Aussie Mining Mania

[b9molecule]

Aussie AYSI, a value mining services stock for 2010

ALLOY STEEL INTERNATIONAL

AYSI makes a new, technologically advanced wearplate called SUPER ARCOPLATE. So what is it and what does it do? Wearplate protects mining chutes, dumptrucks, bulldozers, rail cars, shipping containers and all manner of heavy equipment from wearing down, pitting and abrasion, making loading and unloading of material smoother and easier. Wearplate, as you might imagine, wears out under the heavy stresses of iron ore, rocks, sand, etc. SUPER ARCOPLATE outlasts conventional wearplate by up to six times! This means less downtime for equipment maintenance which means more productivity to companies...up to six times more productive. It may not be "sexy" but the product is in high demand...and yet no one really knows about the stock. It is a family business that has financed their growth from cash flow...no debt, no warrants, no financing, no options, no convertibles.

Users of this type of wearplate are mining giants such as BHP Billiton, CVRD, Rio Tinto, Xstrata and Codelco.

http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=200909080930mrktwireuspr____0534573&title=alloy-steel-international-signs-supply-agreement-with-bhp-billiton

AYSI estimates that the market worldwide for wearplate used in these applications to be in excess of 3 billion dollars.

The new thicker “SUPER ARCOPLATE” has the potential to capture a significant portion of that market where down time is a critical factor in the mining or mineral processing operation.

http://finance.yahoo.com/news/World-First-Product-Secures-iw-680154107.html?x=0&.v=1


MINING OPERATIONS ARE REVVING UP WORLDWIDE and Alloy Steel International supplies wearplate to the mining industry, primarily in Western Australia -- home to large-scale BHP Billiton and Rio Tonto operations, among others. They secured their second supply contract from Chinese firm and multi-billion dollar construction, mining, and engineering powerhouse Sinohydro Corporation.

AYSI, located in Perth Australia, just released news that they increased their market share in Western Australia (WA) from 20% to 80% of all the mining services firms in the region. 80%. It appears that they are becoming a regional monopoly. Everyone wants what they make. Imagine the potential for expansion to other territiories. They are building more new mills to handle larger orders for thicker, even stronger wearplate for mining, quarrying, power generation, cement production and other industries. They recently opened an office in Indonesia due to its proximity to the expanding South-east Asian market, the lower manufacturing costs and the availability of highly qualified technical staff.

http://biz.yahoo.com/e/091112/aysi.ob8-k.html


Outstanding Shares: 17,350,000
Float: 4,500,000
Market cap is $46 million
estimated revenue for 2010 is $24 to 36 million

The company has barely diluted shareholders over their 15 years of being in business....and after fifteen years (and one "false start" when the global economy collapsed last year)...AYSI is already seeing strong growth in both top and bottom line results.

Q3 2009 revenues $1,307,160 eps ($0.003)
Q4 2009 revenues $4,187,000 eps $0.02
Q1 2010 revenues $5,739,316 earnings estimate .09
Q2 2010 ???