Interesting how the banks report record profits (Citi being one) for the past few yrs, and then one bad qtr, every one panics. Mr Prince (ex Citi) has always struggled (regardless of the 11bn loss in CDOs) with the share price at Citi, and to me this was an easy way to get out, taking responsibility for the 11bn loss. Every bank who owns CDOs or MBS leveraged in sub-prime strutured investment vechicles, will have taken a loss this qtr. Not rocket science if no one wants to buy these products, and therefore banks take a loss due to to the re-rating and devaluation.
Anyway back to AIM - can we maintain the uptrend or will AIM break through the support level of 24c, and the recent good work is lost. Personally, if the markets weren't so volatile AIM should be be close to 30c now (with money in the bank, and 1 offtake signed).
AIM - resource stocks summary
> Perkoa 15.5% head grade - 6 million tonnes > Perkoa all licenses in place, exploitation licenses, water license etc. > Locked in long term contracts for machinery & other long term items. > In terms of metallurgy, the concentrate is very clean and sought after by off-takers & smeltors. > Offtakes - a signed contract with Votorantim Metais, and the rest of the balance is going to Boliden and Xstrata. > Excellent relationship with the government in Burkina Faso. (I spoke to the company on Friday about this, AIM believe other projects will come in BF, following the Perkoa initiative. They are confident of gold projects). > Drilling in Mokopane, estimate another 250 million tonnes. > Mumbwa - 300m intersection @ 1% copper, with gold & uranium credits added in. 'One of the largest copper intersections discovered in the last decade' MF.
Other points:
AIM - reason for delay in the Perkoa assay results, is because Gold is the main focus in labs, due to the price rise in Africa. AIM decided to take their samples to a new lab, to speed up the results. They are positive with the outcome of these findings.
The timing of the equity raising was significant, as they would find it very difficult to raise 80 mio+ in current market conditions. Their funding will be split 50:50 Equity/Debt.
I found the report below on the EV of BHPs Roxby Downs. Metal/Uranium prices have changed since July 07. Mumbwa EV?
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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