- Joined
- 31 May 2006
- Posts
- 1,941
- Reactions
- 2
BSD said:
thats a strong claim - do you believe they are misrepresenting their drilling results?
AUM - Australian Mining Investments
- Thread starter ALFguy
- Start date
- Status
thats a strong claim - do you believe they are misrepresenting their drilling results?
- Joined
- 15 March 2006
- Posts
- 469
- Reactions
- 0
Not at all
But the lack of coordinates on the holes is a problem
Are the six holes five metres or fifty metres spaced?
Is the 59mt JORC compliant?
Nobody knows yet.
When there is a knowledgeable feeling the copper is in shoots around these areas, the spacing is very important
Regardless - even if they have the 100mt at 2.0% Cu they are spruiking the stock is ten times over the odds.
$1.0m in the bank doesnt buy much drilling - they would need at least $30m to do feasibility and another $500m to start production
Even at the current over the odds price that is a lot of dilution
Nobody lends $500m on an 'inferred resource' from six holes!
How many here are keen to pony up at $3.00 a share in a placement?
But the lack of coordinates on the holes is a problem
Are the six holes five metres or fifty metres spaced?
Is the 59mt JORC compliant?
Nobody knows yet.
When there is a knowledgeable feeling the copper is in shoots around these areas, the spacing is very important
Regardless - even if they have the 100mt at 2.0% Cu they are spruiking the stock is ten times over the odds.
$1.0m in the bank doesnt buy much drilling - they would need at least $30m to do feasibility and another $500m to start production
Even at the current over the odds price that is a lot of dilution
Nobody lends $500m on an 'inferred resource' from six holes!
How many here are keen to pony up at $3.00 a share in a placement?
sangshim, i did the same
put order at open at 6.00, wasn't filled of course.
bought at 8.97, and put sell order at 12
buummer
sold at 7.50 for a ****e days trading.
kind of wish i held off selling now.
could maybe run to 12 or 15 tomorrow, depending on the ann.
put order at open at 6.00, wasn't filled of course.
bought at 8.97, and put sell order at 12
buummer
sold at 7.50 for a ****e days trading.
kind of wish i held off selling now.
could maybe run to 12 or 15 tomorrow, depending on the ann.
Whether people agree with BSDs view or not, care should be taken and he is entitled to an opinion.
This company's stock has moved a fair amount pricewise and there has probably been a fair amount of speculative and emotional buying of AUM, with some people possibly seeing an opportunity to get rich quick.
Since the Australian articlethe daily volume turnover increased by around 200%+ on that day, remember it went into the trading halt the day after. Where AUM goes from here remains to be seen, but a positive announcement will probably see more sepeculative buying taking place and crazy price movements.
Take care and use effective risk management to handle the situation if/when AUM corrects and the pricing becomes more rational. Wouldn't like to see anyone get stranded on a peak after a price spike.
This company's stock has moved a fair amount pricewise and there has probably been a fair amount of speculative and emotional buying of AUM, with some people possibly seeing an opportunity to get rich quick.
Since the Australian articlethe daily volume turnover increased by around 200%+ on that day, remember it went into the trading halt the day after. Where AUM goes from here remains to be seen, but a positive announcement will probably see more sepeculative buying taking place and crazy price movements.
Take care and use effective risk management to handle the situation if/when AUM corrects and the pricing becomes more rational. Wouldn't like to see anyone get stranded on a peak after a price spike.
- Joined
- 15 March 2006
- Posts
- 469
- Reactions
- 0
It is SUSPENDED
No trade tomorrow
Punters will be sweaty by Monday
Lining up next to the Westpoint punters in 12 months
"Where was ASIC - we was robbed"
No trade tomorrow
Punters will be sweaty by Monday
Lining up next to the Westpoint punters in 12 months
"Where was ASIC - we was robbed"
- Joined
- 31 May 2006
- Posts
- 1,941
- Reactions
- 2
depends on when they get together the information they want to release to the market - but given they've requested a suspension it doesn't sound like it'll be tomorrow.
BSD said:
Totally agree with you. Personally I havent liked the way AUM has handled the release of these findings at all. Its all too vague, and reminds me of the good old days in the 80's, when small exploration company's would vastly over-estimate drilling results. And whats with the release of the company update today? It's in a trading halt and then they release yet another vague update.
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.
Price pumping comes to mind (ok it is a trading halt, but still
). Dont get me wrong, I hope for the sake of those holding that this is a great find, I just think AMI hasnt handled this at all well. As far as the take-over, well I would say the price is now too high for anyone to be interested without full confirmation of the resource (alot more than six holes).
But maybe I am just suspicious because I missed the boat
: Good luck to those that hold
- Joined
- 31 May 2006
- Posts
- 1,941
- Reactions
- 2
If they have made a significant find (and it sounds like they have) there's probably not going to be any easy way to handle it. They need to release results to market as they come to hand which they've done.
When things appeared to be getting out of hand (which is not something they can control) they've put it into suspension until they can release enough information to hopefully mean a more orderly market. Seems reasonably responsible to me.
Its the responsibility of investors to make sure they invest/trade based on their own assessments of value and risk. Yet a lot of people just buy without even doing some simple maths or reading the actual reports themselves.
BSD put useful comparitive figures into this thread of similar companies. The AUM report itself has speculated on an initial resource estimate - it can only be assumed this is done by a qualified, competent geologist and based on at least some commonsense. So its not like there isn't information about that could be used as the basis for doing a valuation.
Articles like the one in The Australian speculating on a $25 share price so early in the piece probably weren't helpful to the situation thats for sure.
But who knows - I certainly don't.
Oh yeah and troll - you've selected your username well - managed to slip in another plug for FP Markets I see - I'm surprised they still let you log in.
When things appeared to be getting out of hand (which is not something they can control) they've put it into suspension until they can release enough information to hopefully mean a more orderly market. Seems reasonably responsible to me.
Its the responsibility of investors to make sure they invest/trade based on their own assessments of value and risk. Yet a lot of people just buy without even doing some simple maths or reading the actual reports themselves.
BSD put useful comparitive figures into this thread of similar companies. The AUM report itself has speculated on an initial resource estimate - it can only be assumed this is done by a qualified, competent geologist and based on at least some commonsense. So its not like there isn't information about that could be used as the basis for doing a valuation.
Articles like the one in The Australian speculating on a $25 share price so early in the piece probably weren't helpful to the situation thats for sure.
But who knows - I certainly don't.
Oh yeah and troll - you've selected your username well - managed to slip in another plug for FP Markets I see - I'm surprised they still let you log in.
- Joined
- 2 June 2006
- Posts
- 33
- Reactions
- 0
its suspended at the mo so u cant even if u want 2
new girl said:
newgirl,
I think you will find that trading on AUM will not recommence until at least Monday next week.
It is believed that the announcement will be positive, but whether you should buy as an individual is really a decision that you need to make.
Some of the discussion surrounding AUM is related to the veracity of the reporting that has been done and that it has been in accordance with the relevant standards an dthat enough information has been provided to obtain a clear understandiing of the true/real value of the resource.
My understanding is that part of the reason for the delay in the release of the announcement, is that the initial announcement was provided, but that AUM has been requested to provide more detail.
One of the questions raised is with regard to the ASX ensuring that due diligence has been undertaken. Compared to a range of resource sector announcments some of the information provided to date has been very scant.
The media getting into this very early has not helped. Balanced, objective reporting is not one of the strong points of our media. They lost that skill a long time ago and it doesn't help sell newspapers any more. Truth in reporting...baaaaaah!!!
Picked this one up over on reef and people here may find it of interest. Especially with respect to the part about the guy who tried shorting AUM last Monday with a mix of 900,000 shares and options.
http://www.theaustralian.news.com.au/story/0,20867,19697306-643,00.html
How could anyone get it so wrong (ouch!) with the upward momentum push on AUM in the last month or so.
Now, is this greed, speculation, gambling or a contrarian gone wrong?
http://www.theaustralian.news.com.au/story/0,20867,19697306-643,00.html
How could anyone get it so wrong (ouch!) with the upward momentum push on AUM in the last month or so.
Now, is this greed, speculation, gambling or a contrarian gone wrong?
Some interesting posts from everyone.thanks
I have been asking a few people for some advice on this, and this what i was told by one advisor today:
I have just been informed that the suspension may last upto 2 weeks, so we may have to sweat it for a while
Also he has given me both sides of the coin as far as future pricing. If the copper find is fully developed (which could cost upto 500 million) then the share price is worth $46... Underdeveloped the price is valued at 10% of the fully developed price. ie $4.60.
This advisor believes the findings are genuine and not overstated, and that the company directors have just been asked to provide more detailed and precise info before reentering the market.
cheers
I have been asking a few people for some advice on this, and this what i was told by one advisor today:
I have just been informed that the suspension may last upto 2 weeks, so we may have to sweat it for a while
Also he has given me both sides of the coin as far as future pricing. If the copper find is fully developed (which could cost upto 500 million) then the share price is worth $46... Underdeveloped the price is valued at 10% of the fully developed price. ie $4.60.
This advisor believes the findings are genuine and not overstated, and that the company directors have just been asked to provide more detailed and precise info before reentering the market.
cheers
DOC said:
Doc,
Thanks for the input.
At this point in time the detailed input from AUM will help provide the clarification required to come up with a more realistic valuation.
The reality is that the copper is still in the ground and full realisable value will not start to be achieved until they go into production. This is what may confuse some people, the distinction between today's market value and that going into the future. There is no information anywhere that contradicts the information related to this being a major find, how big no one really knows yet.
Everyone has seen the reaction so far, hence it is important to ensure that detailed and informed information, in accordance with the relevant standards, is made available to the market. Otherwise, the ASX and ASIC may also have some explaining to do.
- Status
