Why buy $STHC - #AmecaMining?
Squirrely_McShitty Tuesday, 08/25/20 08:57:25 AM
Re: Patientlyimpatient post# 24965 0
Post # of 24999
I appreciate your point of view and insight, and would tend to agree in most every case I have seen.
However, I believe this is a particular situation, at least at this time. While Ameca has several holdings, only one holding, Seruwila, will drive the valuation for the foreseeable future. This is the maiden mine and the only set of reserves we need concern ourselves with for what...at least a couple of years? And we are, by all the information we are privy to at this point (at least all that I have seen) sitting on at least a reasonable pile of cash in the ground in graphite alone.
From Ameca's website -
"Located in North-Eastern Sri Lanka, Seruwawila (AKA Seruwila) was chosen as AMECA’s maiden project due to indications that the area could contain a significant amount of gold.
"Unexpectedly, AMECA found a very large (2 million tonne) graphite deposit of extremely high natural purity (>99%). Initial testing at both Saint Jean Carbon and Actlabs has also revealed high concentrations of other valuable minerals.
"Having attained bank feasibility on the graphite, AMECA is currently in the process of proving out the rare earths, palladium, and gold".
So, there are some important variables here to consider:
1) we are basing valuation on one mine alone, at least until a second moves forward,
2) that maiden mine appears to have an exceptional amount of graphite. Indeed, notice in the verbiage above, there are no qualifying terms used with the graphite find, (it is not presented as a "maybe" or associated "wiggle room" terms), only with the "other valuable minerals" evidence.
3) the proof of the graphite is strong enough by itself to "attain bank feasibility (which I assume means credit),
4) we have a newly public company stepping into a "STOP" listed OTC ticker. This is not, in my experience, a typical situation. I would argue this artificially deflates the true valuation from being fully reflected in the PPS, and,
5) because of #2 & #4 (one a positive condition, the other a condition applying drag to the PPS), even if only a third of what is believed is in the ground is actually there, the company - in an immediate, near, and likely mid term setting - is almost certainly highly undervalued...MORE So, I would argue, than a typical mining startup.
In addition, it sounds as if we are juiced politically, on both sides of the aisle, and Ameca is managed by a team of thoughtful, honest, and principled individuals (if somewhat inexperienced in their new public environment).
So while there are any number of variables that could turn sour (political, environmental, interpersonal, so-called "acts of god", etc), this investment is seeming exceptionally low risk/high reward in comparison to a "typical" mining venture.
My thoughts. I welcome both supportive & critical feedback.
z
