AUM - Australian Mining Investments

[lesm]

Canny,

A colleague of mine uses Westpac and they have IAP, as part of their standard service


ALFguy,

I only have a view the same as others may have the same or a differing view. But, I think that the answer is fairly obvious with respect to the outcome to expect when AUM release their announcement. A the end of the day it comes down to how the participants in the market react to the announcement.

Your reference to a coin toss is fairly apt, but we will know the outcome when AUM recommences trading and that is when it counts.

I would be watching the opening and let the market settle down after the first 30 minutes, as it will probably hectic during this period. Would be surprised if it was a tame opening for AUM, but it could happen. The market depth, including the 'bid' and 'offer' prices, at pre-open should give an indication of what buyers and sellers are expecting to happen.

As Canny mentioned earlier it is important to keep your nerve and not be too emotional, as this can cause more harm than good. Hesitation or indecision through emotion can be a very expensive exercise, especially in a fast moving market.

The action related to AUM is probably a good learning experience for a new player. You will have noticed that a number of the more experienced traders here have been in and out of AUM fairly quickly and others have bought and are holding fro a longer period. You are seeing a number of aspects with respect to fast moving prices in both directions, as well as 'gap' opens and trading halts.

The main thing here, is to learn as much as you can and identify areas for further research or the raising of questions in the forum.

Cheers.

 

[michael_selway]

another great story on the Australian..

http://www.theaustralian.news.com.au/story/0,20867,19686554-643,00.html

wow thx

Copper whopper up another 79pc
Robin Bromby
July 05, 2006

EVERYONE wants a piece of Australia's new copper sensation near Cloncurry - the big names of world mining who want to be partners, other explorers who want to know what's there and, most of all, investors who yesterday pumped Australian Mining Investments shares up a further 79 per cent.
AMI shares, which trade under the code AUM and were priced at 29c seven weeks ago, shot up a further $2.32 yesterday, closing at $5.25.

AMI executive chairman Wayne McCrae, in an exclusive interview with The Australian, said one of the large Australian mining contractors had offered his company a $300 million line of credit in return for the mining contract at the Rocklands deposit.

"That would mean we wouldn't have to spend another dollar of our own," he said.

And most of the big names of Australian mining - and at least two international copper majors - have approached the junior explorer.

Meanwhile, the potentially huge copper discovery just 15km west of the old Queensland mining town has attracted feverish interest from other miners.

Mr McCrae said that over the past two weeks the ground around AMI's licence areas had been the scene of frantic activity by geophysical teams, helicopter crews landing to take soil samples and drilling rigs moving in.

'It's pandemonium here - the boundaries of our (exploration licence) look like Pitt Street, Sydney," he said.

He has even had to order a team of geologists from one global major off AMI's licence area. "They just strolled on like they were the sheriff," he said.

AMI's share price has been exploding since the company revealed the potential size of the discovery.

One hole produced nuggets of native copper up to 5oz in weight while many holes drilled have returned samples with visible mineralisation, one showing a copper zone 155m wide.

A Sydney broker, in a report to clients, has estimated the potential value of the discovery at $17.5 billion.

Mr McCrae is also bullish, saying the Rocklands project could turn into the biggest copper mine in the world. AMI has one rig working there and is looking to bring in three others.

Mr McCrae said that, apart from the strike zone now being drilled, which was 1.2km long and 1.4km wide, there were multiple parallel ore bodies which had yet to be explored. "We haven't even scratched the surface."

AMI, which is planning a name change to CeDeco, is now a likely takeover target or at least a junior partner to a major.

Mr McCrae agreed that the most likely interested party could be Xstrata, which operates the Ernest Henry copper mine 40km away. He said that Xstrata faced spending of about $1 billion to extend the underground operations and might see AMI's Rocklands as a cheaper option to sustain its copper operations in the region.

AMI picked up the prospects in 2003 after they had been held for many years by a two-man syndicate that produced small quantities of copper there. The two men died within a year of each other.

The former CRA, now Rio Tinto, had tried to buy the ground in 1992 after drilling around it, but the owners - Len Leivers and Brian Hallam - would not sell.

Mr McCrae owns a 10.9 per cent stake in AMI.

Retrieved from "http://en.wikipedia.org/wiki/Poseidon_bubble"

The Poseidon bubble was a stock market bubble in which the price of Australian mining shares soared in late 1969, then crashed in early 1970. It was triggered by the Poseidon NL company's discovery of a promising site for nickel mining in September 1969.

In the late 1960s, nickel was in high demand due to the Vietnam War, but there was a shortage of supply due to industrial action against the major Canadian supplier Inco. These factors pushed the price of nickel to record levels, peaking at around £7,000 on the London market early in November 1969. In September 1969, the mining company Poseidon NL made a major nickel discovery at Windarra in the Shire of Laverton, Western Australia. In early September their shares had been trading at $0.80, but as information about the discovery was released, the price rose until it was trading at $12.30 on October 1. After this, very little further information came to light, but the price continued to climb due to speculation; at one point, a UK broker suggested a value of up to $382 a share.

The price of Poseidon shares quickly became too high for many investors, so some investors turned to other nickel stocks, stocks in other mines near Windarra, and eventually other mining stocks in general. As the price of mining shares grew, numerous new companies were listed by promoters looking to cash in. Some of these new listings did not even have any mining leases, let alone viable mines. Many investors lost money on these shady listings, and this attracted substantial negative press. Thus the image of mining stocks was tainted, and the prices began to fall. Mining stocks peaked in January 1970, then immediately crashed. Poseidon shares peaked in February 1970, and fell rapidly thereafter.

By the time Poseidon actually started producing nickel, the price of nickel had fallen. Also, the nickel ore was of a lower grade than originally thought, so extraction costs were higher. Profits from the mine were not sufficient to keep Poseidon afloat, and in 1976 it delisted. Western Mining then took over the mine, operating it until 1991.

In 1974, The Rae Committee handed down its report on the Poseidon bubble, in which it documented numerous cases of improper trade practices. It recommended a number of changes to the regulation of stock markets, which ultimately led to Australia's national companies and securities legislation.

In the late 1980s Robert Champion de Crespigny took over the Poseidon Company and it became part of Normandy Mining, the largest gold miner in Australia. In 2001 Normandy Mining, including Poseidon, was taken over by the Newmont Mining Corporation, now the world's largest producer of gold.

thx

MS

 

[michael_selway]

Some more interstign articles

http://www.smh.com.au/news/business/market-watches-poseidon-the-sequel/2006/07/05/1151779013378.html

http://www.smh.com.au/news/business/veterans-see-lots-of-hype-in-ami/2006/07/05/1151779013375.html

Market watches Poseidon, the sequel
Email Print Normal font Large font July 6, 2006

Advertisement
AdvertisementTHE astonishing rise of Australian Mining Investments brought back old memories for many industry veterans yesterday in the form of one word: Poseidon.

In 1969, Poseidon, a West Australian nickel hopeful, released news of a promising discovery at Windarra, near Laverton, when the metal was in high demand.

The shares rocketed from 80c to $12.30 in less than a month, ultimately reaching $280.

AMI has seen its shares rise from 30c at the end of May to a peak of $10 yesterday.

That means a $1000 investment in AMI in late May would have been worth $33,000 at the top price yesterday.

It seems a few drilling results made all the difference between a penny stock and one more than twice as expensive, per share, as the mid-tier miner Oxiana.

The rapid rise of AMI has stunned long-time resources industry observers.

"How can you justify going from 30c to [more than] $5 in about six weeks? It's just ludicrous," Eagle Research analyst Keith Goode said. "The only parallel you can draw is Poseidon."

Poseidon's share surge sparked a run on other minerals explorers such as Tasminex.

Many of them had questionable management and even more questionable drill results. After some investors lost huge amounts of money, investigations were undertaken and the sharemarket was eventually subjected to much stricter regulation.

The latest success story, AMI, has released scant information compared with its peer companies in relation to its copper prospect near Mt Isa in Queensland.

"It's all hearsay," said one sceptical long-time Queensland miner. "Unfortunately it will cause [credibility] problems in the rest of the industry."

Hearsay or not, investors eagerly latched on to grandiose statements made by AMI chairman Wayne McCrae earlier this week. Many believed Anglo-Swiss mining group Xstrata was about to launch a takeover for AMI when it entered a trading halt yesterday.

But knowledgeable sources said that was extremely unlikely at this early stage and investors probably had a lot more to lose than to gain.

"Take the money and run," Mr Goode advised.

Jamie Freed

 

[noirua]

It is reported by the London Evening Standard that the London-listed miner Xstrata may bid for Australian Mining Investments, and the 59 million tonnes of ore at Rocklands Lode could be worth A$22 billion.

 

[sangshim]

Another news from the Australian..

http://www.theaustralian.news.com.au/story/0,20867,19697306-643,00.html

 

[ALFguy]

All interesting and 'varied' articles...

Anyone know what the IAP is at today?

 

[ALFguy]

This mornings announcement:

Drilling is continuing to increase the resource at the Rocklands Copper Gold Cobalt Group Project. Drilling is continuing 7 days per week 12 hours per day.
Further RC drill hole results have now been received confirming the Las Minerale continues at depth, length and consistent width.
An updated report will be released Friday.
Yours faithfully,
Wayne McCrae,
Chairman.

 

[lesm]

All interesting and 'varied' articles...

Anyone know what the IAP is at today?

Wouldn't worry about the IAP too much at the moment.

Wait until the pre-open.

Patience is a virtue that new traders need to learn.

Cheers.

 

[canny]

All interesting and 'varied' articles...

Anyone know what the IAP is at today?

ALFguy - the IAP is being artificially held at $7.50 by an automated 'Money Maker' system. This means that until nearer the open, just ignore all bids and offers. The only way we'll know which way it's going, is when we read the ann.
Certainly all sounding good so far and I still expect positive news and another overall gain in price - BUT there are a lot of people who've been 'little' share holders and had no idea they were sitting on a fortune. As they realise, there will be some sells going in from them.
A mates golfing buddy bought 300,000 of them a year or so back for a tiny outlay - and just forgot about them - had NO IDEA until this week that he was worth a fortune!! He sold 100,000 of them the morning of the halt - and his broker advised him to keep the rest for now.
Wow - wou;dn't have minded being in HIS shoes!!!!
These are obviously the people that aren't regular traders, just mums and dads that buy a couple of things for some reason at some time.

 

[sangshim]

-ve news from SMH this time..

http://www.smh.com.au/news/business/veterans-see-lots-of-hype-in-ami/2006/07/05/1151779013375.html

 

[cuttlefish]

The Herald made several attempts to reach AMI's management team for a response yesterday, but AMI chairman Wayne McCrae was overseas and unavailable for comment. Phone calls to executive director Tim Koitka and Chris Dredge, the geologist who compiled the June 29 release, were not returned.

haha - yeah sure the Geologist will just have a private little chat about the findings with you, that'd be perfectly legal ...

 

[sangshim]

The Herald made several attempts to reach AMI's management team for a response yesterday, but AMI chairman Wayne McCrae was overseas and unavailable for comment. Phone calls to executive director Tim Koitka and Chris Dredge, the geologist who compiled the June 29 release, were not returned.

haha - yeah sure the Geologist will just have a private little chat about the findings with you, that'd be perfectly legal ...

So.. you think it's just media crap?

 

[cuttlefish]

wasn't a comment on the quality or accuracy of the article - just highlighting a section of it that I thought was funny - that a journalist would think that the companies geologist would even speak to them about such sensitive information at this particular point in time.

 

[Prospector]

Journalists think they have a right to everything! They have become THE story instead of REPORTING the story!

 

[stockmaster]

So.. you think it's just media crap?

Who the hell believe the media, lolz the journalist only noe how to write those bs entertainment news, when they gets to financial news, as if they noe everthing. If they do, y don;t they js play shares, they get more profit out of it than their job!

 

[BSD]

I wish I could short this stock


No insto interest, dodgy drilling, nothing proven, options aplenty, lies galore. about 10-20 overvalued even if it is true.

Every mug in the street getting excited

This is laughable and The Australian has a lot to answer for in my view

Who is the broker with the $25 target again?


Would love to do a contract for difference on the stock price for June 07 settlement.

What broker would place their stock?

Bucketshop Inc?

 

[sangshim]

I wish I could short this stock


No insto interest, dodgy drilling, nothing proven, options aplenty, lies galore. about 10-20 overvalued even if it is true.

Every mug in the street getting excited

This is laughable and The Australian has a lot to answer for in my view

Who is the broker with the $25 target again?


Would love to do a contract for difference on the stock price for June 07 settlement.

What broker would place their stock?

Bucketshop Inc?

Would you like to sell yours for $5 before market opens?

No.. I don't think you would.. I believe Somewhere in your mind a devil's whispering "it might be the chance of the lifetime~ it will go up and break $15 tomorrow~".

No?

Well.. the devil's whispering in my ears anyway..

 

[BSD]

Chance of a lifetime?

Why not put $10,000 on a $1.40 front runner at Randwick on Saturday?

Laughable stuff.

At $15 the company is worth $1.50 billion

Six holes and a million in the bank

Laughable

 

[sangshim]

sounds like you are a bit frustrated...

Oh well...

To be honest.... it's same here.. since i've dipped my toes in at around $8..

I've been swearing more than thousand times in last 2 days.. "I should have sold it at $9 and leave with a few grand profit"...

But What can I do now... just fingers crossed and wish it jumps up at least one more time..

 

[sangshim]

New Ann just released.. "Corrected Version of Suspension from official quotation"

Trading halt was due to the delay of the release of results.