Post by
javaman12 on Jul 01, 2022 7:58pm
RE:RE:Who has to gain by lowering ABI share price.
Thanks for the laugh Fbedard! You'd be wise to keep your powder dry for a while. The whole junior exploration mining sector seems to be falling like a stone.
These dark and murky waters may becomer deeper than many may fear!
It may soon be impossible to raise adequate capital to explore at a reasonable cost for shareholders.
Excessive dilution kills much of the upside share price potential for any company.
Most companies would much prefer to be the better position to buy them back! The market always loves to buy companies with such buoyant earnings! Their share price doesn't sink so easily when times get bad!
Former high flyer Wallbridge Mining, once trading as high as $1.35 has already fallen to 19 cents! These junior explorers are all collapsing in price. When will the bottom be reached?
Some may not survive. Panic selling has now set in!
A falling gold price and high transportation costs make the movement of lower grade ore to a mill problematic for any junior without sufficient capital to purchase a mill. But often many explorers find adequate mineable grades of high grade gold trapped within wider widths of lower grade ore.
Abcourt Mines has not been immune to falling prices. But their shareholders selling now may not fully understand the negative implications of their untimely move.
They may be making a tragic mistake!
Abcourt could do very well now, in this time of great uncertainty, because it already has its fully permitted mill!
An empty mill just waiting for ore to process must now be considered a God send for any nearby company with valuable proven resources, ready to mine.
Why does Abcourt even need to acquire or combine with other companies when it may now be in a better position to toll mill the 'cream' of other company's assets?
Like Pershimex Resources, other nearby companies with valuable ore still worth transporting, may soon be in desperate need for cash.
Isn't now the best time for Abcourt to make some very good deals?
Or should Abcourt let other nearby juniors, without a mill, bleed a little more, as their share prices continue to fall? Perhaps they should wait, just a little longer?
Abcourt could wait until others decide to contact Abcourt Mines for help? At some point, competition for access to an operating mill, could become quite fierce!
Why does Abcourt need to involve itself in any M&A activity at all? Why couldn't they simply toll mill another company's best ore on a contractual basis?
What better way is there available for Abcourt to cheaply gain access to the necessary dollars to properly fund its own current exploration and mining opportunities?
Furthermore, why roll back the share price, when it's not necessary to do so?
Just pick up a phone and strike a deal!
Go Abcourt, Go!
Now is not the time to sleep!
Perhaps Abcourt's management should open their eyes!
Take advantage of the need of others.
This is not selfish. It's just a good business practice that makes a lot of sense!
Let other nearby junior miners mine their best assets using Abcourt's mill.
When the gold sector returns to favour, the market will allow them to mine the rest!
When opportunity presents itself, make the better move, if you can!
That good move will immediately raise the share price!
Consistency in earnings is something that the markets, always respect!
Growth can come later when the cash is there to help make it happen.
By then, the market will have anticipated it!
That's how to move the share price higher and quickly!
All the best! Java
Comment by
JTDOUBLE on Jul 01, 2022 8:03pm
There is no volume this what happens . A mere 400 k shares brought the price down significantly.. What happens to promo or companies update .. The worst case is investors left in the dark , when there is no visibility on the futures many will take the loss and move on . Imagine if fbedard dump a small portion of his holdings this will spiral down ..