Eoin Treacy's view -
On zombie companies. I was very interested to hear your comments on zombie companies at the start of this week’s video. It seems to me that many of the mining exploration companies would come under this umbrella.
Some weeks ago, I decided, having done some prior research, to make an investment in one of these companies. I have reached an age where I am quite willing to put a small amount of my cash resources at risk.
I was also somewhat amused by the name of the company and its ticker, Alien metals (UFO). It had had a chequered history having traded at £5 a share at one point in 2011 but over subsequent years investors deserted the company to value the assets at a fraction of a penny.
Although making no profits, it has assets in the ground in Mexico and Western Australia. I purchased early in August, one million shares at 0.22 pence per share. As the belief stage sets in on the developing bull market in metals, it seems logical that more of these companies are going to be noticed by investors in the near future.
Thank you for this email and congratulations on taking opportunities in the market. I agree there is likely to be more interest in explorers for the simple reason that there have been no big gold discoveries in the last few years. Mining is an extractive industry and miners have to expand their reserves through exploration or acquisitions.
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