Australia's largest stock trading and investment forum Australia's #1 stock forum

AML

Click for more information

0.00%

0.5¢ aeon metals limited.

Start Mining 2019 Copper, Cobalt, Zinc, page-7

First 7 Last

Share
Profile

Follow
Barolobill

7,325 Posts.

120

05/01/18

15:49

Post #: 30076766
Share

Originally posted by eastwest101 ↑

Good attempt to sum up the case for AML, couple of points I would highlight in your assessment - addressed in order that you posted for clarity:

1. don't make the assumption that this is a battery metal investment, this is a potentially high grade copper orebody with accessory cobalt and the silver grades may help the economics but the high copper content and potential value make this more of a copper play than anything else. As Barolobil also maintains in his assessment. Not going to comment on institutional investors any further.

2. no issues with the management team - if you ever have doubts or problems with how management are going then its time to sell..

4. although $30M in the bank is a lot better place than many other explorers there is still a lot of drilling to do before they decide to go mining.

5. really should be talking about sulphide ore and oxide ore, never confuse the two, I wouldn't use the term "laterite ore" or "sulphates" in this situation, we don't have them at Walford Creek and use of these terms just confuses people. You are correct in that sulphide copper cobalt and silver ores are generally easier to treat/mill than the oxide ores.

6. Three drill rigs would not the the largest drilling campaign in Australia in 2018 (the year is only 4 days old so that's a bit of a call!) - if you're going to say that, probably better to quote the 30,000 metres planned to be drilled, rather than number of rigs. Meters planned may not amount to actual metres drilled anyway, but the point remains that lots of drilling is required and that the AML guys have got a better handle on the orientation of the orebodies now, so the drilling that is planned should be a more effective test of the size and grade of the potential orebodies than previous drilling.

7. Drill results may or may not drive the SP in the future, remember the market often operates independently of fundamentals in the short term and can mis-price companies on the upside and on the downside. Copper price movements probably will have a greater effect on AML more than any other commodity.

8. Future MC predictions are always difficult but the price of copper and continued exploration success may provide the two main drivers for the share price until we get some sort of definitive resource statement/BFS announcement. Personally - I'm discounting the actual cobalt content and revenue to $ 0 until we can confirm some decent copper grades and tonnages and have a mill constructed that can economically recover cobalt - presumably in a copper concentrate but we will see.

All good reasons for me to continue to hold.

Expand

And as for drilling, here is the summary to date:

So you could say 2018 will be the largest drilling campaign Walford Creek has ever seen. Even better than that, armed with the new geological model and soon to be captured (and part Govt funded) 2D seismic the drilling will be well targeted to test the PY3 high Cu-Co grade zone over 22km of strike.

For example, lot's of the WMC drilling were vertical holes, poorly positioned and not very useful.

This 30,000m odd campaign has the potential to transform Walford Creek into a monster, well above the already large size it is now. That's why I'm a shareholder.

AML Price at posting: 31.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 43 more messages in this thread...

First 7 Last

Add AML (ASX) to my watchlist