AUM - Australian Mining Investments

[ALFguy]

There were NO stocks of more than $1 which rose 100-300% last year ...."

Thanks for that Lesm,

I'm still awaiting approval for access to that forum.

From the above statement, are you (or Tech/a) saying that at a starting price of $1, none rose by those percentages? Or that at the time in question, none of these stocks were at $1 ?

I assume the latter, in which case that doesn't mean AUM can't reach $2, but simply that it won't hold right? Which is fine for short term trading.

Sorry, am still a newbie and currently finding my footing

 

[lesm]

From the above statement, are you (or Tech/a) saying that at a starting price of $1, none rose by those percentages? Or that at the time in question, none of these stocks were at $1 ?

I assume the latter, in which case that doesn't mean AUM can't reach $2, but simply that it won't hold right? Which is fine for short term trading.

Sorry, am still a newbie and currently finding my footing

My understanding of the first statement is that at the point in time tech/a undertook the study no shares at $1 or above rose by those percentages.

I would defer to tech/a for further clarification, as this is his work.I was using it as a reference to an earlier question. I haven't run across any more recent studies in this area.

AUM started below $1. In terms of it reaching $2 that remains to be seen, as the exuberance we have seen in the last couple of weeks will start to slow down. Keep you eye on how they perform this week as they will eventually drop back and stabilise.

The systems that I used to select this stock are designed for short-term (5-10 day) trades, but every now and then you can snag a runner like this one.

We were all newbies once and are still learning. Feel free to ask your questions, there is always someone around who is happy to help.

Cheers and good luck in your trading.

 

[ALFguy]

Thanks Lesm, really do appreciate all the input you and the other traders/investors give on this site.

In my very simplistic view, I would assume that come the announcement Wed/Thur (assuming all good), that the price will naturally rise.
Given that, I'm assuming the price movement today was general interest in this probability.

Following the announcement and a small peak, it'll start to drop to a more realisic figure.

Sound probable?

 

[StockyBailx]

Quite an impressive stock this one. Certianly made the 2$ mark with a 20.5% rise of 0.46 today. Never really seen a stock move as sharp as this one and remain constant as it has done. How long will it last? At first I thought it must of had a extremly good trading summary, but really compared with other low priced mining stock, it is not much different. Then it cloomed on me, that this one is the same mining company that lost two minners, traped in the cave of rocks for a couple of weeks or so. I don't know this in reality but for me its the only answer to its success. Making money off the donation proceeds, But its only a quess and probally won't pan out in reality.
Anyway I only wish I was more active at the time of its rise, I think I may of noticed the stock and payed in. Now I think its to late and like all creatures great and small what comes up must come down.
What do you guys think buy or sell?

 

[pussycat2005]

I've been trading it since the 90's and I bought some today at 2.80

Why? because I was expecting a retrace back to at least 2.20 when you consider it jumped on close from 2.00 to 2.24 in the space of 5 mins yesterday.

i bought 2.00 and never expected to get 2.67 when I sold on open! this morning!

It's extremely volatile but I am impressed how it can hold its gains! unbelievable

Anyway I was really expecting to buy a lot cheaper in the afternoon because it was the last day of the financial year and call me an idiot i thought we would see a huge sell off starting from 3.30 onwards - aum just kept climbing so i thought buggar it! people are saying their resources are worth $4 or $5

Do a comparative study of similar stocks in the materials sector and you will see that its still quite cheap as far as market caps are concerned!

Here's an interesting article from mining news!

New resource for market darling

Michael Vaughan
Thursday, June 29, 2006

EMERGING junior Australian Mining Investments has gone some way towards justifying its meteoric share price run of late by handing down a resource estimate for one of three deposits located within its Rocklands copper project, with another estimate expected in about a month.

A map of Australian Mining Investments' North Queensland copper projects at Rocklands, AMI has identified three separate deposits –Rocklands, Double Oxide and Las Minerale – though with the successful drilling that has been going on of late, the company is now saying the deposits are "gradually melting into one large project".

After compiling the most recent drilling results, AMI has calculated an interim, inferred resource for Las Minerale of 59 million tonnes grading 2.04% copper equivalent.

AMI reported a hole completed yesterday and not included in the resource, intersected sulphide mineralisation over 155m from 60m depth. The company is awaiting assay results.

A revised resource for the Double Oxide deposit is expected in late July or early August following the completion of five deep holes beneath the deposit. An earlier resource estimate for the deposit was 3.03Mt at 0.68% copper.

The Rocklands deposit has a resource estimate of 2.18Mt at 0.9% copper.

The company is drilling feverishly at Rocklands with two RC rigs and multiple diamond rigs currently operating.

The Rocklands project was explored by CRA Exploration (now Rio Tinto) in the early 1990s. CRA believed the project was a "significant exploration target" but could not come to agreement with the then-owners of the property.

In a 1992 report, CRA stated in addition to shear zone copper at Double Oxide, there was evidence of copper at shallow depths removed from the shear zone.

"If the layers was [sic] widespread tonnages could be significant and mining would be a simple proposition," CRA said in an August 1992 report.

When it released today's resource estimate, AMI cheekily gave CRA credit for the part the latter played in what the former believes is evolving into a promising project.

"In 1992 CRA Exploration reported a theory on why the Double Oxide area was a major target for significant copper-gold-cobalt mineralisation," AMI said.

"It appears CRA was right on the money and the directors thank CRA for their contribution."

Shares in Australian Mining Investments were up 16c (9%) at $1.94 in midday trade, capitalising the company at $91.33 million. In mid-May, the stock was trading at 29c.

Good luck everyone!

 

[michael_selway]

I've been trading it since the 90's and I bought some today at 2.80

Why? because I was expecting a retrace back to at least 2.20 when you consider it jumped on close from 2.00 to 2.24 in the space of 5 mins yesterday.

i bought 2.00 and never expected to get 2.67 when I sold on open! this morning!

It's extremely volatile but I am impressed how it can hold its gains! unbelievable

Anyway I was really expecting to buy a lot cheaper in the afternoon because it was the last day of the financial year and call me an idiot i thought we would see a huge sell off starting from 3.30 onwards - aum just kept climbing so i thought buggar it! people are saying their resources are worth $4 or $5

Do a comparative study of similar stocks in the materials sector and you will see that its still quite cheap as far as market caps are concerned!

Here's an interesting article from mining news!

Good luck everyone!

This ones crazy but looks like it may fall back down quite a bit soon.

 

[pussycat2005]

how can it go down when its drying up the sell side completely!

more drill results to come in July August


"....Furthermore, the Board of Directors in consultation with our Geological Consultants, have elected to employ the services of a second RC Drill Rig and Multiple Diamond Core Rigs. We are currently negotiating the services of a contractor to drill +500m deep core drill holes to be drilled on all three projects. This will significantly increase and upgrade the resource potential of the Project.

Five deep holes are planned to test under the main Double Oxide orebody as part of our current accumulation of geological data for our new interim JORC Resource due in late July early August...."

 

[alankew]

Lads and lasses anyone know if the directors involved in this company are involved in similar companies? Thanks.

 

[chennyleeeee]

Still going nuts today, already up 10 per cent.

CHEN

 

[ALFguy]

Hit 20% earlier!

Can you imagine if you bought this at 30c! An increase of around 960% so far.
Gulp.

Has this really got any legs left in it?!

 

[shaneric]

Hit 20% earlier!

Can you imagine if you bought this at 30c! An increase of around 960% so far.
Gulp.

Has this really got any legs left in it?!

We shall see... I dipped my toe in at 3.20.

 

[lesm]

This has taken the shape of a classical trade where demand has outstripped supply, thereby pushing the higher and higher. Basic supply and demand.

In the early moves the sell side was very sparse and the buyers were stacking up to get in and the sellers were only coming in as the price rose higher.

On 19/6 we saw what looked like a possible key reversal day, but the following days did not confirm the possible reversal and AUM pushed higher.

On Thursday (29/6) the highest volume was reached and the AUM moved higher by 0.24 cents during the clsoing auction as buyers clambered to get in.

The following day (Friday 30th), there was decrease in volume and a gap up in price with a lower volume. At close the pressure from buyers and sellers was fairly neutral.

The market depth is still showing buying pressure, as buyers still try to get into AUM. There has also been anothe rgap up this morning, so will see if it gets covered during today's trading range.

It will be interesting to see how much further AUM can move higher, but it would be worthwhile monitoring the daily volume and the transition from buying to selling pressure, as this is when we will see the price level off and start to pull back. The late buyers could potentially move AUM higher, before it starts to fallback.

How much further it will move remains to be seen, but in the current environment it is a shining light.

Good luck and enjoy the ride to those on board and it will be interesting to see how long it lasts.

Try not to leave too much profit on the table when it finally decides to turn.

Cheers.

 

[canny]

I believe this is going to be a major and will end up replacing the depleting Ernest Henry deposit.
I quote another post:
"With Ernest Henry approaching the end of its finite resource, clearly AUM's ground is a perfect fit in so many ways.

But what to do...move the mountain to Ernest Henry...or move Ernest Henry to the mountain?

Rocklands is about 20km or so closer to the smelter...so given the apparent size of the resource, clearly there is a viable argument for a completely stand alone operation, with all on site infrustructure requirements.

Likewise...the thought of an idle Enerest Henry operation (and associated infustructure) simply does not make sense?

Could the area suspport two such operations...would that be economically sensible?

What cost for a 40km conveyor-belt, or perhaps alternative method of geting ore from a to b...surely not more than the cost of a new set of infustructure?

Could AUM's Rocklands project see a scaled down, preliminary concentration circuit, prior to delivery to Ernest Henry?

Or perhaps we may see a strip-down and relocation of Ernest Henry infrustructure to Rocklands...along with some level of upgrade in the process?

Clearly, such decisions would be in the minds of others at this stage...as AUM are far too busy turning their paper-back story into an epic multi-volume novel!

As I have said...in formulating a path to market for this resource, it might be best to look at the strategies of others!"

There is also plenty more info to show that the magnitude of their find is putting it towards the $10 mark rather than the $4 -$5 range.
Don't dismiss it as a quick buck - I would certainly recommend keeping a core holding, even if trading some at the same time.
I've been caught a couple of times selling and having to buy back higher - and I WON'T be making that mistake again.
There is a clever manipulation to drop the price, scare some nervous traders, and then he smart money is back in big again.
This could be one of the best discoveries in Australia for many years imo.

 

[lesm]

Hi Canny,

You could be right. There is some solidity to AUM that we are not seeing with some of the other resource stocks, especially the junior explorers.

Regardless of how people approach it trading, investing, speculating, at the end of the day it's all about making a buck.

Selling and buying back in can always be an issue, but is part of life when dealing in the market.

It will be interesting to see an updated valuation after the recent assay results or possibly after the results that are expected in July/August.

Good luck in your endeavours and hope this one works out for you as part of your holdings.

Cheers.

 

[Prospector]

Well, I dipped my toes in at 98 cents and thought I had left my run too late

When will it stop - it seems that when people say it cant hold its price and will fall back soon, seems only to propel it to new highs :

 

[cuttlefish]

I don't know much about mining but an estimate of 59,000,000 tonnes @ 2% Cu sounds like a lot (if it could all be extracted thats a bit over 1,000,000 tonnes of copper isn't it?). Is anyone that knows about mining able to comment on how much copper they actually manage to extract from 2% ore? Do they get it all out? And whats the typical $/tonne cost of extraction?

Sounds like with the EH deposit so close they might be able to save on some of the infrastructure cost as well.

 

[canny]

I don't know much about mining but an estimate of 59,000,000 tonnes @ 2% Cu sounds like a lot (if it could all be extracted thats a bit over 1,000,000 tonnes of copper isn't it?). Is anyone that knows about mining able to comment on how much copper they actually manage to extract from 2% ore? Do they get it all out? And whats the typical $/tonne cost of extraction?

Sounds like with the EH deposit so close they might be able to save on some of the infrastructure cost as well.

Again borrowing information from another investor: All makes for such a powerful story.
I also saw manipulation at play for myself first hand today - when I placed buys on AUMOA (great play for converting this month with no brokerage to pay!) and there was an aotomatic queue to outbid me INSTANTLY added to the screen. I'd go up a cent - so would the autobid. VERY interesting.
Big players into the manipulation. My best recommendation is to put away as many as you can, and then walk away from the daily screen and price playing - and come back in a few weeks and check it out!!
It's very tempting to sell when the market makes a drop play - but the daily terend is still a strong upswing - so hang in there!!
All my opinion only.
QUOTE from investor:
I suggest everyone re-read...then read again...the most recent announcement...

Try to understand it...it's all there, both in the text and between the lines!

Las Minerale has already been declared as host to an inferred resource of 59,000,000 mt @ 2.04% eq Cu...lol...in just a few weeks of drilling and with just 15% or so of drilling completed.

The resource delineation is still in its infancy!

The above mentioned inferred resource does not include the most recent set of holes...nor those drilled since the last announcement...many of which are revealing the widest and highest grades yet...nor does it include the immenent extension of the resource to at least 1km of strike.

AUM actually suggest there is some 3km of strike at least, but obviously intend to delineate the rest later.

Ore is getting wider with depth. So far, they have only tested to about 170m true vertical depth...Ernest Henry continues beyond 600m, there is no reason Las Minerale doesn't also!

So...therein lies a very loose indication...2,000m(L) x 100m(W) x 500m(D) x 2.8sg = 280,000,000 mt

Are these high side numbers...or are they still underdone?

They have also located at least 2 repeat magnetometer signatures similar to Las Minerale's on either side!

Is it possible they have repeat "Las Minerale" resources either side?...seems CRA thought it was possible...they also suggested "If the layers was (sic) widespread, tonnages could be significant and mining would be a simple proposition”...according to McCrae they were "right on the money"!

What does this tell us?

AUM also suggest the deep drilling (500m+) will further increase the project resource size "significantly".

So how many more clues do people want?

lol...I bought more today...I no longer have a focus on how profitable each trade is, but on how many shares I can manage to accumulate before the magnitude of this thing becomes public knowledge.

In my opinion, the current share price is a direct reflection of the markets awareness...and so far, it appears they know diddly squat!

Cheers!

 

[pussycat2005]

Nice Wrap up Trade 4 Profit Long time no see!

Haa we are batting for the same team this time

 

[cuttlefish]

Well in for a penny in for a pound. Got in yesterday but sold for a small loss when my stop got hit as it moved about. Bought the open today and holding.

 

[chennyleeeee]

This stocks going nuts, why wont be go down? This seems to be defying gravity. Pigs cant fly. =\

CHEN