The Investment Doctor • Sat, Jan. 24
There is research on this stock available only to PRO subscribers.
- Amara Mining raises $22M in an overnight offering.
- I’m not really surprised to see Amara taking advantage of the recent strong gold price.
- However, I’m afraid the timing is still a bit off, as the placement was conducted at a 25% discount to the share price in August.
- The investment thesis will be impacted by the additional dilution as the NPV/share will obviously decrease.
Update: Amara Mining Increases Its Indicated Resources By 63%
- Amara Mining’s Yaoure project now contains 6.8 million ounces of gold.
- This is a positive development as 2/3rd of the total amount of ounces is now in the indicated category, expressing a higher level of confidence in the project.
- The investment thesis doesn’t change for now and Yaouré still is an attractive project. I’m looking forward to see the results of the PEA in March.
- Amara Mining releases the last results from its 85,000 meter drill program.
- As expected, the drill bit confirmed the continuity of the gold zones.
- The investment thesis doesn’t change. Yaouré will be a mine, even at $1000 gold.
Update: Now I'm Really Looking Forward To Amara's Next Resource UpdateThe Investment Doctor • Oct. 16, 2014
- Amara Mining’s confidence in the Yaoure project should be increasing with the most recent drill results.
- Even though this shouldn’t be a surprise, it’s good to see at least one company is able to live up to the market’s expectations.
- Amara Mining is a steal at the current price and I think a more senior company will buy it out.
Update: Amara Mining Announces Robust Resource Estimate
- Amara Mining has released an upgraded resource estimate and has also calculated pit shells using a gold price of $800 and $950/oz.
- The resource update was expected, but I was hoping for a bit more ounces in the base case scenario.
- However, I am very impressed with the quality of the ounces, as there will be 3.5 million ounces in a pit shell based on a gold price of just $800/oz.
- The investment thesis remains unchanged for now, but the upcoming news flow could be important to further confirm my price target.
- Amara Mining continues to surprise me with fabulous drill intercepts.
- Although I was expecting the mineralization to be continuous, some of these grades are better than I expected.
- The investment thesis doesn’t change, but it looks like I will have to upgrade my target after the next resource estimates and PFS.
- Amara announces high-grade gold intercepts on its 6.3Moz Yaouré gold project, which continues to grow.
- This was expected, as I have always been aiming at a resource increase to 8Moz.
- If the PFS in Q1 2015 confirms the numbers from the PEA, Amara will become a prime takeover target in Africa because it will have the right size and grade.
- Amara Mining reported a net loss for H1 2014 on a lower production rate and higher cost rate.
- This wasn’t really expected in my original article, and I was surprised to see the Kalsaka operations to be put on care and maintenance.
- The investment thesis remains standing, as it was solely focused on the Yaouré project which is shaping up to be a prime takeover target.
- Amara Mining stops its mining operations at Kalsaka/Sega earlier than expected.
- This was rather unexpected, as I was actually thinking the useful mine life could be extended.
- Even though I have to correct the total value of the company, this does not change my investment thesis as I only care about the Yaoure exploration project.
Amara Mining: Ignore The Two Smaller Projects But Buy It For Its Yaoure Project
- Amara Mining will aggressively expand its production profile from 44,000 ounces to 60-70,000 ounces of gold this year.
- The Yaoure project is quite unique and I expect the current 6.3Moz resource estimate to be increased to 8Moz further down the road.
- A PEA revealed very impressive economics, and the Yaoure project might be one of Africa's most interesting projects.
- I believe Amara Mining won't be around anymore before the end of next year, as I think several more senior producers have this asset on their radar screens.
There are no Transcripts on CLUGF.
We currently have no Breaking News on this stock.
CLUGF vs. ETF Alternatives
Other News & PR