Applied Minerals, Inc. (OTCMKTS:AMNL) Is Gathering Momentum

Applied Minerals, Inc. (OTCMKTS:AMNL) added an impressive 70% to its market cap yesterday after publishing not one but two press releases chock-full of optimistic news.

The “5-year exclusive sales contract” and the implementation of “cost-saving initiatives” are both excellent news, and it is only natural that they’d push the ticker up. The only shadows that were cast on the entire situation came from the vagueness of both announcements.

Who is the mystery Client, and what costs does the company plan on cutting that will reduce its annual fixed costs by a third of a million dollars? Neither the press releases, nor the filing documenting them are clear on those matters.

There is one thing that AMNL did make clear, however – and that is the fact that it means to make serious steps forward. This is what impressed investors, and what drove the ticker to a high of $0.340 in spite of the low volume.

Truth be told, the company’s achievements for the last reported period were not impressive at all:

Cash – $3.2 million
Total current assets – $3.5 million 
Total current liabilities – $2.7 million 
Quarterly revenues – $48 thousand
Quarterly net loss – $3 million

However, if it manages to stick to the plan it described in its press releases, AMNL may create some real value for its investors. However, investors should keep in mind that even if the company’s plan comes to fruition, its results will take a while to manifest themselves.

It may be some time before we see actual improvement, even if AMNL‘s plans are successful.