This has the potential to go alot higher than the 3p I`ve just bought 300,000 I will give more info when out of meeting at 2. It is in partnership with some very big players and was hugely over subscribed.

I`ve put my money where my mouth is.......and my head on the block.

Gud luck today.

bobabout/ many thanks for the information/ but barclays wouldnot let ME buy them to put into my ISA/

Good morning, and good thinking about zinc. best luck

What should i say, tell me something nice about AIMR.

bristlelad,

Ask to speak to their Compliance Officer, and tell him!

They will soon change their minds!

ANDY, Good morning and cheers, i will try.

seymour pierce are urgeing buying AIMR with other stocks YOO and Croma, but no targets at moment!

shadow,

Until AIMR detail their financing plans for the mine, they really can't make any price predictions IMO.

ANDY//MANY THANKS I WILL TRY AGAIN//

Re target price.
Seymour Pierces 27 July research alert had a 16p target price.
The Lonsec 31 August report (both reports available through Aims website) puts a valuation on the shares of between 22-28 cents (Aus) (8.8-11.2p) depending upon equity/debt ratio of the Perkoa financing package. The higher figure corresponds to zero equity the lower one assumes that 470m new shares will be issued at 1.5 cents (6.0p) to raise $A70m out of a total of $A120m. Lonsec take quite a conservative view for the future price of zinc (peaking in 2007 and declining thereafter) and dont take account of the earlier start date announced on September 7 when highest zinc prices are expected.
Financing package details are expected soon.
Positive news from the ongoing Mumbwa exploration project in Zambia, or the discovery of new reserves at Perkoa could significantly boost valuations.

Jmacroe

I will put not 16p price target but 25p in my opinion. The position of AIM is unique as the whole government of Burkina Faso is involved, with support, building of railways...etc. the low cost, the stability of the political system, the nearby port of cote d'ivoire and we are talking about zinc. my strategy is to see the beginning and the end of this project before the broad market gets involved.
I think there are few companies in this excellent position. Best luck

The Lonsec report is quite cautious but it takes into account the political and logistical factors you mention.

Jmacroesus
Investors hate unstable environment but the bottom line is excellent product in a low cost environment. Burkina Fasso was a french colony, the currency is CFA in the ratio of 1=900cfa. So you raise many million of sterling and you invest them in cfa country then sell your product in a more lucrative market. One wonders if that was the reason for FAO to focus only on Africa. Juicy little fishes, delicious.

News about offtake agreements available on ASX

Now on RNS:
15 September 2006

PERKOA Zinc OFF-TAKE AGREEMENTS

AIM Resources is pleased to announce that Letters of Intent have been signed
with three parties for the off-take of zinc concentrates from the Perkoa Zinc
Project.

Perkoa's high-grade, clean concentrates are eagerly sought after and will
provide a very attractive feed for zinc smelters.

Given the location of Perkoa in Burkina Faso, the following companies have been
selected as off-take partners:

Xstrata Zinc for its smelters in Spain and Germany;

Votarantim Metais for its smelters in Brazil and Peru; and

Louis Dreyfus Commodities Metals Suisse SA with extensive commodities
trading and logistics expertise, particularly in West Africa.

These three off-take partners will provide Perkoa with a secure, long-term
market, attractive sales terms and flexibility in concentrate sales. The
geographic proximity of Perkoa to the chosen markets will provide commercial
benefits to AIM Resources as well as these partners.

The Letters of Intent set out the framework and the commercial terms which will
be incorporated into off-take agreements between the Parties. AIM Resources is
now well positioned to finalise detailed off-take agreements for the total
forecast production of zinc concentrates from Perkoa. Two of the parties have
indicated a willingness to assist with project funding in a form such as
providing a cost over-run facility.

AIM Resources has been assisted by Cashmere Marketing Consultants, a firm
specialising in base metal concentrates.

The current global shortage of zinc concentrates and the historically high zinc
price provides favourable returns for zinc mines and smelters and augurs well
for the future of the Perkoa Zinc Project.

Marc Flory, Managing Director, said 'Selecting our concentrate off-take partners
is a key step forward towards finalising our funding arrangements for the
development of Perkoa.

'I am delighted to have these three quality companies as our off-take partners.
Their complementary strengths should help ensure the best possible outcome for
the marketing of Perkoa's concentrates.

'This news builds on our recent appointments of Byrnecut Mining as mining
contractor and DRA Mineral Projects as EPC manager for Perkoa.

'We are systematically working towards commencing development of the Perkoa Zinc
Project in a manner which achieves the best outcomes for our shareholders and
other stakeholders.'

many thanks jmacro, will be checking this later. top banana

'Buy' reiteration by Seymour Pierce on September 15 with target price of 16p.

jmacroesus - 18 Sep 2006 10:11 - 63 of 63
'Buy' reiteration by Seymour Pierce on September 15 with target price of 16p.



Are Seymour Pierce the house broker per chance?

In the current situation, beofre finacing has been completed, the mine constructed, and the future price iof zionc known, it just a finger in the wind guess!

There are a few details to iron out before they can start making predictions IMO, and the first, and major one, is the financing itself, IMO.

Once this is done, and the amount of new equity, debt, and offtake agreements known, an informed view can be made, but certainly not before surely?

The project looks good, but the constant comparisons with GFM are misleading, they are seperate companies, at differet stages of their life cycle, in totally different parts of the world, IMO.

Zinc stocks continue to fall, so that should underpin the price, but any sign of a US recession could depress demand, and subsequently the price, so we cannot take a high future price for granted.

I take your point but as house broker Seymour Pierce will presumably be aware of the Perkoa financing package requirements - they've been giving a target price of around 16p since last December. The Lonsec report, which is more detailed than anything I have seen from Seymour Pierce (see my 12/9 above), took a view on the equity/debt ratio and came up with a minimum target price of around 8.8p.
There's another 'speculative buy' out today:
http://www.intersuisse.com.au/notes/mnmonday.pdf

Target price 16p or not the company will be a producer very shortly. In this case the risk is reduced by the transition from pure exploration into production. Zinc will rise and zinc will fall that's ok but if it is falling now it will rise sooner or later. i remained seriously invested and will buy more if sp dares to fall. Best luck.

jmacroesus -

I take your point but as house broker Seymour Pierce will presumably be aware of the Perkoa financing package requirements - they've been giving a target


House brokers are naturally optimistic as they are promoting the stock.

I don't see how they can possibly give such a target until the financing has been put in place, and analysed personally.

The Lonsec looks more realistic in the short term IMO.

Either way, we shouldn't have too long to wait until the financing proposals are known, as they are putting out good news, and that often preceeds a placing, but not always of course.