# AZC - Australian Zircon



## bullant (28 May 2006)

Would like your views on this company. Seems to be going nowhere at the moment. Would appreciate comments.


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## yogi-in-oz (31 May 2006)

Hi folks,

AZC ..... as requested, here's some time cycle
analysis for this stock:

01-02062006 ..... minor ... finance-related???

     05062006 ..... negative news here???

     09062006 ..... minor and positive

23-26062006 ..... negative spotlight on AZC

    27062006 ..... positive cycle ... finances???


21-24072006 ..... negative cycle ... finances???

27-28072006 ..... 2 cycles here ... minor and positive.            

happy days

 yogi


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## bullant (31 May 2006)

thanks for the quick response yogi

bullant


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## potofgold (11 January 2007)

Very underrated stock at these prices.

Production to commence in Aug. Payback over three years at $15m pa.

I have just purchased stock today at 21c. Expect to double my money within a few months.

Do your own research.


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## Joe Blow (11 January 2007)

potofgold said:
			
		

> Very underrated stock at these prices.
> 
> Production to commence in Aug. Payback over three years at $15m pa.
> 
> ...




Pot of Gold... you are going to have to be more specific. Why do you expect the price of AZC shares to double in the next few months?


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## rederob (11 January 2007)

Joe Blow said:
			
		

> Pot of Gold... you are going to have to be more specific. Why do you expect the price of AZC shares to double in the next few months?



Joe
You have assumed potofgold meant he would double his money on AZC, which he did not say would double in price in a few months.
I assumed he would double his money gambling.
Bet we are both wrong?


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## prawn_86 (14 August 2007)

hey guys,

in the current market environment, AZC represents a 'safe' small cap investment, with the potential to make over 50% on your money by Jan 08.


It is a near term producer, in the like of QOL. so once their cashflow starts it should see a re-rating of the company.

Here are my calcs:

286mill shares * 28c = $80mill current market cap

45mt * 3.6% = 1.62mt of THMs

1.62 * 22% = .36mt zircon = 360000t
		.1mt leucoxene
		.1mt Rutile
 		1.04mt Ilmenite

Zircon = 360000 * $700 = $252million
Rutile = 100000 * $400 = $40million
Ilmenite = 1million * $60 = $60million

Total = $350million – 10% for slimes = $315million measured NPV



JORC Indicated:
127 * .03 = 3.81mt

640000t zircon * 700 = $448million
175000t rutile * 400 = $70 million
2.52mt Ilmenite * 60 = $150million

Total = $670million – 10% = 600million


So, 600 + 315 = $915million NPV.

MC of 10% NPV suggests AZV should be valued at $90mill, which it is close to.


*BUT*


One must note that all of their mine has been fully funded and paid for. A friend alerted me to this fact and described something known as 'enterprise vale' (EV).

This means that their $50mill mine should be deducted as technically the market should have factored that value into the share price.

So: 80 mill - 50mill gives AZC an EV of $30mill

In other words well below what it should be.


ANother way of looking at it is this:

Their forecast EPS is 5 - 6c. From previous experience a co should be at aboput 10x its EPS when it does start production.

*this gives AZC the potential to go to 50 - 60c.*


Please feel free to question my calcs as im here to learn 

enjoy


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## prawn_86 (23 August 2007)

anyone out there have any other opinions as to AZC?

prime buying opportunity if you ask me. see my previous post for details why.


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## prawn_86 (24 August 2007)

i find it strange that not one other person in this forum follows this stock... 

im going to stop talking to myself now


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## prawn_86 (11 September 2007)

ok i love talking to myself so here is part of a response i got from the AZC CEO Jim Wilton.



> At the Mindarie Zircon Mine, we are in the process of commissioning the Mine Pump/Slurry Unit, and the Concentrator.  We are expecting to be producing concentrates within a week, and at that time the Concentrate Upgrade Plant will be ready for commissioning also.  By the end of the month the Mineral Separation Plant and Rail Loadout facility will be being commissioned.  So by the end of the month we should be railing magnetic concentrates, and possibly some other products also.  As you may have read, we have also commenced a pre-feasibility study on the WIM150 resource in Victoria.






> Full production is forecast to occur within the 1st 3-6 months, and cash inflows are forecast soon after delivery of product to the facilities at Port Adelaide




So by the sounds of this i would say within 6 - 8 weeks they will have a cashflow, and by xmas will be operating at or very close to capacity. 

Historically stocks tend to spike once production and cashflow start as it is a trigger for many people and fund managers alike as the co moves from 'risky' explorer to 'tidy' earner.

anyone else can feel free to join this thread


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## shakes (12 September 2007)

I hope you are right about AZC, I hold these and I worry they will turn into another bmx, only time will tell.


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## prawn_86 (12 September 2007)

I dont know what your investing strategy is, but my plan is to hold until full production is realised and then re-evaluate from there.

historically re-ratings do occur when cashflows begin.

I am also originally from the area the mine is in, and know that they have been advertising for jobs for a while now and that as the CEO said most of them are filled. If i was to work at a mine i would rather live there than somewhere i had to fly in and out of. All the regional newpapers have had stories about the economic benefit they will bring to the region, which will be good in the middle of a drought.

But as you say, only time will tell, but i am confident with my holding.


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## greenfs (12 September 2007)

potofgold said:


> Very underrated stock at these prices.
> 
> Production to commence in Aug. Payback over three years at $15m pa.
> 
> ...




Well with hindisght you might have doubled your money PROVIDED you sold on 05/07/2007. Apart from that day your bold prediction looks ???


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## shakes (12 September 2007)

Where did you get your stock today (azc) @ 21c? Today there were only 4 trades, (one was mine at 25.5) todays trading range was 25.5 - 26c, I would buy more at 21c!


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## prawn_86 (12 September 2007)

that was posted way back in Jan.

Production is running a bit behind schedule, as just about every mine development does. I can handle a couple months behind, better than a couple years.

I hold from 26c and am very comfortable with it. Exit above 40c if all goes to plan


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## shakes (13 September 2007)

Sorry read the thread wrong, thought I'd missed something. I'll increase my holdings of AZC at 25-26c.


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## prawn_86 (25 September 2007)

report out last night states that everything is still on track and under budget, with cashflow to start by end of september 07! 

even if it isnt till october im still happy. full production scheduled for march next year.

PFS of WIM150 due to be complete by the end of the year also, and if all goes to plan they will be able to develop WIM with the profits from Mindarie.

IMO this will begin to appreciate as it moves from explorer to producer in the next 4 - 6 weeks, and then hopefully finds a base around 40 - 45c.


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## prawn_86 (28 September 2007)

Ann out today stating that all is on track and below budget. 

They have begun mining and first delivery of concentrate to occur mid october.

This is a totally unhedged company that have already sold as much as they can dig up, and payment is made when the product reaches Port Adelaide, not China.

All starting to line up and still cheap at these prices imo considering they will have cashflow within 4 weeks maximum.

I am originally from the area and i know that they have been doing a lot of things on a corporate level such as event sponsorship in order to get themselves to be seen as part of the community and it certainly is working. 

Report on Stateline about them tonight

http://www.abc.net.au/stateline/sa/default.htm
transcript will be up there shortly


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## prawn_86 (8 October 2007)

another production update.



> Railings will commence towards the end of October, with first shipments scheduled for early Novemeber.




all falling into place  also worth noting that payments come through when the product reaches the Port by rail, not when it reaches China


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## prawn_86 (5 November 2007)

First Ilemite shipped off today, with Zircon and the rest expected to be shipped within the next couple weeks.

All starting to fall into place. Their products have already been contracted and China will take as much as the dig up.

Also, payment is made as soon as the minerals are on the ship, not when they reach China

Lets see what the market thinks...


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## roland (5 November 2007)

Do you have any idea what the value of the shipment was? They didn't mention it in the announcement.


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## prawn_86 (5 November 2007)

No, I only have the announcement info also. I might try to talk to the MD tonight, as I have been in contact with him previously.

Personally I dont think the value would have been much. Prob less than 500k as ilemite is the cheapest of what they are mining. this is just a guess though.

The main positive from the announcement is that the mine is up and running and cashflow has started and it will only increase from here


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## Sainter (5 November 2007)

Their website says
 Ilmenite  Australian concentrate, min 54% TiO2, FOB
Bulk concentrate 	US$75 - $85/ tonne
Spot prices 	US$70 - $90/ tonne

If we assume upper of US$90/t ~A$100/t, then 300t = $30k. Not huge, but a start!


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## prawn_86 (5 November 2007)

If they dont want the 30k they can send it my way 

Like I said, the amount isnt important. Its the fact that mining (and cashflow) have begun


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## prawn_86 (4 December 2007)

First cash has been recieved and another load of Ilemite and the first batch of Zircon has been sent off.

Excellent announcement and good to see this co get on with things with a limited amount of fuss.

Now all is needed is for the market to recognise the potential here...


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## banska bystrica (9 January 2008)

Bought these today at 19c. Bargain long term. Short term weakness is due to some operational issues with the commissioning and general market weakness. The front end is fine but there are some technical problems with the back end. Nothing fatal, but nonetheless frustrating and hence the commissioning has taken longer than orginally expected.
EPS expected to be around 6c so currently on a prospective P/E of 3.


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## prawn_86 (9 January 2008)

Yeh I think these guys are getting slammed on a combination of the market, and the poor performance of Iluka which is the sector leader.

People dont seem to realise ILU's fall is due to poor management rather than lack of demand, so they tarnish other mineral sands producers also. 

I like mineral sands as they are so easy to get going, unlike other commodities. 

Upside: 
Already producing, Receives payment when product reaches the port not China, has forward sold all product with 75% (I think) hedged against the currency, co it has sold to will take as much as they can supply, reliable management, will be increasing throughput

Downside:
Poor marketing, Iluka fiasco, possible problems to increase capacity (same with any mine)


I think that they will start to get recognised when a financial report comes out showing positive cashflow.

Remember they have more than the one project


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## technobabble (2 February 2008)

I've been bullish on this stock for at least the last six - eight months but only entered a little over a week ago at - wait for it - $0.14.  Why didn't I enter earlier?  Just gut feel.  The market wasn't acting the way it should given the announcements.  When I was convinced it 'couldn't go any lower' (famous last words) I coughed up.

Given the close on Friday, I'll probably add to my position on Monday because, if anything, I think they look like a cheap buy for Iluka or any other producer.  It's only money!


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## prawn_86 (13 February 2008)

Letter to shareholders today stating that if all goes to plan pre-interest and repayment revenue should be around $20 million.

Perhaps these guys are finally pulling their finger out when it comes to the marketing side of things...

Waiting, waiting


EDIT - this should put them on track for 5c eps, once you take out loan repayments. No tax due to the fact that they have accumulated losses. Accountants correct me if im wrong...


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## Sainter (13 February 2008)

I haven't read their update, but revenue as I understand it is incoming cash PRE costs, ie not profit. So what are the costs as I assume you have to take them off the $20M also!


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## prawn_86 (13 February 2008)

Yes sorry Sainter. 

Say interest payments of $5mill would leave $15 mill and then costs would need to be taken out of this. Not too sure as to how high/what the costs will be.

Will be nice to find out...


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## prawn_86 (13 February 2008)

Actually, a clarification has been released to the market.

They are expecting EBITDA to be $21 mill providing all goes to plan. IE - production stays as is or higher. 

Take out say $6mill to pay off loans etc leaves $15mill.

15mill / 290 mill shares = 5.1c EPS.

Its all falling into place now ... hopefully


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## prawn_86 (13 March 2008)

Ok lets do a comparison between AZC and IMA (here you go Grace  )

*AZC​*Market Cap - $40 mill

Plant already built and operating at 600tph. Shipments have been going out for the last 5 months and money is paid when the product is loaded on the ship.

Projected EBITDA of $21mill so approx profit of $15mill = 5cps

Therefore current PE is approx 2.8

Other tenament is WIM150


> total combined resources for the project total 177.5mt @ 3.2% HM. Given
> only approximately 15% of AZC tenements have been effectively explored,
> further upside is possible.




*IMA​*Market Cap - $100mill approx

Still in exploration stage. 

Grace stated:


> Look back at all of their drilling. They have HM to surface at very high grades. Broker estimate some time back was 100 - 200 mill tonne at 10%. A considerable amount of drilling has been done since. This is on just one deposit, and they still have lots of drilling to go on this deposit, let alone their other deposits. One other deposit is 9km wide x 28km long. That should be a beauty when they finish there.




Broker report:


> Geopeko classified Bidaminna as an Indicated Resource totaling 44Mt @ 3% HM, however as some minor aspects of the original data can no longer be verified, Image is confident that Bidaminna can be classified as a JORC-compliant Inferred Resource.




they do however have high grades, and a lot of other tenaments




So as you can see a similar resource, although IMA is likely to get upgraded in the near future.

AZC however is already in production, so it is at least a minimum of 1 yr ahead of IMA and has no worries about dilution or funding or anything of the like.


This to me shows 2 things:
AZC is undervalued on a number of factors
IMA is possibly overvalued (although i have not done in depth research)


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## prawn_86 (14 March 2008)

Email recieved today from Jim Wilton:



> Prawn,
> 
> Regarding your enquiry about the share price, we too are disappointed with it’s current levels.  Obviously the market in general, and mineral sands in particular, are fairly “soft” at the moment, but even so, under any measure prices of 13-14 cents per share grossly undervalues the company and our prime asset, the Mindarie Zircon Mine.
> 
> ...




Pretty standard response. i asked about hwat marketing efforts are being carried out, but he glossed over that bit nicely...


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## prawn_86 (14 March 2008)

When questioned further about the marketing efforts Jim had this to say:



> Some of our Directors are very involved in the marketing of our Company to the investment community.  In fact 2 of them are in Toronto as we speak, after having been in London last week.




Hopefully they can convince a few Cannucks to buy in


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## grace (14 March 2008)

prawn_86 said:


> Ok lets do a comparison between AZC and IMA (here you go Grace  )
> 
> *AZC​*Market Cap - $40 mill
> 
> ...




Hi Prawn
The resource we are waiting on is Cooljarloo and Cooljarloo North (which are neighbours to Iluka and Ti-west's exhausted mines but with plenty of infrastructure.  Can paint a nice picture there.)  "Cooljarloo" is only partly drilled.

The Bidaminna resource you refer to above is the deposit I think they have just purchased next door to their deposits they will start drilling soon.  Bidaminna is 18km x 500m and due for drilling April/May.  I guess buying the deposit next door would be cheaper before rather than later.  

The deposit that I hope will put Image into the real limelight (above Iluka) will be the one that is next door to Diatreme resources.  28km x 9km.  

Image have been hitting very high grade to surface which should make for very profitable mining.  

As I said, hard to compare.  MC of Image is for future growth expectations in my opinion.  At the end of the day, I am happy with my holding in Image.


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## prawn_86 (14 March 2008)

grace said:


> As I said, hard to compare.  MC of Image is for future growth expectations in my opinion.  At the end of the day, I am happy with my holding in Image.




Yeh Image certainly does have a lot of prospects with good grades, spread across a lot of tenaments.

I just find it strange how the market can price a producer and an explorer so differently.

Im certainly not saying image is a bad stock, i just feel it reflects how undervalued AZC is.


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## r m (14 March 2008)

Prawn

I think we have to accept that zircon isn't very interesting for most investors.

Personally, I love the idea of a company making a profit, and paying dividends from that profit, by shipping sand thousands of kilometres to China.

I own some Astron shares (ATR).  They are involved in selling zircon, etc to China.  The ATR thread on this site is dead so I know what it is like to post to yourself.

You could also look at ATR but there are issues to consider - recent sale of Chinese end of the business, government intervention in joint mining venture in Africa, change of focus of the company to titanium, etc.

I plan to keep an eye on AZC.  Do you have anything on the quality of the managment?  It would be interesting to look at their CV's and their previous business successes / failures, etc.


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## prawn_86 (14 March 2008)

Hi R M,

Last time i looked at ATR they had been in suspension for not putting their books in on time...  That was a while back admittedly. Just after they had agreed to seel whatever it was they were selling.

Re: Management (note that this is all research aside from what is presented on their webpage: http://www.australianzircon.com.au/directors-and-executives.php) - 

Michael Kiernan used to be on the AZC board, he resigned early last year (from memory) citing too many other commitments.

CEO - Jim Wilton


> Jim Wilton is a graduate of Geology and Economic Geology from the University of Adelaide, and a graduate in Business from the Queensland University of Technology.  He started his professional career as a Geologist in the mining and exploration industry in Queensland, initially in the coal sector in the Bowen Basin, then moving into gold-copper operations in the Hodgkinson Province west of Cairns.  He then transferred into business development and resource assessment roles within the coal and energy industry in Brisbane.  Jim then spent the next 10 years leading teams assessing merger/acquisition and business development opportunities in the energy, oil and gas sectors, based in Adelaide, South Australia.




Exploration Manager - Gerard Bosch
couldnt find much external stuff.

Chairman - John Branson 
Is a non-exec director of AED 
And also the Chairman of Stuart Petroleum
And the Chairman of Pembroke school, of which my college principal is also a director


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## Tukker (23 April 2008)

Noticed recently that while profits have been slammed with a high exchange rate, world production is also expecting to slow.  

http://news.theage.com.au/cosolidated-rutile-expects-profit-fall/20080417-26s9.html

David Robb made a short comment on Consoladated Rutile's profit decrease. "He also said reduced output from rival suppliers in Indonesia and South Africa would benefit the company."  Which basically tries to put a silver lining on it all.




> Yeh Image certainly does have a lot of prospects with good grades, spread across a lot of tenaments.
> 
> I just find it strange how the market can price a producer and an explorer so differently.




Maybe its because AZC is a producer at a time where adverse conditions for being one prevail. My thinking is maybe its actually better to be finding the stuff now so you are ready to position yourself for the change of tide. I don't think Image will ever mine on its own even through a JV, i so it makes for a good takeover target by neighboring Iluka.

I enjoy reading your thread here. Cheers for those who have contributed

_i have a IMA position. _


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## solomon (18 May 2008)

Has anyone got any current thoughts on AZC?  With such a low PE one wonders when the market will wake up?


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## fodder-oz (24 June 2008)

Any idea why this stock has a trading halt atm? The value of this stock looks to be undervalued. Good news I'm hoping for on this


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## prawn_86 (24 June 2008)

fodder-oz said:


> Any idea why this stock has a trading halt atm? The value of this stock looks to be undervalued. Good news I'm hoping for on this




I would say either an acquisition of some sort, or a capital raising, if the plant is not up to scratch.

They have been pretty sketchy on details and have not provided actual tonnage figures, so it could be that the plant is not performing as expected. Although im just theorising here. Hopefully not for holders


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## solomon (24 June 2008)

Well I'm either going to be one lucky camper or kicking myself in a few days time, as I sold out 80% of my holding yesterday. The worst of it is that I now have to wait to see


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## fodder-oz (24 June 2008)

http://imagesignal.comsec.com.au/asxdata/20080624/pdf/00853696.pdf

Australian Zircon requests its securities to be placed in pre-opne until the commencement of normal trading on Thursday 26 June 2008 pending the release of an announcement in relation to capital raising.

Hopefully this mean good news. Whats people's opinions?


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## solomon (24 June 2008)

Well I've just been absolutely hammered by SBM's capital raising, so recent experience clouds my judgement.

In principle, I guess in a bull market a capital raising might bode well, with expanded capacity or new projects a positive. But in this market it might be a negative because it potentially dilutes my holding in favour of hoped for future revenues when the current revenues are yet to really roll.


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## prawn_86 (26 June 2008)

Hmmm, now suspended from quotation as they went past their trading halt deadline. They say it will be resolved by tomorrow morning, but to me it indicates that someone (external or internal) was unhappy with the situation. 

Perhaps they were going to extend their overdraft but could not do as much as they hoped. (pure speculation)

EDIT - Could another possibility be the bank calling in the loan?? (more speculation)


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## solomon (27 June 2008)

Still no news and no news is if not bad news, then at least getting me and my very small parcel of shares very worried. For all you holders' sakes lets hope for a Takeover offer at a 300% premium.


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## CAB SAV (1 July 2008)

Mate of mine told to buy AZC by his broker when they were 29c. My mate just called & said he noticed a new Substantial Holder-Address-Cayman Islands-He's out.


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## prawn_86 (1 July 2008)

Its obvious by the placement that they are not cashflow positive yet, which is a shame for holders (my old man included).

There must be something going wrong with the plant, perhaps the sands are too fine, and they are not extracting as much as they thought. Who knows? Its been 9 months and they cant get it profitable yet, thats a worry. How are they going to go at WIM150 where the sands are even finer...


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## solomon (3 July 2008)

AZC was positive today and that does bode well, even if there isn't much market depth. I'm back in again and perhaps they genuinely are looking to expand the current operation now that it is going full steam ahead. Afterall there was a recent announcement about the first full train pulling out from the factory!

One has to be very brave (or stupid) to have money in this market at the moment.


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## solomon (8 July 2008)

Market depth has dried up, as well as trading in recent days, but the price hasn't collapsed.

There also hasn't been much information forthcoming about the operational situation, or how the funds raised are to be used.

All in all AZC remains a mystery.


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## fodder-oz (8 July 2008)

solomon said:


> Market depth has dried up, as well as trading in recent days, but the price hasn't collapsed.
> 
> There also hasn't been much information forthcoming about the operational situation, or how the funds raised are to be used.
> 
> All in all AZC remains a mystery.




Yeh it does remain a mystery, they had a release I noticed that said the funding was to get the operation up to 750 tonnes per hour.

"Proceeds of the capital raising will be used to increase the capacity of the mine from 500 tonnes per hour to 750 tonnes per hour throughout and for working capital"

 If it can get operational and make profits anytime soon the price should go up.  Seeing they are now at 12.5c up 0.5c today. 

Interesting their broker reports reckon it should grow to over 30c, but being in a bear market with lots of sellers and people trying to make quick profits I think it's going to be a fair while before we see movement, unless some positive news comes out soon after they have capital raised. How long it will take for capital to be raised is anyone's guess.

Oh well glad I don't have alot invested in this. I'll continue to wait and see.


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## fodder-oz (8 September 2008)

Good news for those who have these shares up 26% today. Postive news on the recent expansion.

Operations at Australian Zircon’s wholly-owned Mindarie Mine are now cashpositive
and the rate of export of Mindarie products has progressed from one
trainload weekly to two trainloads weekly.
Exports will further increase to three trainloads weekly by year’s end. At this rate
of production Mindarie operations are expected to deliver annualised EBITDA
earnings of approximately A$21 million.
The Company plans further expansion of production during 2009.
Project earnings


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## prawn_86 (8 September 2008)

Took them nearly a year to get cashflow positive in the end. Im not sure about the geology of Zircon and how difficult processing and commisioning normally is, but good to see it is up and running cash flow positive now. Shame they had to do a cap raising and dilution only about 6 weeks ago.

Also good to see that earnings forecast are still the same, so it will be intersting to see if the SP can slowly recover to its old highs. Not expecting a miracle as a lot of people would be wary now...


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## solomon (9 September 2008)

prawn_86 said:


> Took them nearly a year to get cashflow positive in the end. Im not sure about the geology of Zircon and how difficult processing and commisioning normally is, but good to see it is up and running cash flow positive now. Shame they had to do a cap raising and dilution only about 6 weeks ago.
> 
> Also good to see that earnings forecast are still the same, so it will be intersting to see if the SP can slowly recover to its old highs. Not expecting a miracle as a lot of people would be wary now...




I've been holding on all this time and just today am at break even. I'm hoping for better days ahead, but I suspect that it may take another quarterly report before there is too much action. People may want to see some consistent runs on the board.


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## solomon (19 September 2008)

*Re: AZC - Australian Zircon - trading halt?*

Has anyone heard anything regarding the AZC trading halt? The last time they went into a trading halt it was for the capital raising which was bad for the share price. It must be something need some time to work on because they have asked for a halt through to Tuesday morning, anyone ... ?


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## prawn_86 (19 September 2008)

*Re: AZC - Australian Zircon - trading halt?*



solomon said:


> Has anyone heard anything regarding the AZC trading halt? The last time they went into a trading halt it was for the capital raising which was bad for the share price. It must be something need some time to work on because they have asked for a halt through to Tuesday morning, anyone ... ?




It says it is "in relation to a working capital facility with Crescent Gold Ltd".

Crescent are a small cap producer/explorer with exploration in SA (not near AZC though), Laverton gold project (950k oz indicated resource)in WA and Uranium exploration in the NT.

So i dont really see what they have in common with AZC...


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## solomon (19 September 2008)

Thanks prawn, that just adds mystery to the intrigue. I guess its a case of wait and see. I hope it isn't bad, a bad announcement could make me lose my confidence with this one.


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## fodder-oz (19 September 2008)

Found some news on Crescent Golds website. What do we think will this bump price up or down I suspect?


Working Capital Facility/AZC/Crescent Gold Negotiations
Crescent Gold Limited is pleased to announce that today it has agreed to provide a $4 million
working capital finance facility to Australian Zircon NL. As part of that facility, Crescent Gold
is granted the right at any time during the 3 year term of the facility:
(a) to convert up to 50% of the amount of the loan plus accrued interest thereon less 50%
of any cash repayments made to AZC shares (subject to any necessary shareholder
approval) at a conversion price equal to a 15% discount to VWAP in the 14 days prior
to the date of first drawdown under the facility;
(b) to elect to convert $2 million of the balance outstanding under the facility to a 2%
gross smelter royalty interest (capped at $20 million) in AZC’s interest in the WIM150
project;
The facility must be redeemed in full in the event of a “change of control” of AZC occurring (a
person acquiring 40% or more voting power in AZC).
Crescent Gold will also be granted, on first drawdown under the facility, 39 million AZC
options exercisable at a 15% discount to VWAP in the 14 days prior to the date of first
drawdown under the facility, expiring 5 years after the date of grant. If a “change of control”
of AZC occurs Crescent may require that these options be redeemed for a cash consideration
as determined by an independent expert.
Further, Crescent Gold is pleased to advise that the two Companies (AZC and Crescent Gold)
have also agreed to enter into negotiations and due diligence processes regarding possible
corporate opportunities involving the two Companies, including a potential merger.
Further details of progress with these negotiations will be provided as and when appropriate.
Crescent looks forward to these negotiations as it considers the strategic assets of the two
entities could provide a unique opportunity to create long term benefits for both shareholder
groups.


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## solomon (19 September 2008)

Thanks for the info, well found.

My gut feel is down, it seems like AZC has given up a lot, just to get $4m. Now that mindarie is cashflow positive why do they need the cash?

It looks like AZC has given Crescent a sweetner to merge, but why diversify into gold when you're a zircon miner?

I'll be eagerly waiting to read the justification / explanation.


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## solomon (22 September 2008)

Well I'm a bit surprised that AZC held up today, maybe there is more to this than meets the eye. I still don't see why AZC should need working capital if mindarie has turned cashflow positive.

Hmmm ....

Because no one else posts here musch I'll just use this space to spill the ramblings of my mind, to sell or hold is the question?


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## prawn_86 (23 September 2008)

Seems to me that management have very little idea what they are doing.

It took them nearly a year to get cashflow positive, when they said it would be much quicker than that. They did 2 partially filled capital raisings in that year, when one should have sufficed (include a bonus option to increase uptake), now they go and get a paltry 4mill from a company that no one knows much about and give away a lot just to get that 4mill, which technically they shouldnt need.

Reeks of incompetence


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## solomon (24 September 2008)

Okay I'm all out of AZC at 0.09. It was a hard call as I lost 15% , but I just can't trust managment, I don't like their approach. Mindarie has so much potential as a 100% zircon play, but this CRE thing has me worried. Signing off from this thread unless it drops to 6 cents.


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## CAB SAV (27 September 2008)

The common denominator between AZC & CRE is TAYLOR COLLISON
I'm not going to say anything else other than TAYLOR COLLISON
Just in case you missed it, TAYLOR COLLISON.
I'm not inferring anything else.


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## fodder-oz (13 October 2008)

yes i read the taylor collision report on their website. I guess fy09 they look to be making some money. not sure if we are going to see prices move upwards anytime soon in this bear market.


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## solomon (29 October 2008)

Well I said I was out unless the price went to 6c or below, today I've dipped a toe in at 4c. Anyone else out there interested, 4c is not much to pay now she is cash flow positive.


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