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Post by RPJII on Oct 5, 2004 13:22:11 GMT -5
Investor information from the Azco company website says that there are 38 Mil. shares outstanding. runonideas.com/profiles/1420.pdf"Azco's in-ground mica deposit has been valued at $167-$212 million by Mintec, a third-party geological engeneering firm. This valuation only represents 422 million pounds or a smaller fraction of the estimated total resource of mica owned by AZCO." Lets make this simple and say the deposit is worth $200 million. $200 Mil/ 38 Mil shares outstading= $5.26. Go head and check my math. Now this is why I bought in today.....
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Post by RPJII on Oct 5, 2004 13:30:23 GMT -5
Now that is just the minimum book value of the stock. Most companies trade at multiples of their book value. I would say at least 4 to 5 times book value would be considered normal on say the NYSE. CT, you have brought us an incredible opportunity with this stock. Thank you very much for your hard work on this board....
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Post by manicinvestor on Oct 5, 2004 14:13:55 GMT -5
I couldn't agree with you more RPJJ I increased my position in this stock today. I feel IMO that there is some serious potential here. and once again thank you CT God bless, MI
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Post by RPJII on Oct 5, 2004 14:20:44 GMT -5
manicinvestor, I have spent some time today reading CT previous posts regarding AZMN. If they are only valuing a small portion of the mica, then this could be $100 per share. I have been watching this for about a month, but today was the first time I did any dd on my own. With that being said, that is why I am in. I will continue to add as funds become available.....
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Post by WWJDthrume on Oct 6, 2004 6:40:43 GMT -5
Mining companies are tricky to figure out. You do have to plan for the cost of getting the value out of the mine. So the multiples used to value other businesses don't apply in my opinion.
I like AZMN and I own it. I think $5 seems like a possible price but to try to use a multplier on it doesn't work.
If our total mineral claims are worth $200 million and the cost of mining and marketing them is $50 Million (I am using this because it is an easy number. I assume our costs would be less but I don't have a clue what they will be). That would leave a potential profit of $150 million. Split between 38 Million Shares =$3.94
A very good chance of seeing $3.00 based on valuation IMO. Since minerals are not a renewable resoource the only way the company can continue to have a higher valuation is by using it's capital and expertise to expand by acquisitions.
Just IMO but looking forward to seeing it hit even $1.00 in the near future. -Debi
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Post by RPJII on Oct 7, 2004 11:04:15 GMT -5
Ok $100 is a little far fetched... But I am very excited about the possibilities with AZMN... It is holding up very well the last couple days....
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Post by paperwhite on Oct 7, 2004 17:32:05 GMT -5
I'm personally very excited about the potential of Azco - but do realize there is a lot of hurdles the company must cross prior to achieving any sort of HUGE increase in share price. Of course many of us know they are reporting and bringing up the filings to date which could lead to eventually listing but lets not even focus on that for the moment.
Yes there are large $ values in the ground and should provide for a larger valuation at some point. Problem is the financials...Company needs to raise capital to develop this property. A bankable feasibility study will most likely be required depending on the amount they need to raise.
Generally this type of project financing would be a combination of debt and equity financing. The equity portion would add some dilution to the stock. Not a good thing, though depending on the structure it can be a slight damper or a huge one.
Once they have the capital on favorable terms = then the stock will move.
Investors are waiting to see:
1. Can Azco raise the capital? 2. Will the financing be favorable?, or will it dilute the stock to the point it's not even worth the risk?
This is what I view as the largest hurdle the company is going to have to jump. If they clear it...watch out.
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Post by WWJDthrume on Oct 7, 2004 17:38:27 GMT -5
Excellent post PW. Thanks-Debi
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Post by Admin on Oct 12, 2004 14:22:11 GMT -5
If you've been kicking yourself because you missed your entry point on AZMN, you just got a huge break.
One of our shareholders obviously needed some change for the parking meter.
Seize the opportunity!
Blessings CT
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