A1M
hi guys, I've noticed a bit of a pullback with A1M. Both technically and fundamentally, is there a price it would pullback to that if you didn't own it, you would be keen to take a bit of a nibble or call it a BUY? Thanks, Josh
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Answer
Hi Josh,
AIC Mines (A1M) still looks promising to us, and the recent pullback has been sharper than the move in copper. That’s typical of equities, especially small caps, when sentiment cools.
- The expanded Eloise plant is on track for commissioning in the December quarter. Combined with Jericho, the company targets 25,000–27,000t of copper by FY29, roughly double FY26’s 13,064t.
- The $120mn Materra (Mt Cuthbert) acquisition lifts AIC’s contained copper resource by 39% to ~878,000t
One thing to be aware of is the ~125.8mn new shares to be issued, a ~12.4% interest following the completion of the Materra acquisition. Shareholders vote on 4 November, with completion expected in early November. That dilution could weigh on the shares in the short term, and we think that’s feeding into some of the weakness.
We still really like A1M’s growth story, and would be comfortable accumulating below~80c.
