Sharechat Logo

Azimuth Resources

By Dan Stratful (AFA)

Friday 24th August 2012

Text too small?

Azimuth Resources (ASX: AZH) is a junior gold and uranium explorer with a focus on gold and uranium exploration projects in Guyana, South America. Its Guyana exploration projects cover over 8,000km2 of granted licences (East and West Omai Projects) which are prospective for gold and 4,000km2 (Amakura Project) which is prospective for uranium.

AZH's strategy is to develop a world class portfolio of assets by upgrading existing resources, undertaking green fields exploration and through project acquisitions. A $6 million equity capital raising has just been completed to fund growth through the issue of 17 million shares to sophisticated and institutional investors. The offer was oversubscribed.

AZH recently reported its maiden resource estimate for its West Omai gold project, which although it came in at the lower end of Analyst expectations, provided AZH with the foundations to build a large resource of high quality gold deposits.

The resource was derived from the Smarts and Hicks deposits at the flagship West Omai gold project, with the Smarts resource providing some particularly high quality results while the Hicks resource was of lower quality.

AZH operates in a country that has a mining friendly government and AZH owns almost 100% of the West Omai Project which holds the largest ground position in Guyana. The area reportedly has good logistics with existing road access and the ground is reportedly highly prospective.

Analysts' value AZH's shares at around 80c per share and with on-going drilling, AZH anticipates its resource inventory to grow as it seeks to become a multi-million ounce gold explorer.

Another resource upgrade is expected by the end of 2012.

Status: SPECULATIVE BUY

AZH's shares today traded at 39c


Disclaimer
In accordance with the Financial Advisers Act 2008 ("the Act") Sharechat is "Class Advice" and any advice or recommendations contained on this webpage is not "Personalised Advice" as defined by the Act. This means Sharechat does not take into account an investor's particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor's who require "Personalised Advice" should contact an Authorised Financial Adviser (AFA).

 


 

DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports