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With a market capitalisation of just £21.6 million I am tempted by this AIM and TSX listed gold play. And I note that directors of Amara (AMA), the company formerly known as Cluff Gold have been buying shares recently at 9-11p.
I accept that the gold mining sector has had all the attractions of a rabid dog for what seems an eternity, I sense that we are in the early stages of a recovery.
Operationally, the company has been making steady progress – as others falter –during 2013 announcing key milestones with the Yaoure resource update and the completion of its Baomahun feasibility study.
On 18th July 2013 Amara informed the market of the successful integration of Sega with Kalsaka with a keen focus on increased production and stronger resource grades.
“The Project is now fully permitted, significantly de-risking the integration of Kalsaka and Sega. Bringing Sega into production is expected to ensure that Amara continues to generate cash flow until at least 2015
"I am delighted that Sega is now fully permitted, just 14 months after we completed its acquisition. The receipt of the Mining Licence de-risks the project significantly and we are on track to begin production at Sega in Q3 2013. “
As with all well run companies trading in the small cap sector the board of directors has initiated a reduction program to reduce footprint cost, with a lower end capex and opex. With an established infrastructure in place the company is now, in my opinion, set fair.
Sentiment towards gold juniors will change and at that point well run outfits like Amara will be the first to benefit.
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