Thanks to HC posters for alerting me to this one! (Fursty,...

Thanks to HC posters for alerting me to this one! (Fursty, Aurelius1, etc).

Technically:

Azc has a shorter term pennant setup within a larger term pennant setup! IMHO I have found these setups extremely bullish and a great way to reduce risk when trading – although no guarantees (…are there any?). The smaller setup creates the momentum to tackle the resistance of the larger setup.

Azc has broken out of a short-term 1 year pennant (see below) at the 23.5c level. This is a nice consolidation and breakout period looking the goods short-term. Lack of real volume on the breakout was my only concern – but there weren’t large amounts of stock to trade…, in Azc’s defense!





Azc has also broken out of a larger 5 year pennant (see below) at the 24.5-25c level. This is a major occurrence and quite rare! As a result, expect positive share price movement out of a setup such as this!





Fundamentally:

Azc is progressing towards a period of profitability in the short to medium term with the commencement of mining at there Mindarie zircon mine. This is indicated as a 500tph operation (year 1), aiming for an 850tph operation (year 2) as a dual pit mine, hence excellent fundamental growth.

This highlights the transition from exploration company to that of a world class mineral sand producer!

*EBITDA: $25 million (year 1) (Source: StockResource 2006).
*Market Cap: ~$60 million at 25c.
*Shares on Issue: ~250million.
*Commodity pricing: Zircon assumption $780 tonne 2007. (Source: RBC Research 2006).
*Enterprise value assumption target: $150 - $170 million (Source: StockResource 2006). I do not think this figure includes the ramp up to 850tph over a further 12 months.