Shareholders sign-off on AOH’s A$80 million capital return
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Altona Mining Ltd (ASX:AOH) has now received shareholder approval for a A$80.2 million capital return, following the sale of the company’s mining and exploration assets in Finland last year for approximately A$112 million.
After the capital return, AOH will have nearly A$50 million in cash and no debt with a focus on the development of its remaining asset, the Little Eva Copper Project in the Mt Isa region of Queensland, Australia.
“The Board of Altona has a view that companies exist to make money for their shareholders. Our purpose is to return cash,” AOH Managing Director Mr Alistair Cowden said, “We’ve been through a cycle, we’ve built, financed, paid back debt, sold the project in Finland and shareholders need some reward.”
“We think it is the right and proper thing to do; put the shareholder first and return some of that wealth to shareholders.”
“Cash is king in this market. The mining markets have gone through a very difficult time and it’s hard for companies to raise money. We have almost $50 million in cash and that is a powerful asset.”
Cowden said that the $50 million will be used to advance the Little Eva project in a “methodical and sensible way,” noting that the recent discovery success at the Turkey Creek prospect had prompted to revisit the feasibility study, mine plan and environmental work for Little Eva’s development.
However in terms of financing Little Eva’s development, AOH is still keeping all options open; discussions are underway to bring in a joint venture partner, but selling the project or merging with another entity is still on the table.
Systematic soil sampling and mapping across the Turkey Creek discovery and the proposed plant area is the first priority now as Altona increases its exploration efforts in Q1 2015. Cowden said this will follow onto the definition of targets for a subsequent RAB drilling in the near future in an effort to increase mine-life and scale at Little Eva.
Cowden said that copper markets are very simple and there is no demand crisis for copper, with a recovery in copper price to be expected soon.
A full interview with AOH Managing Director Mr Alistair Cowden can be viewed here:
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
