AIM 5.88% 36.0¢ ai-media technologies limited

aim major points of interest

  1. 327 Posts.
    The major points of interest for potential investors in AIM are:

    Ø Zinc Mining in Burkina Faso – West Africa

    Ø Politically stable country with attractive tax regime

    Ø Awaiting grant of Exploitation License (required for production) – company expects receipt by end of November 2006

    Ø Plant commissioning and first Concentrate March Q. 2008

    Ø 11 year mine life on current 6.27mt of proven and probable reserves @14.5% zinc with exploration upside

    Ø Base valuation (fully diluted) $0.25 cps with LR zinc price $US0.68

    Ø Current zinc price is approximately $US1.90lb – 3x the LR forecast used in the base valuation of $0.25

    Ø Upper valuation (fully diluted) $0.62 cps with LR zinc price $US1.40lb

    Ø Little to no value attributed to exploration nor to other assets in Zambia and South Africa

    Ø Capital costs (October 2006 est.) is $US145 million including overruns, working capital and contingencies to be provided through:

    o Debt and project finance via Standard Bank PLC $US90m

    o Convertible Note issue $US35m

    o Equity Issue $US20m

    Ø Experienced zinc mining contractor engaged

    Ø Earthworks have commenced

    Ø Land locked country – project heavily reliant on a rail line through Cote d’Ivoire to the port. A road alternative is available if necessary but costs are significantly greater.
 
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