Poor communication is tied up with respect for the shareholders. That went out the window when they spent $200 million without shareholder approval. You just don't do that!!! The Board needs to be censured for this.
Now that we own Dargues transparency might also include showing shareholders where these supposed promising exploration targets are. Though we have some reasonable infill drill results, what we have drilled beyond the current known resource has been underwhelming and all up we won't get 2/3 of our money back. Certainly running it at a loss like we have done so far isn't going to get us out of the Dargues mire.
So why have we shed $100 million off our market cap. Logically had we mined 9,000 more oz we would have been at the top end of guidance and the market would probably have lived with it. We would have netted an additional $7 million odd, and with a little expediency on the spending front perhaps we could have added $10 million or so to our cash position. However these things don't exactly equate with the $100 million we lost. So why the reaction? Here's some possible reasons;
1. The market knows Dargues doesn't stack up (16Koz for 6 months is pathetic for a $200 million purchase).
2. If management made a bad Dargues deal, do they know what they are doing?
3. Future ASIC looks too high especially given bumper returns via the base metal contribution. (Even allowing for the conservative pricing used - for starters, we don't know if current prices will stay up).
4. We better hope base metal prices do stay up.
5. For a move to a bigger gold miner, we can see base metals have provided a bigger share of revenue than previously. Are we a gold miner? Copper ready? Hard to argue either when we are looking more like a Pb/Zn miner especially if you price out the tonnages of these at kairos and federation.
6. The better expected grades of Dargues in the 4.9g/t range for Q1 22, aren't even up to what the average was meant to be.
7. The company might have too much on its plate trying to sort out Dargues, studies at Great Cobar and Federation ongoing, talk of exploring Dominion, likelihood of mill redesign at Hera.
8. Net cash position went nowhere indicating total costs are way too high. The more so given revenue of over $100 million.
By my calculations, we have revenue for FY of $416 million and will probably have a net profit of around $30 - 35 million (just a rough estimate). That's enough to pay the 1c a share dividend and will probably return us to a 40c S.P. The shareholders deserve it for the headaches of the last year. If that gets pulled off the table I shudder to think where the S.P. will go.
I believe in our assets - our mineral resources, mills, exploration team to name some. The questions for me lie around management.
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Poor communication is tied up with respect for the shareholders....
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Last
17.5¢ |
Change
-0.015(7.89%) |
Mkt cap ! $296.2M |
Open | High | Low | Value | Volume |
18.5¢ | 18.8¢ | 17.3¢ | $1.503M | 8.382M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
16 | 1915381 | 17.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
18.0¢ | 12392 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
14 | 1705381 | 0.175 |
14 | 343826 | 0.170 |
11 | 396465 | 0.165 |
6 | 114353 | 0.160 |
2 | 63250 | 0.155 |
Price($) | Vol. | No. |
---|---|---|
0.180 | 12392 | 3 |
0.185 | 496793 | 8 |
0.190 | 739795 | 7 |
0.195 | 1428560 | 12 |
0.200 | 1100622 | 16 |
Last trade - 16.10pm 31/07/2025 (20 minute delay) ? |
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