Axmin, AXM.v C$.25
Posted: Monday Oct 15 11:22:10AM 2012
I've been holding Axmin for awhile with an avg cost of .58. I'm way underwater but holding because this is a $20million market cap company with 3 million oz of gold. All drilled out and ready for a mine. Financing has a lot of players due to lack of previous mines in Central African Republic. Due diligence is taking longer than expected but answer expected in early 2013. Once approved, will take 24months to build the open pit mine and infrastructure. Expect 160Koz/yr in first three years, avg 150K oz over 8 year mine life. Forecasted costs are low in the mid $400 range.
Axmin holds big acreage in CAF and says this is just one deposit in a large mineralized belt that runs thru the country. Expects many more mines to be found and developed.
This is a long shot due to country risk and financing as well as the normal construction and operational risk of a gold mine. But the upside is big.