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Mining

Australian Mines' first 15 minutes of trade must be seen to be believed

Over $5.5 million in stock has changed hands in a frantic opening.

Australian Mines Ltd (ASX:AUZ) has well and truly been a stock on the move recently, but the opening of trade today is something else.

In the first 15 minutes, the company has soared another 42% to $0.125, with 50 million shares changing hands.

Shares were trading at $0.01 a year ago.

The company has this morning responded to an ASX price and volume query, saying it is not aware of any information not released that may explain the trading activity.

It did however provide some commentary:

"The company does note that Canadian broking and investment firm, Canaccord Genuity, released a BUY recommendation on Clean TeQ Holdings (ASX:CLQ) on 29 October 2017.

"The target price for this BUY recommendation was $2.00, which values the Syerston project (having a mineral resource tonnage of 101 million tonnes at an average grade of 0.13% cobalt and 0.59% nickel) at $1.1 billion.

"In comparison, Australian Mines, whose Sconi project has a mineral resource tonnage of 89 million tonnes at an average expected feed grade of 0.11% cobalt and 0.80% nickel, was valued at only $208 million.

"This market capitalisation of $208 million for Australian Mines overlooks the inherent value of the company’s Flemington Cobalt-Scandium-Nickel Project in New South Wales, which is the immediate continuation of Clean TeQ Syerston project."

The company's managing director, Benjamin Bell, is currently in London for meetings with large institutional investment funds.

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