Ann: First International JV Awarded Omani Copper Mining Licence, page-37

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mowibble

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09/07/18

11:55

Post #: 34224591
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Originally posted by bj789 ↑

hi my first post on AUQ but I've been watching it for a long time.
Like most others I'm wondering what it will take to get AUQ moving. Looking at its history it was always the Saudi Arabian interest that kept AUQ together and that seems to have fallen by the wayside the company says barely anything about what might be expected in Saudi. I assume they've tried all options to advance their position in Saudi but to hear nothing about it at all is disappointing and doesn't go unnoticed by the market. Why can't AUQ simply apply for the mining licence off its own bat and let the fight with Menagem continue elsewhere? the Saudis are free to grant the licence to whoever they wish.
On the Oman front AUQ has only modest projects, they are average grades and small volume deposits maybe if more copper is found it might lift the Omani game but I don't think you can expect to see anything much exciting from what's currently known even if it is potentially profitable. It's small beer in the copper mining game.
Don't get me wrong though, I don't think AUQ is about to implode anytime soon, it is likely to make eventual small progress with backward steps along the way. My guess is it will hover around the 3 cent area for the rest of the year. It's just not in a part of the world which gets the market interested and even the smallest positive step seems to take forever with official red tape in all ME countries.
One big problems for AUQ is that it has only very few buyers. If you look at its market depth history it's been poor for a very long time there's never been a lot of support even at the best of times. Maybe AUQ is one of those backwater stocks which might suddenly emerge into the sunshine one day but there's going to be a lot of patience required yet to see it lift itself out of the doldrums. Typically when mining companies go into the construction phase of their program there's not a whole lot of interest either so AUQ needs to find some way of selling itself better and the Saudi issue lurking in the background could serve as a carrot to the market if there is any possibility of eventual success.
This is only my opinion and I've ofter been wrong but if anyone has an altrenative view I'd be interested to hear it. Good luck to everyone.

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Oman may seem like small fry now, but bear in mind that they have now implemented "Vision 2020" which requires a huge upscale of mining operations over the next 2 years, and PAM have officially stated that Alara are a "strategic partner". The next 2 years should see some surprise upside for us. Whether it is in the copper sphere or elsewhere remains to be seen. There's certainly more than enough copper out there for the Hub and Spoke model to deliver much higher volumes, but some of our JV partners are also already engaged in mining of other commodities which occur in vast quantities in Oman.

Best to stay open minded on this one.

AUQ Price at posting: 2.6¢ Sentiment: Buy Disclosure: Held
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