Australian (ASX) Stock Market Forum

A1M - AIC Mines

A1M has announced an increase in Mineral Resources at the Eloise Copper Mine to 137,200 tonnes of contained copper and 118,800 ounces of contained gold, representing a 19% increase in both metals. Ore Reserves have increased to 52,600 tonnes of contained copper and 43,100 ounces of contained gold, representing a 46% increase in copper and a 32% increase in gold.

The primary source of the increases in Mineral Resources and Ore Reserves is the Lens 6 deposit, which A1M discovered in September 2022, and remains open up and down dip and along strike.

Today's announcement is quite long and contains a lot of data and is worth reviewing in full. It is fairly clear that Eloise is going to be around for a long time, potentially 20 years or more. For A1M to increase Mineral Resources and Ore Reserves this much after six months of drilling means that the amount of undiscovered copper and gold within A1M's tenements is probably very substantial.

The real question is whether they can keep the AISC figure low enough to generate substantial profits from Eloise. If the copper price remains over US$4 per lb and the AUD/USD exchange rate remains favourable then it will be a very profitable mining operation.

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The stagnating state of Australian copper mining revealed by A1M CEO Aaron Colleran with the claim that they (a ~$170m junior) are now the country's forth largest copper miner on the ASX.

 
A1M announced the maiden ore reserve for the Jericho Copper Deposit today. Overall the grades look good with plenty of copper in the ground to feed the Eloise mill for quite some time. However, not much share price movement following the announcement.

I don't think that the share price currently reflects the true value of the company.

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More good assay results through from the first 10 drill holes at the new drilling campaign at the Jericho Copper Deposit. This is just the beginning of the new flow from this latest campaign. 26 more holes have already been drilled with another 32 yet to be drilled.

Management determined to grow the known reserves at Jericho. The next few months should be interesting.

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Aaron Colleran has stumped up $142,710.01 to buy 444,444 shares in A1M at an average price of 32.1c. 444,444 shares? Does that number have a special meaning I wonder? Seems very deliberate, almost superstitious.

Aaron also managed to ramp A1M in his tweet by suggesting that it is worth more than 50c. Is he right? Maybe. Time will tell.

 
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Ongoing resource extension drilling at Jericho North reveals new "Swagman" high grade shoot.

The grades from this round of assay results look very good and the depths vary from 62m to 491m so it looks like high grade copper mineralisation is found at various depths, which may indicate that they have just scratched the surface at Jericho.

The A1M share price should see a bounce this morning.

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Diamond drilling has commenced at two targets 20km west of the Eloise mine for the purpose of increasing copper reserves. Both the Sandy Creek Copper-Gold Prospect and the Artemis Polymetallic Prospect are within trucking distance from the Eloise mine and are prospective for copper and gold.

The more copper reserves A1M can build around the Eloise mine the better.

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Jericho starting to deliver the goods for A1M. Updated MRE reporting a 59% increase in contained copper and 60% increase in contained gold. The mineralisation is open along strike and at depth.

Management has been playing a very careful game of chess for the last few years and their takeover of Demetallica Limited and their acquisition of the Jericho deposit could end up being one of their best moves.

Still largely flying under the radar but one day A1M will have its day.

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I hope you are right Greggles. I’ve taken a fair punt on this one and have been very patient.

I sincerely hope your patience is rewarded. One of the things I like most about A1M is they way they have built their own cash pump into the company by acquiring the Eloise mine. I have held many explorers in the past who explored their tenements and then needed to raise more cash to carry on developing the project. When they ran out of that cash they needed to raise more and they kept on doing CRs at lower and lower prices.

Eloise will hopefully generate enough free cash flow to enable management to target the most prospective exploration projects in their portfolio and drill without needing to do CR after CR. They have already started drilling at the Pyramid Gold Project near Charters Towers with some very promising results.

It's going to take time, but I'm convinced that A1M will deliver the goods in the end. But yes, you most definitely need patience.
 
Aaron Colleran, MD and CEO of AIC Mines (A1M) presents at Unearthed 2024. Worth watching for those interested in the company, or copper.

Copper production increasing and costs coming down.

 
A1C Mines is in its best shape ever, while the stock price is at a low price. That's the stock market for you.

I've been monitoring this for a reversal setup, still waiting.
 
A1C Mines is in its best shape ever, while the stock price is at a low price. That's the stock market for you.

I've been monitoring this for a reversal setup, still waiting.

I was impressed listening to Aaron Colleran speak about the company. He's very switched on and has big plans for the company. The Cloncurry district is brimming with copper deposits and is a great place to build a small copper mining empire. The key to A1M's success will be bringing down the Eloise AISC, building their reserves and acquiring further mining production assets.
 
The falling stock price will make it harder to attract investors. The CEO didn't mention any reasons for the falling stock price but clearly there must be some risks that he is unaware of or unwilling to mention. The market participants aren't buying into the company's narrative at the moment.

Edit: A1M isn't the only copper miner with a falling share price (AIS, 29M).
 
The falling stock price will make it harder to attract investors. The CEO didn't mention any reasons for the falling stock price but clearly there must be some risks that he is unaware of or unwilling to mention. The market participants aren't buying into the company's narrative at the moment.

Edit: A1M isn't the only copper miner with a falling share price (AIS, 29M).

The share price isn't in a good way at the moment, but I am also looking for an entry and will be looking to take a position around 26.5c which is where the double bottom was back in October. I think it will bottom out here again unless the copper price collapses.

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The POC has rallied like a champion the last few days, but almost all copper stocks haven't followed. They've been depressed by the overall bearish market sentiment. When the sentiment improves and the USD falls, copper (and gold) may rally hard.

As you're more of an investor than me an initial parcel near this low is a reasonable gamble (along with AIS, 29M). We can both buy (more) when the share price starts to rally.
 
Half Year Ended 31 December 2023 financial results release today and it looks very good.

$2.23 million profit as compared to $5.2 million loss for the same period in 2022. $91 million in revenue as compared to $57.516 million for the same period in 2022. EBITDA $24.712 million as compared to $7.790 for the same period in 2022.

Yet the share price is only up 1.8% today.

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A1M has had a great March so far and looks like its about the break through a critical resistance level. Volume on the increase in recent days. Perhaps the market is finally catching on to A1M?

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A1M followed through and breached resistance at 35c but volume is now slowly declining so it appears to have run out of steam after peaking at 37.5c. It's still holding above 35c so am watching closely to see if it consolidates here and uses the 35c level as support now that it has broken through that level as resistance.

As always, the copper price will be the determinative factor with A1M so here's hoping it holds up in the coming weeks.
 
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