aoh upside summary

Price: 0.28
Share on issue: 471m
Market cap: 131m
Cash on hand: 70m
Last cap rise: 70m at 0.31
Top 20: 62%
Dual listed on ASX and FSE

Upside 1:

Outokumpu Project is a fully funded near term production project of 8000tpa copper, 8,400ozpa gold, and 1600tpa zinc at a cash cost of 1.33/lb copper in Finland.(Note: the cash cost here is very conservative because it is based on $1792/t for zinc credit and $1100/oz for gold credit.) This near term production alone will generate 90 million in revenue and a surplus cash of 50-55 million pa by mid 2012.

Upside 2:
Outokumpu Project also produce cobalt concentrates. Quote: "DFS recognized no value for production of at least 950tpa of cobalt and 450tpa of nickel in concentrates to be retained in temporary storage. Marketing and process study underway. 950tpa of cobalt is worth another 85 million in revenue pa. I bet you can see the upside here.

Upside 3:
Roseby copper project has a JORC resource of 132.5Mt @ 0.7% Cu. When I first look at it, I thought that the grade of 0.7%/t copper is too low but later I notice that most of its deposits are start from surface and therefore open-pitiable. Quote: "Roseby is one of the largest copper inventories in Australia not in the hands of a major" I have no idea how much this resource is worth but I guess Roseby Copper Project alone is worth more than the company's current market cap.

Upside 4:
AOH will commence 25,000m program in April to drill out extensions of all major deposits and 7 others in Roseby Copper Project with a budget of 15 million. They are targeting a 50% increase in resources at Roseby.

Upside 5:
AOH's joint venture with Xstrata is not on Roseby copper project's existing resources, but new high grade target below the existing resources, I got confused a bit at first. Basically, AOH got free carried to earn 49% if Xstrata fund anything.

Upside 6:
Finnish Nickel Project resource drilling or possible divestment will provide upside, too.

Conclusion: I'm writing this summary for my own benefit because AOH is 15% of my portfolio. So, you don't have to believe me but look at the big boys,

PPT becoming a substantial holder on 11/03/2011,
BoA becoming a substantial holder on 14/03/2011,
PPT increase substantial holding to 7% on 18/03/2011,
BoA becoming a substantial holder on 14/03/2011,
UBS becoming a substantial holder on 21/03/2011.

lastly, the company's chairman, Kevin Maloney spend 7 million cash for 35,348,000 shares in cap rise in Jan at 0.31 per share. He now owns 7.5% of the company.

I'm looking forward to my 200% profit from this investment in 12 months time.

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My 2011 - 2012 pick
1.AGO
2.AOH
3.WPG
4.BSM
5.HGO