Australian (ASX) Stock Market Forum

AOH - Altona Mining

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Altona Mining (management team headed by former Vulcan MD Alistair Cowden after Vulcan merger with Universal) has broken out on increased volume. It has had a recent speeding ticket from the exchange (and therefore may end up with another one today!), but its looking good.

On a fundamental basis it looks very cheap based on both its near to production Finnish copper project (based on recent high copper prices!) plus its Roseby copper project in Queensland. It has got only a market cap of 60 million based on todays price, and having consolidated its share capital after the merger has the potential to move much higher in share price!
 
Based on its market cap and the relatively low number of shares on issue I can see AOH moving appreciably upwards, both with its Finnish copper production now just a matter of time while the copper price is looking very attractive, AND its substantial copper resources at Roseby in Qld basically a free kick - with the possibility that Xtrata will add value to that! Just imagine, if AOH were to achieve a market cap of A$100 million (still a cheap level for its current assets) its share price would be 41 cents!!!

I think AOH has got considerable potential to go way beyond A$100 million market cap once Finland comes on line, let alone what Roseby may have in store for us all.
 
The lowish cost near production Finnish mine will no doubt be a booster and hopefully a market cap of over 100 million is not toooooooooooooo far away. Sp is heading in the right direction and 40c could be around the corner........hopefully. The Roseby project with xtrata on the sidelines is hopefully going to bennefit us all.
 
Hello everyone following AOH.
I have only recently been looking at Altona, and have a question about their latest quarterly report.

Quarterly Report September 2010 said:
The Outokumpu project is considered technically and financially
robust giving a low risk project scheduled to produce
concentrates containing an average of 8,000 tonnes per annum
of copper, 8,400 ounces per annum of gold and 1,600 tonnes per
annum of zinc. Production will commence in the first half of 2012
for a minimum of nine years. The average C1 cash cost per
pound of copper produced is estimated as US$1.33/lb.
Click to expand...

Do the cash costs for copper take into account the gold credits or because they are listed separately here are they both considered contributing to profit minus the costs?

I get around $10M / annum AU, $35M / annum Cu earnings after production commencement for the Outokumpu Project.
Now to restate what you already probably know; but what I like;
Roseby has further drilling results coming, drilling undertaken by XStrata and no cost to AOH, on targets deemed promising under an already good resource. ( Xstrata have a big interest in furthering this exploratory work for a 51% share)
AOH also reassessing their current resource model/results at Roseby, so there is upside here for further resource upgrades as well as their infill drilling currently being done to add to the picture.

In summary there is further news flow over the coming months and in the longer term there is a mine coming into production which will return good money. If the Cu price holds up, there should be a good gain here long term.

Please slice and dice what I have written; particularly if I have rose coloured glasses on.
 
It has taken me a while to understand this stock..........especially in the URL days. Never thought they had any money but after the merge some interesting news is about and that is mainly a possible mine on the way in Finland which looks good at todays copper price. The jewel in the crown is probably the freebie they are getting from Xtrata and my rose coloured glasses are also showing an upside in the sp in the not too far future. We should be seeing some more positive reporting soon as far as these 2 projects go

happy days
 
With a market cap of almost 100mill the current share ptice around 35c looks loke a good thing considering their future drilling and mining aspirations. Entitlement offer out at 2 for 5 for 31c looks good. Xtrata drilling planned as they are in the market for 51% share

happy watching
 
kingkev said:
With a market cap of almost 100mill the current share ptice around 35c looks loke a good thing considering their future drilling and mining aspirations. Entitlement offer out at 2 for 5 for 31c looks good. Xtrata drilling planned as they are in the market for 51% share

happy watching
Click to expand...

Great buy at under 30 cents IMO, large instituitions paid 31c to get on board and you can get it cheaper, cashed up with $70mil in the bank now and ready to fast track the project in Finland. Here is an interesting video on their progress in Finland so far:
http://www.altonamining.com/videos/virtual-tour-of-the-kylylahti-mine-march-2011
 
Holding a few and have been in and out a few times. Considering getting in and staying in as the future of this group this good. Xtrata is looking like the catalyst here and with Finland on its way I think getting in for the longer run could pay dividends.
 
Yesterday's run-up explained by the release yesterday of a research note by Foster Stockbroking, with an 80c price target. Carpe diem - Foster were one of the co-lead managers on the recent capital raising. However, some smarter institutional investors (such as value investor Perpetual) recently became substantial shareholders. Report available here:

http://www.altonamining.com/reports/broker-reports

I like the reinvigorated exploration campaign at the Roseby deposit. I was a shareholder in Universal resources (one half of the now Altona) and was always frustrated by the timid exploration campaigns of like, 5 holes for a couple of thousand metres. I held the company because I recognised they had some great assets - they just never did anything with them under the previous management. Another example, consolidating the fragmented small licences into a few, easier to manage, large ones seems like a low-cost way to save admin time and expense.
 
I held Universal for a while and like the restructuring. Roseby aappears to be the key here with Xtrata. Some movement in the sp and yes I would very much like the broker predictions to come true.

Cheers
 
exgeo said:
Yesterday's run-up explained by the release yesterday of a research note by Foster Stockbroking, with an 80c price target.
http://www.altonamining.com/reports/broker-reports
Click to expand...

Thanks "XG". I had missed that one ...... Price action makes more sense now:)

kingkev said:
I would very much like the broker predictions to come true.
Click to expand...

Ditto:D

Been accumulating a few of these for a while. I always thought once we got back above the recent issue price, the resistance should ease off ...... Looking like that may be the case if today has some carry through.

I have had this pinned as one of the lower risk "Spec" trades for this year .... next few months will be interesting.
 
A nice week for my portfolio. I really stocked up to 20% of my portfolio in AOH when the price fell to $0.22-0.26 in the Japan problem. Knowing that they had just done a capital raising at $0.31 was my reason.

Seeing great profits from this one after only 1 month.

Sometimes high confidence is useful.
 
Future prospects look good and after a capital raising at $0.31 I think that any buying around the 30c mark could be good considering Finland mines and of course Xtrata here.
 
Well that had to be one of the better promotional efforts from a Company Secretary that I have seen.

ASX issues AOH a please explain after their 16% rise in SP yesterday.

In his explanation Eric Hughs takes the opportunity to re-spruik the Research Report which gives a target of 81c per share.

Currently up another 7% today .....

Well done Eric .... nothing like free advertising with a twist:cool::D
 
Here! Here!

I was thinking the same

Strike while the iron is hot

Some great answers to their speeding report
 
Should be a few good trading cycles here as market catches up with broker valuations and underwriter off-loads [NB: don't rate Fosters - but will be interested in the other 2]
 
Nice break out today

Maybe the market is catching on

about time
The SP Nothern road looks like a long road so a fair way to go yet
 

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