AML - Aeon Metals

[Dona Ferentes]

plumbing the depths ; now 4.9c. Will this be enough to turn AML around?

Highlights

• Drilling at the Vardy Deeps target area, located beneath the Vardy Copper Cobalt deposit, identifies exciting new and highly prospective horizons within the Walford Dolomite.
• Low level copper anomalism, observed over two discrete horizons of 20 and 30 metres thickness and offset from the Fish River Fault, exhibits analogous signatures to that found higher up within the deposit.
• Fault hosted mineralisation observed beneath these prospective horizons, demonstrating potential structurally controlled copper mineralisation, further enhances the previously unrecognised prospectivity of the Walford Dolomite.
• Base of the Walford Dolomite unit in the Vardy Deeps area remains to be tested.
• These results enhance the prospectivity of other targets along the Fish River Fault, including to the East of Vardy where the Walford Dolomite is outcropping.

 

[The Triangle]

Surprised this is still holding firm at 4.8 cps. The scoping study from last year was forecasting a billion dollars in pre-production capital. I didn't pay attention at the time, but I thought this was 100% open pit at a 2.8:1 strip ratio at a mid 1.X CuEq. I thought that might be ok and threw it on a watch list to check in the future.

Re-reading the scoping study in detail its actually more than 50% underground mining, payback is 5+ years, IRR is 13%, and it's in the middle of bum-f-nowhere QLD. This simply is not good enough for a junior miner to get financing in my opinion (at least they quote post tax numbers which I like). Not sure if they can re-jig the project and go with a significantly smaller mine at a higher grade and higher margin. This would definitely help the cause. But for a billion in capex right now you need a bullet proof deposit and this is not bullet proof. They are also running out of cash very quickly, only a couple of million left and they've said they are working on getting $$$ to complete the PFS.

 

[greggles]

They are also running out of cash very quickly, only a couple of million left and they've said they are working on getting $$$ to complete the PFS.

The Walford Creek PFS has been paused as a result of elevated global input costs and supply chain volatility. The company is pushing ahead with a 19,000 m drilling programme early next month to try and expand the mineral resource, but sentiment has turned negative and AML is down around 16% today.

Pausing the PFS at such an advanced stage has shaken investor confidence and many have bailed out looking for better opportunities elsewhere. Hard to blame them.

 

[Dona Ferentes]

...., but sentiment has turned negative and AML is down around 16% today

Pausing the PFS at such an advanced stage has shaken investor confidence and many have bailed out looking for better opportunities elsewhere.

back for a second go .....

definitely has been sold down,; lowest for a while.

 

[Dona Ferentes]

Not sure how this will play. Still talking 1 bill for a mine.

Aeon has agreed with its major shareholder at 46% and lender, OL Master Limited (a fund managed by OCP Asia), to increase the limit on its existing loan facility by A$5 million. ...other key terms of the OCP Facility see extension till Dec 2024.

 

[Dona Ferentes]

quietly, quietly they fall from view.
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26 July 2024
Ben Campbell, Kathryn Evans and Vaughan Strawbridge of FTI Consulting give notice that on 26 July 2024 they were appointed Joint and Several Voluntary Administrators of Aeon Metals Limited (ASX:AML) and the companies outlined in Schedule 1 by the Board of Directors pursuant to Section 436A of the Corporations Act 2001 (Cth).

The Voluntary Administrators are continuing to operate the businesses within the Group with a view of assessing possible restructuring options.