What are your views on this company? Drill results of the Gold Rock camp are quite exceptional and with drilling continuing this summer would this situation be a very speculative one ,or a "gamble"?
many thanks,
Jean
At $38M market cap, even with a 65% YTD gain, we would certainly put it into the 'gamble' category. It has no revenue, losses and negative cash flow and will need more capital. It has about $5M cash. The drill intercepts are spectacular, but are over very short intercepts. Much more is needed here to see if there is any continuity of the deposit. It certainly is off to a good start but much more money and drilling are required here. AGI owns 15% of the company. Insiders about 5%. We think this is a situation where it is worth paying 'more' for the stock when there is more data (assays/holes). These scenarios can spike on good news, but can also flame out pretty badly if good results do not continue. We also think investors can wait for the next (inevitable) financing.