General Markets Talk
- Thread starter Jimmy_the_Gent
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- Jan 12, 2008
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On that...
On Apple...
Plus, Apple getting into finance kinda remains me of General Motors and General Electric getting into finance. It's like a metaphor for a company that's peaked and is struggling to remain relevant.
AZS having a good run before proper results come in.
Got a nickel and copper deposit with a MRE plus in the same spot near Robourne have found some lithium.
Got a nickel and copper deposit with a MRE plus in the same spot near Robourne have found some lithium.
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Cleaned up on this one with the drill results this week.
RandB
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Not a good couple of days for Lake Resources.
Mofra
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Yep, and CXO is still among the most heavily shorted stocks on the ASX so could be due for further pullbacks.
Going to be boom/bust within the Lithium sector for a while. I'm still holding LLL which has been a wild ride
RandB
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I hold CXO but regret not switching over to PLS when it was around $3.50.
CXO is entering production now, has a fair bit of exploration yet to be done in the lithium space and I have my fingers crossed with the other projects. Namely Uranium.
But yeah, will take a while to seriously climb I think.
RandB
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I personally wasn't aware of HAR. Based in Senegal I see. Like PDN & DYL there is a sovereign risk there. I like the narrative of PEN based in US but the 'experts' on ausbiz trashed it.
BOE is a solid option but overpriced atm.
tbh it feels a bit like we are in a bubble..
DDH1 getting taken out by Perenti, think I might bail not overly keen on becoming a shareholder of the later.
Azure’s Pilbara lithium find making money Andover fist
Plus, gold assays imminent for Sunstone and Osisko gets a lick of Hot Chili.
Azure started out as nickel explorer, with a bag of nickel exploration interests picked up from Ron Manners’ long-gone Croesus Mining.
But not much came from the nickel hunt, so it wasn’t long before Rovira took Azure off to Mexico to hunt for silver.
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In the subsequent years there was a degree of success with the Mexican excursion.
And because of Rovira’s role, along with the late geologist Terry Grammer, in finding the Cosmos nickel deposit in 1997 for Kerry Harmanis’ Jubilee Mines (acquired by Xstrata in 2007 for $3.1 billion), Azure was assured of a good following.
But when COVID became full-blown in March 2020, Rovira pulled up stumps in Mexico. He needed to inject some WA projects into Azure so he called an old friend, the legendary “prospector” Mark Creasy.
Creasy suggested his Andover nickel project up near Roebourne where the pub serves a cold beer if you are game.
The standard Creasy deal was struck in October 2020 – 20% equity in Azure and 40% of Andover for Creasy going forward, with Azure carrying the project and owning 60%.
Azure enjoyed success with the drill bit to the point where it now has a resource of some 65,000t of nickel equivalent.
That was good enough to rate Azure as a $100m company in mid-February this year when it was trading at 30c. But as mentioned here at the time, things were stirring on the lithium front at Andover for Azure.
It was becoming clear that among the nickel deposits there was also a giant swarm of pegmatites, with initial sampling work by Azure having confirmed they were of the lithium-bearing spodumene type.
No less than Chile’s lithium king SQM recognised that Azure could be on to something big and ahead of any drilling by Azure, struck a deal to invest $20m for 20% of the company, reducing Creasy to a 13.4% interest and leaving the Azure/Creasy 60:40 joint venture untouched.
Drilling by Azure since has confirmed that Andover is a seriously big discovery, with some suggesting it could well be as big as Pilbara’s (ASX: PLS) Pilgangoora, Liontown’s Kathleen Valley, or the Wesfarmers/SQM Mt Holland deposit, if not bigger.
Azure’s market cap has responded by growing from the $100m back in mid-February to $642m this week ($1.65 a share).
So following on from his Cosmos success all those years ago, Rovira has kicked another goal. So too has Creasy.
Creasy’s 13.4 stake in Azure is now worth $86m and the imputed value of his 40% carried stake in Andover to a decision to mine is north of $428m, making for $514m all-up.
Creasy is best known for previously striking it rich by vending exploration properties that went on to become the Nova nickel-nickel deposit and the Bronzewing gold mine, among other things.
According to analysts following the stock, Azure’s seven-fold value increase since mid-February has further to go. Bell Potter has a $2 share price target on Azure, and Canaccord is at $2.25 a share.
Canaccord’s particular bullishness comes through loud and clear in a research note dated June 27.
“Azure has only scratched the surface, having drilled a 400m strike zone of pegmatites in a field of over 700 mapped pegmatites within a zone that stretches 9km x 5km. Suffice to say, the scale potential is massive, in our view,” Canaccord said.
“Our interpretation implies a mine inventory of 65-75Mt from the 400m strike already drilled. Given this 400m is part of a 2.2km long pegmatite trend, we view a resource in the region of 100Mt as a realistic initial goal for AP0011, AP0012 and the neighbouring pegmatites, and use this as the basis for our EV/ Resource multiple valuation.
“This 100Mt does not include the exciting opportunities Azure has further afield at Andover, including Cuprum Via. For now, we centre our valuation on 100Mt and await further success but concede that 200Mt is not inconceivable for Andover over time.”
I was talking to someone recently about us being in a lithium bubble and they said that the most similar thing they had seen in commodity markets was with uranium in the early 2000s. I'm still way too long there and riding it but it's something that you have to keep right in mind. (far more so with the juniors though than companies pulling it out of the ground now)
The Cryptkeeper
The Cryptkeeper
AZS closed at $1.98 today.
Their market cap is now 764M but they only own 60% so the whole thing is really like 1.12B!
The results that have of course been impressive so far but that's a pretty astounding valuation for some holes in the ground, of something not that rare that every man and his dog is now looking for.
Their market cap is now 764M but they only own 60% so the whole thing is really like 1.12B!
The results that have of course been impressive so far but that's a pretty astounding valuation for some holes in the ground, of something not that rare that every man and his dog is now looking for.
Interested in GSM at all? Been mentioned on here years ago but has been going south ever since.
Oh no. Nobody should be following my tips on here. Sizematters or Kram and the ones to follow.Ok I’m all in on GSM, well $500 worth. It was this thread that got me into CNB at around 30 cents so I’m entrusting my life savings to you guys.
CXO a good buy at this price?I literally sold almost all of my holdings around late march-ish - turned out to be a great idea with the holdings I had. Too much stress on life. Bought a nice place in Canberra.
Feel so sorry for the people who have been stuck in the AVZ mess over the past 12 months - I've got a little bit left like 50k shares but I knew of one person who had well over 1m shares. No idea how that bloke sleeps at night. Hope it all works out for AVZ
(DYOR... and just what I AM snooping around on) SLB, MNB, MGT, LRS, IPT and with the most recent announcement QPM are the ones I will be focusing on going forward. High risk - high reward plays now I'm starting from pretty much scratch and have no real reason to play it safe. WR1 I got my dad onto at 22c... suffice to say he's happy bloke. Wish I had coin to blow at that time...
I'll add that while I say I'm going high risk/high reward I'll probably starting accumulating SYA and CXO again. Amazing value at current prices IMO. Lithium sentiment changing slightly from a bear to bull market - M&A activity will be HUGE and whilst I think CXO is a tad small for a TO I feel they are priming up to start accumulating stakes in companies that operate adjacent to their Finniss and Barrow Creek operations in the NT. Lithium Plus for example?
Have you accumulated any of the other stocks you mentioned?
Hey,
Yeah, I've bought all and keep buying. Most are flat with exception to CXO (down), SLB (up) and LRS (up).
Looking to sell out of LRS for around 250% profit - probably transfer to safer CXO/SYA which are de-risked in comparison to others mentioned (producers). I topped up on CXO today at 76c.
And will probably focus on them until they are around 85c again.SLB I will hold until more news - imminent (unsure if good or bad - total gamble). But got a top up buy order in at 24c.
Not FA.
I've sitting on quite a bit of cash (about 20% of my portfolio) which has been reassuring but frustrating at the same time because it feels like a waste. I bought 30,000 shares in BBOZ yesterday arvo. My strategy is that I now don't need to hold as much, or really any cash, so I can have most/all of my money working for me rather than sitting in the bank, whilst at the same time taking more risk on the upside.
Does that make sense or is it really dumb?
SM
Bigfooty Legend
Curious for thoughts in here with rising interest rates, whether they believe they can get better returns investing in the market than they can offsetting the interest on their mortgage? I'm toying with the idea of pulling my investments out and just sticking in an offset against my mortgage which in theory sees a ~6% 'return'. Or is the view that having multiple investment streams advantageous?
