Post by
loonietunes on Feb 01, 2023 8:13am
From the blogosphere -Mark@IKN
Minera Alamos (MAI.v): Allow me to hold your hand When it comes to grown adults trading in mining stocks, I don't do hand-holding. Or at least I don't do it very well, we're long past the point of paid pumpers telling you that "if you liked it at 9 you gonna love it at 3!!" or silverbugs and their "keep the faith, soldier!!!" nonsense. With that said, today's NR from Minera Alamos (I'm long) has resulted in a smattering of mails arriving at IKN Nerve Centre and the answer that went out to the latest one went exactly like this below. Published here for those of you who would like to step back from the tree of Santana Q4 production and consider the forest around it, the only thing you don't get is the name of the fellow MAI holder. I've been trying to hate this news and failing. I get the frustration, though. MAI has around $13m at bank (plus that U$3m untapped facility) and the Santana gold is going to be mined. Q4 production was low, the water issue drags on, but aside that it's a reasonable situation. They have more than enough cash to do everything, the gold at Santana isn't going anywhere and Cerro de Oro is still the equity price growth story. Missing some rainfall, but this is why I pick conservatively run mining companies that don't collapse in a heap if a glitch comes along. There's a world of difference in the way stock prices like AR, MUX or WDO react to disappointing news compared to the MAI reaction today. Its price has dropped and volume is up, of course yes, but it's not multimillion shares breaking the equity price to new lows and that's the difference when a financially robust company hits a glitch, compared to a miner that whistles past the graveyard. And the plain fact remains that I'm not here for Santana 2022 production (or its 2023, either). This is a growth story, its delay at Santana doesn't affect that and while I'm not celebrating the Q4 and would like MAI to have delivered better in 2022, the share count isn't going to balloon and the company has all the cash it needs to develop organically. I'd like MAI to be 75c today and not 40c. I wouldn't sell either price, though. (5 mins later) So (name withheld), I just got another coffee, came back to the screen and re-read that rant above. It sounds a little too much like hand-holding and I don't want that, but I'm going to send it to you anyway. Thing is, I've invested above all in a business model and it's one I'm very comfortable with, it's not some sort of misplaced loyalty to one of those "great teams of people" that go on to disappoint the world, I too am fed up with backing "really nice people" who fail to deliver shareholder gains. But MAI really does stand out among the jr mining pack as a company that is doing things the right way and in-line with its shareholder base. The combo of professionalism and integrity is rare enough in this sector, it's even rarer when they combine with a solid company and great assets. What's more, in this case I don't even have to blindly trust the company because the financials also tell me they are on the right track and doing things the right way. What's missing here? A bit of rainfall. "Just add water", they say.