If 1.00 is the correct value why is that Zinifex has only received acceptances of less than 0.5%? *******punters expect a higher bid and directors have not recommendedtaking the offer*******
Secondly Allegiance's drilling result today at Viking is probably the best drilling result they have every had. *******From AUZ announcement ....Development on the 01C surface at the 380 level in the Blair Deeps has intersected massive sulphide mineralisation (assays up to 11.4% Ni) located in the expected structural position of the B01C shoot. No resources currently exist for the B01C shoot in Blair Deeps and the occurrence of this mineralisation at the 380 level suggests the B01C shoot may be re-appearing in Blair Deeps.....What do you think 11.4% Ni did for AUZ on this announcement? Nothing! That announcement was cluctching at straws.*****
Tony Howland Rose has the runs on the board. He says given a few years he will find 4-5 Aveburys. The 10 drill holes at melba already indicate that Melba will be the second. Todays result at Viking confirms that the current Avebury resource is likely to be doubled over the next year or so. *****where is the independent analysis stating that?*****
Jinchuan reps told me that China will need an additional 300K tons per year of nickel by 2010, since Chinese are becoming more affluent. The Indians are close behind, so the nickel price will be firm for years to come
In the meantime AGM has a program current to double the output to 15000 tons a year. This is likely to come into effect in 9 months. Allegiance's production costs are 5500 per ton, (also take 25% off the LME ) and the nickel price is 26-28K a ton.
Just do your maths and see what the profits are likely to be 260m a year with a likely P/E of 10 to 1 => 4 times the present value *******where is the independent analysis stating these revenues are likely?*****
You would have to be nuts to sell now ******youwould have to be nuts to trust management that didnt get an independent report to verify all the things they are telling you.*****
Just have a look at Jubilee who produced 8500 tons a year last year. Xstrata paid $3b, which values them at 4 times AGM and all the analysts thought it was full value. What was the result. After all these months only 46% accepted the bid. That tells you that the clever people realise that you don't sell a valuable resource in a long term commodity boom ******please use relevant comparisons JBM had been profitable for 7 years and have a resource 3times that of AGM and a profit of $250 million and paying dividends. how are they comparable to AGM other than they both produce nickel?*****
cheers
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
