Anglesey Mining – Surely a Snip Despite Uppity Indians?

I see today that some native peoples are causing a bit of disruption for Toronto Stock Exchange listed commodity play Labrador Iron Mines (TSE:LIM), throwing up barricades whichare causing (fairly trivial) disruption to operations. This news might impact on the share price of AIM listed Anglesey Mining. But that could well be a trading as well as an investment opportunity.

The natives in the Schefferville area have form in having minor protests every now and again as they try to screw more cash for their welfare addicted  lifestyles from the Government. This is par for the course and will not last. The only thing that really interests me about these people is that they cannot seem to work out what they are. Red Indian is a term we are no longer allowed to use. Apparently native American/Canadian does not work any more and “First Nation peoples” is preferable. But the company now also refers to local “aboriginal” communities. When I was a boy Aborigines lived in Australia but, since I cannot believe there was a mass migration to the frozen north, I guess aboriginal is the new Red Indian. Whatever…

LIM is Toronto listed and its market cap today is $181 million – I reckon its shares are probably pretty cheap as it is cashed up and producing/developing in all the right ways. AIM listed Anglesey Mining (LSE:AYM) owns a fully diluted 24.9% of LIM which is worth c£29 million today. Anglesey also has c£3 million of cash. And it has a Welsh asset Parry’s Mountain which might be worth something one day. But for now I’d value it at not a lot.

Like all mining stocks Anglesey has taken a bashing of late. But LIM is not an illiquid share and so with £32 million of solid asset backing + the Welsh asset it strikes me that Anglesey’s own market value (£19.5 million at 12.25p) is just plain wrong. Any weakness caused by problems with the natives in Canada would, I would have thought, be a trading opportunity as well as the basis of a good long term investment.

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Comments

1. Marth says:

   July 6, 2012 at 10:38 am

   Fair comment and unless the global IO market collapses I see LIM as a profitable, producing and expanding asset with real growth potential over the next 2-3 years.

   FYI despite the confusing EPIC code, AYM is listed on the main FTSE and not AIM.

2. Tom Winnifrith says:

   July 6, 2012 at 2:30 pm

   Marth

   Thank you – agree with your analysis. Yes realised error re full listing in my bed last night. I have an exciting night life :)

   Best wishes

   Tom

3. swinger says:

   July 14, 2012 at 5:08 pm

   Wow, awesome blog layout! How long have you been running a blog for? you make running a blog look easy. The whole look of your site is fantastic, let alone the content material!

4. Tom Winnifrith says:

   July 14, 2012 at 11:06 pm

   Swinger,

   Not sure if you are referring to the ADVFN blog or my own effort at TomWinnifrith.com – the latter is 4 weeks old, the former not a lot older.

   If it is ADVFN then praise Clem Chambers and his team. If my own effort I thank you

   Your feedback is appreciated either way

   Tom Winnifrith

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