African Min&Ex Share Discussion Threads

[broncowarrior] 22/8/2013 08:31

This was an acknowledgement that AME probably doesn't have the cash to develop the asset itself. So they move those assets to a better funded company and take a substantial shareholding in that other company. When Alecto's share price rises, the value of AME's shareholdiing in that business will also increase, increasing the value of AME's share price. If that gets high enough they can then borrow against the increased value of issue more shares to fund their own exploration.

This seems very sensible to me.

Need to do my research on Alecto though...

[sparty1] 22/8/2013 08:28

Excellent ..Now we know what the £500K investment was for .The ceo crossing to A but has options @ 4.5p ..in ame Done a good job of keeping the share issue down ....Perhaps we caqn get our heads above the radar now.. :)

[howdlep] 22/8/2013 07:05

cant buy in size. This will not take many transactions to move the price up.

[highly geared] 22/8/2013 07:05

I think what shareholders will need to understand is what does AME have left in terms of direct assets and their worth. The Alecto stake looks good and the transaction reasons appear sound and value adding....

[howdlep] 22/8/2013 06:48

Following on from the 500k investment @ 2.25, plus 11.11m warrants @ 3p, by the now new AME CEO, David Archer, today's big RNS is great news for AME shareholders imo. As I said on a previous post, you do not invest 500k unless major moves were afoot. Today is evidence of that.
Through AME's investment in Alecto, AME has retained a portfolio of wholly owned prospective licences, including the 250 sq km Karan Gold project in Mali. Plus they have the JORC compliant resource at the Kossanto Gold project (detail in today's RNS).
However, AME now get exposure to Alecto's extensive portfolio of gold exploitation projects in Ethiopia and the iron-oxide project in Mauritania, plus a number of strategic licences, without the need to further fund projects or meet existing cash obligations.
Alecto also have a major shareholder who is clearly going to fund those projects.

It will be very interesting to see how this openin terms of a markup and how quickly the share price will rise, given the small size of the company.

One to buy at the bell if you can............?

[haff1] 22/8/2013 06:15

...read but not quite sure how to interpret this RNS....Its looks as if the Directors make a lot out of it but as PIs we are still left waiting for share price rise to benefit at all!...The project that had most potential to raise the share price is now only partly owned!!

[broncowarrior] 16/8/2013 20:45

I'll wait to see what they do. I'd like to see them get the existing resource up to the 300oz mark then do the scoping study. That should see a broker give us a target price. Gold gradually drifting up.

[howdlep] 16/8/2013 12:44

when a director invests that amount of money, capital isn't going to be wasted. Time to back management before an investment is announced?

[howdlep] 12/8/2013 11:45

time for pi's to follow the director investment of up to £500k @ 2.25p....?

[broncowarrior] 12/8/2013 11:14

I hope so John. The question is what can the board do with about 1.5mm quid. My preference would be to spend it on expanding the existing resource or to take an equity stake in another miner. I've done quite well on HAWK, they should have plowed it all into that!

[john6185] 10/8/2013 12:47

A solid democratic election and a £500k director buy have done nothing here for the share price

The modest Maiden Jorc probably didn't help, but there is massive potential here, and I'm guessing that the Director Buy reveals all we really need to know. I'm a but surprised that the EGM hasn't been set yet, but I guess they are holding fire until there is a strategic play to announce. e.g. JV or more acquisitions in a bizzarely downtrodden junior gold miner sector.

Just have to wait for Q4 ... I have this feeling that AME will deliver something a bit special this year.

[sparty1] 05/8/2013 15:23

you never know ,could be info to be processed completed but not processed early enough to be presented in the last rns ..either way ,I`m still holding and will buy if the share price drops to silly levels.That investment amount is too big for there to be no purpose to it.Rainy season being monitored.. :)

[inbrackets] 31/7/2013 14:43

So, i presume all went through as per RNS on July 26th with placing money in the company account and shares and warrants issued. Great. So what now?
Dates for EGM presumably so that the additional shares and warrants can be sanctioned. Presumably therefore we are unlikely to get an update on the where and the what before these foundations are in place. Not forgetting holidays. and then its the autumn.

[broncowarrior] 27/7/2013 14:53

I think we'll see a resource increase in the autumn, gold needs o recover though, that is where the problem lies.

[inbrackets] 27/7/2013 14:01

yes, i noticed that yesterday and it just confirmed that after what one would have thought was the quite heartening news earlier on in the week, that it is a case of complete studied indifference or that there is no real market in anything to be mined.

unless the resource increases (and hopefully the price to the point that it is economic), sentiment starts to swing back in favour or some other magic is worked, it is quite hard to see how or when things might be jolted back into life. I suppose that a trade of 1 share shows the faintest of heartbeats.

[broncowarrior] 27/7/2013 13:30

1 trade of 1 share, amusing.

[john6185] 23/7/2013 22:01

Thanks bronco.You learn a little something everyday

[broncowarrior] 23/7/2013 21:40

Here are the singer ratings- corporate means they are a client, that's it. No targets.

[inbrackets] 23/7/2013 17:34

When someone invests a substantial amount into a company for a reasonably chunky % share and potential future enhancements, i felt it was worth a little research as to who they are and the past record. Lots of experience in many areas that could/will be of use, he would seem to be floating around like Mining Royalty with involvement in both private and public companies. No doubt there will have been but i couldn't root out any obvious involvement that had fired enough enthusiasm for a direct investment of £500k into a company.
So i ask myself why when AME is the company it is and to date (and only just) the maiden resource kicks out with a total 105k (barely 3 months production at some of his previous charges) and at current prices, with limited margin to give a decent return.
Its not that i would simply follow a person and put my £10 next to their £1000's on the Green 0 at the roulette wheel, but I find it hard to understand that someone with such a background would not be looking to limit their risk and be looking for a substantial return, and that is something i could follow. I am looking forward to seeing where the ball ends up. Rien ne va plus.

[john6185] 23/7/2013 13:04

Does anyone know what the Singer N+1 broker rating actually was for AME?Singer Re-iterates is getting a bit tedious. Singer re-iterates 6p would help ;)

[broncowarrior] 22/7/2013 14:01

Lack of liquidity and spread on this doesn't help things. SOmeone sold 1.2k shares(!) and the price dropped from 2.40ish to 2.10ish.

[inbrackets] 22/7/2013 13:15

Interesting news to wake up to. With a sector that is seriously shot at currently, people don't tend to shovel money into something without a clear idea of either how deep the pit is or a good plan B. Whatever the terms of the options and/or warrants may be or how stretching these targets may or may not be, you would still want to feel pretty sure that the intial investment was not simply going to be wasted.

could be an interesting period.

[howdlep] 22/7/2013 11:47

a few 50k buys this morning (max get online). Once we break 2.75p we may well see a pickup in both volume and momentum. Time to back an experienced management team whose interests are aligned with pi's

[howdlep] 22/7/2013 09:12

£500k is a very significant investment and with management incentivised rather than getting fat salaries, this is now the time to be investing imo.
Hopefully, an early break of 2.75p will be proof that markets like today's RNS. Then watch for both momentum and volume to pickup, as the share price will move very quickly when it does

[broncowarrior] 22/7/2013 08:15

Apologies for the typos on my messages, the spellchecker on my phone does more harm than good.

They needed a capital cushion and they have got it. Not much wriggle room with such a lowly market cap.

Wonder what they will look at re other opportunities.