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.

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.

georgetrio,

I agree re the reduction of risk, once the financing is sorted there is only counry risk remaining.

I don't normally worry about that, if the local politics seems stable I invest, and if I become concerned, I would sell.

The only area I am currently avoiding is the FSU, except Tajikistan, due to the recent experiences of Oxus and other small miners.

Andy - agree with you about the Lonsec report - seems to be supported by more recent data.

ANDY
THE POLITICAL environment is well cool in Burkina-faso, for this poor country, a projet like this is a serious source of income for the country. Fingers X. GOD HELPS US WITH THOSE FSU countries.

From advfn Excellent point


richgit - 24 Sep'06 - 21:45 - 1444 of 1445


The only way to ever achieve multi-baggers is to accumulate stock as cheaply
as you can.and never lose sight of the fact that the very reason you are getting cheap stock is because the masses dont agree with you.
Thus there is no point in taking a contrarian position and then looking for agreement from others.

The more that people find reasons not to hold a stock like AIMR is a sure sign
I am on winner and will get more stock cheaper,and the gains will be progressively bigger.Eventually so many will want to buy the stocks they shunned,especially those stocks where the potential-and assets-are glaringly showing their undervaluation.

My views are always on a longer term investment,though longer is progressively
getting shorter with AIMR.

any idea why this has taken a beating the last couple of days?

Strange things usually happen from sept to dec in the stock market. even though this little fish is about to become a producer, those stupid investors or gamblers are selling it. same for GTL, but has been huge buying in GTL today. I think the sp will start rising seriously once the production is near or at least in February as it is the case usually for most sp.

Zinc Rises a Fourth Straight Day; Supply Growth May Lag Demand

By Chia-Peck Wong

Oct. 10 (Bloomberg) -- Zinc rose for the fourth straight day in London on forecasts that supply may not grow quickly enough to meet rising demand from steelmakers.

Prices of the metal, used to galvanize steel, have almost doubled this year after inventories fell 66 percent as zinc miners didn't increase production fast enough.

``It's quite possible we will see even higher prices in the short term,'' Stephen Briggs, analyst at Societe Generale, one of 11 companies that trade on the floor of the London Metal Exchange, said in a presentation today.

Zinc for delivery in three months rose $20, or 0.6 percent, to $3,670 a metric ton at 1:22 p.m. in London. Prices have gained 11 percent since Oct. 4.

Stockpiles of the metal fell for the 11th straight day to 133,475 tons, the exchange said today in a daily report. Global supply of refined zinc is likely to lag behind consumption by 420,000 tons this year, Briggs said.

Supply will continue to remain short of demand next year, Merrill Lynch & Co. analyst Francisco Blanch said in a report dated yesterday.

Jmacro
excellent post. keep\it up and best luck

georgetrio,

People are selling AIMR becaue the financing is not complete, and if they do it at a lower level, then they will be able to buy at around the same price, and some of the risk will have gone.

I know people that are waiting to study the financing proposals before making a decision.

yes, a bit early stage and as always these small cap weaknesses is the finance but i have faith that all will come good at the end. fingers x. sometimes it must get worse before getting better. i bought it at different levels and i did sell some that are in profit but will be buying more.

Perkoa financing arrangements out on ASX.

Now on RNS. Summary as follows:

AIM RESOURCES LTD

18 October 2006

PERKOA FINANCING ARRANGEMENTS & MINE OPTIMISATION

HIGHLIGHTS

AIM Resources fast tracks high-grade Perkoa zinc mine development
Perkoa project funding package announced.
Initial zinc ore mining anticipated in mid-2007.
Optimisation of Perkoa mine plan brings ore production forward.

SUMMARY

AIM Resources announces financing arrangements as follows:

Standard Bank Plc mandated to provide project finance facilities totaling
US$90 million;
Cartesian Capital mandated to co-ordinate US$35 million convertible note
issue; and
Seymour Pierce to co-ordinate a US$20 million share issue.

Project optimisation accelerates development and production timetable through:

Mine development plan and processing plant design optimisation;
Revised mine development plan enables first ore to be mined sooner via a
larger decline;
Capital expenditure estimate revised to US$135 million (now includes
contingency and mining contractor costs);
Estimated 2008 production gross revenue of US$212m at current zinc price
of approx. US$3700/t; and
Perkoa in ground metal value at current zinc price of approx. US$3700/t
is over US$3.3 billion.

The revised mining plan, utilizing a larger decline and larger capacity
equipment has reduced the pre-production period by approximately 12 months.
Commissioning of the processing plant is scheduled for early 2008.
AIM Resources Managing Director, Marc Flory commented that:

'The increased costs associated with this accelerated development schedule are
more than offset by the project delivering well ahead of the previous schedule
and delivering concentrate into an anticipated period of strong zinc prices.
Cash flow is brought forward, capturing significant value for shareholders'

Development on site at Perkoa has progressed, with excavation work commencing on
the box cut for the decline development expected to start in late November 2006.

jmacroesus -

Thanks for posting that.

So they are raising $20 million via equity, so another 225 million shares approx will be issued then, depending upon the prie they will be issued at of course.

If they issue at 5p, it will be 225 million, but if they discount to, say, 4p, it would increase to 277 million approx.

The amount being raised in shares/convertible notes is US$55m - about the same as the Lonsec analysis suggested would be raised in shares. The dilution will depend on the issue price and conversion terms but could be less than in the Lonsec forecast even though more capital is being raised. Because of the earlier start the forecast net revenue figure for 2008 based on a zinc price of US$3700/t is A$283m compared with A$14m (based on zinc at US$2900/t) - should have a significant impact on the NPV.

jmacroesus,

We'll see, i am waiting for the terms of the financing first, i want to see exactly how much paper is being issued, and at what price.

I prefer to use more conservative zinc prices personally, a higher figure would be a bonus at the time, but the world economy may have turned by then, and ZN could be down in price, we shall have to see.

In my experience, EVERY mine experiences problems and delays, so the forecast net revenue may be difficult to achieve in practice, IMO.