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1MC - Morella Corporation

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pedalofogus

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I notice there has not been any threads about this stock on ASF in the past, which surprises me given the amount of good news that has been coming out of this company over the past 12 months.

If there are any watchers of AJM in this forum, what are your thoughts on the latest round of sensational lithium results that have been reported by the company? Are you as surprised as i am to not see the company trading at 40 cents?
 
Used to be Haddington and a few years ago popular (theres a thread on ASF.)
I managed to buy high and sell low at the time!!:banghead:
Seemed to be a lot of promise but no delivery..
 
Hi Trevor, thanks for the reply.

I also have held shares since the 'old HDN days', but for some reason didn't think to check for a HDN thread when i was checking for AJM threads. haha oops.

If you haven't looked at the company since your initial trade on it, i reckon you should have another look at it. I believe it is the most exciting stock in my portfolio at the moment.

The management is totally different to the HDN days. The board of directors are totally different people to the old HDN. All bar one of the current directors is an ex New Hope (NHC) senior, and hopefully i don't need to give you the background of what those guys did at NHC (floated at 50c, now trading at 5 dollars...even after a 70c cap return).

As a result of the new management, they have cleaned out the 'underperforming' projects that the previous directors had left them with, and are building a brand new portfolio of projects including:

- 30% ownership of Iron Ore JV with AGO
- 100% ownership of promising lithium project
- 100% ownership of uranium projects
- Coal project in Indonesia

+ 20m cash in the bank

And it is no surprise (based on their backgrounds) that they are reportedly looking at additional Indonesian coal projects.

Anyway, that's just a summary of my research if you haven't been watching it lately.

Cheers
Pedalofogus
 
Agreed, very interesting article. Thanks

A newsletter i subscribe to (Aust. Small Cap Investigator) has been spruiking rare-earths stocks for a long time now, and has 2 of these stocks on it's recommendations list (being LYC and ALK). Both have run very hard since ASCI introduced them to subscribers, and therefore they are listing them as HOLD at the moment. I'm just not sure how much longer they can run for. But both appear to be very good companies.

AJM has stayed out of the sight of media and analysts until now, but this is starting to change. I am hoping for a run similar to LYC and ALK once the brokers etc continue to make recommendations on it (similar to the recommendation made by one particular broker recently).
 
Pretty good annual report out today. Their summary of projects at the beginning of the report really gave a good description of the projects on the go and where the company is headed.

These new directors are really warming to the task of keeping the shareholders informed. They are certainly doing better than the previous management of the company.

I also found their company vision (I guess that's what you would call it) very good as it gave you an idea of where the management has got it's focus:

Altura's specialty is to develop exploration tenements into value adding mining assets with a focus on:

Iron ore, coal and garnet in medium term
Lithium, coal and uranium in the future
Acquiring or developing new mineral projects
Click to expand...

I personally think that the focus on Li, Coal and U into the future is a very wise decision. I notice they also have some gold prospects in their portfolio, and I would like to see gold added to their focus, but that's just my opinion.
 
Finally some coverage for this little stock. Shaws have issued research report giving ajm value of 25c. Not as much as I would have thought, but they have admitted being conservative, and it is much higher than 15c current price.

Go to research report section of ajm website to have a look. Definitely a good read imo
 
Thx for the heads up on this one guys
Not a holder yet, but going to do some more research as i think the Li train is about to leave so to speak! IMO only
 
yes, i think it could be due to speculation of AGO takeover possibility. could also be due to possible resource upgrades coming up for Mt Webber.

another possibility is a random one........people speculating on AJM due to THX trading halt. THX trading halt is to finalise resource estimate for 'Thunderball' uranium project. AJM has 'Long Island' uranium project along strike of Thunderball and Bella Rose. Will be interesting to see what happens when THX announces next week.

Other possibilities include lithium results or tabalong coal approvals.

Do any other AJM watchers have any opinions?
 
Have taken a position in this company very recently following weakness in the general market.

Company has iron ore JV with Atlas - currently drilling (in-fill?), but timing wise it is a bit uncertain IMHO due to take over of GIR, making cash flow unpredictable.

Coal project in Indo is sort of going and coal quality seems quite solid. Transport route needs to be sorted out and some government approval needs to be sorted as ewll but board seems to have expertise in coal.

What really draw me to the company is its lithium prospect. Some drilling has been done and although the first resource released would be small and uneconomical at current lithium price, I believe the area is prospective for more discoveries. Grade is also impressive and the veins are shallow. Very few Asx companies have exposure to lithium.

As always please DYOR.

Disclosure
I have a material interest in the company.
 
Further lithium results today from pilgangoora. With more areas still to be drilled, resource could be as good or better than GXYs mt caitlin resource.

Pretty good for a company that has a market cap which is 1/6th of GXY, and also has other very promising projects (coal, iron ore, etc).
 
I like the feel of this company. 20c short term I reckon. Before buying, I'll wait for a decent day on our market and a bit more on the buy side (currently B:S = 0.83) AND a solid start to the day, maybe t/o of $200K by 10.30
 
Pre-open looking pretty solid today. Is that the sort of thing you are looking for GB?

Or is that you setting your position?
 
What I was looking for pedal, only that the big gap now means that it will probably trade around 20-21c for the rest of the day. I got in at open so I'm not all that happy with my entry. Should have got in on Friday. If we can get 5-6mill of volume today, that's a good sign for tomorrow's open, imo.
 
Yeah, Friday would have been a much nicer entry! But who knows, we might be a lot higher than this in a week.

Given that the company has advised that drilling results for the Lithium will continue to come through in coming months, and that AGO will finalise plans for Mt Webber DSO, and that approvals will shortly be through for the Indonesian Coal project, i wonder whether this is just some sort of technical pattern, or whether this is the pre-buying by people in the know before some sort of announcement in the coming days?

Wait and see i guess
 
It was the chart and the strong pre-open that drew me in, but it seems it has strong fundamentals to boot. Some nice sentiment floating around on the HC threads, such as: "a$ a$123 million for tty +$36 million"
 
Yes, AJM does seem to have a very loyal following on HC. There is one regular poster on there (Aksier) who rates it an excellent value stock and has a value on it of approx 70c per share. So even after it's solid move up to 20c today, I still believe it is really good value.

Article in SMH today (http://www.smh.com.au/business/outlook-for-iron-ore-prices-at-bubble-levels-20110522-1eywp.html) is very positive on the stock. Predicts net cash flows from the end of 2012 from the coal and DSO operations of $70million per annum, and then there is the cashflows from the lithium which will hopefully come in some time after that. So for a stock with a fully diluted market cap of $91million, $70million of cashflows is incredible.


But to be entirely honest, while i think the DSO and lithium are really good, the main thing that has drawn me to this stock is that the management team is made up of all ex-NHC guys (New Hope Group ASX:NHC). I got some shares in NHC when it floated for 50c, it is now trading close to $5 and has paid out a couple of bucks per share of dividends and capital returns in that time too. So for me the COAL is the major drawcard
 

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