Iron ore, ilmenite, titanium sponge - not the latest special offers from Tesco but the range of interests that the Peter Hambro Mining offshoot, Aricom, has up its sleeve. Revenue generation is not far away and the potential seems to be limitless.

Aricom today announced that it has received the approval of the Federal Anti-Monopoly Service of the Russian Federation ('FAS') to subscribe for shares in Lapwing Limited ('Lapwing'), a Cyprus company, which in turn owns LLC Garinsky Mining and Metalurgical Complex ('Garinsky'), the company holding the licence for the Garinskoye deposit. Following this subscription the Group will hold a 60% interest in the Garinskoye project and with an option to increase its holding to 85%.

Following receipt of the FAS approval, the subscription by Aricom for the Lapwing shares is now conditional only on the completion of a share capital reorganisation within Lapwing. It is expected that this will be completed shortly, following which Aricom will be able to subscribe for new shares which will comprise 60% of Lapwing's enlarged share capital. Aricom has also been granted an option to acquire a further 25% interest in Lapwing's enlarged share capital for US $100m.

Exploration work at Garinskoye is progressing well and the MicroMine model of the deposit as well as a pre-feasibility of the project study are due to be completed before the year end. A team from Wardell Armstrong International are planning to visit the deposit during the week of August 20th and will include a review within their Competent Persons Report which Aricom intends to publish during September.

Jay Hambro, Chief Executive, said: - 'Aricom has now received all our outstanding approvals from the Anti-Monopoly Service of the Russian Federation. We continue to make excellent progress at Garinskoye and look forward to sharing the results with Wardell Armstrong later this month. '

Play of the Week in Shares this week:

"....those who understand this high risk/reward situation should recognise that this is among the best growth potential stocks in the mining sector,"

Queen, I have been reading the articel since Thursday a few times, is this company a offshoot to the Gold company run by Peter Hambro? which appears to have done well in Russia ? The company appears to have a lot happening in the next 6-8 months statring in the next few weeks. It seems to appear that this company can only go north once the market settles but do you thing it would go back to the late 80's.

There seems to be more +ve than -ve, the -ve being that Russia could take over the ownership, it may not produce sufficient volumes & it may not produce the goods like many of the other mining companies e.g. MRP, GOO

+ve
Linked to Peter Hambro, experience dealing with Russia, hence sound management
China agreed purchase of minerals over next 7 years
shares being given to 'long term' Russian Investor
Approvals/reports on volumes due next few weeks & before Sept update

I am serously thinking of investing these for the above +ve reasons but I wouldn't mind hearing your opinions

Could this be another TMC, e.g. when it starts producing then the SP could go north v quickly !!

I'm a bit surprised no one else has added any comments to this share.

Sorry when I making reference to 'going north' & returning to the 80's, it's the SP & not going back in time

Hi pumben, thank you for your thoughts. I invested recently based on many of the positives that you have outlined. There are obvious potential issues with working in Russia at this time but on balance, the long-term positives I believe far outweigh the short-term risks.

Of course no investment is risk free and you need to think long and hard about a business and its potential before investing. I have done that with Aricom and am comfortable with my decision to invest. Good luck with your decision making process and I hope to welcome you as a fellow investor!

Bought in at 40.50 last week, high volumes of sells last couple of days, can't understand why with all the possible good news. Any views ?

No, just think it's symptomatic of the overall market at present. But welcome on board what I hope will be a profitable ride for both of us!

If it can break the 45p resistance then I reckon the next stop should be at least 55p. I hope the ride is so high that we both can touch the stars !

That would be nice :-)

Moving in the right direction, first time that sells haven't been greater than buys, those stars are getting closer !

I am really hoping the Hambro connection is going to be the big plus for this stock, their knowledge of the Russian market has got to be a great benefit. Hope to c it reach he 55p target. Queen1, do u have a price target in the short trerm ?

I bought in at 58p pumben as they were on their way down. I felt they had been oversold, especially given the Hambro connection that you mention. At recent levels I feel this even more stongly and think you did very well to get in at the price you did. So my short-term target is 60p+ so that I'm in positive territory!

Queen1, it also had a positive write up in the Sunday Times which basically said that the maoney raised earler this year is worth 25p & that it is a cheap stock at it's current price. Hopefully it's turned the corner & will continue the move north with all the news thatr it is expected by end of the year !

Its certainly good to see the additional coverage at the moment and thanks for letting me know :-)

It started like a rocket but it looks like the poor start on Wall St brought it back down. Now it is a questions of whether the SP will come back to the early 40's. The question is has any fundamentals changed for the company or is it just loss of confidence in the general market ?

Just a loss of confidence pumben. When you think that the FTSE100 was down over 100 points today, a 1/2p drop isn't actually that bad - better than most of my portfolio!

What r your thoughts on the large sells after the close ? Could be an interesting opening tomorrow !

As it turns out its been an up & down day so far. I don't think you can really ever trust after-close activity as an indicator for next day trading. Sometimes it confirms a trend, other times it goes in the opposite direction to the one expected!

Aricom has signed a commodities cooperation agreement with Oboronimpex to investigate opportunities in strategic commodities. Under the cooperation deal, the companies will assist each other in reviewing opportunities in strategic raw materials - primarily those containing titanium, tungsten, molybdenum and tantalum, in establishing new production facilities.

Following the agreement, the Anglo-Russian developer of mineral resources will form a Cooperation Management Committee to manage the process, which will be headed by Director General of Oboronimpex as Chairman. OboronImpex is the investment and managing company in the Rosoboronexport Group.

It's taken a little while but I'm back at break-even with TIO. Onwards and upwards from here I hope!!

Aricom said its first-half pretax loss widened to 1.99 mln usd from 1.12 mln last year due to an expected increase in administrative costs for the expansion of its operations to become fully operational. The company said administrative costs rose to 6.1 mln usd in the first half from 2.2 mln a year ago.

It said it currently expects all its drilling and evaluation works to be completed in 2008, adding the Kimkanskoye deposit will start operations in 2009/10 and reach full production in 2010/11 at a mining rate of 10 mln tonnes per year.

Production at Sutarskoye should commence in 2013, in accordance with the provisions of the licence, Aricom said. It said construction of its Kuranakh project continues on schedule.

what are your thoughts on the share SP now that the interims are out, will it drop back to the 4o''s or will there still be interest as it hopes to join the main market ?

Personally I think the move up to the main market will underpin the SP or maybe even give it a boost so feeling quietly confident.

time to start watching this one again .......



looking back at just the last couple of months, i am quite taken by the way sp has consistently bounced off 50 dma ..... it has just poked through 25 dma which, assuming the upward trend is continued, indicates next resistance at about 62 (200 dma)

decided to be a participant rather than a voyeur so bought first this morning

strange things going on ...... average daily volume is about 3.5m but already 10.5m today ....... just may be a link between that and the rns of a week or so ago, as below .......

28 September 2007, Lansdowne Partners Limited now holds 106,470,746 Ordinary Shares in Aricom plc. This holding represents 10.04 per cent of the current total

Pumben - you must be very happy with the way TIO is going. If memory serves you must be sitting on a 50% profit at the present time!

Queen1, yes this one ha been good for me. however I did sell my first holding for 25% & re-bought @ 57p, hoping that it will continue the upward trend, target 70p !

I think we'll reach there and beyond pumben IMHO so more profits on the way!

Queen1, do you have a target price in mind ?

pumben, with the move to the main market and production on the way I see no reason why the highs of 90p cannot be tested.

Well that's your 70p target hit pumben :-)

I'm assuming you're not going to sell up just yet?

Yes, sooner than I thought but I agree with your reasons & I'm in for the ride now. Having the link with Hambro link & experience of the Russian market is also very interesting. The share mag remains bullish on thi one, in fact I have yet to see a single -ve on this share by the magazine. So I'm with you to the 90's.
However, what are your thoughts on the big sells, why would anyone sell such large holdings ?

Also the chart has broken the 65p resistance, it should be interesting to see if the sp can stay above it. The Dow Jones was down again 71 pts today.

Morning pumben. Well despite two days of falls on the wider markets TIO continued to make ground and is firm so far this morning. To be honest I don't know why the sales have taken place but at the moment it doesn't seem to have had a detrimental effect on the SP.

Up another 1% to 71.50p today on volume of 3.5 million.
The chart is looking good & sp still seems to resist dropping when the FTSE has a bad day. Am very tempted to hang on to my stock to see if queen1's prediction of 90p is realised, but if we have a big market correction then TIO is going to suffer along with the others, as shown by the August blip when 'sub prime' hit the headlines.

Hi HARRYCAT. Yes, if there's a big correction all boats will sink on the lowering tide and TIO will be no exception. Having said that, and to maintain a nautical theme, the SP seems to have a fair wind behind it at the moment and as the company enters the main market good things may be on the horizon.

Wardell Armstrong review of Aricom's assets:

Aricom plc today announces that Wardell Armstrong International ('WAI') has now completed its Mineral Expert's Report ('MER') on Aricom. The MER forms part of the prospectus for Aricom's admission to the Official List and move to the Main Market which has now been approved by the UK Listing Authority. The full prospectus can be downloaded from Aricom's website and the below is a short list of selected highlights:

- Reserve and Resource estimates to JORC standards totalling 918m tonnes of ore
Aricom Group Resource Summary (in accordance with JORC Code 2004)
Tonnes % Fe Contained Metal
(Mt) (Mt)
Measured 55.65 33.4 18.6
Indicated 321.43 38.9 125.0
Measured & Indicated 377.08 38.1 143.6

Inferred 540.9 28.0 151.7



- K&S

o 'The two deposits host a large reserve and resource base that will be operational in 2010 and demonstrate highly positive economics.

o ...given the considerable amount of work completed at Kuranakh over the last 2 year period, WAI believes that Aricom should achieve the licence requirements at Kimkan and Sutara.'

- Kuranakh

o 'Kuranakh is a medium sized titanomagnetite deposit which is at an advanced stage of development with open pit mining due to commence imminently. From the site visit, it is clear that Aricom has demonstrated the ability to bring a Greenfield asset into operation. The project benefits from its resources base and good access to infrastructure.'

o 'The operation should begin to generate positive cash flows in the second quarter of 2008 when the first concentrate shipments are sold under the off-take agreement with China National Gold. Once full production is reached, a net operating profit for the Kuranakh project (minus capex, taxation, etc.) of around US$6.0m per quarter, or US$10.0/t ore mined, can be expected.'

- Garinskoye

o 'Garinskoye represents a large magnetite ore deposit, which has considerable exploration potential. The project is at an early stage of development, but greatly benefits from extensive exploration work which has already been undertaken in the Soviet era. WAI consider that the exploration programme adopted by Aricom is appropriate in order to both substantiate previous exploration drilling and improve confidence in resource categorisation.'

o 'During 2009, it is planned to begin mining the high grade near surface ore at Garinskoye. This will generate approximately US$33m profit during the year and contribute towards the full scale production development of the mine.'

- Bolshoi Seym

o 'Previous metallurgical test work has shown that, as with Kuranakh, it is possible to produce a 62.5 per cent. Fe concentrate and an ilmenite concentrate with up to 49.9 per cent.TiO2.

o WAI considers that this project is in the early stage of exploration. It is a large titanomagnetite iron ore deposit, which has considerable merit and therefore potential, and as such justifies the exploration works which have been proposed, both to confirm the potential resources of the deposit and improve confidence levels in those resources that are present.'

The contents of this announcement have been approved for release by Owen Mihalop of Wardell Armstrong International. Owen Mihalop has consented to the inclusion of the material in the form and context in which it appears.

Jay Hambro, Chief Executive of Aricom plc, commented: 'Wardell Armstrong has now carried out an independent review of the full group of Aricom's projects and summarises it as a 'sound portfolio of mineral deposits' that could 'based upon performance to date and the current status of each of the projects, be developed into operating mines generating good returns for the investors'.

The report further demonstrates the value inherent to the Aricom asset portfolio and I believe it shows a quality portfolio of projects, with near term cashflow, feasibility stage, development, and exploration stage projects ensuring continued growth through the next 4 to 5 years.

Aricom is pleased to have reached this position where our scope for growth through our well balanced portfolio has been independently audited, and we look forward to benefiting from the great competitive advantage we have with regards to our location on China's doorstep. With the combination of this suite of assets and over half a billion dollars in cash, I believe we are well placed for the future.'

An excellent day today for TIO with the release of the Wardell Armstrong review. The future looks very bright indeed, especially with half a billion dollars in cash. I may be reviewing my 90p target upwards past 1 now:

Aricom PLC said its reserve and resource estimates to Joint Ore Reserves committee standards totals 918 mln tonnes of ore, adding it expects continued growth through the next 4-5 years.

The Anglo-Russian mineral exploration company said the operation at the Kuranakh ilmenite and titanium magnetite project in the Far-East of Russia should begin to generate 'positive' cash flows in the second quarter of 2008 when the first concentrate shipments are sold under the off-take agreement with China National Gold. Once full production is reached, a net operating profit for the Kuranakh project of about 6 mln usd per quarter can be expected.

As per Wardell Armstrong International's review, Aricom has a 'sound portfolio' of deposits, the company said in a statement. During 2009, Aricom plans to start mining the high grade near surface ore at Garinskoye project, which will generate about 33 mln usd profit during the year and contribute towards the full scale production development of the mine. Looking ahead, chief executive Jay Hambro said the company has over half a billion dollars in cash, adding it is well placed for the future.

Up into the Main Market today then and another small rise :-) Any ideas as to why it's had to change its epic to ORE?

here's a decent chart for you all ..... quite encoluraging, and a stock well worth watching

IAN .... if you are montioring this at all, please can you change the header EPIC to ORE as TIO has been "discontinued"


Others .... very good indeed to see sp breaking back above all key DMAs ..... if this can be held through the close, then there could be quite a lot of upside potential

This stock has moved from Aim to the main market,hence the change in code.
Any forecasts on the upside?

chart tells you all ..... certainly likely to be quite strong resistance at 84/86 and maybe to a slightly lesser extent at 74/76

IMO these are only going one way which is north. As per a recent Shares mag article this could be the next big mining house and I believe that by the end of the decade the SP will be over 10. There will be many slips and slides on the journey but I'm in for the long-haul and am very excited about the prospects.

Yes, I tend to agree.Looking at things in a broader sense,I feel that Russia ,where many of these untapped mining stocks are,will be playing a much increased part.

IF stability is indeed slowly returning to the markets, then there are many worse commodity stocks to hold given the projected increase in ore prices for 2008 - probably 35-50%; see comment in RIO thread.

the little dip today tempts me strongly to reinvest (got out 7/10 days ago merely to take money off the table) as there should be sgtrong support where 25+50 dma coincide at 72

i wonder whether this tasty iron ore producer is on any predator's radar?
good company (i think) in its own right anyway

another good piece of news re this stock surrounded a buy recommendation from the daily telegraph of about a week ago.
aricom have made a $300 m tie up with the chinese government re shipment of iron ore .

or even piece of good news!

TIO, rechristened as ORE but perhaps would be better as ORG ..... the build up is quite slow and gentle, but when it finally comes it could all explode ..... well the thoughts nice anyway - lol!

shall not pursue the above word game, but in all seriousness, do not forget this little (i think) gem ..... sp is on the move this morning, perhaps because others are waking up to the fact that ORE could make a tasty morsel for a larger fish

Maybe:
"Aricom plc (LSE:ORE, OREW), the Anglo-Russian developer of mineral resources,
advises that it will be announcing its Final Results for the year ended 31
December 2007 on Thursday 21 February 2008."
Still on my watchlist, but not convinced yet that it is going places.

at least the company has good parentage, which is more than can be said for many other producers in those regions!

For what it's worth I do believe that ORE is going places - right place and right time (China & Russia) IMO.

apart from the old queen (long may she reign!), i do hope that some of you other guys paid attention and have got on board

read this little piece as you will ..... are ORE looking to buy or sell? ..... odds are surely on the latter, but certainly no certainty!


Russian iron ore firm Aricom Plc is holding discussions about possible merger or acquisition opportunities, the chief executive said on Thursday.
"We're speaking to people about possible options for us and we are keeping our cards pretty close to our chest, but there are some interesting opportunities," Jay Hambro told Reuters in an interview.

So, buy on rumour, sell on fact?

demand and price of iron ore is flying-a good one to hold I think. I sold FXP and WSM far too early so I intend to hang in here! much better day all round for me today which has cheered me up considerably!

too early to know harry .... have been a fan of this stock for a little while and shall stay put .... if there is bid in the offing, and i think there is a reasonable possibility, then surely (no logic!) it will be significantly above even present level?

Making money :-)

Aricom, the Anglo-Russian miner, reported its maiden profit in 2007 and added it is on course to start production at the Kuranakh mine in the first half of 2008. The group's net profit reached 0.1 mln usd in 2007, turning around from a loss of 2.6 mln usd previously, after booking revenues of 4.9 mln usd.

Fundraising efforts generated gross proceeds of 640 mln usd, added Aricom, which moved to the FTSE 250 index from the Alternative Investment Market during the year. Cash and short-term investments at year-end jumped to 498 mln usd from 90 mln usd.

The group reaffirmed its belief that it will begin producing saleable concentrate at the Kuranakh site in the first half. Kuranakh will produce titanomagnetite starting June, reaching around 225,000 tonnes in the year. Mining process has already started at Kuranakh, with 83,000 tonnes of materials moved in 2007. Ilmenite sales will also start in October and will total 36,000 tonnes for the year, the company said.

a certain member here has rechristened ORE (formerly TIO) as ORG, so to continue that little tasteful joke, with sp getting aroused once more, perhaps time to take advantage and dip in again!

wish i could read! previous post deleted on grounds of stupidity

Wrong thread robertalexander.....check out ORE !.

Wow, limitless potential, queen1 (you mentioned above)

don't gloat! ..... Aricom certainly looked a very good company and probably still is .... sp is currently tainted by plummeting commnodity prices, though not iron ore i think, and also the fact that the company is based in russia and is the "child" of POG which has taken an absolute pasting of late.

How very observant hlyeo98. It must have taken you forever in the current markets to find a company with a plummeting share price.