Longish time member, lurker Fully funded for their Mt. Porter gold mine with a 6m loan facility just sorted out. Conditions on it are interesting. http://www.arkmines.com.au/irm/PDF/1153/ArkSecuresMtPorterGoldProjectFunding Bit under 50m shares on issue, and directors have stated they do not want to dilute the stock as per share investor presentation. http://www.arkmines.com.au/irm/PDF/1157/ArkMinesInvestorPresentationJuly2016 Very tightly held atm and being so few shares on issue it is a bit illiquid. Pro and con?! Any thoughts?
A week late, we could of been AHK buddies and 90% up with that jump in price. But I guess it jumped for a reason and looks like it's a good one, maybe others with better researching techniques can tell you more. I like the vibe of it, i'll be watching for a better dip, but that doesn't always happen hey? Yeah for such a low price there's very little on offer for sale, I too wonder if this is a good thing or not. In replacement of more shares they seemed to of gone with a loan, wouldn't it be cheaper to go with more shares? not sure how that all works but looks like a good one.
MC seems low for a soon to be producer. Albeit they dont have a massive resource but I like the way they're doing things. They are actively seeking bigger resources north and south of Mt. Porter and others nearby. If market rerates to say a 50m MC thats just over $1 ps. Looks like its rerating, but where too who knows.
First thing that pops up is that their entry into the fields is based on a Farm in Agreement with Arafura (ARU). Which adds a contingency and a potential caveat to their performance. Once Mt Porter is purchased, the farm in is terminated, which leaves ARK as the operator. Looking at the shape of the actual deposits, based on http://www.arkmines.com.au/irm/content/frances-creek1.aspx?RID=327 , it may result that there is a lot of digging required to extract. They will also close the pit using back fill, which costs up front, but eliminates ongoing management issues, by returning the potentially acid forming material back to the depths from whence it came. Further details of Mt Porter Mine Management plan outlined here. https://ntepa.nt.gov.au/__data/assets/pdf_file/0005/289166/ptc_mtporterassessment.pdf The board of directors consists of Two solicitors, and one geologist, who is also the Managing Director. Added 3.1 million shares at 15c in April 2016. In early 2004, an updated resource estimate was completed for Arafura by Reseval Pty Ltd. Published identified resources for the Mt. Porter 10400 Zone deposit, calculated in compliance with the requirements of the JORC Code 1999, now stand at: Cut-off 0.5 g/t Au Cut-off 1.7 g/t Indicated Resources 694,000 t @ 2.0 g/t Au Indicated Resources 300,000 t @ 3.1 g/t Au Inferred Resources 184,000 t @ 1.55 g/t Au Inferred Resources 55,000 t @ 2.6 g/t Au TOTAL RESOURCES 878,000 t @ 1.9 g/t Au TOTAL RESOURCES 355,000 t @ 3.0 g/t Au My gut feeling is that this company knows how to make money, and to create accretive value per share. One thing to keep in mind is that the mine is not yet operational, and it is the mine that you are effectively buying at this point in time. It would seem that there are a number of opportunities for expansion into additional mines or exploration prospects, via cashflow. It seems that this entity has more capacity as a project managing operator, than a speculative explorer. This skill set creates potential to become a healthy dividend stock in the long term, as long as the mine can be opened without major budget over run, unlike many speculative exploration plays, which are all about market hype. However, given the tightly held, illiquid nature of the stock, there is potential that dividend payments to public investors may be subjugated by consultancy and legal fees to related entities. It would help if you were based in Sydney, and could book a meeting once every three months with the Board to discuss these things, and were a participant in the General Meetings, to ensure your voice was represented. TLDR: It's a small illiquid stock, with funding to build a mine on a proven resource, and a some future opportunities to develop other mines, based on positive prospectivity. Always pays to look at the cash flow report as well. http://www.arkmines.com.au/irm/PDF/1155/QuarterlyCashflowReport Have not yet located the feasibility study, and no published indication of the AISC of the mine, or budgeted CAPEX requirements.
Traders taking profits? Illiquidity tends to shake short term holders off. Easy 10-30% profit within a fortnight so wouldnt blame them. MMP is due any week now, was lodged June 2nd. Until the approval comes then well have cap ex and aisc figures which will drive the next leg up IMO. I'm long on them based off FA. DYOR
