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ABACUS MINING & EX COM NPV (OTCMKTS:ABCFF) Could Deliver A Pleasant Surprise

ABACUS MINING & EX COM NPV (OTCMKTS:ABCFF) Could Deliver A Pleasant Surprise
Written by
Jim Bloom
Published on
October 14, 2017
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We looked into the small cap universe and ABACUS MINING & EX COM NPV (OTCMKTS:ABCFF) caught our attention on several accounts, so we’re going to talk about this stock to enable you see if it could make a great investment for short or long-term gains.But before we get into the details, take a look at the price action below. ABCFF Daily ChartHere’s a brief explanation of what the chart above is saying. Holders of ABCFF have seen their investment in the stock return more than 1323% since the beginning of the year. And that is not all. The stock has returned more than 545% over the last six months. Those who got into the stock as recently as a month ago have seen more than 10% in returns.Is the rally in ABCFF over?This is a question that many prospective investors would ask after a period of strong stock rally like we’ve seen above. Although it is difficult to accurately predict the future, we are excited about recent developments in the company and the outlook of its industry and we believe ABCFF could deliver a pleasant surprise for savvy investors.We’ll talk about this in more detail.Business and industryFirst, let’s review the business model of ABCFF. It’s pretty straightforward here. ABCFF is a mineral exploration and mine development company. It has a 20% interest in the Ajax copper-gold project, which is located at the Ajax-Afton site southwest of Kamloops, British Columbia, Canada. The company’s other project is Willow copper-gold property in Douglas County, Nevada, USA. ABCFF has an option to acquire up to 75% interest in the Willow copper-gold property.Willow copper-gold project updateOn August 17, ABCFF provided an update on the exploration activities at the Willow copper-gold property in, Nevada. The company is working on the project in collaboration with Almadex Minerals Limited and its wholly-owned subsidiary Almadex America Inc. (Almadex). The project is covered by an agreement that allows ABCFF to acquire up to 75% ownership interest in the Willow property.ABCFF’s latest update on the Willow property was detailed. But what we’d like to highlight is that the exploration program is ongoing, and we find it exciting that the exploration is sufficiently funded. We view this as boosting confidence that ABCFF would not be forced to abandon the project because of a shortage of financing to complete the exploration. The prospects of ABCFF owning up to 75% interest in the project are also exciting.The Willow property is ideally located as it lies 65 kilometers southeast of Reno. This region of Nevada is accessible year-round, and is also close to infrastructure that ABCFF would need when it embarks on mining at the property.ABCFF’s Ajax project in Canada is currently undergoing a provincial and federal environmental assessment process. The company is working on the Ajax project with KGHM Polska Miedz S.A. (KGHM) under a joint venture company called KGHM Ajax Mining Inc. KGHM, which owns 80% of the project, is largely funding its operation.A strong balance sheetWe examined ABCFF’s financial statements and we were impressed by what we saw. The company has a strong balance sheet, which at the end of the June 2017 quarter showed C$24.1 million in assets, out of which C$1.4 million is pure cash. ABCFF had only C$13.5 million in liabilities.ABCFF isn’t generating revenue yet. But its strong balance sheet, including substantial cash, and the fact that exploration of the Willow property is sufficiently funded show that a lack of revenue, which is temporary anyway, is not holding the company back.What’s the outlook for gold and copper producers?ABCFF’s properties are not producing gold or copper yet, but sooner or later the company would be releasing these precious metals into the market.Gold has fascinated mankind for years and the desire to own it remains strong. In addition to being largely owned for jewelry and investment purposes, man has continued to discover new uses for gold. For example, gold is today used in the manufacturing of certain electronic and medical devices. As demand and uses for gold increase, the price of the precious metal is rising.Central banks around the world have been buying more gold to boost or diversify their reserves as they ditch holding currencies amid economic uncertainties. This situation is driving up demand and prices of gold. Jewelry and manufacturing markets are also driving up gold demand, and prices, thus creating a favorable market environment for companies like ABCFF that are exposed to gold trade.Like gold, new uses of copper continue to be discovered, leading to more demand for the metal and driving up prices. Strong China and USA economies should be a boon for copper producers as these countries are large buyers of copper. The fact that ABCFF has a copper-gold property in the US makes its prospects even more compelling.ConclusionTo sum up, we view ABCFF as having bright economic prospects. We appreciate that the management is doing a great job to keep investors posted, as this would help draw more buyers into the stock as more market participants discover the compelling story in ABCFF.We will be updating our subscribers as soon as we know more. For the latest updates on ABCFF, sign up below!Image courtesy of Dennis Crabtree via FlickrDisclosure: We have no position in ABCFF and have not been compensated for this article.

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