AGS - Alliance Resources

[stuart.mcclure]

No the market did not like this announcement at all. I think this represents an excellent buying opportunity.

Dow Jones news wise announced: with 248 milion shares on issue, this suggests ags share of the resouce worth now at most a gross of A$3.63/share.

With the stock currently trading at $2.34 surely this is an excellent opportunity.

Any comments?

 

[laurie]

These opportunities come only once now the decision is to buy or sell ?

cheers laurie

 

[Go Nuke]

WOW
As of right now..its just dropped 20%!

Thats still not making me sell...though Mr Market certainly has alot to say about AGS!
Wow..20%!!

I guess some people MUST have been expecting alot more.

 

[dj_420]

with a market cap of 700 million and only 25% of resource i think market was expecting a 50 000 tonne resource.

 

[laurie]

with a market cap of 700 million and only 25% of resource i think market was expecting a 50 000 tonne resource.

Spot on dj_420 that was close to my estimate ah well still in for the long haul tomorrow is another day that's why it's important to spread your portfolio across all sectors and companies

cheers laurie

 

[sharetrader]

Remember this is only 1/5th of Four Mile West, still have 4km² of drilling and results for the west alone, plus the east.

I'm not budging.

 

[laurie]

I did notice that AGS did not have a trading halt nor the release marked as price sensitive did anyone here find that strange given the response the market gave the announcement

cheers laurie

 

[Go Nuke]

Still looks good to me!

I guess the MACD is getting up there a bit as was the SS {which ive not displayed..oops}
I guess todays action will fix alot of that

 

[Ang]

Well there goes the Daily and weekly darvas boxes by the low of $2.13, Mr Darvas would have been out of this stock today, however it does not stop the saucer I put up last night. This stock will need to go beyond the $2.95 for it to start challenging the PDN type sinario. I would say forget the announcement today as you have all said it was poitive and it doesn't cover all their tenamnets and the Premier of SA has also made major statements that they hold the largest uranium tenamnet in the State. I would say there the down ward trend today was what they didn't say. Are they getting ready for a share issue to pay for the massive exploration they will need to do to get it out of the ground?? I do not know the answer to this question, however I feel that was the real reason for the down turn and if they rais money willl the issue price be about $2.30, where it oppened today??.
Like some thoughts on this. I am still in as I still believe it will be a strong player in the medium to long term, the question I have is how they structure the IPO if they go that way. Plus I puled my stop out this morning at $2.50 when it oppened at $2.30, the price I originally bought it at.
Kind regards
Ang

 

[laurie]

Are they getting ready for a share issue to pay for the massive exploration they will need to do to get it out of the ground?? I do not know the answer to this question,

Ang
AGS are free carried until a decision to mine is made and Quasar are forking out $14m for further exploration so no need for a spp the only time this will happen if a decision to mine is made and AGS will be up for 25% of production cost and buildings hopefully Maldon may be in production but if they do a spp it will not dilute the holding that much

cheers laurie

 

[Ang]

Ang
AGS are free carried until a decision to mine is made and Quasar are forking out $14m for further exploration so no need for a spp the only time this will happen if a decision to mine is made and AGS will be up for 25% of production cost and buildings hopefully Maldon may be in production but if they do a spp it will not dilute the holding that much

cheers laurie

Thanks for that insite, so is there some bad news coming? or is it that the market were disappointed in the findings.
Kind regards
Ang

 

[Ang]

I have just done a scan on all the uranium stocks today and most of the Uranium stocks are down, SMM, WMT, PDN, and UNX only to name a few. Did the price of Uranium fall overnight or was there some bad news that was announced regarding Uranium. Has anyone got any details regarding this??
Kind reg
ang

 

[dj_420]

just some consolidation in the sector AGS got punished and hence i think thats why a lot of SA explorers got hit MTN, CUY, AGS, TOE.

 

[bigdog]

Todays Age reported:
http://www.theage.com.au/news/business/alliance-uranium-milestone/2007/05/08/1178390303409.html

Alliance uranium milestone
Barry Fitzgerald
May 9, 2007

FOUR Mile might be the best uranium discovery in more than 20 years but initial confirmation that it's something special did nothing for the share price of Alliance Resources, the locally listed 25 per cent partner with US group Heathgate in the outback South Australia discovery.

The long-awaited initial resource estimate of 15,000 tonnes of contained uranium oxide has an in-the-ground value at present uranium prices of more than $4.4 billion and according to the partners, it lays the foundations for Four Mile's eventual development.

But the failure, initially at least, by Alliance to convince the market that the initial resources estimate was exactly that, forced a sell-off in Alliance shares. The stock closed 51 ¢, or 18 per cent, lower at $2.34. Alliance was a 24 ¢ stock in June last year. Its run since was based on expectations that Four Mile would eventually shape up as a 50,000 tonne-plus uranium find.

While there was nothing in yesterday's announcement to discourage those expectations, traders in the stock thought it was time to take some profits ahead of the much bigger resource being confirmed.

Alliance said that it was "important to emphasise that the area of approximately one square kilometre covered by the resource statement was within a much bigger area of more than five sq kms of potential mineralisation" which had been demonstrated by broad-spaced drilling.

"This highlights the potential for the Four Mile project to continue to develop as one of the most significant uranium discoveries in recent exploration history in Australia," the company said.

Alliance said that the $4.4 billion in-ground value of initial resources estimate for Four Mile highlighted its significance as the "most substantive uranium discovery in Australia since 1985 (which was Olympic Dam, now 1.7 million tonnes)."

The initial resource estimate covers just a western portion of the Four Mile discovery, so named because it is less than eight kilometres west of Heathgate's in-situ leach Beverley uranium mine.

http://uxc.com/review/uxc_prices.aspx

 

[Rob_ee]

These opportunities come only once now the decision is to buy or sell ?

cheers laurie

Probably SELL ?

As a matter of interest this came up on MS last night as a "Spectacular Fall" .. Seeing its down another 20% today how do holders cope I wonder ??

Rob

 

[Punter]

Probably SELL ?

As a matter of interest this came up on MS last night as a "Spectacular Fall" .. Seeing its down another 20% today how do holders cope I wonder ??

Rob

I'm still in this stock. Probably oversold right now isn't it. Probably it will get 100 mil lbs, or 25 mil lbs to AGS.

 

[Morgan]

This isn't pretty. Everyone rushing for the exists now despite the positive write ups in the newspapers.
Think I will be out if this is going to finish on a low for the day before too much blood gets spilt

 

[doyoureallycare]

Wow, if AGS is oversold then DYL is undervalued just going on past resource estimates. DYL say they already have a old known resource of 18,000T U308 just in Namibia alone.

I think AGS is overvauled for that reason.

 

[Pommiegranite]

Wow, if AGS is oversold then DYL is undervalued just going on past resource estimates. DYL say they already have a old known resource of 18,000T U308 just in Namibia alone.

I think AGS is overvauled for that reason.

Well...I'm in again at $2 after having previously sold at $2.80.

IMHO AGS will probably fall further...but not by much. Too much panic sellling.

In a previous post, I thought AGS was overvalued when it was heading towards $3..but at this price...I reckon its worth a small punt.

 

[Punter]

Well...I'm in again at $2 after having previously sold at $2.80.

IMHO AGS will probably fall further...but not by much. Too much panic sellling.

In a previous post, I thought AGS was overvalued when it was heading towards $3..but at this price...I reckon its worth a small punt.

It's gone from overvalued to par value at current prices. I concur with your analysis here. It's just about right.