been there myself many times in the past i know how you all feel. At the same time watching the share price by the minute and trying to force it up by sheer will does not work.
The shareprice is where it is for good reasons. Magino was suppposed to cost aprox. $500 million and is now pushing $1 billion. They had to sell a huge pile of shares at very low prices to get the $120 milliom US in Free Cashflow last year are now producing close to zero in Free Cashflow. They extra finanicing plus take on another $250 million US in debt. The existing mines that produced over just sold a 2% NSR along with some more shares to FN. Now they issued a bunch more shares. Seems like Magino is a bottomless money pit.
At the moment AR is not a very pretty picture. That is why the shareprice is where it is. Who caused this mess? Past management, bad luck a combination of factors? Doesnt really matter. Thats history. The future is what matters. Once Magino gets up to full production next year AR should be a 350 000 ounce per year producer. In a couple of years from now when Magino gets up to 300 000 ounces per year AR should be a 500 000 ounce per year producer. If they can get production costs under control at existing mines and get Magino producing with resonable costs this company can start to turn things around next year and in a couple years from now could be a 10 bagger from todays shareprice.
Will that happen? Hard to say. Everyone has to make their own decision. Might be a good time for some bagholders who do believe to average down at these low prices.
And then you need to give it time to see if AR can turn things around.
As Mr Buffet said. "The stock market is a device for transferring money from the impatient to the patient.
Hopefully that happens here beginning next year.
Good luck to all.