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AET - Ausmelt Limited

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Ausmelt designs and supplies Top Submerged Lance (TSL) Smelting Technology. TSL is a high-intensity bath smelting technique with wide applications in the non-ferrous, ferrous, and precious metals industry. With over 25 years in the mining and metals industry, Ausmelt has achieved commercialisation of the process globally with the installation of twenty five furnaces processing copper, lead, zinc, nickel and PGM concentrates and waste materials.

In addition to its non-ferrous TSL business, Ausmelt is expanding its services & technologies to meet its mission of providing technology solutions across the metals production process chain. These technologies include ferrous TSL technology and mining flotation chemicals.

Ausmelt recently won a Major contract with the Chinese nickel producer, Jilin Nickel Group ( jilin ), China's second largest nickel producer. The contract will deliver revenues in excess of $5 million over the next 18 to 24 months. Design work is due to start immediately. The smelter with produce 220,000 tonnes a year of nickel-copper concentrates and 55,000 tonnes per year of nickel-copper oxide material. It will also recycle materials from the process. This is the third such contract won by Ausmelt this financial year.

Ausmelt also has an AM2 hydroxamate based mineral flotation reagent which has been developed and patented. This is used mainly to increase metal recoveries from a wide range of ore types and a wide range of applications.

Triako Resources (TKR) have a 25% interest in Ausmelt and Felix Resources a 2.5% interest through their 90% owned subsiduary S.A.S.E. Ausmelt has a 5% interest in S.A.S.E.

Ausmelt have purchased the Whyalla pig iron Demonstration plant from Felix Resources ( Felix hold certain rights through S.A.S.E. to repurchase the plant. )
ADC, 78.5% owned by Ausmelt and 21.5% by Felix Resources ( Felix interest has certain limitations and they hold the rights to shares in Ausmelt if ADC are not floated on the ASX by late 2007. )
The Ausiron(R) process for direct ironmaking is based on Ausmelt's commercially successful Top Lanced technology. ( Felix Resources hold full rights to the use of this technology in South Australia through their 90% owned subsiduary S.A.S.E. )

The Ausiron(R) technology builds on the non-ferrous success, with the process already proven at the purpose-built Demonstration Plant in Whyalla, South Australia.

A chinese steelmaker is currently undertaking a feasibility study based on a 500ktpa Ausiron(R) Module.

Ausiron has submitted a proposal for pig iron production using mining tailings.
Ausmelt is pursuing a project to establish commercial operations using its Whyalla Demonstration Plant. The plant will be reconfigured to a non-ferrous application, proven in commercial use elsewhere. Once established the project offers consistent revenues from primary and secondary processing operations.
 
Ausmelt closed at 57.5 cents in light trading on Wednesday, up from the 52 week low point of just 21 cents. The stock is a second liner in the metals business that has been overlooked, may move to test the 70 cent level.
 
Now at 72.5 cents, AET have already beaten my 70 cent target - new target $1.00. Has beaten many mining stocks in its leap from 21 cents.
 
A jump to 89.5 cents today by AET was the point I decided to unload half my stock. Should go on from here, however, it is quadruple its 52 week low.
 
I followed this stock for years noirua and took it off my watchlist last year Doh!.
Well Done!
 
Knobby22 said:
I followed this stock for years noirua and took it off my watchlist last year Doh!.
Well Done!

Hi knobby22, AET have been a bit of a disaster since FLX bought some stock in 2003. The MD remained confident about the companies outlook when new orders dried up, that included the ferrous side under the name ADC. Trading remains quite light, so the stock needs to be watched carefully.
 
First Lead smelter contract for China has pushed up Ausmelt's shares to 75 cents.
 
A report by Company Secretary and Commercial Manager, Mr Jim Fogarty, is generally confident on the repeat orders front on the non-ferrous side but less so on chemicals. Acquisition opportunities have proven too expensive and none have been made.
No comment on the ferrous side of operations was a little disappointing as Chinese and Indian interest was expected: http://www.brr.com.au/event/AET/31/14223/wmp/gclzjnx0h8
 
noiru

To me, the present price is slightly cheap.

The coming year will be good, and there is the added bonus of the chemical business as it improves.

I like the fact it is now producing dividends.

The reason I don't say it is a bargain is that the business does rely on the mineral boom continuing and on winning contracts. I would like to see it make bigger profits.

It is a good company though, and if the price drops much more it will clearly be a buy. I will put it back on my watchlist.
 
Knobby22 said:
noirua

To me, the present price is slightly cheap.

The coming year will be good, and there is the added bonus of the chemical business as it improves.

I like the fact it is now producing dividends.

The reason I don't say it is a bargain is that the business does rely on the mineral boom continuing and on winning contracts. I would like to see it make bigger profits.

It is a good company though, and if the price drops much more it will clearly be a buy. I will put it back on my watchlist.


AET does have the Triako factor coming into play as shareholders of the company receive free shares in AET as part of CBH's successfull takeover.

There are the ongoing costs on the ferrous side - no contracts signed as yet - with the development of the Whyalla, former iron ore to pig iron demonstration plant. S.A.S.E. ( 90% owned by Felix Resources, Ausmelt have a 5% interest) have certain options on shares in Ausmelt should ADC ( owned 78.5% by Ausmelt and 21.5% by felix Resources, the latter with some limitations ) -AET are managers of the project-, not float ADC on the ASX by 2007. Felix own 2.5% of Ausmelt and Ausmelt retain options in Felix, the latter at present having no value.

Ausmelt, imho, do need to diversify and failure to do so makes them highly cyclical.
 
A jump to 85 cents in the last few days has come as Triako Resources relinquish their substantial holding of 25% in Ausmelt - the grey cloud has been lifted.
 
After dropping back from 85 cents to 80 cents, AET have closed the week up 25 cents at 90 cents and compares to the low for the year of 32 cents - a goodbye Triako Swan-song.
 
Ausmelt are now charging ahead to $1.20 this morning. Triako having relinquished their 25% holding leaves this small company open to interest.
 
Radio broadcast showing a memorandum of understanding that should lead to an agreement with Zinoflex concerning Zinc residues at the companies plant at Whyalla: http://www.brr.com.au/event/aet/31/16294

Acorn Capital have become a major shareholder in Ausmelt, raising their holding to 6.78%.
 
AET have stood still at around a dollar or a little over for quite a time now. Up from lows of near 20 cents, this may be time called, on the stocks consolidation as the raft of exciting new contracts give Ausmelt reason to cheer.
 
S.A.S.E. ( 5% owned by Ausmelt ) sold its 100% interest in the iron ore deposits at Peculiar knob and Hawks Nest in South Australia; To Southern Iron Pty for A$750,000, shares in Southern Iron Pty worth A$450,000 - S.A.S.E. retain royalties over the Iron Ore Tenements.

Western Plains Gold ( now Western Plains resources ( WPG ) ) have since acquired Southern Iron.

WPG expect to start iron ore production in 2008 at a rate of 2 mtpa.
 

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