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Real-Time news about Aim Res. (London Stock Exchange): 0 recent articles
|sagem: ARE THESE RESULTS GOOD OR BAD ....I see AIMR share price had dropped this morning, is the market or the results....any suggestions as the results appear all mumbo jumbo to me|
|sagem: boxtie ......
The share price will be all very different when they confirm that the have funding available. The credit crunch will soon be better and AIM Resources share price which is very undervalued for all the reasons that we know i.e world wide credit problems. AIM has the minerals which we know are in the ground....this is a lot more comfort than a company that is still exploring and their are many just like that with a higher share price than AIM RESOURCES. Any comments on my thoughts anybody out their
and sagem, bless him is the eternal optimist AND I HOPE TO STAY THAT WAY.|
|sagem: Yes Scott Lowe could be just the right man wanted to ensure AIM Resources progress to better achievements.....As said by the company....................................The Company is fortunate to have someone with his strong operational and development background to guide the Company through the next stages of its development.'
Just think as soon as the ZINC price starts to rise so will this share price as AIM RESOURCES HAS A WORLD CLASS ZINC MINE already to produce the goods and PROFITS. Perhaps now is the time to start topping up ready for the off.
The share price must be worth at least the following with the Perkoa Zinc mine in for nothing'-
AIM is earning a 70% interest in the Mumbwa copper-gold project from BHP Billiton in Zambia. The company's exploration strategy is modeled on an iron oxide copper-gold (IOCG) style of mineralisation similar to Olympic Dam in South Australia and Ernst Henry in Queensland.
AIM holds tenure over the Mokopane nickel-platinum project situated on the northern limb of the Bushveld Igneous Complex in South Africa. Mokopane has a JORC compliant resource and also New Order Mining Rights over the property.|
|sagem: I think the share price is going up on normal news which is expected to be good,
the share price has been very depressed for a long time with the potential remaining the same.....the share price is totallly undervalued for its potential.|
|dcroston: Question: What is going to move this share price up?
I think probably the best way to answer this question is to ask what has caused the share price to drop.
Well the way I see it, there are a number of reasons for the falling share price (In no particular order).
1. Perkoa mine development not fully funded.
In October 2006, AIM Resources announced it was at an advanced stage in finalising a US$145m funding package for the development of Perkoa. This consisted of US$90m debt facility. US$35m in convertible loan notes and US$20m share placement. Operating costs have increased substantially since the initial estimated US145m funding package and AIM still requires a further $A50m approx to fund the development of the mine which AIM had planned to raise by way of A$50m convertible debentures offering on the ASX/AIM markets but this and the listing on the TSX has since been withdrawn due to material errors found in an Independent Persons Report.
Due to turbulent markets caused by sub-prime debacle further doubts are cast over whether or not the company can complete the funding required to get Perkoa into production.
The big question is how will they raise approx A$50m. It could look to raise the money on the TSX. AIM could look to take on a partner to raise the funds or may even decide to go back to the banks as it was reported that initial US$90m debt facility taken up with Standard Bank PLC, there was more than a few suitors. I recall in one of MF's interviews with boardroom radio dated 18th Sept 2007 that he stated there was enough funding for 9 months and that means enough money to get them to approx June 2008.
The Independent Persons Report will be completed end of January so we should find out soon how the company proposes to raise this money. IMHO, they will have no problems raising the funds.
2. Management failing to hit Perkoa production target on more than one occasion.
Initially, management targeted Perkoa for production in Q2 of 2007 after AIM announced that they would adopt a new mining method. They missed this target and then confidently targeted production for their original date of early 2008 and missed that as well. Production of course is now targeted for January 2009 with quite a big question mark. This is IMHO the reason why NS have acted the way they have (court date is scheduled 20th Feb). They have lost confidence in the management to deliver on time and things aren't moving fast enough for their liking.
But as was stated in the recent AGM on 28th Nov 2007, AIM are still on track to complete the mine in 4 years, which is no mean feat considering a project like this normally takes 7 years.
3. Off-take agreements not yet signed.
It looks like management has done a really good job here. However, Management has yet to complete off-take agreements with Xstrata and Boliden to ship 70,000. Both companies have signed a letter of intent and are expected to sign binding agreements in the next couple of months according to MF who is on record as saying that there are no issues. On the plus side, Votorantim have agreed a 5 year contract for 45,000 tons of concentrate each year. If Aim get the off-take agreement signed with Xstrata and Boliden then that would guaranteed sales of 115,000 tons of zinc concentrate per year from a total of 132,000 tons expected to be produced each year, leaving the remaining 17,000 to be sold on the open market. Unsurprisingly, MF also stated in the AGM that the 53% zinc concentrate was very much in demand by other companies.
4. Delayed assay results.
No news yet on the 2400 Metre drilling program completed early September. Of the 9 holes that were drilled, 2 of the holes showed visible sulphides in them.
5. Greedy management.
Helping themselves to performance related bonuses, which currently doesn't reflect the performance in the share price makes shareholders unhappy. :o(
Of course there are other reasons for the falling share price. The falling zinc prices and increased energy costs have obviously been a factor. I actually think that the falling zinc price and higher energy costs could strengthen AIM's position, making AIM's high grade Zinc more appealing to smelters and the reverse affect being that the majority of zinc producers who mine low grade zinc become less appealing to smelters with higher operating costs forcing some zinc producers out of business.
The recent flood devastation in Burkina Faso and neighboring countries that has made thousands homeless and without food demonstrates the delicate balance of this country and the risk involved in investing in African countries, generally.
So, what is going to move this share price up? In the short-term, a good set of assay results or the finalization of contracts with off-take partners would certainly give the share price a lift. A good update on mine progress would also help, perhaps confirming that they are on track to start stockpiling ore around April/May time and some news on how the water pipeline is progressing and the build of the plant in SA.
Raising the required capital expenditure will potentially see the share price double overnight.
And what's going to move the share price up to levels never seen before? Well, I expect delivery of a fully operational Perkoa zinc mine that's producing zinc by early 2009 would see it shoot up considerably.
I think this share is potentially very under-valued and I estimate a fair value for this share with funding in place, all managerial controversy with NS sorted out and with good progress on mine development, a minimum of 18-20 pence.
If this share price starts to recover like I expect it will eventually, then perhaps none of us will be that bothered that management reward themselves exuberant bonuses (at least not quite as much) then hopefully we can all start reaping the rewards of the 4th richest zinc deposit on the planet and AIM Resources can achieve its potential in becoming one of the top five zinc producers in Australia.
As always DYOR.|
|sagem: Let us not forget that AIMR share price went up on the possibility that they would find a zinc mine...the share price rose to 14p on the hype, but now we know that they have plenty zinc the share price goes down again. The old stock market saying is buy on the hype sell on the fact, could this be something to do with
the reduction in the share price. The next rise back to 14p could be on digging out the stuff selling it and making a profit....this is only just a thought - so perhaps we shouzld all be buying at this low price.|
|sagem: TAKEN FROM OZ BULLETIN BOARD....WHAT THEY THINK IS HAPPENING TO THE SHARE PRICE, BIG FISH TO BLAME AND IT WILL RECOVER TO COMPANY POTENTIAL/ASSATS/ZINC ETC
Big fish have the ability to control share price at the base level. The most efficient way to accumulate shares is to fool the market into thinking the share price is tanking. They do this by a) placing large volume short orders or B)post a sizeable amount of their accumulated shares on the sell side.
Less experienced players will see these large volume sell orders as an indication that the big money is leaving the market and tend to panic sell. If the share price doesn't start to tank then these big fish resort to more devious methods. They will selloff large volumes to physically push the share price down, use autobots to chip away at the price or flood the market with bad news/ no news. All these guys really need to do is get the ball rolling, a bit like a snowball effect.
Once the share price does start to tank they then position themselves to buy up all the shares being offloaded at the discounted rate.
When they have accumulated their fill they flip the sell cap to a buy wall and push thru high volume orders to generate interest. Once they have offloaded their shares they rinse and repeat.
MY ANSWER TO THIS IS BUY ON THE DIPS OR STAY FIRM|
|sagem: TODAY CONSTRUCTION ANNOUNCEMENT http://sa.iguana2.com/cache/6beac2982cfe0e7832e9187699cc0393/ASX-AIM-358106.pdf
AIMR share price up 4.7% in OZ with 2,844.440 shares traded|
|dcroston: Agreed, I'm in for the long haul. Zinc prices continue to maintain there levels bolstered by current zinc stock levels and sustained demand in China and India. The the nearer we get to raisig funds and finally producing, the AIMR Share Price is only headed one way, NORTH. Patients is required, thats all.|
|dixi: Or put another way if AIMR had the same number of shares in issue as GFM (around 183m) AIMR share price would be nearer 20p for the current £36m Mcap - it's just how you slice the cake I guess.|
Aim Res. share price data is direct from the London Stock Exchange