African Eagle (AFE) joined AIM from PLUS in June 2003. Today it is six months away from oblivion. Its rise and fall is a morality tale from the Cesspit. No-one emerges from this tale with any credit. I say this as someone who tipped the stock but a long while ago advised cutting losses. But let’s start at the beginning. This is pretty horrific reading.
African started out as Twigg Minerals on the old Ofex market. At the time it came to AIM it was banging on about its gold assets in Tanzania: Miyabi and Iguribi. But they were not big enough. Miyabi is now part of a JV with African having 25% but still nowhere near production. The other assets were even less spectacular. And so to support fund raise after fund raise (there have been more than a dozen to date) the company started promoting copper assets in Zambia.
Sasare, Ndola, Lunga all were company makers we were told as investors were tapped again and again. That was until the company stumbled on something even more exciting. By 2009 the word was Dutwa – a vast Nickel find in Tanzania. The way to maximise shareholder value was to push ahead with Dutwa (oh can we raise some more money please?) and those other company makers were dropped. African had a new company maker.
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