AUZ - Australian Mines

[mick2006]

the results just released, was for the joint venture with Pioneer Nickel for the area surrounding but not including the Blair Nickel Mine.

Have patience shortly the drilling results will be announced for the Area 57 extension of the Blair Nickel Mine, when released this should hopefully include a resource and mine life upgrade.

Also don't forget about the Marriot project, where drilling has just commenced. They already have a treatment agreement with BHP for the project, and it should commence once JORC resource is established.

 

[constable]

Looks like auz gone on holidays already,... down another 4 cents. It hasn't been this low since the 22/11/06. Possible buying opp ? not sure downward trend in motion now but doubt it will get to 7 cents ( previous support 7.1 7.3). Anyone else with thoughts?

 

[mick2006]

looks like a bit of support around 7.4c, currently awaiting drilling results form the Blair Mine, and currently drilling at the Marriot project hopefully some good news is not far away.

Don't forget they are currently making a profit of just over $1 million a month it certainly helps fund future drilling and expansion.

The Woodline 1 good deposit should also commence operation late in the first quarter of next year, good grade low cost gold operation, another cash flow for future operations.

I currently own 500,000 and just topped up at 7.5c

 

[constable]

looks like a bit of support around 7.4c, currently awaiting drilling results form the Blair Mine, and currently drilling at the Marriot project hopefully some good news is not far away.

Don't forget they are currently making a profit of just over $1 million a month it certainly helps fund future drilling and expansion.

The Woodline 1 good deposit should also commence operation late in the first quarter of next year, good grade low cost gold operation, another cash flow for future operations.

I currently own 500,000 and just topped up at 7.5c

Yes likewise picked up 100000 at 7.5c and another order in at 7.2c in case there is a quick tanking. Believing this shouldnt stay in the duldrems for more than a couple of days.

 

[mick2006]

most of the smaller value stocks move in waves following or leading into expected announcements, as AUZ has been fairly quiet recently it has been put down the list for the day trader, but remember it only takes one announcement to start the ball rolling again.

On the plus side for AUZ they are one of the few micro value miners that have a cash flow positive mine currently in operation and it will be in operation for at least the next two years.

 

[mick2006]

with nickel up almost 4% in London on Friday night is it time for another run of the nickel mining stocks?

Looks like it has found support around the usd $32000 mark

Does anyone have any views on AUZ, do you think it will stay a day traders stock or will the market ever wake up to the fact that it is already producing nickel and generating very decent profits, to put towards future gold and nickel operations.

Will it take a break above the 10-12c range for investors to seriously consider holding a long term stake in the company or will it continue to be traded on any news, good or bad.

any opinions guys?

 

[Sodapop]

Hard to say - a lot of it is based on market perception, but i beleive that AUZ is on the cusp of a decent run... As you alluded $$$ coming in and an near term prospects add up to a very promising coy... but once again it is about perception... Traders stock??? - this is nothing compared to the way it was played with when it was in the .01s and .02s... This consolidation merely is shaking out the johnnie come latelies - i have followed this for close to 1 1/2 years and am in for the long haul... thus far it is a 5 bagger - but i am expecting a 10 bagger after the next qtly and if they delineate more obscenely high nickel in the Blair mine and the Au prospect comes in... and the Marriots updip drilling and PIO JV are bonuses...

 

[mick2006]

just had a look at kitcometals there has been a large drawdown of Nickel stocks on the LME of 500+ tonnes, should bode well for the nickel price overnight.

It bit disappointed with AUZ share price performance at the moment, seems to be hanging around waiting for a spark. If the nickel price remains around the current levels AUZ can expect a profit of 15-20 million this year.

Hopefully the exploration results for the Blair Mine will be released soon and that could be the spark to get the price going again.

Anyone have any views on this one?

 

[Fab]

just had a look at kitcometals there has been a large drawdown of Nickel stocks on the LME of 500+ tonnes, should bode well for the nickel price overnight.

It bit disappointed with AUZ share price performance at the moment, seems to be hanging around waiting for a spark. If the nickel price remains around the current levels AUZ can expect a profit of 15-20 million this year.

Hopefully the exploration results for the Blair Mine will be released soon and that could be the spark to get the price going again.

Anyone have any views on this one?

I am the same as you mick2006, I am waiting for another spark to get auz going again, these type of stocks seems to be moving by waves

 

[zombie_ninja]

Just a quick question from a newbie.

How do you calculate the PE of these mining companies such as AUZ?


What are your estimates of AUZ in say 1 year, 2 years?


Thanks in advance.

 

[zombie_ninja]

Also, what share price do you guys expect AUZ to be at in a year's time?

 

[mick2006]

a bit of extra buying today, maybe people positioning themselves for the expected exploration announcement.

Any of you guys heard anything on the grapevine?

 

[nizar]

Time to get back in this one maybe?
Seemed to bounce off 7.3-7.5 levels in the past.

 

[Sean K]

Time to get back in this one maybe?
Seemed to bounce off 7.3-7.5 levels in the past.

Maybe Nizar. I see a tiny bit of resistance at $0.08. The MACD has just started to flatten and converge. It seems to have made a higher low. This might be the start of a reversal but maybe too early to tell IMO. You might have the start of it and have a tight stop in case it doesn't eventuate?

 

[Fab]

Yes I hold this one and I actually like it even though I bought it at around 0.10. I like the fact that they are a small producer with potential

 

[nizar]

Maybe Nizar. I see a tiny bit of resistance at $0.08. The MACD has just started to flatten and converge. It seems to have made a higher low. This might be the start of a reversal but maybe too early to tell IMO. You might have the start of it and have a tight stop in case it doesn't eventuate?

Kennas, thanks for your thoughts.
Though not normally a move i would trade, you gotta try new things sometimes, and i think i mite have a stab.

Entry at 7.5 if i can and a stop at 7.2 would be the way i play it.

Probably wont at this stage because my internet is playing up

 

[mick2006]

might be worth a look at topping up on AUZ today as BHP and MRE have halted some Nickel operations due to flooding, should put upward pressure on the nickel price again. Also the exploration announcement on Area 57 is long overdue once released it may give the stock a kickstart again.



BHP, Minara Halt Output at Australian Nickel Mines (Update5)

By Madelene Pearson

Jan. 4 (Bloomberg) -- BHP Billiton Ltd. and Minara Resources Ltd., Australia's two largest nickel producers, halted output at mines after heavy rain, possibly adding to pressure on supply of the metal used to make stainless steel.

Pit operations at BHP's Mt. Keith and Leinster mines in Western Australia have halted, Emma Meade, spokeswoman for Melbourne-based BHP said by phone today. Minara stopped output at its Murrin Murrin mine after 75 millimeters (3 inches) of rain, spokesman Willie Rowe said from Perth.

Nickel prices reached the highest in at least 19 years in December as demand from China helped cause a supply shortfall. Use of the metal will outstrip supply by 57,000 metric tons this year, according to BHP, the world's third-largest nickel producer in 2005.

``The nickel market doesn't tend to like interruptions of any kind,'' James Wilson, resource analyst at D.J. Carmichael & Co., said from Perth. ``Any kind of interruption to production or anything like that, the market tends to react badly to those and the price of nickel tends to go up.''

Nickel for three month delivery rose $275, or 0.9 percent, to $32,750 a metric ton on the London Metal Exchange yesterday amid forecasts of downpours in Australia's biggest nickel mining area by the nation's Bureau of Meteorology. The metal surged 147 percent last year.

Shares Drop

Shares in BHP fell 94 cents, or 3.7 percent, to A$24.54 on the Australian Stock Exchange at 1:22 p.m. in Sydney. Shares in Minara, 51 percent owned by Glencore International AG, dropped 32 cents, or 5.7 percent, to A$5.29. Zug, Switzerland-based Glencore is the world's largest commodity trader.

BHP's $2.2 billion Ravensthorpe nickel project to the south of the Leinster and Mt. Keith mines, is ``tying down'' in preparation for the rain, Meade said. BHP's Nickel West operation, which runs the Mt. Keith and Leinster mines, is the world's third-largest producer of nickel in concentrate, the company said on its Web site.

As much as 44 millimeters of rain fell through to 6 a.m. Perth time today at the town of Leonora, located about 200 kilometers (124 miles) south of the Leinster mine, the Bureau of Meteorology said on its Web site.

`Local Flooding'

A deep low weather system, formed out of what was Cyclone Isobel, had produced ``unseasonally heavy'' rain in the region and ``localized flooding,'' the bureau said. Additional falls of 10 to 20 millimeters are forecast for the area later today, the bureau said.

``When the ground gets too soft they obviously can't move the big equipment around safely,'' BHP's Meade said in reference to the closed mine pits.

The poor weather had also slowed some trucking of ore for Mincor Resources NL's four underground nickel mines in the area, Steve Cowle, chief operating officer with Mincor said. Still, he said it wouldn't affect production for the month.

Jubilee Mines NL and Sally Malay Mining Ltd., which also mine nickel in the area, said the rains hadn't disrupted their operations. A Jubilee spokeswoman said it was ``business as usual,'' at its operations. Richard Jordinson, the chief operating officer at Sally Malay, said there had been no major disruptions at its mine.

Cyclone Isobel forced Woodside Petroleum Ltd. and Santos Ltd. to shut down facilities accounting for almost half of Australia's oil output yesterday as it passed near the nation's main crude producing areas.

Processing operations at the Murrin Murrin mine, owned 40 percent by Glencore, won't be affected by the rain as the company has ``significant amounts'' of ore inventories, Minara's Rowe said.

The rain hadn't affected operations at BHP's Kambalda concentrator or the Kalgoorlie smelter yesterday, Meade said

 

[constable]

little bit of a bounce happening here.

 

[Fab]

how come is auz not moving up as the Nicke; price has been rising quite strongly

 

[speves]

This stock tends have a fairly low profile for some reason, however I expect that will be changing soon. A recent article from mining news explains:

AUZ's Blair mine has just undergone an impressive resource upgrade that increased the total resources by 45% to 109,000 tonnes at a grade of 5.19% nickel for 5660t of contained metal.

Global nickel prices are currently soaring due to surging demand out of the expanding economies of China and India, low world stockpiles and a lack of new production coming onstream. Nickel selling on the London Metal Exchange recently surpassed $US30,000 per tonne, having doubled in the past year.

A few quick calculations, therefore, will tell you that Australian Mines is sitting on nickel with an in-ground value of about $220 million. Now, the amazing thing that will have canny investors sit up and take notice – Australian Mines has a market capitalisation of just $14 million.

Australian Mines has been left behind in the latest nickel boom as its peers record sensational share price rises and witness massive increases in their market value. As it slowly chips away at its portfolio, the company has flown under the radar – until now.

With the latest resource upgrade, it is unlikely to stay under the radar for long before brokers, analysts and investors realise the huge discount in the company's value compared to the veritable nickel vault that it is sitting on.