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Acme Gold Company Ltd V.AGE


Primary Symbol: C.AGE

Acme Gold Company Limited is a Canada-based company engaged in the business of mineral exploration and the acquisition of mineral property assets in Canada. The Company owns a 100% interest in two contiguous mineral claims covering approximately 3,314 hectares (the Old Fort Property) located in the Babine District of northern British Columbia (BC), 22 kilometers (km) north of the village of Granisle, BC. The Old Fort Property lies about 13 km northwest of the past producing Bell copper mine. It owns the Old Fort Property for its potential to host porphyry copper gold mineralization similar to that seen elsewhere in the Babine District, such as the past producing Bell and Granisle mines, and at the Morrison deposit.


CSE:AGE - Post by User

Bullboard Posts
Post by goldsoldaton Dec 01, 2003 2:41am
224 Views
Post# 6720461

John Doody

John Doody"John Doody of the Gold Stock Analyst was interviewed by Jim Puplava at this weekend's San Fransisco gold convention. That interview, which is the last of four second hour interviews, may be found at the fs broadcast (audio)at www.financialsense.com. During the interview, Mr. Doody commented at length re AEM. He said in substance, and I am paraphrasing, that AEM had experienced a rock fall; that AEM was not a "mine" because it mined its gold in addition to zinc, silver, and other metals, and it was only these other metals which lowered the cost per ounce of the gold production sufficient to make the mining profitable; and inferred the outlook for AEM was not bright (my words). Mr. Doody is a very good value analyst, and everything stated by him is true. What the analysis lacks, however, is imagination. The rock fall is old news and clearly priced into the market. As to the remaining comments, they ignore the fact that AEM is similar to Durban Deep (DROOY) as a non-expiring option on a higher price for not only gold, but, in light of very large silver credits, for silver as well. Although AEM counts its operating cost in Canadian Dollar which has been stronger recently, reducing profits, the Canadian Dollar pales in comparison to the South African Rand's massive upward move. Yet DROOY, despite its poor stock price performance, continues to operate as such option, in South Africa. Sophisticated investors know that the most leverage to future stock price movement is in producers with strong reserves and lower profit margins which, on a percentage basis will increase with the gold price, far more than high profit margin producers. In other words, a gold price increase would produce, on a percentage basis, far less gain to the high profit margin producer. The fair value of AEM stock should be considered in light of the forgoing." EOM. I do not have posting privileges on any forum other than Stockhouse. Should they so desire, anyone is welcome to repost the foregoing on any forum of their choice, without attribution. Goldsoldat
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