Interactive Investor

Why Amur Minerals is up 115%

22nd May 2015 15:33

Lee Wild from interactive investor

Amur Minerals received a shot in the arm Friday after the Russian prime minister backed its Kun-Manie nickel copper sulphide deposit. Dmitry Medvedev's decision to approve the application for mining rights there found investors in excited mood and Amur shares have more than doubled in quick time.

Ending Thursday at 10p, Amur traded as high as 21.5p, their highest level since the beginning of 2011. The company, a favourite among retail investors, held the best of the gains only briefly over lunchtime, but they're still up three-quarters on the day. Last summer you could have bought them for less than 2.5p.

It's taken a decade, but the production licence award process is complete. Amur has 30 days from registration of the final document to make a one-time payment of 23.6 million rubles (£304,000) to officially complete the transaction.

(click to enlarge)

"The licence grants our wholly owned subsidiary ZAO Kun-Manie the rights to recover all value from the mineral defined to be present at Kun-Manie," said Amur. The new 36 square kilometre licence is valid until December 2034.

Amur, which holds 100% of the rights and is entitled to recover all economic value minerals including nickel, copper, cobalt, platinum, palladium, and other minor minerals, says Kun-Manie has JORC resources in excess of 841,000 nickel equivalent tonnes.

(click to enlarge)

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.