AGM - Allegiance Mining

[newbee]

(My name says it all!)
Have been reading up on charting and have been trying to follow a few stocks. I'm new to most of this so tolerate any ignorance.
This stock today up on better than normal volume and approaching what I feel is a strong resistance line.
Does anyone follow this stock and if so (or not) could someone have a look and offer their thoughts.
I try to combine conventional company research and some basic technical research but am trying to look at this one in a purely 'technical' view at this point.
All suggestions appreciated.

 

[Lachlan6]

Re: Allegiance Mining AGM

Howdi Newbee. Personally i would not be buying this stock until it breaks resistance at $0.16. This is very strong resistance and has repelled the price on three seperate occasions. It is forming a nice triangle ascending accumulation pattern, so if resistance is broken look for new highs above $0.21. Weekly chart looks relatively positive also with OBV supporting this stock nicely. I would personally be waiting from the side lines with AGM, waiting for either a break at $0.16, or a failure to the trend.

 

[porkpie324]

Re: Allegiance Mining AGM

agm watchers, i have had 2 bites at agm, i'm a reader of david haselhursts column in the 'bulletin magazine', anyway bought agm on his recommendation back in 2003 and sold the same nov at abut .17 nice earner then in again april 2004 sold again 3months later at .14 have been on my watch list since but no more purchases waiting for agm to dip to .10-.12.
my advice is cheap resource stocks don't follow technical analysis too well the action has been and gone by the time indicators signal a buy (or sell), so better to do some fundamental work or pick resource stocks that dig someting out the ground like mcr, igo, oxr,or another present explorer but looking good is tyc,
hope this helps, porkpie

 

[RichKid]

Re: Allegiance Mining AGM

AGM in trading hald after fire in a mine shaft, last traded around 14.5c

http://www.smh.com.au/news/national/trapped-miners-rescued/2006/01/03/1136050420821.html

Long term chart below, wonder how it'll come out of the trading halt, depends on the damage assessment which may take some time.

 

[Dutchy3]

Re: Allegiance Mining AGM

Hi Everyone

AGM seems to have reached its now or never point. Reasonable relative volume increases on the up days / weeks.

The weekly chart seems to make more sense than the daily.

 

[Dutchy3]

Re: Allegiance Mining AGM

BIG WHITE into NEW AIR, after a considerable period of consolidation.

Volume also reasonable today. Nice day to be a buyer

 

[Porper]

Re: Allegiance Mining AGM

BIG WHITE into NEW AIR, after a considerable period of consolidation.

Volume also reasonable today. Nice day to be a buyer

Don't agree there Dutchy, would have been better being a buyer yesterday

Interesting to see what happens tomorrow, may have profit taking for a few days, then continue north slowly ?

Anyway too much of an increase today to get my money.Hope it carries on surging for you.

 

[Profitseeker]

In a trading halt with the buy side building up. I am thinking about taking a punt on open. Anyone got any views?

 

[Profitseeker]

AGM - Allegiance Mining Announcement out

ASX ANNOUNCEMENT
21 April 2006
JINCHUAN SIGNS US$1 BILLION NICKEL OFFTAKE
AGREEMENT WITH ALLEGIANCE
Confirms strong market demand for new projects.
Emerging Australian nickel mining company, Allegiance Mining NL has executed an agreement
with China’s largest nickel company, Jinchuan Nickel Group Limited (“Jinchuan”) for the sale
of approximately US$1.3 billion worth of nickel-in-concentrates that will be produced from
Allegiance’s Avebury Nickel Project in western Tasmania. Jinchuan will provide financial and
technological support to the project so as to deliver maximum production as rapidly as possible.
The offtake agreement has the following features:
1. Includes all nickel concentrates produced from Avebury Resources announced on 9
November 2005.
2. Production estimates from these resources over the next 8-10 years totals approximately
70,000 tonnes of nickel metal contained in concentrates which, at prevailing nickel prices is
worth approximately US$1.3 billion (A$1.7 billion) in gross revenue before smelter charges.
3. We are advised that the smelter payments terms to Allegiance are amongst the highest paid
for nickel concentrates but the details are commercial-in-confidence. The increased revenues
that will arise from this contract are substantial.
4. These enhanced revenues arise because Avebury’s concentrates will be amongst the world’s
highest grade (above 20% nickel) and fit well with Jinchuan’s current expansion program
which will double its nickel production to 150,000 tonnes of nickel metal per annum by 2008.
5. For any nickel concentrates sourced from new resources outside the limits of the 9
November 2005 resources, Jinchuan will have the first right to enter into negotiations for
securing those additional concentrates.
6. Senior Jinchuan executives and technical experts have reviewed the project details for more
than three years and enthusiastically support Allegiance’s plans to commence construction.
JINCHUAN FINANCIAL SUPPORT
An A$5 million subordinated loan and the grant of 25 million options expiring in 15 months
with an exercise price of 28c has been completed. Jinchuan have expressed an interest in
participating in future capital raisings in support of the project.
JINCHUAN: CHINA’S LARGEST NICKEL PRODUCER; EXPANDING RAPIDLY
Jinchuan Group Ltd is a Chinese state owned company located in Jinchang, Gansu Province,
northwest China with assets of 18.6 billion RMB (US$2.3 billion) and 31,000 employees.
ASX Release 21 April 2006 2
Jinchuan is China’s largest producer of nickel, cobalt and precious metals and an important
copper producer. Jinchuan produces approximately 90% of China’s domestic nickel production,
having produced 91,000 tonnes Ni in 2005. It is increasing its installed nickel smelting and
refining capacity to 150,000 tonnes of nickel metal per annum by 2008, a target which requires a
significant increase in imported supplies of nickel concentrates.
The off-take agreement between Jinchuan and Allegiance is mutually beneficial. Nickel
concentrates from the Avebury Nickel Project are ideally suited to Jinchuan’s business
expansion plans due to their high nickel contents and overall premium quality. Allegiance’s
sales to Jinchuan exposes investors in Allegiance to the world’s fastest growing nickel smelting
company in the world’s fastest growing nickel market, China.
JINCHUAN TO PROVIDE TECHNOLOGICAL SUPPORT
Jinchuan has conducted detailed metallurgical testwork on bulk ore samples taken from the
Avebury orebody and has expressed confidence that metallurgical enhancements can occur in
the early years of the project so that metallurgical recoveries of nickel from the ore can
significantly exceed the recovery rates assumed in the Avebury feasibility Study.
Jinchuan will provide, metallurgical experts and other key personnel to ensure that the project
can develop to its maximum potential as rapidly as practicable. This supply of expertise is most
welcome during these times of extreme skill shortages in Australia’s mining industry.
Li Yong-jun, Chairman and CEO of Jinchuan, said: "We have had a longstanding relationship
with Allegiance and are very pleased to be able to offer our support to the company as it
develops the Avebury project. We believe that there is significant potential to increase the
resource base at Avebury and expect that, over the longer term, the production rate will also
increase.”
AVEBURY NICKEL PROJECT STATUS
The treatment plant flowsheet for the Avebury project is nearing finalisation as the final
technical results from the successful full-scale milling trials at the Hellyer Mill in Tasmania are
received and finally assessed.
Once the flowsheet is “frozen” (ie. locked into its final configuration), Allegiance will place
orders for the purchase of the main long-lead items, including the ball mill and other major
treatment plant items. The Avebury Mine plan will then be finalised so as to deliver an ample
supply of nickel ore to the treatment plant well ahead of mill commissioning. To ensure timely
availability, all long-lead items for the mine have been ordered or are in the process of being
ordered.
CHAIRMAN’S COMMENT
From the earliest discovery days we have kept our Chinese friends at Jinchuan acquainted with
progress at Avebury. It is with great pleasure that we now enter into a long term Nickel Supply
Contract with Jinchuan Nickel Group. Tasmanian nickel will now contribute to Chinese
development to the mutual advantage of both Tasmania and China.
ASX Release 21 April 2006 3
Both companies will work closely to ensure the maximum benefit of Tasmania’s first modern
nickel mine for all stakeholders.
A formal signing ceremony will be held in China in the near future.
Our next steps are construction, production and location of our next deposit!!

 

[tech/a]

In at .36c

 

[Profitseeker]

Really. I sold what I was holding at 38 and did not buy more once I saw the announcement. i could not see where more wind was going to come from in the short term. Where do you think it is going to come from Tech A? I am going to wait and look for another entry though.

 

[tech/a]

Think its a longer term play.

I expect that there will be some accumulation.

 

[Profitseeker]

Hmm. Well I hope I get my entry point. I expect a bit of profit taking and I will be looking at getting at around 30-32.

 

[tech/a]

If it drops to 34c I'll be out.

 

[tech/a]

And I'm out.

 

[porkpie324]

i sold out today, but watch agm its a definate buy on any weakness,porkpie

 

[powerkoala]

I in at 37.5
suppose to sell at 38.5
yet put 39
why u out so fast ?

 

[porkpie324]

i tell why i sold, i always do on any mining co that makes a good announcement the shares go up but has yet to dig anything out of the ground, besides just look at the quotes the main support is now belew .34c, as i said in my last post buy on weakness, i have traded agm now for about 3 years, i now think agm is approaching the accumilation phase, but always be warry of blue sky yet to dig anything out of the ground resource stocks.porkpie

 

[michael_selway]

i tell why i sold, i always do on any mining co that makes a good announcement the shares go up but has yet to dig anything out of the ground, besides just look at the quotes the main support is now belew .34c, as i said in my last post buy on weakness, i have traded agm now for about 3 years, i now think agm is approaching the accumilation phase, but always be warry of blue sky yet to dig anything out of the ground resource stocks.porkpie

if they havent dug up anything, the chines company is payign so much for it?

thx

MS

 

[Profitseeker]

If it drops to 34c I'll be out.

Tech A,

Was this your stop loss? If so how did you come to use that as your stop loss. It seems really tgight to me? Reason i am asking is that is the area I am working on in my trading plan at the moment. I try to pick a technical stop or if I can not see one I use a default of 20%.

Regards,

Profitseeker