AXO - Aurox Resources
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I note there has been a wee spike in volume in the last few days...... any ideas anyone? Could there be some Chinese money on its way?
I don't hold any but have been watching closely.
I suspect it is probably some of the smarter money moving into the iron ore juniors, in anticipation that the Chinese may want to increase their stake in the Pilabara, in light of the Chinalco-Rio deal collpase. It had a very strong start to the day yesterday, but then got pummelled in an intraday selloff, looks to be holding up ok today though.
Sean K
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This is going bananas.
Another to slip under the radar for me.
Sorry I wasn't watching closely enough.
I guess the scene was partially set on Friday with increased volume and some strong buying, although it did go completely gangbusters today - reistance at 35 and 37c got smashed. Believe it or not I'm still marginally out of the money with AXO
, I did average down at 30c last year, but considered that the note conversion issue (now essentially put to bed) was potentially a company breaker - so I can hardly claim to have put my money where my mouth is! Speeding ticket this arvo - "I know nothing" as Manuel would say...Still an absolute roller-coaster ride on the AXO train, from 33-34c up to 49c - and then back down again to the low 30's in a matter of 1-2 days! No real progress updates from the company recently. As I've always said, and many other people will realise, is that only a concrete committment from a 3rd party in terms of capex is likely to see AXO rise above 50c in the short-mid term. With the curent apparent pullback in spending, their 15-odd million should hopefully see them through to the end of the calendar year.
Pretty ordinary that we here about this through flamin' Bloomberg, and not a company update.. wtf?? This company has never been great at keeping their shareholders informed. If Charles strikes a deal however, it will run hard.
"Aurox in China Talks to Secure Funding for A$1 Billion Ore Mine"
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMcr76L_Cisg
By Jesse Riseborough
July 17 (Bloomberg) -- Aurox Resources Ltd., an Australian iron ore company, is in talks with a Chinese steel mill to secure funding for a A$1 billion ($803 million) project.
“We have been back and forth to China, we are talking to some pretty obvious groups with regards to coming in as more than just” customers for the planned mine in Western Australia, Charles Schaus, managing director of the Perth-based company, said in an interview. He declined to name the mill.
Chinese mills are investing in Australia to secure ore supplies to feed rising demand for steel. China’s economy grew 7.9 percent in the second quarter from a year earlier after the government implemented a 4 trillion yuan ($585 billion) stimulus plan that’s sucking in raw materials from around the globe.
“Money is flowing into the junior end of iron ore share markets, with many exploration and development companies undertaking equity raisings,” Trent Allen, an iron ore analyst at Resource Capital Research, said today in a report. “There are continuing signs of recovery in the iron ore sector.”
Aurox was unchanged at 32 cents at 11:35 a.m. Sydney time on the Australian stock exchange.
The company has signed sales agreements with Hebei Iron & Steel Group, China’s second-largest mill, and closely held Chinese steelmaker RockCheck Steel Group.
Schaus will visit China next week for further talks with the unnamed mill and aims to secure an investment agreement by the end of the year, he said in an interview yesterday.
Talks involve a possible joint venture partnership in the project and an equity stake in the company, Schaus said. The partner would be responsible for securing debt funding, he said.
Expansion Study
The company is seeking to start shipments at an annual rate of 6 million metric tons of magnetite iron ore concentrate by March 2012, he said. It’s studying an expansion to 10 million tons a year by 2014, he said.
RockCheck, based in Tianjin, has agreed to buy 3 million tons of output annually for 15 years while Hebei has also agreed to buy 3 million tons a year. RockCheck also owns an 11.5 percent stake in Aurox and has agreed to buy the additional 4 million tons of output once the expansion is complete.
A review of the construction costs for the mine started this month and the estimate may decline by between 10 percent and 15 percent, Schaus said. Aurox plans to pipe output 110 kilometers (69 miles) from its Balla Balla mine site to Port Hedland in northern Western Australia for shipping.
This company has never been great at keeping their shareholders informed. If Charles strikes a deal however, it will run hard."Aurox in China Talks to Secure Funding for A$1 Billion Ore Mine"
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMcr76L_Cisg
By Jesse Riseborough
July 17 (Bloomberg) -- Aurox Resources Ltd., an Australian iron ore company, is in talks with a Chinese steel mill to secure funding for a A$1 billion ($803 million) project.
“We have been back and forth to China, we are talking to some pretty obvious groups with regards to coming in as more than just” customers for the planned mine in Western Australia, Charles Schaus, managing director of the Perth-based company, said in an interview. He declined to name the mill.
Chinese mills are investing in Australia to secure ore supplies to feed rising demand for steel. China’s economy grew 7.9 percent in the second quarter from a year earlier after the government implemented a 4 trillion yuan ($585 billion) stimulus plan that’s sucking in raw materials from around the globe.
“Money is flowing into the junior end of iron ore share markets, with many exploration and development companies undertaking equity raisings,” Trent Allen, an iron ore analyst at Resource Capital Research, said today in a report. “There are continuing signs of recovery in the iron ore sector.”
Aurox was unchanged at 32 cents at 11:35 a.m. Sydney time on the Australian stock exchange.
The company has signed sales agreements with Hebei Iron & Steel Group, China’s second-largest mill, and closely held Chinese steelmaker RockCheck Steel Group.
Schaus will visit China next week for further talks with the unnamed mill and aims to secure an investment agreement by the end of the year, he said in an interview yesterday.
Talks involve a possible joint venture partnership in the project and an equity stake in the company, Schaus said. The partner would be responsible for securing debt funding, he said.
Expansion Study
The company is seeking to start shipments at an annual rate of 6 million metric tons of magnetite iron ore concentrate by March 2012, he said. It’s studying an expansion to 10 million tons a year by 2014, he said.
RockCheck, based in Tianjin, has agreed to buy 3 million tons of output annually for 15 years while Hebei has also agreed to buy 3 million tons a year. RockCheck also owns an 11.5 percent stake in Aurox and has agreed to buy the additional 4 million tons of output once the expansion is complete.
A review of the construction costs for the mine started this month and the estimate may decline by between 10 percent and 15 percent, Schaus said. Aurox plans to pipe output 110 kilometers (69 miles) from its Balla Balla mine site to Port Hedland in northern Western Australia for shipping.
Well Muschu, no matter what I felt the market didn't think much as the SP slid down again.
Of course a 15% reserve increase is positive news, one would have felt it would be welcomed. I thought the more interesting bit was
"The Ore Reserve increase is a result of pit optimisation and design work carried out by mining consultants Orelogy Pty Ltd on near surface mineral resources located in the Far West Area of the 18.5 kilometre long Balla Balla deposit. ...
”While the maiden Far West Ore Reserve estimate is a good start, it is only a small section of our 18 kilometre long resource, and the Far West is expected to grow substantially once drilling and resource modelling resumes."
I guess that is the 'teaser' and keep me 'in' rather than 'out' which is what any technical analysis advises. I should have got out when the SP was at least above 32 c which seems some time ago.
Unfortunately that makes me a believer. Hmmmm
Anyway, that is my view rick. I would value others' contributions.
Regards Golf
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Does anyone else hold this one?
Was put in a trading halt on Friday as a result of them securing new financing. I hold this one and it looks quite positive after a crappy couple of weeks!
Was put in a trading halt on Friday as a result of them securing new financing. I hold this one and it looks quite positive after a crappy couple of weeks!
Announcement certainly didn't help the SP. Any interpretations of that? For myself I have little idea.
Regards
Rick
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rick
if you are holding this AXO , you must have won a lotto by now.
trading ban lifted and AXO lifted by 148% woh
DNH
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I wish someone would buy out the mining companies i have shares in..
140% would be great today! haha
140% would be great today! haha
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I hold a fair bit of AXO. Now I am just at a total loss as to whether to hold on longer or sell to capitalise on this huge increase!
prawn_86
Mod: Call me Dendrobranchiata
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Still isn't above the $1 mark it was a few years ago. Good fair value offer or opportunistic by Atlas?
rick
if you are holding this AXO , you must have won a lotto by now.
trading ban lifted and AXO lifted by 148% woh
DNH
Truth is I had an unfilled order just before it went into a trading halt. I was a day late... but that's life.
Glad I toped up early last week
I will be holding my entire parcel for the time being, I think the upside outweighs the risk to sell now. First of all I was looking at purchasing AGO quite some months ago @ 1.70 as I am confident of this being a good stock with regards to it's future growth and current production, particularly with the repricing of IO.
In the coming months if AGO shares should rise, AXO will follow suit. If they fall you are still locked in at 0.74 should the merge be completed.
There is also the possibility of a counter takeover from another company that will reprice AXO again. This happened to my Polaris shares, I sold out at 0.4 cents following the initial takeover bid, only to see them climb as high 0.8
In my opinion all this outweighs the downside risk of the merge not going through and cashing out now.
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Well i cant say i know alot about shares or where the bottom and top are, but it was a good day for me since i sold 5k at 66c after i bought 13 months ago at about 10c.
Im still holding a reasonable parcel of them as i believe the potential is there. I do have friends that bought in at $1.20 a while back, so just a gut feeling makes me think they may go back or even higher. For me its a keeper, so im doing all i can to hold onto these though the emotions scream to take the money and run.At close today i think they hit 73.5, and though they may rise and fall a bit (great for the short term fellas) im inclined to hold on just a bit longer. Thats my oppinion for whats its worth.
Cheers Ron
