AJM: Altura Mining Ltd

[Anna Naum]

Thought it was time for AJM to have its own thread

[Corporate]

This is care of Aksier on Hotcopper...

Altura Mining Ltd: AJM Altura has four significant arms to its business. Firstly it has a 30% interest in the Mt Webber DSO project with Atlas Iron which is central to AGO achieving its stated aim of 12mtpa production by the end of 2012 (note AJM owns the asset). Secondly, the Pilgangoora lithium project is fast growing into a world class resource which could become a large, low cost producer. Then there is the Tabalong coal project in Indonesia for which mining approvals have just been granted. And finally the company has a drilling services business which generates $2m in free cash flow per year. The senior management team comes with strong credentials having worked in senior roles at New Hope Corporation (ASX: NHC). Further acquisitions of new coal assets are likely in Indonesia and the Philippines in the near term. The discounted cash flow valuation of the companies businesses and cash comes in at $0.94 per share (see breakdown below). Cash reserves of approximately $35m are sufficient to fund the company’s development plans through to the generation of substantial free cash flows.


News Due: Further assay results from Pilgangoora lithium project. Agreement on terms for development of Mt Webbs DSO project with Atlas Iron, including infrastructure sharing agreement. Forrestry land use permit for Tabalong coal project. Details of further coal acquisitions in Indonesia and Philippines. Price Target: Although the volume has slowly been increasing over the past week the stock needs some high volume days to really get it moving and I sense those days could be close. A break of 16.5 cents gives an initial target of 18.5 cents. Disclosure: Holding AJM

[macduffy]

Thanks, Corporate, for first alerting us to this company a few days ago.

I liked what I read and have been doing a bit of quiet research. Aksier (above) has summarised the position well. I particularly like the prospect of regular assay results from the lithium project which should present trading opportunities but I'll be looking for a longer term position when the SP uptrends.

[Corporate]

macduffy, no problem - the more the merrier. Aksier performed a DCF of the projects that puts AJM on a value of 90c, I'd be happy with half of that to begin with.

I really like that AJM is working along side AGO which is a company going places.

Also fully funded ($30m+ in the bank).

[Corporate]

p.s. check out the lithium presentation if you haven't already.

[drillfix]

This is care of Aksier on Hotcopper...

You know, I think that Aksier has been raving on about this stock for so long now, that sooner or later it will have to do a run on even on the probability of doing so from him posting the facts on HC often...LOL

[Anna Naum]

Looking better, has traded 18.5c, currently 18c bid

[gazprom1]

p.s. check out the lithium presentation if you haven't already.

Hi Corporate,

Like the look of this one....thanks for bringing it to our attention. Bought last week and happy to buy soem more going forward as I free up some funds.

Gaz

[Entrep]

I've had this one on my radar for about a year and it seems to be forming a base around these levels and have plenty of interest. Was one of the buyers at 17c yesterday

[macduffy]

AJM may be forming a base but volumes are still very modest.

Think I'll keep watching and waiting.