I generally use the Q/A database to investigate your research on specific stocks. For the first time, there is a Canadian company with no submitted public questions. (Abcourt Mines). A log established but small GOLD producer. I have owned the company in the past and am now considering establishing a very small position. Mostly because GOLD appears to be breaking out. I am thinking a short term (1 -3 years). Can you comment on the company, it's fundamentals and any other comment sthat you think are relevant. Thank you.
Gold is at an all-time high, and is breaking out. Gold stocks are doing well, but should have much more leverage if this move is sustained. We do not know ABI well, as it has a market cap of only $22M. The 4.5 cent shares are down about 75% since 2020. Volume did spike on Friday. It had $7M in revenue in the recent 12-month period, but this is down from $28M in 2021. It has made money in the past but lost $2.5M in the Q3. Cash is $1M, debt about $2M. Insiders own 24%. Cash flow is slightly negative. A recent surety facility does improve its financial position. An economic assessment of its Sleeping Giant project (Quebec) released in June was OK, but not particularly compelling. We have little doubt the stock 'could' do well in a sector breakout. Typically, in a confidence rally, micro caps move sharply. But considering its tiny size, extreme risk, decline in revenue, cash flow and losses, it is otherwise hard for us to be too excited here.