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Shares of Amazon Mining (AMHPF.PK) have risen well over 100% YTD, as have the shares of many of...

Shares of Amazon Mining (AMHPF.PK) have risen well over 100% YTD, as have the shares of many of its fellow potash juniors, but the rally may be premature. With bigger players already working on major expansions and new projects, smaller miners may find themselves left by the wayside, and most are still a long way from attracting bids.
Comments (2)
  • Venerability
    , contributor
    Comments (3048) | Send Message
     
    If you don't know the sector, you may lump all companies with stocks currently under 10 dollars as "juniors" very, very - to the Nth degree very - incorrectly.

     

    Using this completely faulty criterion, you would characterize holders of land only as juniors, holders of old mines being reopened as juniors, holders of projects just being scoped out as juniors, and possibly holders of orange juice factories thought to have Gold in their basements as juniors.

     

    But some "juniors" have projects well on their way to production and others in the pipeline or are owners of properties so valuable, bigger companies will soon be engaged in bidding wars for their potential bonanzas.

     

    A dozen years ago, GG, AEM, and First Quantum were the lowliest of juniors. So were all the components that now make up KGC and IAG amd EGO.

     

    Should newcomers to the PM sector be wary of what they invest in? Of course, they should! You don't gain expertise in any sector overnight.

     

    (And if the purpose of this mini-story is to knock down a few juniors, may I put in my specific requests? There are three or four I would love to buy a bit lower.)
    12 Dec 2010, 04:59 PM Reply Like
  • TheSlowLane
    , contributor
    Comments (53) | Send Message
     
    Amazon Mining was up big in 2010 for very good reasons. It is going to be up big in 2011 for more very good reasons. It probably won't be around in 2012 as it will have been taken out by then. Look at the latest series of announcements this fall and then look at the recent financing, the fact that they had to increase it twice within 24 hours, and who it was that demanded participation. Look at the recent tax deal they've negotiated with the Brazilian government. There are no articles on Seeking Alpha regarding Amazon Mining. It's so far off of most investors radar screens that the first time they will hear about it is when it gets taken out by BHP or Vale or Bunge or...whoever...
    26 Dec 2010, 09:03 PM Reply Like
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