AUZ - Australian Mines

[constable]

graph says it all.....no volume, no interest, no movement and well below moving avgs. Not ideal for traders. Bargain or not, why would you touch it unless it brakes out of its downward trend?

 

[PureCoco]

Nice report, about time this company moved ahead with so much cash flow so the half M shouldn't be a problem.

"The Marriott’s Nickel Deposit is located on granted mining lease M37/96 and situated 70km south west of the Leinster Nickel Concentrator. The project is owned by BHP Billiton and Australian Mines Ltd has an exclusive option to purchase the tenement for A$500,000 before 30 June 2007. The Company has previously reported the project contains an inferred resource of 550,000 tonnes at 1.4% for 7,500 tonnes of nickel metal.
The current diamond drilling program was designed to test the previous drilling results, conduct metallurgical testwork and test the up-dip potential of the deposit."

 

[zombie_ninja]

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.

Why has AUZ been flying under the radar? Is it because their company is not pumping out enough announcements? I mean if a company has good potential, and it has been operating in positive cashflow, what would it take for its share price to go up?

 

[mick2006]

market finally realising the potential, current nickel miner, at these prices profit of $20 million, plenty of upside from exploration

 

[Fab]

market finally realising the potential, current nickel miner, at these prices profit of $20 million, plenty of upside from exploration

Indeed it is moving strongly up today. Any reason ??

 

[mmmmining]

Day traders are moving in.

 

[zombie_ninja]

Can anyone explain the difference in share prices between AUZ and AGM?


Considering that they're both producers of Nickel. Is it because AGM is the only new Nickel mine coming online this year? I thought AUZ is already producing Nickel, yet their price is so low.

Excuse if me I got any information wrong here.

 

[Sodapop]

Can anyone explain the difference in share prices between AUZ and AGM?


Considering that they're both producers of Nickel. Is it because AGM is the only new Nickel mine coming online this year? I thought AUZ is already producing Nickel, yet their price is so low.

Excuse if me I got any information wrong here.

I`d say one reason is the fact that AUZ have to toll treat their ore at the BHP (Nee WMC) Kambalda Concentrator... as opposed to AGM who can produce their own concentrates... Also AUZ is simply still under the radar (market perception - that old (but oh so relevant) chestnut) - AGM is heavilly cheerleaded by various parties (vested or otherwise)... and AGM is slated to produce more nickel P/a and for longer (on current knowledge of the orebody than AUZ - stick around though as i think AUZ will continue to increase their avalible Ni metals as well) patience is a virtue - i believe that AUZ`s time will come...

 

[SevenFX]

Gotta hand it to you Sodapop, there aren't many stocks that I see a poster follow it from start to finish.

If I ever needed to know anything about AUZ, your the man (assuming) I would see.

Keep up the good work.
Cheers
SevenFX

 

[scsl]

market finally realising the potential, current nickel miner, at these prices profit of $20 million, plenty of upside from exploration

A profit of $20 million and their market cap is only $36 million?
I follow AGM but have only started to notice AUZ and would appreciate any explanations.

 

[Sodapop]

Gotta hand it to you Sodapop, there aren't many stocks that I see a poster follow it from start to finish.

If I ever needed to know anything about AUZ, your the man (assuming) I would see.

Keep up the good work.
Cheers
SevenFX

Thanks SevenFX,

But i didn`t do it (follow it from the start) out of charity - i have got (and hope to continue) to get my pound of flesh from this baby!!!



Sodapop...

 

[Fab]

A profit of $20 million and their market cap is only $36 million?
I follow AGM but have only started to notice AUZ and would appreciate any explanations.

It doesn’t look like this one is unnoticed anymore. It jumped yesterday and keeps on going today. The 10 cents mark should be a strong resistance point. If it goes over in big volume then the sky is the limit

 

[Fab]

I was correct in my last comment the market is showing some interest in AUZ.

 

[CanOz]

market finally realising the potential, current nickel miner, at these prices profit of $20 million, plenty of upside from exploration

From what i can find out, its revenue of $21m, not profit.

Cheers,

 

[Fab]

As anyone run the ruler on this one. It looks awfully cheap for a Nickel producer specially in the current high nickel price environment ?

 

[speves]

Some inside gossip going on today with the SP up 8% on high volume and was starting to run at the end of the day.....any holders know whats going on???......ann tomorrow i'm guessing.

 

[brerwallabi]

Yes nickel was back up, jumped a bit overnight, AUZ could get back to double digits if the nickel shortage continues, canceled warrants on LME will help all nickel stocks tomorrow especially if the DOW flexs its muscles again.

 

[constable]

Auz has taken off over the last few minutes.

 

[Fab]

Auz has taken off over the last few minutes.

Yep the problem is 10-11 c is a strong resistance

 

[speves]

I agree, this needs to break the 9.5c convincingly before it can achieve any "blue sky". Although you would have to say it is primed at the moment to give that a go tomoro.

Any ideas on what sparked todays spurt?...concidering we are only three days on what was a very ordinary ann that had many ducking for cover.