Alara Resources (ASX: AUQ) hit $0.06 intra-day today, a 54% share spike from the closing price of $0.039 last Thursday - with the move prompting an ASX 'please explain' in the form of a Price Query.
Alara said it was not aware of any material information that had not been released, which may explain the sudden investor interest.
The company though did point to the recently appointed managing director Philip Hopkins buying one million shares on market for a consideration of $40,000, which is an average of $0.04 per share and a tidy $20,000 paper profit based on today's high.
Probably more important is that the company has begun its transition from explorer to miner / producer, after the completion of the Definitive Feasibility Study on the company's Saudi Arabian joint ventured Khnaiguiyah zinc–copper project.
Key take aways from the study include:
- Zinc Production LOM 775,000 tonnes;
- Copper Production LOM 52,000 tonnes;
- CAPEX US$257 million;
- Payback 2.8 years;
- LOM Project Revenue Using Base Case Zn/Cu Pricing A$2,074 million; and
- Forecast LOM EBITDA Using Base Case Zn/Cu Pricing A$873 million.
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