full NAI article:
In the article on why pennies should be included in your portfolio , we have mentioned that junior mining companies are a very important category, although most of the junior mining companies’ stocks are in a state of low trading and price all the year round, but grasp At several specific points in time, investing in junior mining companies can still quickly achieve ultra-high returns, which is unmatched by other types of stocks.
In the current trend of resource market, many companies are expected to rise, especially as gold prices are optimistic, gold mining stocks are worth looking forward to.
Recently, Toronto-based gold primary exploration company AXMIN (TSXV: AXM ) stocks are amazing (with photos), doubling the gains in four trading days, bringing investors a gratifying return.
AXMIN(TSXV:AXM) Axmin Jan 22 - Feb 19, 2019
AXMIN is principally engaged in the exploration and development of gold projects located in Africa. In fact, in the past 2018, the company's share price has been launched from the bottom, and the stock price has nearly doubled in the whole year. That is to say, if an investor holds AXMIN stock in early 2018, its assets have been turned over. Ten times, this is an impossible income for ordinary stock investment.
Moreover, all of this happened when the company's news was relatively calm, indicating that the source of the increase was not the company's public relations hype, but the changes in the relevant environment and the improvement of the company's own cash flow.
In the interview, David Weill, the company's chief financial officer, mentioned three main factors driving the stock price increase: First, benefit from the flow of royalties generated by the company's Gora deposit jointly developed by Teranga Gold (TSX:TGZ) in Senegal, the company's The cash flow is excellent and the profit of the accounting accounts is realized. The company also has 17 potential deposits developed with Teranga that are expected to generate more revenue for the company.
The second factor is that the geopolitical situation in the Central African Republic is improving. AXMIN's main asset is the Passendro Gold Project, located in the Central African Republic, where AXMIN acquired a 25-year mining permit area (355 square kilometers) in August 2010. At the same time, the company also obtained two three-year, renewable exploration licenses: Bambari 1 and 2 (1,240 square kilometers), which surround the mining permit area and cover a 90-kilometer trend along the vast expanse of the Bambari Greenstone Belt. band.
However, the Central African Republic has been in a state of turmoil for many years and the conflict between local armed groups has directly led to the stagnation of AXMIN’s project development. Recently, under the mediation of the international community, the security situation in the Central African Republic has improved. On February 6, 2019, the Central African Republic government and 14 armed groups in the country officially signed a peace agreement at the presidential palace in the capital, Bangui, meaning that the situation in the region has begun to stabilize, and the exploration and mining of AXMIN projects is expected to proceed smoothly. Become the main driving force for the company's stock price to rise rapidly.
The third major factor driving the rise in stock prices is that the company is cleaning up its balance sheet and its current financial position is optimistic. In 2008, Teranga invested US$6 million in exploration expenses and acquired an 80% interest in several exploration licenses in Senegal. AXMIN retained 20% of the project. In February 2012, AXMIN and Teranga revised the joint venture agreement. Under the new agreement, AXMIN chose to hold 1.5% of the net smelting rights of the Gora deposit. Since August 2015, AXMIN has received 1.5% net smelting royalties from the Gora deposit.
In the future, AXMIN will focus on projects in the Central African Republic and hand over several minerals in Senegal to Teranga for joint development. The company only charges a premium of 1.5% of total revenue. The success of the Gora deposit provided financial security for the development of Passondro assets by AXMIN, and the signing of the Central African Republic peace agreement further became a catalyst for AXMIN stock movements.
According to AXMIN's plan, the company will increase communication with investors in 2019, actively establish relationships with relevant government agencies, expand its influence in the Central African Republic, and strive to find strategic partners with strong capital and rich mining experience. Develop Passersono assets and fully enter the active business period.
The trend of the AXMIN compound once again verified several key points of the investment in the pennies of the junior mining companies : the holding of the asset development environment; the emergence of positive cash flow and increased expectations; the market holding mineral products is on the rise. As a gold mineral exploration company, AXMIN is a three-time all-in-one, so it has become the super darling of the market.
