#Bagsareforchristmasnotjustforlife6 Dec 2020 10:42
I see AYM developing in three stages, Christmas SP of 20p is likely along with a continual rise in Jan 2021 and ongoing
Stage 1 - Appraisal (current phase) SP 20p-50p, 2020/21
Sleeping share re-rating on fundamentals & commodity prices.
Evaluating & assessing options for three dormant mines with large resources.
Upside drivers, MCAP re-rate, PEAs, sales/farm outs and JVs, increasing reserves estimates
Key risks - commodities price crash (highly unlikely), environmentalists & paperwork
Stage 2 - Pre Production SP 35p-120p, 2021
Financing arrangements, legislative agreements, placement of key contracts (equipment, metal handling and processing)
Upside drivers, contract placements, paperwork agreements, sales/from farm outs and JVs
Key risks - commodities price crash (highly unlikely), environmentalists & red tape
Stage 3 - Producing SP 100p to 300p 2021/2022
Completion of any upgrade works & re-opening of dormant mines
Upside drivers, production commencement, commodities market bull run
Key risks - commodities price crash (highly unlikely) & environmentalists