Often when I look at companies at the lower end of AIM I am left struggling to see why on earth anyone is buying it at the current share price.
A couple of market rules spring to mind today. Firstly: If a company’s management tells you that the equity is worthless you had better believe them.
Avocet Mining (AVM) “is pleased to announce today that its subsidiary Société des Mines de Bélahouro SA that operates the Inata gold mine in Burkina Faso, has entered into a standstill agreement with its major trade and financial creditors”. I’d suggest it not though being too pleased as yet…
An “Update on share suspension, Inata and Tri-K” announcement from Avocet Mining (AVM). “Update” on share suspension? When was the suspension then?...
I explained last week why I thought that shares in Avocet Mining (AVM) were worthless. That was without the knowledge that its Inata gold mine only has a shelf life of three years at the current gold price. The company stated as much on Thursday with the painful admission that cashflow from this period is “unlikely to result in full repayment of creditors”
I wrote a while back about Avocet (AVM), suggesting that the share price fluctuations, which were linked to the fortunes of 1392 ounces of gold seized by workers at its Inata mine in Burkina Faso, ignored the fact that the company was essentially insolvent.
