Amur Minerals - (LON:AMC) - Worth a punt? (Update 25.06.2020)
Following on from my previous post.....
Maybe AMC have a major card up their sleeve and are positioning themselves well for the changing times and task ahead of them...The appointment of the impressive experienced Senior Banker Adam Habib suggests they are exploring all avenues...
A progress update from Adam today.....and very impressive interview on Proactive Investor.
https://www.proactiveinvestors.co.uk/companies/news/922754/amur-minerals--adam-habib-outlines-progress-towards-teo-completion-and-offtake-discussions-922754.html
Potential further dilution and placing concerns put at ease and a welcome and positive updates regards securing an Off Take and the final destination of TEO and BFS (if not taken over by a major beforehand)
With a market Cap of just £12.78m and mine deposit worth billions.....(1.58 Million Tonne of Nickel x Current and rising market price of 12,418 USD Per Tonne) ....the reward for shareholders would be huge indeed....that is not pricing in the additional 20 million pounds of copper, 2000 ounces of gold and 25,000 ounces of silver.
The share price shot up to £0.40 back in 2015 when the Russian Government of Prime Minister Dmitry Medvedev approved the Company’s “Detailed Exploration and Mine Production Licence” for its Kun-Manie nickel copper sulphide deposit alone!......The 36 square kilometre licence is valid until December 2034.
Current Share Price = £0.014.....some figures suggest a takeover of company and asset could amount to anything up to £0.75+ per share.
We are now months away from 'End Game' and the ridiculously low current Share Price does not reflect the immense asset Amur Minerals have on their hands.
I think 5 years of unimpressive share performance has caused people to forget this.....all will be forgiven on final takeover.
It all now seems to be lining up nicely to reward those long term holders and especially those new investors willing to take the risk and get in at this very lower SP.
Seldom do you come across a chance for a return of multiples such as this.
GLA.
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18 comments
Any views on the interims? Seems like the message is that everything is broadly going to plan and no nasty surprises. Has the market lots interest in this one? I also see its Quality and Momentum Ranks have disappeared on Stockopedia.
Hi Retire Young,
Hope you are well. The quality and momentum ranks disappear temporarily when they are being updated. At this moment I would imagine it is to increase them.
It looks like everything is going to plan for AMUR. Adam Habib gives a good update in his recent Proactive Investors interview.
https://www.proactiveinvestors...
1. Recent Iron Ore investment – First Payment's received this month (see recent RNS). This secures the company with significant Cash flow. This investment provides an indirect linkup with Glencore, a huge player in the metals world who potentially could be interested in AMC's Nickel.
See link - Investment Update RNS - First Payment Received
2. The promise of no more dilution which has prevented the SP rising in the past – this was used to raise cash in the past but no longer needed due to their above Iron Ore investment and subsequent cash flow.
3. TEO – Russian Banking Feasibly due to be submitted start of December and on course as per recent market updates.
4. Very small MCap for the size of the asset
5. Nickel's future use in EV to be increased and is now secured for the foreseeable future - Announced at Teslas's recent 'Battery Day' and Elon Musk's call to 'Mine more Nickel and now' shortly before that.
All in all it could be an exciting period for AMC over the next 6 months to a year.
A very interesting Adam Habib interview and update on AMC’s recent iron ore investment securing AMC a secure cash flow right up to BFS with no need to further dilution. Dilution is what all genuine long term investors hate.
This investment also links them up indirectly with the world player in the metal world GLENCORE who are rumoured to be their off take partners and interested in their entire 1.58million Tonne of Class 1 Nickel deposit.
Iron ore is at 6 year highs.
#IRON #ORE the place to be . It’s soaring. Now at 6 year highs. Most of the stocks at 6 year lows almost. The gap will close soon between share prices and Ore Prices.
AMC have timed their Iron Ore investment to perfection. Many predict their mine is timed perfectly for the EV revolution and forecasted Nickel deficit. Lets hope so.
.
https://finance.yahoo.com/amph...
GLA and DYOR
Adam rewarded for his good work last week and Appointed to the Board Of Directors
Amur Minerals Corporation (AIM: AMC) is pleased to announce it has appointed Mr. Adam Habib as President and Executive Board Member to the Company. Effective 1 September 2020, Mr. Habib will continue to guide and advance funding and strategic partnership considerations allowing for the continued development of the Company's far east Russian Kun-Manie nickel and /copper sulphide project. The Company's focus will be on the execution of Binding Offtake Contract(s) and funding of the mutually supportive Russian and Western Definitive Feasibility Studies.
Mr. Adam Habib was appointed Advisor to the Board on Transactions and Corporate Development in February this year (see announcement dated 13 February 2020) and has successfully delivered the investment, alongside Glencore, into Nathan River Resources Pte Limited ("Nathan River") which owns the Roper Bar Iron Ore Project located in the Northern Territory in Australia.
Interesting times for AMC. A secure cash flow achieved and road cleared for TEO and BFS.
Two contrasting charts.
#1: A simple ratio chart of Norilsk Nickel (Gmk Noril'skiy Nikel' Pao (LON:MNOD)) versus the price of Nickel - as expressed by the JJN ETF.
#2: A simple ratio chart of Amur Minerals (Amur Minerals (LON:AMC)) versus the price of Nickel - as expressed by the JJN ETF.
Interesting article from Zak Mir of Share-talk.com
Amur Minerals Corp (AMC.L ) Kun Manie De-Risked
I particularly liked his final paragraph....
"Nevertheless, the wonder of the latest announcement by Amur Minerals is really the way that overnight the company has transformed itself from a minnow with no cash flow for more than a decade, to one rubbing shoulders with Glencore and set to deliver earnings that any mid-tier mining company would be proud of. All of this and the ability to bring on stream a de-risked world-class asset in Russia of a key resource, nickel-copper sulphide. The hope would be that set against this backdrop we would see off-takers for Kun Manie over the next six months, to underpin Amur further still."
https://www.share-talk.com/amur-minerals-corp-amc-l-kun-manie-de-risked/#gs.dx3eem
There is a huge increase in EV predicted over the next decade.
'Demand for lithium, nickel, and graphite are expected to be nothing short of parabolic over the next decade.'
http://energyandgold.com/2020/08/26/a-royalty-company-for-the-battery-metal-revolution/?shared=email&msg=fail
Hi Hughes87,
I want to thank you for highlighting the speculative opportunity in respect of Nickel. I can fully relate to the thesis you have put forward for the increasing Nickel demand in coming years. In, addition, I have learnt that steel demand is currently the primary driver so electric battery demand during a 'construction phase' in an economic cycle could be significant. I can see both occurring.
I have experienced the 'chase' before in the mining sector and have a few scars from years ago. Having recently returned to the sector, as i believe a commodities cycle is beginning, I hope i have returned to the sector with my eyes open more so than my first foray.
Whilst unfortunate to see the news from Amur, i think it's possible this is just the wrong share to ride any Nickel wave. Your posts alerted me to Talon Metals and I have taken a speculative position based on the charts. It looks like it could be building an accumulation structure at support on decreasing volume after some large buys (institutions?) with volatility contracting of late. You might like to have a look below, volume is TLO only.
Cheers, Forbsy.
No the RNS is a fund raising that further devalues the share price. But you know this and are still trying to ramp the share.
Ok 'Expert Martin'
Hence the drop of 13% in the share price today after the announcement.
Absolutely correct Martin. The company is in effect helping itself to shareholder's money without any consultation. Warren Buffet likens the practice to theft. It does not augur well. I remember when Burford Capital (LON:BUR) were trading at £20 nearly 2 years ago and the company 'raised money' with a new issue. The share price promptly collapsed and is now trading at £5.60. Not good.
Traders existing by not understanding the news and seeing it as how you see it 'dilution'. Long term holders understand what it means for AMC and their huge Nickel deposit.
Please don't invest in this share. I would not like to see you do well out it. Please ignore this board and use your great intelligence on other boards/threads.
Thanks
A Very Exciting RNS and Updates from AMC (Amur Minerals) today.
Confirmation of an investment and future cash flow to allow them to reach their final aim of TEO and Western BFS...
The mention and link up with the massive household name Glencore is massive and what many predicted.
We are pleased to announce a US$4.67m investment alongside Glencore in Nathan River Resources, which owns the Roper Bar Iron Ore Project in Australia, Amur will retain up to a 19% stake in NRR http://ow.ly/aZ2V50B8ijG $AMC #AMC #KunManie #IronOre
The Roper Bar Iron Ore Project boasts a JORC compliant, high grade, resource of 446 m/t and a reserve of 4.76 m/t. There is embedded equity in the investment with 194,000 tonnes of stockpile available to ship from October 2020 $AMC #AMC #KunManie #IronOre
Pit-to-port infrastructure is already in place as well as a long-term off-take agreement with Glencore. The current near production status allows for a rapid resumption of the production and shipping of DSO. The scale of the Project will bring significant cash flow to #Amur $AMC
The proceeds of this transaction will be used to assist funding the BFS programme and development at Kun-Manie and other working capital needs. The stable cash flow will enable the business to function and cover its costs, reducing dilution of its shares $AMC #AMC #KunManie
#IronOre is the year’s best performing commodity. Demand out of #China is expected to remain strong as continued stimulus measures are taken. NRR’s Roper Bar Project is located nearby and with access to the major iron ore market of China #Amur $AMC $IronOre
Hughez87, please stop this,
If you wanted the Stocko audience to buy this stock they would have done so by now.
Whats this - your third thread ramping this share....?
Tesla Model 3 Success Convinces Hyundai To Accelerate Transition To Electric Cars
https://cleantechnica.com/2020/08/03/tesla-model-3-success-convinces-hyundai-to-accelerate-transition-to-electric-cars/
Volkswagen aims to rival Tesla after making German plant all-electric
https://newseu.cgtn.com/news/2020-08-03/Volkswagen-aims-to-rival-Tesla-after-making-German-plant-all-electric-SDDpjLGBry/index.html
Panasonic promises big efficiency boost to Tesla EV batteries, and no cobalt
https://thedriven.io/2020/08/03/panasonic-promises-big-efficiency-boost-to-tesla-ev-batteries-and-no-cobalt/
I think the Oil and Gas industries will suffer as a result of Covid unless they focus their huge wealth on moving towards renewable energy. The Lockdown has proven the world can recover even over a short period if there is a huge reduction in Carbon Dioxide.
One industry which look set to do well out of Covid is the EV car industry.
Electric vehicle market defies coronavirus threat.
"In other words, 8 out of every 10 new cars sold in 2030 will be electric vehicles, says Deloitte."
https://roboticsandautomationnews.com/2020/07/29/electric-vehicle-market-defies-coronavirus-threat/34590/
If Tony Seba is right and main stream analysts under estimate uptake then 8 out of 10 by 2025 would be more likely.
I think this will have a knock on effect on the demand for Nickel and Nickel miners should do well out of this.
Post Covid Switch to EVs - Nickel Demand Increase and Supply Shortages (Mining) (LON:AMC)
As Tesla’s very own Elon Musk said last week...
“Well, I’d just like to re-emphasize, any mining companies out there, please mine more nickel. Okay. Wherever you are in the world, please mine more nickel and don’t wait for nickel to go back to some long — some high point that you experienced some five years ago, whatever. Go for efficiency, obviously environmentally-friendly nickel mining at high volume. Tesla will give you a giant contract for a long period of time, if you mine nickel efficiently and in an environmentally-sensitive way. So hopefully this message goes out to all mining companies. Please get nickel,”
Higher demand supporting China nickel sulphate prices
https://www.argusmedia.com/en/news/2125274-higher-demand-supporting-china-nickel-sulphate-prices
Chinese nickel sulphate prices could rise in the coming weeks, bolstered by increasing spot demand from the new energy vehicle (NEV) power battery sector.
More demand from power battery sector
The Covid-19 outbreak at the start of this year affected the NEV market amid lower buying interest from consumers. The market started to recover in the second quarter, while the pace was slower than expected, as Covid-19 battered the global economy.
New nickel sulphate capacity on the way
Nickel sulphate producers are also expanding capacity in and outside China to meet higher demand from power battery sector in the long term.