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Auroch Minerals Ltd  ASX:AOU

Company

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Current Price

Current Return

Highest Return

Auroch Minerals Ltd ASX:AOU
Mining - Nickel

$ 0.215

24-Mar-21

$ 0.155

-28%

30%

View Reports

View Company Page
Report Date Price Current Return
WA Nickel Developer in Close Proximity to BHP’s Smelter 24-Mar-21 $0.215 -28%
This ASX Stock to Help BHP Help Tesla? 24-Mar-21 $0.215 -28%
AOU Delivers Us An Early Result 31-Mar-21 $0.250 -38%
How Our Investments Performed in Q1 of 2021 21-Apr-21 $0.205 -24%
Promising Signs for a Potential New Nickel Sulphide Discovery 28-Apr-21 $0.185 -16%
AOU is Drilling a High Priority Nickel Target Now 06-May-21 $0.230 -33%

Overview

📋  About: AOU is a nickel sulphide focused base-metal resource company building value through targeted high-impact exploration in Western Australia. AOU has three nickel projects in WA.

🌏  Macro Theme: Tesla chief executive Elon Musk commented that nickel was the company’s “biggest concern” in scaling lithium-ion cell production. Nickel is one of the priority metals in the manufacture of Tesla’s batteries and the car giant is looking to increase its nickel supply. There may also be some direct investment from other auto manufacturers who have expressed a desire to move to a vertically integrated model whereby they have better control over the supply chain in relation to commodity inputs. From a longer term perspective, analysts are generally expecting tailwinds for the nickel price due to increasing demand from the electric vehicle industry. The World Bank predicts that Nickel demand is guaranteed to increase by some of the most dramatic figures by tonnes.

Why We Invested

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Tight capital structure

AOU does not have many shares on issue. The top 20 shareholders control 33% of the shares. As there is not a lot of free float, the share price could move quickly on positive news

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Potential quick translation from exploration to production

AOU has a head start in terms of transitioning from exploration to production due to its established resources and the likely near term maiden resource definition at the high-grade Leinster Project.

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Proximity to processing facilities

Nepean and Saints are relatively close to BHP’s Kambalda nickel concentrator and smelter, while The Horn (Leinster Project) is only 50 kilometres from BHP’s Nickel West operations at Leinster – in total, there are five processing plants within trucking distance of AOU’s projects.

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Previous management believed the resource extended beneath the historic mine

Historic drilling beneath the Nepean mine intercepted grades as high as 11.78% Nickel (over 3m). Previous management think this and other geophysical data indicates a high chance that the Nickel deposit continues at depth.

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AOU has existing Nickel resources of over 1.6m ton at 2% Nickel

AOU has existing Nickel resources of over 1.6m ton at 2% Nickel. Recent drill results at Nepean indicate that its resources will increase. Managing Director Aidan Platel believes there is 60,000 ton contained Nickel currently at the Nepean asset.

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