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  5. AMQ: Good afternoon, What is your opinion of AMQ? [Abitibi Metals Corp Com]
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Investment Q&A

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Q: Good afternoon,

What is your opinion of AMQ?
Thanks,
George
Asked by George on May 15, 2024
5i Research Answer:

Keep in mind that AMQ was a 4c stock last year, and we do not know it well. It has surged in the past 52 weeks but is still smaller than our focus area. AMQ is a microcap mining company that is currently experiencing solid momentum. Around 20% of AMQ's market value is in cash. The company has no operating revenue. AMQ is currently issuing shares to support the development stage of its properties. AMQ’s investor presentation highlights lots of value of their flagship asset B26 deposit which the company believes does possess great economics and the fair value is not fully recognized by the market. AMQ could have upside potential if the company starts to generate revenue and cash flow, but this is highly uncertain, and will require a lot of capital spending, even if its deposit becomes really economical in terms of potential. A lot more time and money are needed here. It does have an ongoing drill program at its B26 deposit in Quebec.  We would wait and see how the company executes from here and whether its deposit can be further proven out. Given its tiny size, its risk is extreme.