Good News and No Moves, What’s Up Australian Mines?

Earlier this week Australian Mines Limited [ASX:AUZ] was up nearly 10%. Today, it is back down.

In absolute terms, the movements seem tiny — the stock has only fluctuated by a few cents in its history. This morning, Australian Mines is valued at around 0.089 cents.

The resource company, Australian Mines Limited, was formed in 2001. They were initially centred on nickel exploration and excavation, but have since expanded and now also produce cobalt and scandium.

The Managing Director, Benjamin Bell, is committed to developing the company into a tech metal powerhouse. The high-value commodities produced are typically sold to the manufacturing sector, mainly the battery and transport industries.

Despite recent news — a record export — the share price fell back…

Why did this happen to Australian Mine’s shares?

Recent excavation in Perth, WA has trumped up 4kg of cobalt sulphate and 40kg of nickel sulphate — a record haul in Australian mining history! The samples were also exceedingly pure…over 98% purity for both minerals.

Bell even notes the significance of the expectation-defying shipment — so why have investors pulled back? Since the news release and subsequent 10% gain (one cent), the stock has gradually fallen back to rest at its origin of nine cents.

The mining field in play for Australian Mines is clearly a good investment if it continues to turn out sizeable loads…

With Aussie earth stocks set to boom, so too is the global battery industry, which is powered by earth materials. Check out our findings on this potential ‘Battery Boom’ right here.

But with the announcement, they haven’t maintained any gains.

What’s next for Australian Mines?

Bell said the record shipment will help Australian Mines to develop and cement its position as a leader among commodity-producing firms as Australia’s battery material industry grows.

As said best by Bell:

[This] will also assist in the further advancement of project financing negotiations for the construction of the full-size processing plant in Queensland, which will use a replica processing flow-sheet to the demonstration plant.

From a technological standpoint, a new scanner from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) has the potential to drastically reduce copper waste. This could be a boon for the company — think large cuts in water, electricity and processing costs.

Time will tell whether Australian Mines manages to pull itself up, or falls back to dust.



Ryan Clarkson-Ledward

Editor, Markets & Money

PS: Battery Boom – Three Aussie rare-earth stocks powering the global battery frenzy. Get your free report now.



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