The various preliminary assessments are all presenting improved results in terms of what is under the surface, probably due to better technology that can get the measurements. In turn, mining capability has also improved from previous times. I think all in all, we are actually looking at a more than viable mine in Sweden, a recently mothballed mine in Canada that has much of the infrastructure in place and was only closed-off based on falling market prices and then the Parys mountain that appears to be worth a few bob too. All in all, the mcap of AYM is well below where its potential would have it placed.
I'd taken my eyes off my shares back then - checked back and realised I'd missed a massive peak! If the same were to happen now, I could retire happy :)
Like you said, holding levels of LIM stock are less now for AYM, but that doesn't mean that money can't be made given the investment in infrastructure ten years ago to allow the project to kick off. It was pricing that knocked us out of the game at that point and todays pricing would put us automatically in a better position, will be interesting to see what the $4million investment can achieve.
I did notice some chatter on social media from Jo regarding what is happening with capital investments and his opinion of this becoming a norm due to the recessive economy, this is interesting following the Scully partnership and is perhaps paving the way for similar to happen at the other AYM sites. As I have stated previously, I think all AYM sites have great potential, but the one that is the true money maker is in Sweden - it would blow the LIM share price rise in 2012 out of the water.
It's first option, but that price will be driven by the scope of the studies that bring about the decision to mine. Therefore it is no point guessing now what that price may be - save to say that the value of the material under the surface in Sweden is far beyond what the share price represents it as today. I would imagine the actual price will be determined at the time of transaction between the BOD's of both organisations for the mutual benefit of each set of shareholders.
The basic agreement on ownership and potential rights are listed on the website as far as I remember, don't think they have changed in some years. As well as Sweden, there is Labrador in Canada that they did actually get into production for a period in 2011/2012 and the share price shot up to 92p... Grangesberg is the main reason I am still here, Parys is a bonus given the recent momentum and Labrador is still there. A couple of years ago they also mentioned other opportunities in an RNS, so that would be more cream...
Well said SMKR. This is a very positive development. Hopefully they can recruit a budding PM who will drive this project forward as Jo sees fit. This is progress, can’t understand why so many are looking for a magic wand and fairy glitter. This project is a long term bet, the horses are lining up and the odds are definitely getting better for the start of the race. No point running around the paddock looking like a winner if you can’t get to the start line. We are on our way there now (after the horse box had a few flat tyres on the way to the meeting…). Keep the faith.
I guess my response would be yes and no. Yes, not a lot of RNS's flying out like smarties, but when there is news now there is actually something happening behind it - this compared to the previous times of tumbleweeds and mothballs.
The new CEO has come in and created some movement, which compared with the stagnant pond we were in for the previous many years, is a welcome change! He seems to have been moving on all fronts, so it is just a case of waiting for the latest study to be completed to whip up some interest.
The commodity markets are definitely better today than they ever have been, so it's a sellers market. All it needs is for one of the sites to have positive news and that will be reflected in the SP. Remember that studies are consistently getting better - this isn't because there is more material magically appearing, but that the means to find it (and also processes and equipment to extract it) are more efficient today than they were when the mines were closed. I'm looking forward to the day that this news comes, I've waited long enough lol
I would imagine it would be based on an up to date valuation, which in fairness only seems to be rising with each feasibility study... However, you could assume that the MCap of AYM includes the 10% stake in Grangesberg and infer a value from that (taking out Parys and Labrador from the equation).
Off the top of my head, AYM own 10-12% at present of Grangesberg. They have first refusal on majority stakeholding should they wish to take it. Therefore, when the time is right, they can activate that. It's usually mentioned in the RNS's and is probably on the company website somewhere.
Yes, but the world we are in at the minute isn't as simple as it used to be. I can imagine there are logistical delays on many such events happening in the Scandinavian region.
The beauty of the Grangesberg position is that there is a process in place to increase ownership whenever the board of AYM decide. Therefore, once viability is confirmed they can increase their holding and that in turn multiplies the value of AYM. I have always believed that the mining opportunity in Sweden is the one that will give the greatest return. When Labrador was running, this share reached 92p and it was nowhere near as strong in terms of what's under the surface.