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AUM - Australian Mining Investments

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This from this mornings Australian:

Copper load of this: junior up 1000pc with a target price of 800pc more
Robin Bromby, Resources
July 04, 2006
SHARES in junior resources play Australian Mining Investments have shot through the 1000 per cent gain barrier in just seven weeks as evidence mounts that it might be sitting on a potential $17billion copper discovery in Queensland.
AMI shares sagged as low as 29c in May but hit $3.27 in intraday trade yesterday, although they finished up 23c at $2.93. The latest surge followed a second drilling report showing good copper grades and indications that the deposit is much bigger than first thought. The other factor that will be playing on investors' minds is that AMI could be a takeover target for Xstrata, which operates the world-class Ernest Henry mine just 40km away and is actively trying to build its copper inventory in Queensland.

The potential of the Rocklands deposit near Cloncurry, Queensland, has increased with AMI's latest announcement that it is more than halfway to its 100 million tonne resource - and that some holes have hit mineralisation up to 155m wide.

One broker will be putting out a report later this week describing the project as one of the most important mineral discoveries of the past 20 years. This report will put a target price of $25 a share on AMI, more than eight times its present market valuation.

Even though institutions are holding back, the bottom line is impressive according to the broker: AMI might be sitting on copper with a value of $US13 billion ($17.5 billion). And that's what they call in-situ value, before it has been mined and refined.

The stock take-off began in early June when AMI brought out its first announcement that gave an inkling it was on to something big in the copper-rich region around Cloncurry - very big, in fact.

Most of the action in AMI shares appears to be generated by smaller retail investors. A typical sample of 10 trades yesterday showed only three above $10,000, and the highest being $31,000.

If Rocklands delivers the goods, it will be a sweet victory for AMI's executive chairman Wayne McCrae, who back in the early 1990s lost the huge Century zinc deposit, now supporting the world's second-largest zinc mining operation and owned by Zinifex. Mr McCrae ran a junior called Diversified Mineral Resources which ended up losing control of Century after a long court battle with the then CRA (now Rio Tinto). CRA then sold Century to Pasminco, now reborn as Zinifex.

But, in the tradition of what goes around, comes around, AMI's potentially rich copper find was drilled back in 1992 by the same CRA.

But the major could not reach agreement with the owners of the tenements and walked away, with a small syndicate of local miners working one of the copper zones until 1994. Then Mr McCrae came into AMI and by 2003 the junior was on the scent of the copper potential.

Recent drilling at one zone at Rocklands has already resulted in an inferred resource of 59 million tonnes at the encouraging grade of 2.04 per cent copper.

There are more completed holes on which assays are awaited.

But AMI said yesterday that all these other holes had intersected visible mineralisation over widths from 60m to 155m.

The company is aiming at proving up a resource of more than 100 million tonnes at greater than 2 per cent copper, along with significant gold and cobalt by-products. The deposit is located within what is known as the Mt Isa Inlier, the geological structure that hosts the Mt Isa, Hilton, Ernest Henry, Century and Cannington metal deposits as well as substantial uranium plays now being drilled.

Universal Resources is developing the Roseby copper mine to the north while Aditya Birla owns the Mt Gordon copper mine further northwest.

AMI is planning a name change to CeDeco.
 
Even though volumes up on yesterday, it still seems to be mostly pretty small orders in the queues.
 
Cuttlefish,

You are quite right. Same at pre-open, we are only seeing primarily small retail investors/traders at the moment.

The article in the Australian this morning has been very positive, so it will be interesting to watch the way forward.

The announcements have all been very positive and confirm the strength of the findings and the article has just added more weight to that.

Just a matter of letting profits run for the moment and see where it goes. Really looking like the shining light for 2006.

Prospector,

Good to see that you managed to get in sub $1.00.

Cheers.
 
Sorry to keep 'stealing' posts - but he won't mind:
2 great ones here. The most intriguing being the inferrance that Newspaper articles have a subliminal message in them to prospective take over co's - in this case X Strata - giving them an indication of what they will have to pay.


1.So many opinions...

Yet so little knowledge.

"The price must fall because it went up"...lol..and the best one..."comparisons to BHP"...ROTFLMAO!

As I said many many posts ago, when the "doomsdayers" all came out for the first time with "warnings" (about $1.00)...

Watch and learn!

This is a once in a lifetime oportunity...as such, it will play out like no other story you have seen in recent times.

Every angle of this scenario speaks value...from the particular resource specifics to the corporate overtures!

Now...I have to ask; how many of you missed this at $1.00, because it was too expensive...then $2.00 because it was way too expensive...then $3.00 becuase, well, that was a rediculous number...then $4.00, because um ahhh well...then $5.00...then...???

Any one of you, had you bothered to spend the time to do some research...the sort anyone with even the most basic of intelligence could manage...then you too would have been informed enough to recognise the value earlier.

But you know what...it still isn't too late!

Be prepared for a huge gap up tomorrow folks...and as I said back when it broke through $3.25...a whole new set of trading patterns...lol...and interesting players!

Remember, the retailers become more and more insignificant the higher it goes...what does that tell you?

Finally...the ASX are not dills...every single cent of this rise has been the direct result of previous announcements...no need for a "please explain"...although I suspect should AUM get one, they will revel in the opportunity to inform the market of the "undervalued" nature of their stock relative to the potential size of the resource!

2.what seems like smoke and mirrors to some, is a clear as day to others.

Anyone who says anything about the market jumping the gun here, or that they have "gone nuts" really hasn't done their homework!

lol...although, I am sure this could be said of some participants.

At current prices, the junior retailers are becoming rather insignificant...even the larger retailers are having less influence as there appears to be a constant flow of stock being taken out of the market.

So who do you reckon is accumulating and why? I suggest their profile is not one of point value traders!

Tonights close was a real clue to near term activity.

Anyway...news due Thursday/Friday in my opinion...no doubt designed to support today's "spin" in the form of the news article.

Speaking of which, I assume some of you may have missed it's significance...especially several market "codes" therein...one of which was directed to Xstrata; if they want AUM now, they will have to fork out $25 per share!

Such are the way these things are communicated!

This figure also suggest the numbers to be realeased from the most recent drilling results should be significant!

Now that we have this "dialogue" occurring, I suggest people watch very closely now for any "reply" comments apparently eminating from Xstrata...the slightest suggestion they are "interesed", will be the sign that it's on!

3.And a web link
http://img90.imageshack.us/img90/6215/urlaum7nd.png
 
I thought that PDN had been very good to me, but AUM has totally exceeded Paladin. I bought in at 98cents, two weeks ago and that has now increased 500%, bought in again last Friday, and that has now doubled! :eek:
 
lesm said:
Prospector,

Good to see that you managed to get in sub $1.00.

Cheers.

And lesm, I owe it all to you! If I could do a little bowing icon, I would have a row of them just for you :p:
 
Riles said:
This from this mornings Australian:

Copper load of this: junior up 1000pc with a target price of 800pc more
Robin Bromby, Resources
July 04, 2006
SHARES in junior resources play Australian Mining Investments have shot through the 1000 per cent gain barrier in just seven weeks as evidence mounts that it might be sitting on a potential $17billion copper discovery in Queensland.
AMI shares sagged as low as 29c in May but hit $3.27 in intraday trade yesterday, although they finished up 23c at $2.93. The latest surge followed a second drilling report showing good copper grades and indications that the deposit is much bigger than first thought. The other factor that will be playing on investors' minds is that AMI could be a takeover target for Xstrata, which operates the world-class Ernest Henry mine just 40km away and is actively trying to build its copper inventory in Queensland.

The potential of the Rocklands deposit near Cloncurry, Queensland, has increased with AMI's latest announcement that it is more than halfway to its 100 million tonne resource - and that some holes have hit mineralisation up to 155m wide.

One broker will be putting out a report later this week describing the project as one of the most important mineral discoveries of the past 20 years. This report will put a target price of $25 a share on AMI, more than eight times its present market valuation.

Even though institutions are holding back, the bottom line is impressive according to the broker: AMI might be sitting on copper with a value of $US13 billion ($17.5 billion). And that's what they call in-situ value, before it has been mined and refined.

The stock take-off began in early June when AMI brought out its first announcement that gave an inkling it was on to something big in the copper-rich region around Cloncurry - very big, in fact.

Most of the action in AMI shares appears to be generated by smaller retail investors. A typical sample of 10 trades yesterday showed only three above $10,000, and the highest being $31,000.

If Rocklands delivers the goods, it will be a sweet victory for AMI's executive chairman Wayne McCrae, who back in the early 1990s lost the huge Century zinc deposit, now supporting the world's second-largest zinc mining operation and owned by Zinifex. Mr McCrae ran a junior called Diversified Mineral Resources which ended up losing control of Century after a long court battle with the then CRA (now Rio Tinto). CRA then sold Century to Pasminco, now reborn as Zinifex.

But, in the tradition of what goes around, comes around, AMI's potentially rich copper find was drilled back in 1992 by the same CRA.

But the major could not reach agreement with the owners of the tenements and walked away, with a small syndicate of local miners working one of the copper zones until 1994. Then Mr McCrae came into AMI and by 2003 the junior was on the scent of the copper potential.

Recent drilling at one zone at Rocklands has already resulted in an inferred resource of 59 million tonnes at the encouraging grade of 2.04 per cent copper.

There are more completed holes on which assays are awaited.

But AMI said yesterday that all these other holes had intersected visible mineralisation over widths from 60m to 155m.

The company is aiming at proving up a resource of more than 100 million tonnes at greater than 2 per cent copper, along with significant gold and cobalt by-products. The deposit is located within what is known as the Mt Isa Inlier, the geological structure that hosts the Mt Isa, Hilton, Ernest Henry, Century and Cannington metal deposits as well as substantial uranium plays now being drilled.

Universal Resources is developing the Roseby copper mine to the north while Aditya Birla owns the Mt Gordon copper mine further northwest.

AMI is planning a name change to CeDeco.

Date: 4/7/2006
Author: Robin Bromby
Source: The Australian --- Page: 19

The share price of Australian Mining Investments (AMI) has risen due to its copper discovery. AMI announced the potential of the Rocklands deposit near Clonclurry in Queensland in early June 2006. A second drilling report has revealed good copper grades and that the deposit is larger than thought. AMI's share price was as low as $A0.20 in May but the potential $A17 billion resource lifted it to a high of $A3.27 on 3 July, closing up by $A0.23 at $A2.93. A broker's report will put a target price of $A25 a share on the company, over eight times its present valuation

urlaum7nd.png
 
I am not in on AUM, so my congrats to all those traders who are laughing all the way to the bank, however I do think that we should take a moment to feel sorry for the following investor,

Someone sold 125,000 AUMOA @ 0.001 yes thats right at 0.001 @ 11.28 am on the 1st of June, today those 150,000 options would be worth $600,000 based on a closing price of $4 for AUMOA


Now imagine the lucky sob who paid $125 for those options + brokerage, they're now worth $600,000,

That has to be the trade of the millenium, from $125 to $600,000 in 1 month!!!!!!!!!!!!!!!!!!!! :eek: :eek: :eek: :eek:
 
I still can't get over those option trades, my god does anyone know anybody who bought those options??????????????????????

Even worse does anybody no anyone who sold those options at those prices???????????????????????????????????????????????

What would you do if you sold those options at that price? A fair bit of this I'd imagine :banghead: :banghead: :banghead: :banghead: :banghead:
 
On another forum I read of someone who bought $200 worth of options at .1 cent and yesterday they were worth $800K. And after today - well, my calculator doesnt have that many zero's. :D
 
Some comparisons are worthwhile at this point.


AUM is targetting reserves of 100mt at 2.0% Cu (it is only at 1mt of Cu inferred resource stage now).

Lets say this is 2,000,000 tonnes of Cu - twice what they have semi-proven so far.

They have no reserves, no feasibility study, no money and the company is now capped at $270m AUD.

No copper will be produced by AUM for 5-10 years.


Just up the road, Universal has a 126mt resource at 0.73% for 930,000 tonnes of Cu and 243,000 of Au.

Feasibility is expected soon and production is not expected before 2008

The market cap is $66m even after today's rally.


In Zambia, Equinox Minerals (EQN) has a reserve (not a lesser proven resource) of 321mt at 0.73% for 2,343,000 tonnes of Cu.

Their inferred resource is 417mt at 0.60% for 2,500,000 tonnes of copper

They have completed a definitive feasibility, have a locked in construction cost, $450USD of bank finance, $150m mining fleet finance contract and expect to produce in 2008.

EQN also has 20m pounds of Uranium

The market cap is $560mAUD

Aditya Birla (ABY) is producing now and has resources of 17.6mt at 2.9% for 500,000 t Cu up the road at Mt Gordon (as well as other projects) and it has a cap of $850mAUD


Undiluted, at the $25 target price of the 'unnamed broker' AUM is capped at $1.30 BILLION

And what about the 40million options with 20 cents to pay expiring in June 08???

When those puppies get exercised, this thing dilutes by almost a half.

At this share price, fully diluted with the 54 million options I can see on issue we are now looking at a $540m company with $1.40million in the bank in March

At $25 fully diluted this company approaches $2.7 BILLION

I would love to be the owner of the 900,000 employee options with $0.20 to pay!
 
ok...i'm going to ask a loaded question here (and don't laugh too loud) do you think it's too late to go in to aum???
 
a quick look at the market depth shaows that AUM still has a way to go. I bought in at 32c so buying in now is not really meaningful for me, but I think that $10/share seems like a resonable target given the size of the resource and the small amount of shares on offer.
 
edogg75 said:
I bought in at 32c so buying in now is not really meaningful for me, but I think that $10/share seems like a resonable target given the size of the resource and the small amount of shares on offer.

30 cents !

Horny stuff - but I think eventually resources do matter

Just be sure to be out when they announce the inevitable placement at $3.00 or they start exercising the 20c options

There will eventually be more insiders selling at 'any price' than bigger fools buying at 'any price'

Sensational buying though - congrats to all those in sub a $1
 
edogg75 said:
a quick look at the market depth shaows that AUM still has a way to go. I bought in at 32c so buying in now is not really meaningful for me, but I think that $10/share seems like a resonable target given the size of the resource and the small amount of shares on offer.


With only 53,309,568 issued shares and approx 19.04% held by Kaldig Pty Ltd., there are really not a lot of shares on offer.

Looking at the market depth, it appears that the sellers are drying up again. Which equates to a supply and demand situtation, with demand still outstripping supply. More positive news may only see the price pushed higher, at least in the short term, based on the current activity we are seeing.

The share turnover rate since the start of the year until EOD yesterday has been 161.6%, hence we will see the share base churning through different buyers and sellers. As longer term holders take shares out of the market the tradeable base of shares will become less.

The lowest the share price has been in the last 52 weeks was 0.13 cents, so besides the stories related to options being sold cheaply, there will probably be some stories around of people selling out, only to see the stock take-off and trying to buy back in at higher prices.

Good luck in your trading/investing.
 
Congrads all in early, wow............

So is it worth putting in a bid for say 5.35 tonight?

1. Would it likely get filled - if not, what would
2. Is it likely to keep rising - if so, end of week price guesses?

cheers
 
BSD - thanks for posting the comparitive info.

In comparing AUM to some of the other ones you mentioned - is the grade (2%) a significant factor - I would have thought this would have a significant impact on the $/tonne production costs? For example - a mine that had 100Mt of .7% ore for a 700,000 tonne Cu vs a mine that had 35Mt of 2% ore for 700,000 tonne Cu - how would they compare in value terms?

Also looking at URL - their total resource seems to be spread across a few different targes (about 5 or so?) that are a way apart - how much does this impact production/development costs etc.?

The comparison to ABY is interesting - (even considering that ABY is a current producer and AUM is a long way and many development $$$ away from production).

There's a lot of interesting sounding stuff that I don't understand in the AUM report :confused: :) - including some of the historical drilling results and the old mining operations at Double Oxide etc. Is '150m of continuous visible sulphide mineralisation' on one of the drill holes anything to get excited about?

Also are they typically conservative in initial resource estimates like this (or does it depend a lot on the management and the individual geologists etc.?) or is there an industry standard for how to make these estimates?

btw not expecting you to necessarily answer all this but thought I'd throw the questions out there anyway :)
 
cuttlefish said:
... or is there an industry standard for how to make these estimates?

For anyone as ignorant as myself there's something called JORC

taken from a ppt presentation found here: http://www.jorc.org/main.php

IT DOES:

* Sets minimum standards for public reporting (in Australia & New Zealand) of Exploration Results, Mineral Resources and Ore Reserves
* Provides a mandatory system for classification of tonnage/grade estimates according to geological confidence and technical/economic considerations
* Requires Public Reports to be based on work undertaken by a Competent Person; describes the qualifications and type of experience required to be a Competent Person
* Provides extensive guidelines on the criteria to be considered when preparing reports on Exploration Results, Mineral Resources and Ore Reserves.

IT DOES NOT

*Regulate the procedures used by Competent Persons to estimate and classify Mineral Resources and Ore Reserves
*Regulate companies’ internal classification or reporting systems
*Deal with breaches of the Code by
Companies (ASX)
Individuals, these are dealt with under code of ethics of AIG and AusIMM or the relevant ROPO.
 
Such a coinsidence to be one of the member here.
After read so many opinions and posts. Hereby is my AUM story.

I have been invovled into the AUM since last 11/2005, when the company trying to place the option AUMO, however, there are huge amount of shortage left. One of my broker friend rang me and pushed me into the deal of buying AUMO at 2c each option (exercising price is 0.2 due 08/08). After three month time, the option price has bee shift from 0.02 to higher at 0.22. I sold all of them at the average price of 0.16/0.17/0.18. That brought me huge profit.

1 months later (approxiately, i cant really remeber the time), I bought back about $20K worth of AUMO at $0.18, my expectation for this option price was around 0.5-0.6. Now the price stands at $5 dollar, it is a bit unacceptable, however my target for AUM is around $10-$12 dollars.

I wont watch the share price until the Xmas of 2006, I am still going to hold for another 3-4 months to see whats going on, as i dont want to miss a Jackpot.
 
continue with last post,

I know lots of PPL who bought the AUM and AUMO below 0.5, they are still holding. I was also be told not to sell any of them at the current price, otherwise, I must be regret after the share price go up again and again.

Hope this info could help some of the player here.
 
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