You would think that a significant strategic alliance that
meaningfully lowers the long-term execution and financing risk for a
junior mining company would mean big things for the stock of the junior
miner in question. Unfortunately, that is not the case with Allana Potash (OTCPK:ALLRF) (AAA.TO), as these shares have gone nowhere on a net basis since I first wrote on them in January ("Allana Potash Offers Substantial Potential Rewards For Significant Risk").
Allana
still offers a very high level of risk, but also a high potential
reward should its Dallol potash mine move into production and live up to
expectations. While the strategic alliance is definitely dilutive to
shareholders, reduced risk offsets some of that, leaving an attractive
fair value estimate of around C$0.85.
Read the full article here:
Allana Potash In Better Shape, But Nobody Cares
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