tight little ascending channel I have here has a top of c3.7p within the next fortnight - make of that what you will ...
If that trajectory is valid, then I have her testing a breakout of the "cone" shape on the chart from 2-7p in November to put her at 12/13s at Spring 2016 and that'll mark the halfway point back to the first Fib retrace point @ c23p, again, if the trajectory stays the same, at Summer 2016 ...
Fundy news will drive it as per but that's what I'm lining up since the 1.6p low ...
In John's comment about Trev 2 - "unbounded optimism" I wonder if that was a typo. Trev has been very pessimistic. And one has to admit that he makes many valid observations. As we stand, this mining company isn't doing any actual mining. The share price can only rise if there's revenue, or the real prospect of it in the foreseeable future. One would hope that such revenue comes from digging ore out of the ground and selling it at a good markup. The alternative is revenue from selling assets. With a billion quids' worth of zinc/copper/lead under Parys Mountain, well, there's an asset. If it can't be dug out profitably then we're screwed. If it can... then let's get cracking or sell it to somebody who can. The shaft is there. The winding gear can be refurbished. The incline (a helical tunnel, dug at an angle which vehicles can handle) has to be dug to rendezvous with the base of the shaft, and then underground caverns ("stopes") are excavated. This needs capital of the order of £30m. The Welsh Assembly may invest if the project is a goer.
By the end of the month AYM has to decide whether to take its stake in Grangsborg to the controlling 57% mark, paid for by issuing new AYM shares (a "dilution") at a price no lower than - what was it? - 3.375p. I take this to mean that, yes, we'll buy into GIAB but won't give that $1.75m worth of shares away for a pittance: the lower the price the more new shares must be issued and the greater the dilution, hence the lower limit. Swedish iron once used to go into Panzers and Stukas. Is it viable today? One would hope that the deposits are rich enough to be viable, what with Swedish costs.
What I'm puzzling over is this: how will that 3.375 minimum affect the SP in coming days? Can we hope for a rise to that level, and beyond? Maybe so, but until AYM is selling ore and generating cash, "sentiment" is the only driver. People may well buy shares at 2.5p and make a killing by selling them around 3.375p, but the long road up to 10p, 20p is dependent on ultimate dividends and they are dependent on revenue, or rather profit. Dig, baby, dig!
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