This thread is intended for visiting investors who have little technical knowledge which includes myself, and who are trying to find a sound battery metals investment for 2018. Please feel free to add or disagree to the thread. What should you be looking for: (the list is not necessarily in the right order)
1: Institutional Investors: Institutional investors or hedge funds have there own inhouse analysts who will examine companies under a magnifying glass before investing there clients money in them. AML have several institutional investors with more than 5% holding. 5% or more usually indicates a long term investor.
2: A skilled and focused management team who keep the investors informed, and who are clearly moving forward with a set business plan with near term production as the target.
3: Independent analysis with a 100% buy recommendation. (see AML website)
4: Over 30 million dollars in the bank, fully funded up to mine construction.
5: It is my understanding that there are two types of ore, Sulphide and Laterite. The Laterite ore is much more expensive to process. Much more expensive to build the processing plant, and take significantly longer to build the processing plant. AML have the sulphate type ore which is cheaper to process and cheaper and quicker to build the processing plant. There are variables to the above so please do your own research.
6: One of the largest drilling campaigns in Australia in 2018 using at least 3 rigs = a solid flow of resource updates which will be a great share price catalyst throughout the year.
7: The latest drill results: 4th December 2017 Highest PY3copper andcobalt grades yet at Walford Creek • Highest PY3copper andcobaltgrades – 30m @ 3% Cu, 0.44%Co and50g/t Ag from 188m• Results from 900meters west of existing Vardy Resource confirm expectations of a large mineral system with potential for significant additionalResources beyond those currently defined • Upgraded Resources estimate inprogress Aeon Metals Ltd (“Aeon” or “the Company”) owner of oneof Australia’s biggest undeveloped base metals projects innorth-west Queensland, the Walford Creek project, ispleased to announceassay results for its final twoholes (holes eight andnine) from its second phase2017 drill campaign. Thesetwoholes targeted the high grade PY3unitwest of Vardy. Hole eight (WFDD270),located inthe Marley Zone is~900m west from the edge of the Vardy Resource and confirms the outstandingpotential for high grade copper andcobaltinthe PY3along the extensive FishRiver Fault. Hole nine (WFDD271) wasaimedat an apparent dip inthe stratigraphywhereno previous hole hadintersected the PY3. It intersected faulting anddefines an offsetinthe stratigraphyat depth. Both holes intersected significant mineralisationandcontinue to confirm both the high grade PY3as wellas adding geological rigourto the 3D geological model. Results returned from these twoholes include the following significant mineralisation: WFDD270results inthe PY3 include;• 45m@ 2.21%Cu, 0.32%Co and43g/t Ag from 185m - Inc. 30m @ 2.99%Cu, 0.44%Co and50g/t Ag from 188m WFDD271 results ina faulted block of PY3include;• 13m @ 0.51%Cu, 0.07%Co and30g/t Ag from 262m • 18m@ 0.56%Cu, 0.07%Co and15g/t Ag from 297m Thevery high grades inhole eight, WFDD270, whichtargeted the PY3withina fewmetres of the modelled 3D geological target, are outstanding andthe best of the recent program of drilling. Itagain emphasises the extremelyconsistent copper andcobaltgrades inthe middle to lower PY3 andindicates a thickening of the PY3to the west. Thishole isa further 675m west of hole WFDD268(22m @ 2.2% Cu, 0.31%Co from 201m)inwhat the Company isnow referring to as the Marley Zone.
8: Market Cap: It is very difficult to estimate a MC of a speculative stock but based on other small cap companies on the ASX the MC should be considerably higher than where it is now. IMO the MC will be around $1.00 next Christmas as a conservative guess. If the 2018 drill results further supports the above which they are expected to do then we are looking at a multibillion dollar company in the near future…………………………………………………………………
Although I won’t be able to answer technical questions myself there are guys on here who will be more than happy to help you.
In your search for small cap mining stocks if somehow you do find a speculative stock with better credentials than AML then we would all like to hear.
Good Luck all
AML Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held