# TTY - Territory Resources



## noirua (30 July 2007)

Territory Resources are known recently for their surprise bid for Consolidated Minerals (CSM).
Details about the company are at: http://www.territoryResources.com.au

The companies main interest is at Frances Creek, 190Km South of Darwin, on the Stuart Highway. First shipment of Iron Ore will leave from Darwin for China by the end of the current quarter. Iron Ore production is set for 1.5mtpa to build up to 3mtpa.

Mount Bundey Project is 100Km East South East of Darwin.

Yarram Project is 100Km South of Darwin and reserves vary from 40%FE to 60%FE.

Warrego Project is near Alice Springs and the adjacent Railway. Iron Ore is at 62.3%FE and the resource is 10mt.

Largest shareholders are Crawley Resources - 30.5% and OM Holdings with 12.7%.


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## ta2693 (30 July 2007)

It is a good iron company but involved in CSM bidding war. 
There is good chance that it may fail the bid war or win at big cost.If that is the case, the price will down further. I am waiting to see the result of CSM bidding war and may take a position after the war is over.


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## The Barbarian Investor (30 July 2007)

They were doing pretty well (growth wise) before they tried to take on CSM..someone has a bee in their bonnet re: acquiring CSM 

Hope it gets back to some normality


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## noirua (1 August 2007)

The Barbarian Investor said:


> They were doing pretty well (growth wise) before they tried to take on CSM..someone has a bee in their bonnet re: acquiring CSM
> 
> Hope it gets back to some normality




Territory certainly are suffering from a form of CSM disease as they plunge to 89 cents, down 40% from their price before the bid. No doubt the recent market conditions have not helped.

As you infer, bees in bonnets are bad news indeed. Difficult knowing quite  quite when to jump in on this one.


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## noirua (4 August 2007)

TTY look a reasonable bet at around $1 or less on the prospect that the bid for CSM will fall flat on its back. The iron ore sector is still looking good and from an Aussie point of view the currency should weaken after a long bullish run against the greenback, imho. Now about A$1.16 to the US$1.


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## noirua (14 August 2007)

Down and down go Territory to close at 74.5 cents. Keirnan is thought to be thinking about raising his bid for CSM, you know what, give it up as TTY has sent you a strong opinion from their shareholders - "74.5 cents"


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## robert toms (14 August 2007)

I have been watching this one play out for a while.Although Kiernan says that he does not want CSM because of sour grapes...they dismissed him I believe,there is always the thought that this is the case.
You could argue I suppose that he knows CSM very well and got others on board to make a bid.
If TTY still wants CSM it looks like as if they will need to come up with a superior all cash offer...and this will further push TTY's share price down
As you say ..give it up Kiernan

I hold shares in neither...just looking


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## Rimtalay (15 August 2007)

Michael Kiernan is not after ConsMin due to sour grapes, nothing is further from his mind. He knows better than anyone that CSM will make $200 million FY08 on manganese alone. Their contracts are for US$7.25-US$7.50/dmtu for Sept and October. If you follow the metal markets in China, it's starting to go higher. 
Every US$1/dmtu increase is another $60 million profit.
ConsMin is the only producer of Chrome ore in Australia, it has the ONLY viable deposit, it produces 2.5% of the worlds high grade Chrome ore. The price has just gone up 25%, did you know that, I doubt it. Chrome ore is about to go higher again. Just wait till you see the report July -Dec 07 it will blow you away. ConsMin will make more from manganese in 3 months than it did FY07 total ( all commodiies)
I hope that MK doesn't get ConsMin, I don't want to share it with TTY.


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## noirua (15 August 2007)

Rimtalay said:


> Michael Kiernan is not after ConsMin due to sour grapes, nothing is further from his mind. He knows better than anyone that CSM will make $200 million FY08 on manganese alone. Their contracts are for US$7.25-US$7.50/dmtu for Sept and October. If you follow the metal markets in China, it's starting to go higher.
> Every US$1/dmtu increase is another $60 million profit.
> ConsMin is the only producer of Chrome ore in Australia, it has the ONLY viable deposit, it produces 2.5% of the worlds high grade Chrome ore. The price has just gone up 25%, did you know that, I doubt it. Chrome ore is about to go higher again. Just wait till you see the report July -Dec 07 it will blow you away. ConsMin will make more from manganese in 3 months than it did FY07 total ( all commodiies)
> I hope that MK doesn't get ConsMin, I don't want to share it with TTY.




Now at 72 cents are TTY and for all the blustering this bid, with a credit crunch likely to stick around for a while, is not sunk yet, but is nearly dead  in the water. 
Shareholders in TTY are unlikely to back this herring that is trying to swallow a whale.


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## robert toms (16 August 2007)

As a generalisation,why do directors advise shareholders to accept takeover bids.
If as what you say CSM are on the verge on substantial gains from chrome etc. ,why advise shareholders to accept takeover offers?
Alintas gas used the rationale that the market did not recognise their value,and consequently shareholders would be better served by accepting a takeover premium by BNB.
I would have thought that it was up to the company prinicipals etc. to continue producing good results and then the market would surely respond.
Western Mining sold out for a similar reason,just before the mining boom.
Perhaps the principals of these companies just get bored and want to move along.
Maybe I am a bit slow ,but ,to me,there is some strange logic here...worry about the short term first...I do not understand?


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## noirua (16 August 2007)

This plunge to 60 cents today looks, IMHO, like another well overdone fall from a level before the bid for CSM, of $1.49. Worth a gamble at this low level maybe, it is for me anyway. 

Lost money today, but buying has been exciting. Would not have missed this.


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## Rimtalay (22 August 2007)

Noirua, I agree. TTY is a great buy now, I'm a shareholder now, and will buy lots at these prices. 
*PERTH (MarketWatch) -- Officials from Anglo-Australian mining giants BHP Billiton (BHP.AU) and Rio Tinto (RIO.AU) said Monday that they see no imminent slowdown in China's rampant demand for iron ore.*
The rosy assessment comes as analysts tip another sharp iron ore price hike, with global miners struggling to ramp-up supplies of the steel-making ingredient. 
BHP Billiton Iron Ore President Ian Ashby told a AusIMM Conference in Perth that his company is expanding aggressively in response to Chinese demand and efforts by Brazilian producers to "steal" market share from Australian exporters. 
"China is going gangbusters and is likely to continue to go gangbusters," Ashby said. BHP is confident of expanding its Western Australian production to 300 million metric tons per year by the middle of the next decade, he said.


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## noirua (29 August 2007)

Hi Rimtalay, The rise to 95 cents now represents over a 50% recovery in Territory stock and I'm not certain that is likely to hold, with the present speculation over the CSM bid. I have now sold out and hope you all make a good deal more profit that I have. - Good Luck


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## noirua (10 September 2007)

noirua said:


> Hi Rimtalay, The rise to 95 cents now represents over a 50% recovery in Territory stock and I'm not certain that is likely to hold, with the present speculation over the CSM bid. I have now sold out and hope you all make a good deal more profit that I have. - Good Luck




Starting to watch TTY again as they move down to 85 cents. Lots of speculation with the CSM bid still in progress and a dive back towards 60 cents, MAY, present an opportunity, imho.


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## michael_selway (1 October 2007)

noirua said:


> Starting to watch TTY again as they move down to 85 cents. Lots of speculation with the CSM bid still in progress and a dive back towards 60 cents, MAY, present an opportunity, imho.




Jumped alot today thsi one?

Do you know why?

thx

MS

Territory Resources Limited (TTY, former Territory Iron Limited) is a minerals exploration and development company with the four main projects located in the Northern Territory. Companys immediate focus is on developing the Frances Creek project into production.


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## ta2693 (1 October 2007)

I think the TTY bidding war for CSM is over and ASX comes to new high. TTY should be adjusted back to the price before participating CSM bidding. 
I think it will go back to $1.40 to $1.50. But I think IOH may be better than TTY. similar iron deposit, but only 1/3 market cap.


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## Rimtalay (3 October 2007)

The TTY shipment to China has even made the news in the China Business News. 
http://www.chinaeconomicreview.com/logistics/2007/10/03/iron-ore-shipment-to-china-from-darwin/


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## Rimtalay (9 October 2007)

Steel boom unbridled
Steel demand to completely outstrip global economic growth, with big knock-on benefits for numerous mining companies.

Author: Barry Sergeant
Posted:  Monday , 08 Oct 2007 

JOHANNESBURG -  

The International Iron and Steel Institute (IISI), has upgraded its global forecasts for apparent steel consumption, for both 2007 and 2008, implying significant ongoing positive knock-on effects for mining companies producing the various inputs that go into the steel making process.

Apparent steel use is expected to increase from 1121 million tons last year to 1198 million tons in 2007, an increase of 6.8%, and one that significantly outpaces the rate of global economic growth. The IISI's latest projections for 2008 suggest a similar global growth rate to 2007, at 6.8%. The figures represent an upward percentage point revision of 0.9 for 2007 and 0.7 for 2008 over earlier forecasts, published in March.

While iron-ore diggers stand as the most visible beneficiaries of strong ongoing demand for steel, producers of other steel ingredients such as coking (metallurgical) coal, manganese and molybdenum stand to benefit; in the case of stainless steel, demand for chrome and nickel is set to remain strongly underpinned.

According to the IISI, the BRIC (Brazil , Russia , India and China ) countries, which accounted for about 41% of global steel demand in 2006, will again be leading the growth with an expected increase of 12.8% for 2007 and 11.1% for 2008. Overall, 77% of world growth in 2007 and 71% in 2008 will take place in BRIC.

China's apparent steel use is expected to grow by 11.4% in 2007 and 11.5% in 2008, accounting for 35% of the world total. For India, forecasts for apparent steel use point to an increase of 13.7% in 2007 and 11.8% in 2008. 

The IISI spelled out its belief that recent financial market volatility would do little, if anything, to stem demand for steel. IISI executive committee chairman John Surma said in a statement that "although global economic risks have increased, the IISI forecast assumes that the recent credit market volatility will not move the US economy into recession".

The stock price for the world's leading iron ore digger, Brazil's CVRD (NYSE: RIO, US$33.56 a share), has more than tripled in the past 12 months; stock prices for the second and third dominant members of the club, Rio Tinto (RTP.L, £43.10), and BHP Billiton (BHP.L, £17.66), have also soared. Among junior iron ore stocks, Fortesque (FMG.AX, A$53.95) is currently trading at record levels.

Seen at the steel end of the story, the price of Arcelor Mittal (MT, US$78), the world's biggest steelmaker, has more than doubled in the past 12 months, and is currently trading up around record highs.

The analyst community anticipates that global iron ore production is set to increase from nearly 500m tons in 2000 to close on 1000m tons in 2010. By that stage, it is expected that CVRD will be producing some 32% of the world total, followed by Rio Tinto (25%) and BHP Billiton (15%). All other producers combined are expected to supply 28% by 2010, and include Kumba Iron Ore (JSE: KIO, R229), and by 2010, no doubt also emergent producers such as Fortesque.


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## Icharus (18 October 2007)

Quote from today's fin review
"Argonaut Securities has upped it's valuation on iron ore producer Territory Resources to $1.66. Territory, which yesterday launched a shareholder share purchase plan priced at $1.00 a share, made its maiden iron ore shipment last month following a successful start to mining at the Francis Creek mine in the Northern Territory. Argonaut says the company is undervalued compared with its peers in the iron ore sector. Analyst Troy Irwin expects Territory to be involved in the consolidation among resource stocks generally and iron ore plays in particular. A potential union with NT mineral sands miner Matilda Minerals is on the cards".

SPP allows for 5000 shares @ $1.00 could lead to some arbitrage given todays closing price of $1.19

cheers Icharus


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## Rimtalay (18 October 2007)

*Iron ore’s hotter prospects *
By Tim Treadgold 



*PORTFOLIO POINT: It helps to consider the logistics of iron ore mining when choosing between the juniors. 


There’s no shortage of iron ore in the world, but there is a shortage of railways and ports. *

It's that capacity shortage latecomers should consider if joining Australia’s great iron ore party, which has sent some stocks such as Fortescue Metals Group and Portman Mining into orbit while contributing greatly to powerful price increases in leading resource stocks such as BHP Billiton and Rio Tinto. 

Separating a very crowded house into its component parts of good, bad and ugly is essential for successfully playing the hottest game in the resources sector. And it's not too late! However, if you are hunting for iron stocks with “big” potential the sector, those with latent appeal must be the “mid cap” miners – stocks such FerrAus, Iron Ore Holdings, BC Iron, Territory Iron and Centrex Metals. 

To understand why railways and ports are so important, consider first the nature of iron ore: a relatively low-value “bulk” commodity that is traded in millions of tonnes, not kilograms or grams. 

Then ask yourself three questions: 

1: Has your preferred iron ore investment got any hope of ever getting a tonne of iron ore to a port, let alone taking the next critical step and get it on to a ship? In most cases the answer is no, so think again. 

2: Is your preferred iron ore investment proposing to mine haematite, or some other high-grade material grading more than 55% iron (as is held by BHP and Rio) or a low-grade ore such as magnetite which grades around 33% iron (as makes up much of reserves held by “hot” junior Gindalbie Metals)? If it’s haematite, proceed. If it’s magnetite, take care because the essential upgrading before shipping adds to the cost and risk. 

3: Will your preferred investment become a takeover target in the consolidation phase of the iron ore sector that has just started? If the answer is yes, proceed with caution for what might be a big payday. 

In the last iron ore boom during the 1960s, when BHP Billiton and Rio Tinto carved out the best deposits for themselves in the Pilbara, about 1500 kilometres north of Perth, the iron ore business model had nothing whatever to do with finding or mining. 

Iron ore was, and remains, a game called “transport economics” because the world, the planet on which we live, is more than one-third iron. The scientific measure for curious readers is that 34.6% of the world is iron, comfortably ahead of oxygen (29.5%) and silica (15.2%). 

Most investors can forget those measurements, but should never forget that there is an awful lot of iron ore looking for a market, and high prices always trigger a development boom, almost certainly leading to over-development. 

That’s why Fortescue’s charismatic boss, Andrew Forrest, continues to fight for access to the railway system of BHP Billiton, and why another iron ore billionaire, Hamersley heiress Gina Rinehart, has teamed up with Rio Tinto to develop her first mine at Hope Downs. 

The Rinehart experience is sobering. Her father, the late Lang Hanc-ck, played a pivotal role in the early stages of the Australian iron ore industry. But, Hanc-ck never developed a mine of his own despite controlling some of the best deposits in the Pilbara. 

In fact, Hanc-ck spent a lot of his time designing railway systems and ports, including one famous plan to use a nuclear bomb to create a deep harbour on the Pilbara coast. The “father” of the hydrogen bomb, Dr Edward Teller, was once a consultant to Hanc-ck on the harbour plan at Cape Keraudren. 

This is an extreme example of how critically important railways and big ports are to iron ore, and why some of the smaller players in the game today using trucks and small ports to get their cargo to market will not survive any future downturn in the price of iron ore – which will come because of the first factor in the equation – there is no shortage of iron. 

Company promoters are claiming that this time the game is different. They point to: 

Surging Chinese demand for steel, and predictions of another big rise in the price of iron ore later this year. 
The development of new iron ore provinces, such as the Mid West region of WA. 
The advent of the magnetite era. 
That remote iron ore deposits in central Africa will yield a quick return. 

On those claims the touts are almost certainly wrong. 

First, there is nothing new about mining for iron ore in the region known as “Mid West” in WA – the area where the iron ore boom is actually taking place. Mid West was the site of one of Australia’s first iron ore export adventures in 1964 when Western Mining Corporation (now part of BHP Billiton) shipped material mined at Tallering Peak to Japan via the port of Geraldton. 

Today, there is a scramble for access to Mid West iron ore, including the takeover bid launched last week by Murchison Metals for Midwest Corporation. 

More takeovers in the region will follow, largely because there are so many small players in the Mid West region and the adjoining, but remote reaches of the Yilgarn region where transport distances stretch out to 1000 kilometres and more. 

Distance is the first critical point in this exercise in picking potential winners, plus the fact that there is no viable railway system in the Mid West. A track once ran all the way to Wiluna, but was pulled up decades ago. Also, there is no big export port on the coast, just the relatively small port of Geraldton which can handle only modest cargoes. 

To fully capitalise on the Mid West iron ore deposits, which are sub-standard when compared with the Pilbara, a new railway is required, and a new port. For those assets, add about five years to your investment equation, and factor in a series of environmental, and other government approval, hurdles. 

And what of the magnetite boom promised by companies such as Cape Lambert (CFE), Australasian (ARH), Grange (GRR) and Gindalbie (GBG)? 

It is possible that WA will see a magnetite boom. But, that possibility is in the same category as the promised 1960s steel-mill boom on the west coast (failed), aluminium smelter boom (failed), petrochemical boom (failed), value-added iron ore processing boom such as BHP Billiton’s $3 billion hot briquetted iron plant at Port Hedland (failed), and a paper-pulp boom (failed). 

Magnetite is an ore of iron best suited for short haul transport to a steel mill. It’s the stuff now being used by OneSteel at Whyalla in South Australia after it decided to export its reserves of haematite – the ore best suited to long-haul transport because of its higher grade. 

To be exported, magnetite must have its waste material (such as silica) removed and lifted from its average of 33% to 65% or more. That requires a major investment, and that’s why BHP Billiton and Rio Tinto have not gone down the magnetite road, and why they are pouring billions of dollars into expanding their haematite mines, railways and ports. 

There is also a new factor in the magnetite equation: the US sub-prime credit crisis, which is making it harder to raise big dollops of debt for resource projects. 

As for companies with remote deposits in central Africa, these might be winners one day, but that day is a very long way off, and will require the building or ports and railways, and raising large amounts of debt in a world becoming more risk-averse. 

SEE PART 2


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## Rimtalay (18 October 2007)

PART2 Continued

For most investors the best policy will be to focus on the basics in Australia. Top of the list should be mid-cap haematite miners positioned between high-risk micro-caps and big-cap stocks that all the world knows already. 

Here's my list 

FerrAus (FRS), a low-key explorer with its foot on a potential major development in the heart of Western Australia’s iron ore country, the Pilbara. 
Iron Ore Holdings (IOH), a market darling in late 2005 which fell from grace but which has an excellent tenement position in the Pilbara and has recently attracted the eye (and cash) of one of Australia’s richest men, Kerry Stokes. 
BC Iron (BCI), named after Bonnie Creek in the Pilbara and a company with an extensive asset base, and a near-certain takeover target once the battle for Consolidated Minerals (which owns 27.7% of BCI) settles. 
Territory Iron (TTY), a new exporter in the Northern Territory, which made its first shipment of iron ore from Darwin last month and which will almost certainly launch itself on an aggressive acquisition trail. 
Centrex Metals, a wildcard in the iron ore pack with its foot on high-grade iron ore on South Australia’s Eyre Peninsula, and now looking for an export port. 

Each of the stocks mentioned has attracted some interest on the market, but has not delivered the 10-times return seen in FMG over the past two years as it has rushed from $5 to $50. 

FerrAus is up from a 12-month low of 34 ¢ to recent trades at $1.12. Iron Ore Holdings is up from 39 ¢ to 77 ¢. BC Iron has risen from 43 ¢ to $1.70. Territory is up from 59 ¢ to $1.10, and Centrex has risen from 14 ¢ to 49 ¢. 

Despite their different locations (three in WA, one in the NT and one in SA) there are common threads linking the five stocks mentioned. Each is looking to mine or (in the case of Territory) has started mining high-grade iron ore, and each is close to a rail system, or a port. 

For the best and fastest returns, stick to companies such as those mentioned above, and even consider some that have already risen strongly, such as Atlas Iron (AGO), which has a haematite deposit (plus magnetite) is close to Port Hedland and has a development agreement with FMG. It might also represent a tasty takeover morsel for FMG once it starts exporting in the middle of next year. 


Territory certainly fits all the requirements and is producing now.Dilution of shares with the SPP is only good if the monies raised are used cost effectively. M.K. does not waste time sitting on his hands.The revenue from the shipments is beggining but not quickly enough at the moment to take this company where M.K. wants to go with it.


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## Rimtalay (24 October 2007)

*http://www6.lexisnexis.com/publishe...3&topicId=102690059&docId=l:688726688&start=2*

Xinhua Economic News Service 

October 22, 2007 Monday 1:15 AM EST 




*Price hike of iron ore increases pressure on steel enterprises *


BEIJING, Oct. 22 (Xinhua) – *In the week after the 7-day-long National Day holiday, the price of imported iron ore has kept rising.*
The inventory of iron ore at Chinese ports is only 43.5 million tons at present, 540,000 tons less than before the holiday, and most of the inventory are for self use by steel plants, a signed article of Shanghai Securities News states. 

General situation is that with import arrivals decreasing and spot price remaining high, the traders are facing increasing risks and therefore are prudent in further purchase, the articles says.

*If the spot price of iron ore from India keeps going high, Chinese steel plants may tilt to Australia and Brazil for their supply, an outcome that obviously will not be conducive to the pending public negotiation for iron ore prices for 2008*.

Iron ore inventory of Chinese steel plants is low at present, but Chinese steel plants hardly dare to adjust the price, worrying it may produce chained effects once they increase the purchase at raised prices.

It is learned that high cost of imported iron ore has already been a burden that small steel plant can hardly bear, a result China may be glad to see under its backward elimination policy. But it has also flung great losses to other steel plants.

There are experts suggesting Chinese steel plants pay attention to iron ore development and purchase in Russia, China’s neighbor, besides their traditional supply from Brazil, India and Australia. Statistics provided by Russia show that the monthly iron ore export from Russia to China averaged 450,000 tons in the first four months of 2007, more than doubling the amount in the same period of 2006; and the proportion reached 22.5 percent. 

October 22, 2007


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## Rimtalay (29 October 2007)

http://www.theaustralian.news.com.au/story/0,25197,22662673-18261,00.html
*Iron ore talks could double the price *

Robin Bromby | October 29, 2007 
*IRON ore doubling in price next year? Extraordinary idea, but one sector analyst (unnamed, unfortunately) told the New York oil and metals news service Platts that prices could double following 2008 contract price talks, which have begun in Tokyo.*

Unlikely, but analysts' estimates have been creeping up. They started predicting a 10 per cent raise. Then, a little later, the analysts settled on a "consensus" of about 25 per cent, and now Macquarie Bank has upped the ante by predicting a 50 per cent increase. 

There are signs that supply constraints are going to be a continuing headache. 

It was reported at the weekend that India's exports could be down 15 per cent this year because of problems at two big iron ore ports, Mormugao and Paradip. 

Brazil is diverting increasing amounts of its production to feed its fast-growing domestic steel industry. Crude steel output there for the first nine months of this year was up 10 per cent year-on-year, so it will pay to follow the local iron ore sector closely to judge which companies will ride the wave. 

*Producers in box seat *

EXISTING producers are clearly in the box seat, provided their projects perform. Territory Resources is railing iron ore daily from Frances Creek to Darwin and the company has increased its resource to 10 million tonnes by adding in fines dumped on-site during previous mining between 1966 and 1974.


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## noirua (29 October 2007)

The market for Iron Ore is looking bullish in terms of U.S. Dollars, but with increasing reductions in interest rates in America parity with the Aussie is getting closer.
Despite all this, TTY look to have taken a big knock over CSM and should recover more, imho.


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## Rimtalay (29 October 2007)

Frances Creek flows for Territory Resources 


Monday, 29 October 2007

CYCLONE Tracy and Michael Kiernan both came to Pine Creek, 200km south of Darwin, and the nearby iron ore mine of Frances Creek – one destroying its fortunes, the other resurrecting them. By Charles Amery - RESOURCESTOCKS*



Territory Resource's Frances Creek iron ore project in the Northern Territory 

In September Frances Creek will ship its first iron ore exports to China from a mine that a little over two years ago did not even have any proven resources.

In February this year its resources were 9.73 million tonnes at 60.7% iron with 4.81Mt in reserves.

The 1970s iron ore field is now owned by the newly named Territory Resources, which as Territory Iron was a small but committed, low capital ASX-listed company with little to spend on exploration and development of its iron ore tenements.

Along came Kiernan – the likeable, larger than life formidable industry character who as MD had transformed ConsMin from a 200,000t to a million tonne manganese producer, and billion-dollar company.

Through his family company Crawley Resources and together with Hong Kong-based commodity traders and marketers the Noble Group, they took a 30% placement in Territory Iron, happily paying over the odds for the shares and providing what was a $30 million investment to fire up the junior and particularly Frances Creek.

Now as Territory Resources based in Perth, that small company is looking to become a mid-tier Australian resource group diversifying into a range of carbon steel material commodities via mergers and acquisitions.

"We changed the name from Territory Iron to Territory Resources to better exemplify the future direction of the company," company chairman Kiernan told RESOURCESTOCKS. 

"We want to develop Territory Resources into a group with four to five different types of commodities, primarily for the steel industry of China – a carbon steel industry supplier.

"I was attracted to Territory Iron as it was then called because it was a small company which had done very well to get where it was at that time with a limited amount of capital," Kiernan said.

"Doug Stewart [the retiring managing director] started the business basically from scratch, conducted exploration without much capital and had driven the company with a limited amount to spend on exploration.

"It had proved up enough to begin developing projects and once again with limited capital basically brought the Frances Creek operation to commencement.

"So Noble and myself saw an opportunity where we could, instead of buying something, invest our money. I am not one who likes to buy businesses. I would rather invest in a company or a project to develop that company so the money goes into the ground," he said.

"We approached Territory and said we would like to take a placement and did it well above market price to demonstrate we were not asking for free kicks. 

"We took 30 percent of the company at 50c a share when shares were trading about 30c, so injected $30-odd million to be used to develop Frances Creek and/or some other opportunities."

According to managing director Doug Stewart: "We were a wallflower for a while until Crawley Resources came along and took us for a dance. Now we are looking at what progeny may come out of it. Having Crawley and Noble behind us is extraordinary. Now we have taken a company with no reserves 25 months ago into production."

Iron ore was being produced and exported up until 1974 from the old Frances Creek centre within the project area but flooding and damage to its infrastructure forced its closure.

It stayed untouched for more than 30 years but as those years progressed a number of industry changes brought its economic revival closer.

Vital infrastructure had been put in place with the development of nearby rail links and new port facilities in Darwin; there were new modern exploration techniques and mining and processing equipment; and of course the vastly improved market conditions.

It paved the way for Frances Creek to once again begin producing iron ore from the Northern Territory and recently saw Territory Resources move to producer/exporter status and the railing of the iron ore to the port of Darwin for the first shipment to China.

"Frances Creek has about 10Mt of resource which will give it about a five-year mine life at an annual production of about 1.5Mt," Kiernan said.

"I have a target to double the resource base to 20Mt and double the production to 3Mt annually. Logistically that is feasible. It is a project that has never been subject to modern exploration techniques over the past 30 years.

"We always look at a project and ask where is it today, does it wash its face – and if the answer is yes, then where can you take it to and grow it.

"That was the philosophy used at ConsMin where we took a business with about a three-year mine life producing about 200,000t of manganese which now has a 15 year-ish mine life producing a million tonnes."

Kiernan's philosophy is one of aggressive exploration and having the courage and conviction to bring the desired results, and he has a good record of proving any of his sceptics wrong.

"I love proving sceptics wrong and there are some about Frances Creek, but in our assessment we consider it is more than likely we will double our resource base over the next two years and that will lead to a doubling of production to 3Mt a year," he said.

"Logistically the rail can handle that; logistically the port can handle that. The big benefit is that infrastructure is in place and on a user-pays basis. 

"It is a very simple dig, crush and screen then a small 15km trucking distance to the rail link where it is taken on a tonne rate into Darwin where we will truck it about 3–4km from the stockpile area to the port.

"Later when we have the money we will run a conveyor across to cut out that rehandle which is costly and degenerates the product.

"I would like to feel that the profile of Territory Resources is to export about 10Mt of iron ore a year, probably from a couple of different tenements, so becoming involved in another iron ore project. We are certainly looking at some locations in Western Australia and South Australia."

Territory Resources will operate its different projects with fully owned subsidiaries, the first being Territory Iron for the Frances Creek project.

But Frances Creek will certainly not become a stand-alone project for the future growth of the company, and only recently Territory announced a heads of agreement to evaluate a major manganese deposit in Burkina Faso, West Africa.

The agreement was with Dubai-based Wadi Al Rawda Industrial Investments and Weatherly International – with Wadi having been granted the rights to the Tambao manganese deposit and AIM-listed Weatherly and Territory Resources agreeing to acquire a 72% interest in the project.

Territory will spend $US100,000 on a pre-feasibility program and if favourable will jointly fund metallurgical testing, a bankable feasibility study, environmental studies and site preparations.

Kiernan sees the company profile expanding to about 10Mt of iron ore annually, about 1Mt of manganese, and with Territory also starting to consider a chromite deposit overseas with the ability to produce about 500,000t a year. 

He believes mineral sands, particularly zircon, has a strong future driven by the Chinese demand for ceramic tiles and possibly vanadium and magnetite making up the commodities mix at Territory, with uranium possibilities on some tenements also coming under some low key scrutiny.

At the moment as a producer the Frances Creek project stands alone, but Territory is cashed up and ready to explore and develop as well as looking at mergers and acquisitions in reaching its goals.

"The business has $30 million in the bank – probably about $10 million of that will be spent on finalising the development of Frances Creek which will then start coming to cash flow positive. We intend to spend $6–7 million a year for two to three years," Kiernan said. 

Kiernan is back – did he ever go away – and he likes the climate.

"It's a great industry – with people I like – in a boom time and it ain't going to end despite what anyone says."

* This report, first published in the August 2007 edition of RESOURCESTOCKS magazine, was commissioned by Territory Resources


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## michael_selway (29 October 2007)

noirua said:


> The market for Iron Ore is looking bullish in terms of U.S. Dollars, but with increasing reductions in interest rates in America parity with the Aussie is getting closer.
> Despite all this, TTY look to have taken a big knock over CSM and should recover more, imho.




Hi do you know the mine life of TTY atm?

Thx

MS

*CSM - Earnings and Dividends Forecast (cents per share) 
2007 2008 2009 2010 
EPS 13.6 60.9 54.8 46.2 
DPS 6.2 21.1 21.2 21.3 *


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## chewy (30 October 2007)

I think current reserves only have it at about 5 years (although at least that means they are producing right throught the current ironore boom, whereas most emerging players will miss it). However their tenaments have only seen limited exploration in the past so it is expected that the reserves/mine life will be significantly increased soon. Their 5 years of production right through the boom ironore prices should also see them very cashed up for further exploration and aquisitions too.


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## Rimtalay (30 October 2007)

MK and Noble have bought in for one reason, to make money and they intend to drive TTY higher, much higher. With Noble Group onboard you can be sure TTY has a very bright future.


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## chewy (31 October 2007)

With more announcements like this one out today you can be dam sure! looks like those reserves are getting bigger!


"Territory has achieved outstanding drilling and assay results at the Jasmine Central and Helen 11 project areas at Frances Creek, where it has undertaken about 3,000 metres of drilling at priority iron ore targets.
Best results at Helene 11 include 40m at 62% Fe from 39m depth, while drilling at Jasmine Central identified high grade iron ore up to 67.3% Fe including an intercept in excess of 40m at 63.6%Fe."


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## Who Dares Wins (31 October 2007)

Yes a good announcement. Does anyone know off hand more details about the potential size of the Helene 11 and jasmine deposits? About 40m depth and 100m, 200m strike length respectively. What width? 

Would like to be able to have a rough idea of what this could add to the resource.


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## EZZA (31 October 2007)

hi guys, 

anyone reckon 1.38 is a good pickup just noticed the breakout the chart looks good to me?


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## danc (31 October 2007)

Looks to me like it has broken out of some sort of triangle off the 15 day ma , actualy its also a triangle on the weekly , about 3and a half times so far normal vol. I was happy to buy at 1.36 and will be looking to add. looks the goods to me fundie wise and chart wise.


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## EZZA (31 October 2007)

don't know much about the fundies on this one, but chart looks the goods.
move with high volume, mac d crossing up, dmi indicating a trend, also broken previous resistance of 1.30.  bought in at 1.36 as well.  could have picked up at 1.34 is is waited for end of day.   lets see how this one moves looks promising so far.


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## Rimtalay (1 November 2007)

The latest Keith Goode EAGLE RESEARCH Report 1st Nov 07. It is sent as PDF but this is some of the info

*TTY’s Iron ore story is very simple:*

· it is based on Frances Creek in the NT of Australia (only ~200km south of Darwin), 

· is haematite, 

· is possibly the highest grade iron ore in Australia both in grade and loi (loss to ignition) (it appears capable of rivalling Brazilian grades),

· has an offtake agreement with Noble such that it RECEIVES SPOT PRICES for its shipments (and prices are soaring). (An additional US$5/t increases the NPV by almost 19c, so if the iron ore price is US$95/t, then the value of TTY increases to over A$2/share).

· stopped production in 1974 because Cyclone Tracy took out the shiploader (the old railway to Darwin was ailing before that too).

· Restarted production because the government built a new railway to Darwin past the mine in 2004, and then the NT government put in new port facilities and a new shiploader (costing $24m) which was completed in July 2007, ready for TTY to start shipping from September 2007.

· So it has started production debt-free with an outlay of only A$12m (and its coming probable 50% expansion to possibly 2.2mtpa to 2.5mtpa only costs about another ~A$2m) – it must be a record.



As for upside the current resources are spread over about 7km of a 35km strike length, and geological discovery techniques were poor in the 60s and 70s compared to what is capable of being achieved now, with 3d modelling, all the various TEMs etc. And latest intersections are beginning to fill in the gaps.



So : Profit (NPAT): probably $25m to $35m in the first year to June 2008 (ramping up), then possibly $65m to $80m per year after that. At $1.15 per share it had a P/E ratio of 3.3 x in 2010, and we all know that those P/E numbers rarely stay at those levels for long.



Its NPAT in the December half 2007 really depends on shipments, as to whether it can make another lump shipment or not (we don’t have another shipment in our figures, but it may be achievable) – the ore is there, it comes down to Panamax (ship) scheduling and availability, and then there’s the price received leverage with spot iron ore prices soaring. Possibly one of the issues for iron ore pricing during the coming year of 2008 is whether Fortescue can deliver on time, as Fortescue’s ore has already been processed and sold in different Chinese smelter schedules.. 



Although CSM rejected the TTY offer, in the fullness of time, it will probably be proven to have been the best that CSM received (it only needs to exceed $1.67 to rival Palmary’s $4.50/CSM share).



There are other upside potential factors and if you were lucky to already hold TTY before the recent SPP announcement, take the full $5000 SPP at $1/share and say thank you, otherwise :


*
TTY is rated as a BUY*

Territory Resources Limited (TTY) – Increasing Production Towards 2.5mtpa of High Quality (~62%Fe, ~1% loi) Iron Ore



· On 28 September 2007, Territory Resources (TTY) made its first shipment of 67,500t of high grade (~63%Fe) iron ore from Darwin to China, sourcing the ore from its Frances Creek operation near Pine Creek in the Northern Territory. TTY envisages ramping up to 1.5mtpa, then towards 2.5mtpa and possibly later 3mtpa.



· TTY’s Frances Creek operation has been able to start debt-free due to the cash injection from Michael Kiernan’s Crawley Resources and very low capex below A$15m (of which ~A$10m was on facilities at the port). Mine life at this stage appears to be at least 5 years based on current resources of ~10mt and achieving a production rate of 2.2mtpa (ERA’s estimate) from December 2008.



· The Frances Creek operation appears to currently be Australia’s highest grade iron ore producer (possibly even the world’s), and aside from grade it has significant advantages over other Australian iron ore producers with the shortest shipping distance from Australia to China, and only 15km by haul road from the mine to a new railway siding ~190km south of the Port of Darwin.



· The Frances Creek mine’s original heyday was in the 60’s and 70’s and it was forced to close mainly due to Cyclone Tracy destroying the ship loader & most of Darwin in December 1974, combined with the rail freight prices increasing by 50% to try and keep the then aging railway operational. Viability was restored with the completion of the new railway to Darwin in 2004, and the Port of Darwin injecting A$24m into a new shiploader (completed in July 2007), with greater port facilities. 



· Due to the advances in geological exploration techniques since the 1970’s and the ability to both upgrade and sell varying grades of iron ore through the Noble Group to China, TTY appears to have the potential to significantly increase its resources, reserves and possibly production at Frances Creek.


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## Rimtalay (1 November 2007)

*ASX:TTY re: PRODUCERS IN THE BOX SEAT*


Fat Mining 99, 31 Oct, 2007
Printer Friendly
More high-grade iron ore identified


*After abandoning its takeover offer for Consolidated Minerals, the company has returned to what it does best, which is adding value to its 100%-owned Frances Creek iron ore project in the Northern Territory. The company's share price surged on the back of an announcement on Wednesday that a recent drilling programme has defined wide intercepts of high-grade iron ore at shallow depths. This is sure to add to the company's resource base.*

"Frances Creek is showing all the indications of getting significantly larger."

Fat Prophets initially recommended buying Territory Resources at 36 cents in December 2005 (Fat Mining 6). Our last review of the stock was during July in Fat Mining 85.



From a charting perspective, the outlook for Territory Resources remains compelling. A sharp break higher on Wednesday saw the stock reach a high of $1.43 following more than three weeks of consolidation between $1.07 and $1.235. Since August, the stock has now rallied by as much as 142%.

With the latest break to the topside reflecting firm investor support for the stock, we believe that downside risks are limited. Any pause in the upward trend is likely to be short-lived with support between $1.30 and $1.235. Below here, the $1.07 level underpins the upward trend.

Given the clear revival of upward momentum in Territory, we believe that further gains are achievable in the months ahead. A continuation above $1.43 will initially target the all-time high of June at $1.54, with levels beyond here achievable in time.


Members familiar with Territory Resources would know that the company has been on a fairly wild ride since the appointment of Michael Kiernan as the company's Chairman. He needs no introduction, having been the former Managing Director of Consolidated Minerals. His stated ambition with Territory is to replicate the ConsMin business model by developing a diversified carbon minerals business.

He has sought to leverage off the company's recently commissioned Frances Creek iron ore project in the Northern Territory. We believe this is a sound strategy, as we believe diversification will be increasingly important, given the plethora of pure iron ore players set to hit the market over the next five years.

The company's bid for ConsMin can be described as ambitious, but we are pleased that the company has stuck to its knitting so to speak, and returned to focus on its Frances Creek iron ore project.

We must admit that outside of Territory, our long-standing favourite, we find it very hard to find value in the iron ore sector in Australia. We remain sceptical about the high development costs associated with many of the aspiring producers that will be hitting the market over the next five years. Most will have heavy debt burdens and their operations will be very sensitive to iron ore pricing.

The beauty of Territory is two-fold: firstly, it has a big head start on the chasing pack having commenced production during the September quarter; and secondly, it has developed its project on a shoestring budget when compared with most iron ore operations.

The key has been the Frances Creek project's proximity to existing infrastructure. This will allow it to avoid many of the pitfalls that could beset many of its sector colleagues that are developing isolated deposits at high cost.

As we have previously highlighted, iron ore is a relatively low margin business. The key to profitability and longer-term survival in the industry is the ability to minimise costs. Territory is in the box seat to maximize its operating margins, as all of its projects are located within 190km of Darwin and within proximity of road, rail and port facilities.



Frances Creek commenced production during the September quarter. For Members that may be unaware, the project area had a successful history of iron ore production and export until 1974, when damage associated with Cyclone Tracy and lower prices closed the mine.

A number of major changes over the past 30 years have made the revival of Frances Creek possible. The most important is the new Alice Springs to Darwin railway line, allowing transportation of ore to the port of Darwin for export. Other vital ingredients include the development of new mining and processing equipment, new Darwin port facilities, and much better market conditions, driven by China's seemingly inexhaustible demand for steel.

Territory is producing a mix of lump and fine ore through a simple crush and screening process at a rate of 1.5 million tonnes per annum (tpa). This currently gives Frances Creek a project life of just over three years based on current reserves and six-and-a half-years based on current resources.

We believe these are just arbitrary numbers as they are likely to see substantial upgrading as a result of ongoing exploration work. Territory in fact aims to double output to 3.0 million tpa and expand mine life out to ten years.

This is immensely achievable in our view as Frances Creek hosts a 35km strike length that is highly prospective for additional iron ore deposits.

Annual production of 1.5 million tonnes at a conservative operating margin of around A$30 per tonne will generate net cash flow of $45 million annually.

We believe there is significant longer term potential for Territory to increase production, as exploration leads to further increases in the resource base and hence mine life. Our confidence was reinforced by the company's exploration results announced on Wednesday.

Territory revealed that drilling on two of its project areas, Jasmine Central and Helen 11, have returned outstanding iron ore results. The program has so far comprised around 3,000 metres of drilling. Some of the best hits included 40 metres @ 62% Fe from 39 metres depth below surface at Helene 11, whilst at Jasmine Central an intercept of 40 metres @ 64.6% Fe was returned.

These results will form part of a revised resource estimate over the next quarter.

Just a few days ago Territory announced an upgrade to its Frances Creek resource/reserve base. The incorporation of around 354,000 tonnes of iron ore fines into the equation has boosted Inferred & Indicated Resources to more than 10 million tonnes @ 60.47% Fe, whilst Reserves have grown to more than 5 million tonnes.

The good news for Territory shareholders is that all of these positive developments have generated significant upward momentum in the company's share price. Furthermore, shareholders have the opportunity to add to their holdings by way of a recently announced Share Purchase Plan (SPP). The plan will raise up to $21.5 million in exploration and development funding.

The terms of the SPP are extremely attractive, as it is priced at $1.00 per share. This is 34% below Territory's closing price on Wednesday! Members who are Territory shareholders will have the opportunity to subscribe for either $1,000, $3,000 or $5,000 worth of shares. Not surprisingly, we encourage eligible Members to take up their full SPP entitlement.

The offer will close on 19 November and the new shares will be issued on 23 November, with ASX quotation to begin on 27 November.

Territory Iron continues to represents what we consider to be an outstanding iron ore play. Its project developments costs and debt levels are extremely low due, and with production underway it has first-mover advantage over most of its competitors.

Territory Resources will remain firmly held within the Fat Prophets Mining & Resources portfolio. We would encourage all eligible Members to take up their SPP entitlement in full.

Disclosure: Interests associated with Fat Prophets declare a holding in Territory Resources.

To view Mint Financial Group's disclaimer please click here.

Copyright Fat Prophets. Designed by Endorphin Interactive, Powered by eOne


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## Icharus (2 November 2007)

Good post Rimtalay. Fundamentals look good and there is still the blue sky of the manganese mine in Burkino Faso which looks like it is a open cut resource that needs a logistics solution to be successful. Sounds like the type of challenge that MK loves to solve

cheers Icharus


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## Rimtalay (3 November 2007)

*Steel demand upbeat, led by BRIC nations *

Steel consumption in the BRIC nations increased at a steady pace during the 
decade. China, followed by India, have witnessed their steel consumption rise by a 
CAGR of 18.4% and 9.54% respectively in the last five years. Compared to these 
two countries, the demand growth in the other two has been slower. Brazil and 
Russia have witnessed their consumption increase by a CAGR of around 5% in the 
last five years. 

But in the next five years, we expect Chinese consumption to moderate from its 
five year CAGR of 18.4% to 11.1% in the next two years. Consumption from India 
is expected to rise by a CAGR of 12.7% in the next two years as construction 
spending in the economy is set to increase. In the next two years, Russia is 
expected to outpace India and China and lead the overall BRIC nation’s 
consumption. Russian steel consumption is expected to increase by a CAGR of 16% 
in the next two years, while Brazil is expected to witness its consumption grow 
around 10% in the next two years. 

The BRIC countries, which accounted for about 41% of global steel demand in 
2006, will again be leading the growth with an expected increase of 12.8% for 
CY07 and 11.1% for CY08. Overall, 77% of world consumption growth in CY07 and 
71% in CY08 will be seen in the BRIC countries. 

China’s steel use is expected to grow by 11.4% in CY07 and 11.5% in CY08, 
accounting for 35% of the world total. For India, forecasts for apparent steel use, 
point to an increase of 13.7% in CY07 and 11.8% in CY08. 

The Russian market is expected to grow by 25% for CY07 and 9.5% for CY08. The 
rise is mainly led by the energy and construction sectors. Also, steel consumption in 
Brazil is expected to increase by 15.7% for CY07 and 5.1% for CY08, with strong fixed 
capital formation partly driven by public investment programs. 

The International Iron and Steel Institute (IISI) forecasts in October show that CY07 
will be another strong year for the steel industry with apparent steel use rising from 
1,120.9mn tons in CY06 to 1,197.6mn tons in CY07, an increase of 6.8%. It also 
expects consumption to rise further by 6.8% in CY08. These figures were revised 
upwards by 0.9% for 2007 and 0.7% in CY08 over its March forecast.


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## Rimtalay (3 November 2007)

November 01, 2007 


*Steel prices: Room for upside *
Government curbs to reduce supply from China 
With one-third share of global production and consumption in CY06, China maintained 
its position as the largest producer and consumer of steel in the world. China, in the 
last five years has been the major force behind the two cycles witnessed in steel. In 
the first half of this decade, China led the markets in consumption, accounting for a 
major portion of world import markets. The huge domestic consumption led to local 
producers adding on huge capacities. The huge increase in production capacities in 
China transformed China into a net steel exporter in CY05. The surge in Chinese 
exports acted as a dampener in CY06 and led to steel prices falling to around US$400 
levels. Chinese exports increased month on month at a fast pace leading to an 
oversupply situation around the world. 
However in the last three months, the Chinese government has tried to maintain a 
check on exports. It witnessed a scenario of excess liquidity in its domestic markets 
and during the current year has levied steps to curb the flow of money into the 
economy. One of the measures it adopted during this period was to curb exports of 
primary metals. It levied extra taxes and removed the rebates received by 
manufacturers on exports. The government in July removed all the rebates received 
by the steel manufacturers on exports of 553 products. It has also increased its export 
tax on 83 products in June this year besides increasing the export duty on steel slabs 
from 10% to 15%. 
CIS HR coil price chart 
Source: Bloomberg


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## Rimtalay (3 November 2007)

*Steel prices: Room for upside * Part2

*Soaring iron ore costs to push steel prices up *

Iron ore prices, over the last one year have doubled led by a surge in the demand 
from China. Iron ore prices have been debated largely as markets expect that the 
surge in iron ore prices have not ended and it will continue to rise in the next calendar 
year. China has been hungry for raw materials in the last five years and the demand is 
not expected to slowdown in the near term. China has seen its steel production triple 
in the last five years. The raw material for the production rise largely has been 
supported by iron ore imports in the last two years. China imports a major portion of 
its iron ore consumed as the local production accounts for only 40-45% of total 
demand. 

Steel manufacturing capacities in China as well as in the rest of the world are rising at 
a rate of 10% in the next two years. New steel manufacturing capacities are built in 
areas where the iron ore is easily available. The new capacities in the iron ore 
producing areas of India, Brazil and Australia will lead to lower exports from these 
countries to China. Global steel production has grown 46.4% in the last five years 
from 850mn tons in CY01 to 1,244mn tons in CY06, led by 197% steel production 
growth in China from 142mn tons to 423mn tons in CY06. 

The strong growth in the steel demand is expected to continue and the International 
Iron and Steel Institute (IISI) forecasts 2007 will be another strong year for the steel 
industry with apparent steel use rising from 1,120.9mn tons in CY06 to 1,197.6mn 
tons in CY07, an increase of 6.8%. BRIC nations, which accounted for about 41% of 
global steel demand in 2006, will again be leading the growth in the next two years. 
China’s apparent steel use is expected to grow by 11.4% in 2007 and 11.5% in 2008. 
For India, steel consumption will increase by 13.7% in CY07 and 11.8% in CY08.


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## Rimtalay (3 November 2007)

*Chinese iron ore demand estimates *

2004    2005    2006    2007E    2008E 

Crude steel production 
274       353     423     482       597
Consumption (Mt iron ore, @63%Fe) 
416       547     655     747       917

Pig iron production 
257       337      404      466       566 
% change in iron ore consumption 
31.5      19.7     14         22.8 
Source: IISI, USGS, India Infoline Research 

The growth in steel manufacturing will lead to higher demand for iron ore. We believe 
the shortage has been caused by booming Chinese and world steel production, a 
major shortfall in seaborne iron ore exports this year and a slowdown in the rate of 
growth of domestic iron ore production in China. *The small price hike of 9.5% in iron 
ore contracts at the start of the year was low and we expect the prices to go higher as 
the year spans out. We expect iron ore contracts will be settled at 50-60% 
incremental rates from that of CY07*. The shortage of iron ore availability is expected 
to continue and the rise may continue till CY09. 

*We expect iron ore contracts to rise by 50% in CY08 and 15-20% further in CY09. The *
phenomenal surge in the Chinese market in recent months amid a growing shortage 
of iron ore is one of the major reasons for the jump in iron ore prices.


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## Who Dares Wins (6 November 2007)

I just got a call from the Territory office regarding the Share Purchase Plan. It has now been opened to New Zealanders due to alot of interest from over here. The share offer will be mailed tonite from New Zealand which should cut down on the delivery time because the offer still closes on 19th November as it originally was when the offer was only open to Australain holders.


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## noirua (6 November 2007)

Who Dares Wins said:


> I just got a call from the Territory office regarding the Share Purchase Plan. It has now been opened to New Zealanders due to alot of interest from over here. The share offer will be mailed tonite from New Zealand which should cut down on the delivery time because the offer still closes on 19th November as it originally was when the offer was only open to Australain holders.




Hi, Many years ago there was talk of the Aussie and NZ exchanges joining together as one. Longtime arriving. This problem, with rights issues, placings and purchase plans, for those not domiciled in Australia, seems to have arrived in 2002.

TTY say its a foreign stockmarket problem, correct for the USA only. It is really a matter of cost and is an Aussie stock exchange problem. Something to do with foreign nominees.


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## noirua (7 November 2007)

Territory appear to be getting back on track and not that far from the price before the CSM debacle. Hopes for continuing discoveries of iron ore, after recent good news, has put the stock in a good position to move on.


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## noirua (17 November 2007)

Now on an upward trend that looks increasingly promising as project upgrades of iron ore continue. An interesting company with its 3 projects looking good for the future and they have come into the iron ore sector at the height of a boom.


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## noirua (19 November 2007)

Territory continue on up after the announcement that they'd obtained 20.3 million shares in Olympia Resources.
TTY trade at $1.70 today.


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## Rimtalay (29 November 2007)

*Rio could trample iron minors *
By Tim Treadgold 



PORTFOLIO POINT: It’s plan to treble output of haematite, the higher-quality iron ore, would wreck the prospects of small magnetite producers. 


When elephants fight smaller animals run for cover. It’s the same in the corporate world, which an entire sub-sector of the iron ore business is about to discover as it becomes potential “collateral damage” in the battle between Rio Tinto and BHP Billiton. 

Yes, the BHP move on Rio is good for iron ore stocks but only haematite iron stocks. For magnetite iron stocks, it's very bad news. And the magnetite iron sector houses some of the best known punters’ favourites in the mining industry. There's Gindalbie Metals and takeover target Midwest Corporation, along with Atlas Iron, Cape Lambert Iron, Grange Resources, Australian Resources and Goldstream Mining. If you have bought – or are about to buy into – any of these stocks think, again. Here's why: 

Magnetite miners were already in trouble but this week's Rio Tinto defence has loaded the odds against them. Rio has revealed plans for a spectacular increase in the production of haematite, possibly trebling output from about 200 million tonnes a year to more than 600 million tonnes, with 420 million tonnes coming from the Pilbara region of WA. 

That expansion, which represents a dramatic acceleration of mine development plans, is designed to give Rio Tinto a bigger slice of the world iron ore market than it already has. However, it also means much less room for new, high-cost, miners – and the newest and highest cost are the magnetite hopefuls. 

Put simply, magnetite is an inferior ore to haematite – and it's haematite that's preferred by the world’s major iron ore exporters, including BHP Billiton, Rio Tinto and the big Brazilian, Companhia do Vale Rio Doce (CVRD) – and, from next year, Fortescue Minerals. It's also the iron ore preferred by all the miners in my October feature Iron ore’s hotter prospects. 

Why are the magnetite miners heading downhill? 

The ore itself contains much less iron. Typically, haematite grades 55–60% iron, while magnetite is 30–35%. 
Processing magnetite involves physical separation of the iron and the waste rock, and then intense heating, before conversion to a semi-finished product such as high-value pellets. 
While the physical separation process is easy (as the name implies magnetite is strongly magnetic), the heating requires very large amounts of energy – a luxury at a time when the oil price is approaching $US100 a barrel, and coal prices are rising in sympathy. 
The capital cost of magnetite processing is also high. None of the planned projects in Australia come in at less than $1 billion, and raising the debt component for all resource projects has become a lot harder as banks retreat under the sub-prime credit onslaught. 

In a resources boom, when supplies are tight and prices high, mining and processing magnetite might make sense although very little of the material is transported over long distances without expensive upgrading. 

Of course, those mining magnetite iron won't agree. True believers in magnetite argue that it is the iron ore of the future, that Chinese customers are comfortable working with it, and that Australia is endowed with vast deposits of the material. 

They’re right on all three claims. The Chinese do want it, the outback of WA is littered with trillions of tonnes of the stuff, and it is an ore of the future. 

But, those same Chinese steel mills that say they will buy magnetite, and are willing to invest in Australian projects, will soon be offered increased supplies of haematite thanks to existing expansion planned by CVRD and BHP Billiton, and even more now that Rio Tinto is running scared from BHP Billiton’s marriage overtures and seeks to impress its shareholders by expanding faster than anyone else. 



The deciding factor for customers will be price and reliability of supply. On both of those measures haematite, whether from a mega-miner or one of the smaller producers, will be the winner. 

What this means for stockmarket values is: 

Companies offering a pure magnetite investment proposition, such as Grange, Cape Lambert, and Australasian will struggle. They might prosper in the future but it could be a very, very, long wait for a dividend cheque. Best advice: sell. 
Companies that offer a mixed haematite/magnetite investment proposition, such as Gindalbie, Midwest, and Atlas, are almost certainly over-priced. They will make money from selling haematite, but they will struggle to raise the capital or secure energy at a reasonable price to make the jump to magnetite production. Best advice: sell. 
Companies that are pure haematite propositions, even if small, have the appeal of production simplicity, and customer preference in their favour. Stocks such as BC Iron, Yilgarn Mining, and FerrAus are following the KISS principle of “keep it simple, stupid”. Best advice on KISS stocks: buy. 

The debate over magnetite and haematite is broadly similar to the historic debate of replacing high-grade “sulphide” nickel ore with low-grade “laterite” ore, the key being that there is much more laterite ore in the world than scarce deposits of sulphide material. 

But, that comparison fails two tests. 

There is no shortage, yet, of haematite as Rio Tinto is demonstrating by casually rolling out a plan to triple output. 
Processing laterite ore has been a disaster for everyone who has tried it. Anaconda Nickel (now Minara Resources) was almost destroyed by design failures. BHP Billiton has been hit by a doubling in cost and time at its Ravensthorpe laterite nickel mine in WA. 

Sad as it might be, the simple truth about mineral processing is that Australia is not very good at it. High internal costs, such as long transport distances, expensive labor (and potentially getting more expensive), and high energy costs mean that more processing plans fail than succeed. 

In WA, an epicentre of the current global commodity boom, and a centre of past booms, there is an appalling record of processing failure with the common thread being high energy costs and distance from markets. 



Today’s “magnetite promotion boom” has the hallmarks of booms (and busts) past. 

Readers with long memories will recall the time when WA was going to be home to a number of steel mills. In fact, the requirement to build a steel mill is contained in the original iron ore access agreements signed with the WA Government in the 1960s by the corporate ancestors to the modern BHP Billiton and Rio Tinto. 

There are no steel mills in WA. But there are: a failed blast furnace at Kwinana; two failed iron pellet-making plants; and a failed hot-briquetted iron plant (that almost crippled the John Prescott-era BHP). There might be a successful HIsmelt plant. 

It’s the same with plans for petrochemical plants along the west coast (Alan Bond and the late Laurie Connell promised one of those); numerous chlor-alkali plants converting salt and natural gas into caustic soda and plastics feedstock (none yet); paper pulp plants; and aluminium smelters – to name the best, and least successful. 

Magnetite, despite its undoubted potential, is just the latest boom-time commodity, and it faces the same hurdles as all previous west coast boom-time commodities: 

Isolation and long transport distances. 
High energy costs. 
Poor, or non-existent, infrastructure. 
Dithering government. 

Chinese demand for iron ore lies behind the rush to develop magnetite processing plants, and while one or two might be built they will be the high-cost source of iron and will deliver investment returns (if any) far below the simpler haematite mines of BHP Billiton, Rio Tinto and some of the smaller miners. 

For the final test of this investment comparison between magnetite and haematite consider the level of involvement by BHP Billiton, Rio Tinto and CVRD in magnetite – zero. What else do you need to know?


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## noirua (29 November 2007)

An excellent point on the magnetite versus haematite front. Many miners in S.A. have very large deposits of magnetite and it sounds impressive when they say they have 1 billion tonnes. Often they find pods of iron ore at high grade but often as little as 2 or 3 million tonnes or if they are lucky, up to 20 million tonnes.
Hawks Nest in S.A. has 800 million tonnes of low grade magnetite and that's been sitting there, quite close to One Steel's plant at Whyalla, with no interest shown. 
Lots of danger in these explorer come producers as the article posted by rimtalay so glaringly points out.


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## jozepp (18 December 2007)

Hawks Nest and WPG, this report from The Age, December 3rd 2007 

http://business.theage.com.au/weste...in-on-the-steelmaking-boom/20071202-1eee.html

IT'S been a big year for South Australian iron ore group Western Plains Resources.

And it could be about to get a lot bigger if the street talk is right that Michael Kiernan's acquisitive Northern Territory iron ore producer, Territory Resources, has snuck on to Western Plain's share registry in the past couple of weeks  with an undisclosed holding of 4.6%.


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## chewy (19 December 2007)

Territory adds mineral sands to the mix

Wednesday December 19, 2007, 1:52 pm


Iron ore producer Territory Resources Ltd may pursue a merger with mineral sands miners Matilda Minerals Ltd and Olympia Resources Ltd in the next 12 months.

Territory chairman Michael Kiernan, who vowed at the firm's annual general meeting last month to pursue fresh acquisition opportunities, told AAP that his strategy was to ultimately build up Territory to produce about 250,000 tonnes of mineral sands concentrate.

The company, which intends building itself into a diversified carbon steel material producer through mergers or acquisitions, on Wednesday lifted its stake in Tiwi Islands-focused Matilda Minerals from 8.6 per cent to 13.66 per cent.

Territory acquired a 20 per cent interest in Indonesia-focused Olympia Resources last month.

"It's not going to be a full blown takeover or anything like that ... slowly, slowly creepy, creepy catchy monkey," Mr Kiernan, a non-executive director of Matilda, said.

"In a modest way, we want to build up a mineral sands business within Territory out of cashflow.

"I'll build Territory up to being a 15 million tonne iron ore company but, as a second string, it will be a mineral sands business, primarily in Western Australia."

Despite not being the flavour of the month, Mr Kiernan is bullish on mineral sands due to his firm belief in the future strength of China.

"Zircon is going to be in very strong demand for their tiles, glazing etcetera," he explained.

Mr Kiernan - who sits on at least half a dozen boards including India Resources Ltd, Windimurra Vanadium (formerly Precious Metals Australia) and Peel Exploration Ltd - says his main two vehicles will be Territory and Monarch Gold Mining Company Ltd, which operates the Davyhurst gold mine in WA.

"Those two business will stand alone because gold requires a different psyche to a bulk materials firm, which Territory will be.

"Of the others, one way or another, they'll come under the umbrella of Territory ... possibly including India.

"It depends on the strength of India, which is going gangbusters at the moment and may have a serious strong life of its own."

Monarch listed on the Dubai International Financial Exchange (DIFX) in June and Mr Kiernan intends to list both India Resources and Territory in Dubai some time next year.

He also plans to list Monarch on the Toronto Stock Exchange.

"Dubai is going to be a two or three year exercise to get traction," he said.

"I can see that DIFX three to five years down the road is going to be more significant that London's Alternative Investment Market and that's a big call but I just know the psyche of the ruling family and whole Middle East area."

Mr Kiernan did not comment on Territory's plans for multi-commodity explorer Northern Mining Ltd, in which it acquired a 15.7 per cent stake last month.

Territory backed out of the takeover battle for fellow diversified mining company Consolidated Minerals Ltd in September.

Shares in Territory were 4.5 cents higher to $1.315 at 1312 AEDT Wednesday while Matilda's shares were five cents, or 10.87 per cent stronger to 51 cents


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## chewy (9 January 2008)

Ann out (wont let me copy and paste):

Basically ramping up production and shipping - 2mtpa by june and 3mtpa by end of year. Sounds good. Able to take advantage of the Iron Ore prices now.


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## Rimtalay (31 January 2008)

$US100/ ton for TTY iron ore



*Territory May Turn the “Tyranny of Distance” to its Advantage*
January 29, 2008

By Our Man in Oz


*
Separating sheep from goats is normally a job for farmer Brown. In Western Australia last week a couple of mining company bosses indulged in a bit of verbal culling. From the top (and bottom) end of the iron ore industry came warnings that the time is fast approaching when the 80 small iron ore “sheep” promising to develop mines will be cut back to a more manageable flock. From the big end of town came rumblings from Rio Tinto iron ore boss, Sam Walsh, who warned that many of his small rivals would not deliver on their promises. From the small end came a surprisingly similar observation from Territory Resources boss, Michael Kiernan, who has successfully started exporting iron ore, but reckons a lot of the hopefuls he’s looked at will never ship a tonne of the stuff – and some might even become tasty takeover targets for him.
The common view of the two men, who are approaching the industry from opposing directions, should serve as a warning shot across the bows of investors thinking about a spot of fresh speculating in the boom which has gripped the iron ore sector. To continue the farming analogy, the sheep might safely graze as China demands ever increasing tonnes of raw materials for its steel industry - but the goats are heading for the knacker’s yard.*

Walsh, who has a rod of steel running through an apparently soft exterior, delivered his cautionary sermon to a number of reporters after escorting them on a tour of Rio Tinto’s iron ore operations in the remote Pilbara region of WA. The initial reaction of Walsh’s audience was reminiscent of an old and familiar bon-mot from the Profumo scandal: “Well, he would say that, wouldn’t he?” The feeling was that Walsh was “talking his book” as the man charged with running Rio Tinto’s most important division during the company’s defence against a proposed takeover bid from arch-rival, BHP Billiton. “A lot of people are making bold statements,” Walsh was quoted as saying about the junior iron ore stocks, “what guarantees are there that these companies will bring on these deposits themselves?” Kiernan’s reaction was that Walsh was being “a little naughty” in rubbishing the small players in the iron ore game, but then admitted that: “he’s probably right”.

The common thread linking Walsh and Kiernan is Australia’s great nemesis: distance. Books have been written about this subject, including a history classic by Professor Geoffrey Blainey: “The Tyranny of Distance. How Distance Shaped Australia’s History”.

What Blainey saw in 1966 remains as true today. Nothing is “just down the road” in Oz. It’s all a bloody long way off. For miners wanting to haul a relatively low-value bulk commodity such as iron ore (or coal) the challenge is not finding a deposit, it is finding a railway and port to get it to the customer.

In Rio Tinto’s case that is not such a problem because it has been building and operating iron ore railways in the Pilbara since two years before Blainey wrote his book. For new and wannabe iron ore miners it’s a case of hitching a ride off someone else’s transport infrastructure (not easy), build your own (too expensive), hope that a government builds it for you (dream on), or discover a resource close to a rail line and port. The latter is what Kiernan did, illustrating that he has a tighter grip on how to run a successful mining business in Oz that most of his newcomer rivals. 

The key to Territory, which is still a truly modest iron ore producer with an even more modest resource base, is the combination of the freshly laid Adelaide to Darwin rail line that runs past the front door of its Frances Creek mine, and the port of Darwin which is super-keen to boost tonnage. “The Northern Territory government has been fantastic,” Kiernan told Minesite in his Perth office. “It has done everything possible to encourage us.” That’s all added up to the shipment of 350,000 tonnes of ore in the half-year to December, and a target of lifting annualised output to 2.5 million tonnes a year by the end of 2008, and then up to three million tonnes a year. Given that Territory is getting roughly US$100 a tonne in the booming spot market it’s easy to see why Kiernan is cracking the whip over his crew to squeeze maximum production from the mine.

“We’re making a pretty good margin right now with costs running at A$60 a tonne,” he said. “The aim is to get that down to around A$40 a tonne because it’s likely that the price will fall over the next few years.” Kiernan’s other aim is to boost his resource base from the current reserve of 4.8 million tonnes at 61.3 per cent iron, supported by an additional 9.7 million tonnes at 60.7 per cent in the resource category. A busy drilling programme is underway, prompting Minesite’s Man in Oz to comment that he had had this conversation with Kiernan 10 years earlier when he inherited control of the unloved Woodie Woodie manganese mine which at that stage needed someone to get the transport economics sorted and the reserve position boosted. “Spot on,” he said. “We’ve both been here before.”

Most small miners in Australia have not been where Kiernan, or Minesite’s Man in Oz, have been. Both have seen how markets fluctuate and how Blainey’s tyranny of distance is forgotten when a boom inflames optimism. As reality dawns, consolidation takes place and while Walsh can only rubbish the juniors yapping at his heels, Kiernan smells opportunity. “Quite clearly, the small companies which don’t have access to rail or port have a seriously hard road to travel,” he said. “They will have trouble getting up, and it’s just been made tougher by the sub-prime credit crisis.”

One man’s fish is another man’s “poisson”, as someone once said, and in Kiernan’s case cash flow from Frances Creek, plus strong financial backing from Richard Elman’s Noble Group, means that Kiernan might soon be on the takeover trail seeking to replicate his “train and port” iron ore formula. If that bit of speculation on the part of Minesite’s Man in Oz is correct then the names most likely to be on Kiernan’s desk are Atlas Iron and BC Iron. Atlas because it is “just up the trackâ from Port Hedland, and BC because it is about 30 kilometres from the new Fortescue Metals rail line. Whether Kiernan chooses to move on Atlas or BC is an interesting debating point, as is the fact that BC is chaired by his brother, Tony. Food for thought!


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## agro (31 January 2008)

yes 

i have been watching TTY since their first shipment last year when they were under $1.

one substantial holder has increased their stake by 1% - this goes to show how valuable iron ore plays like this one is becomming

i think they will prove the goods in the long term


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## porkpie324 (31 January 2008)

Good post 'Rimtalay' that seems to be MK's style re Monarch gold, buy up the other close by mines and consolidate as occured with CSM,porkpie


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## Rimtalay (11 February 2008)

MK did a presentation at the Sydney Mining Club on the 8th Feb 08
Link to presentation
http://sydneyminingclub.org/presentations/2008/february/territory%20resources/player.html


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## Who Dares Wins (6 March 2008)

Are there any TTY holders out there who are not happy with the companys propping up of MON?

I sold out of MON several months ago before the share consolidation and avoided what would have turned into a big loss, only to recently find myself effectively a holder of them again through TTY!

I've recently heard this manoeuvre describe by others as 'dodgy' which I wouldnt go as far to say myself because it implies that its illegal, which it isnt.
But what ever it is I'm certainly not happy with it. 

I'm sure Keirnan thinks he knows what he's doing but considering the purchase of the MON holding is becoming controversial you'd think he'd send out a letter to TTY holders explaining himself.


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## nioka (6 March 2008)

Who Dares Wins said:


> Are there any TTY holders out there who are not happy with the companys propping up of MON?
> 
> I sold out of MON several months ago before the share consolidation and avoided what would have turned into a big loss, only to recently find myself effectively a holder of them again through TTY!
> 
> ...



 I'm not real happy, especially when Michael Kiernan is the head man in both companies. I would hope the other directors of TTY are watching and approving. TTY has bought into MON at a good price and at the bottom of the market.  Didn't MON raise new capital at 50c recently. TheTTY purchase has been for less than that.
 TTY must grow and although I would have expected it to invest in more iron ore I am not too worried about gold. I'm a little in the red with TTY but I will hold.


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## urgalzmine (11 March 2008)

TRADING HALT!!


Have a look at today announcements regarding a takeover proposal.

Since the sp is now under $1 and the reserves for TTY is only 3 years. I was hoping they would announce some MAJOR increase in their reserves. Anyone know who will be interested in this stock for a takeover and what it may mean for investors?

cheers


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## Who Dares Wins (11 March 2008)

I think everyone was hoping it would be about the resource upgrade - isn't that due shortly?

Couldn't the announcement be about TTY taking someone over and not the other way round? Its more likely I feel given Keirnans approach and low share prices at the moment.

WDW


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## Real1ty (11 March 2008)

I think you will find the T/O will be TTY taking over OLY.

Both are in a trading halt and TTY has a significant stake in OLY


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## nioka (11 March 2008)

Real1ty said:


> I think you will find the T/O will be TTY taking over OLY.
> 
> Both are in a trading halt and TTY has a significant stake in OLY



 The market certainly didn't like it and punished the share price for the premium it is paying for OLY. I actually like the move. OLY just going into production is due for a bounce. DYOR


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## urgalzmine (11 March 2008)

nioka said:


> The market certainly didn't like it and punished the share price for the premium it is paying for OLY. I actually like the move. OLY just going into production is due for a bounce. DYOR




I agree, OLY were looking to start producing end of 2008/Jan09, the Kalimantan Zircon project.

according to OLY website http://www.olympiaresources.com/Projects/KalimantanZircon.aspx

it will hopefully earn $40million a year.. however I am not sure if their plants are on track...


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## nioka (11 March 2008)

urgalzmine said:


> I agree, OLY were looking to start producing end of 2008/Jan09, the Kalimantan Zircon project
> 
> according to OLY website http://www.olympiaresources.com/Projects/KalimantanZircon.aspx
> 
> it will hopefully earn $40million a year.. however I am not sure if their plants are on track...



 OLY announcement . Production has commenced at the Sampit Zircon plant.
Running one shift but will soon be operating two shifts.


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## Who Dares Wins (13 March 2008)

In the 31st Jan announcement (December quarterly) it said a JORC compliant upgrade would be released during the March quarter which is almost up. So hopefully it shouldn't be too far away now. 

Also, does anyone have any information on when the iron ore price negotiations should be completed?


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## noirua (13 March 2008)

Who Dares Wins said:


> In the 31st Jan announcement (December quarterly) it said a JORC compliant upgrade would be released during the March quarter which is almost up. So hopefully it shouldn't be too far away now.
> 
> Also, does anyone have any information on when the iron ore price negotiations should be completed?




TTY seem to have their minds focussed on their 29.02% holding in Olympic Resources and 8.05% in Monarch Gold. Quite a lot going on and worth waiting for everything to come together.


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## urgalzmine (13 March 2008)

noirua said:


> TTY seem to have their minds focussed on their 29.02% holding in Olympic Resources and 8.05% in Monarch Gold. Quite a lot going on and worth waiting for everything to come together.




I hope its soon rather than later, I hate seeing a sea of reds especially on this stock  It looks like alot of buyers though as its below $1 now.


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## Who Dares Wins (13 March 2008)

While I'm of mixed minds about the MON holding they did get it at what appears to be a low price so if the grades pick up it could turn out to be a good investment.

I do like the idea of buying into OLY as it is a producer now as has already been stated on this thread. I think TTY will be successful with the take over bid and it will effectively give them more cashflow. Combine all this with the Frances Creek resource upgrade shortly and the almost imminent price rise for iron ore things don't look so bad.


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## The Ferret (14 March 2008)

LOL. Just had a good laugh at the rather persuasive letter from TTY to OLY shareholders thats just been posted on TTY anouncements. Classic! I love it...


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## JTLP (14 March 2008)

LOL!!!

It's such an oxymoron.

It reads like this:

Dear OLY holder,

Because you are not selling to us, let TTY point out all the things wrong with OLY. That's why you should sell them straight away; to us; TTY.

That's right, we want your so called "bad" shares. Why? Cause we want to look after you.

P.S DNH


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## SenTineL (11 April 2008)

TTY have been buying up more OLY everyday this week.
I suppose figuring if they can't have them in the takeover they might as well have a majority holding?


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## Rimtalay (13 April 2008)

A good presentation by Noble Group on their investment in TTY

http://www.thisisnoble.com/index.php?option=com_content&task=view&id=447&Itemid=64

http://www.thisisnoble.com/images/documents/ordminnett20071217.pdf


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## Muschu (13 April 2008)

Rimtalay said:


> A good presentation by Noble Group on their investment in TTY
> 
> http://www.thisisnoble.com/index.php?option=com_content&task=view&id=447&Itemid=64
> 
> http://www.thisisnoble.com/images/documents/ordminnett20071217.pdf




I'm puzzled by the large drop in TTY's SP given that they are already exporting haemetite iron ore.  Are their iron ore deposits too limited in size?


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## urgalzmine (13 April 2008)

Muschu said:


> I'm puzzled by the large drop in TTY's SP given that they are already exporting haemetite iron ore.  Are their iron ore deposits too limited in size?




If you read the previous posts u will understand that TTY has been doing everythign accept building the reserves for TTY.

They are propping up gold miner MON and they currently trying to taking control of OLY

Both these projects are diverting funds from TTY, which should of been better utlised to increase the reserves for Frances Creek and explore/acquire other IO.

There are also the down turn in the market which has caused the market to be savage towards TTY. ??

Anyone else have the same or different opinion?


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## nioka (13 April 2008)

Muschu said:


> I'm puzzled by the large drop in TTY's SP given that they are already exporting haemetite iron ore.  Are their iron ore deposits too limited in size?



 I'm not happy with the way TTY has been going for me. I don't think the iron ore supply is the problem, I think it is investors generally being unhappy with the other investments being made by TTY, with their buying into OLY as an example. I just hope the directors know what they are doing. I hope they are not "gambling" the iron ore profits on looking for something like Lassiter's Lost Reef.
 TTY now have almost 45% of OLY. OLY has mineral sands which hasn't done much for BMX. OLY also have uranium prospects wtich may or may not be a winner. Probably not, in the short term at least.
 They also now hold over12% of MON.and are still buying on market by the reports.
 I hold a few TTY but they are my "May sell" list.


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## nioka (13 April 2008)

urgalzmine said:


> If you read the previous posts u will understand that TTY has been doing everythign accept building the reserves for TTY.
> 
> They are propping up gold miner MON and they currently trying to taking control of OLY
> 
> ...



 I must have been typing the same thoughts when your post message was posted. As you will have seen by my post I agree 100%.


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## Rimtalay (13 April 2008)

Unfortunately for TTY there seem to be a lot of shareholders ( like nioka and urgalzmine) who have a very small time frame ( a mouse click or two)  and have little understanding of the building of a company.
 Drilling to produce a JORC resource and building a company does not happen overnight. Fortunately we have other investors such as the Noble Group and DECO who are willing to wait and share in the vision. 
Don't think that MK is doing this alone, these deals and takeovers are done with discussion and agreement with these large shareholders.
I would prefer to have the likes of Richard Elman of Noble Group behind TTY than the scatter brains of some AFR day traders and the like.
Noble Group have more idea on present commodity demands and future requirements than any ASF posters. 
Lets see where TTY is 12 months from now.
Urgalzine, don't you think $25 million for exploration and drilling over the next 24 months is enough??? see announcement.


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## urgalzmine (13 April 2008)

Rimtalay said:


> Unfortunately for TTY there seem to be a lot of shareholders ( like nioka and urgalzmine) who have a very small time frame ( a mouse click or two)  and have little understanding of the building of a company.
> Drilling to produce a JORC resource and building a company does not happen overnight. Fortunately we have other investors such as the Noble Group and DECO who are willing to wait and share in the vision.
> Don't think that MK is doing this alone, these deals and takeovers are done with discussion and agreement with these large shareholders.
> I would prefer to have the likes of Richard Elman of Noble Group behind TTY than the scatter brains of some AFR day traders and the like.
> ...




no dude


I agree that TTY isnt for the short term.  I was just responding to Muschu question. which was:




Muschu said:


> I'm puzzled by the large drop in TTY's SP given that they are already exporting haemetite iron ore.  Are their iron ore deposits too limited in size?




However to answer you, Rimtalay, I just wasnt happy that TTY gave $2million to OLY and then started propping MON ( go read the MON threads)

I really think OLY would be good for TTY. MK always indicated that he wanted to get into Zircon and minerals, by memory OLY was going to produce its first profit of $42million? 

I was just responding to Muschu as he wanted to know why the SP took a dive, but hey any constructive criticism is welcome. no need to attack me... take a chill pill :


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## Rimtalay (14 April 2008)

urgalzmine, if you think buying MON is all about propping up, then think again. Have you contacted MK and asked him. I think that you should before you make such stupid statements.
Just because some ASF posters say this does not not make it correct.
Send an email to Michael and ask him, I'm sure that he will answer you promply. 
Michael Kiernan [mailto:mlk@crawleyinvestments.com.au] 

urgalzmine, I am not attacking you, but I think it is about time that a few people start to deal in facts instead of rubbish.


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## nioka (14 April 2008)

Rimtalay said:


> Unfortunately for TTY there seem to be a lot of shareholders ( like nioka and urgalzmine) who have a very small time frame ( a mouse click or two)  and have little understanding of the building of a company.
> Drilling to produce a JORC resource and building a company does not happen overnight. Fortunately we have other investors such as the Noble Group and DECO who are willing to wait and share in the vision.



   Whoa there. That is a bit unfair. I invested in TTY as an iron ore PRODUCER. If I want to invest in a gold prospector I'll chose one that specialises in gold. As for whether I invest short term or long term that is up to me to decide. I chose TTY originally as an iron ore producer investment which should be producing profits NOW, not possible profits in the future. At 75 years of age and relying on investment INCOME I am not interested in them spending iron ore profits on gambling looking for Lassiters Lost Reef. 
 A lot of others must think the same or the SP wouldn't be showing with red ink.
 As for sand minerals, check out BMX as an indication of the benefits of owning a mineral sands company.


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## oldblue (14 April 2008)

To be fair to everyone, isn't it a long-standing objective of TTY to be a diversified miner? I'm sure I've read this, and not just recently.


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## noirua (14 April 2008)

Exec Chairman, Mr Michael Kiernan, does seem as if he is going hell for leather into on market buying of Olympia Resources (45.3% so far) and Monarch Gold (12.52% so far), as well as committing $25 million in developing Frances Creek. 

I hope his backers stay in position, as concern on how far TTY will go in this on market buying is holding the stocks price back.


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## prawn_86 (14 April 2008)

Dont forget TTY also own just over 7% of India Resources (IRL).

Personally I am no longer comfortable investing into MK companies, however I do own IRL, but would not buy more...


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## SenTineL (15 April 2008)

i think i'm comfortable with the idea of a diversified mining company in TTY. 

like the old saying of not having all your eggs in one basket i suppose


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## nioka (16 April 2008)

SenTineL said:


> i think i'm comfortable with the idea of a diversified mining company in TTY.
> 
> like the old saying of not having all your eggs in one basket i suppose



Diversified mining company yes. (with emphasis on MINING).
Diversified spec company NO NO NO.

 Too many companies with good income keep spending all that income looking for bigger and better things and end up with nothing. The directors  and management get paid regardless of the final result.


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## Rimtalay (16 April 2008)

noika, do you really think that Richard Elman (CEO) of the Noble Group and Michael Kiernan are only thinking about a few $$$ in directors fees. 
THINK AGAIN !!!!
What is your knowledge of future zircon sales and demand into China. 
IE. Only 12 months ago manganese was selling for US$2.20/dmtu and now Korean companies are paying up to US$23/dmtu, most shareholders didn't have a clue when Mn went up 130% in 6 weeks in May - June 07. 
Did you realise that Asians don't like carpet in their houses? Think of 1.3 billion people with glossy, shimmering tiles on their floors, or the gleaming new bathroom sink and toilet. You need iron ore to build the building BUT you'll need zircon to fit it out.
The quicker that TTY mops up OLY and then MAL the better.
They are not doing it for FUN !!!


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## Dukey (28 April 2008)

Rimtalay said:


> noika, do you really think that Richard Elman (CEO) of the Noble Group and Michael Kiernan are only thinking about a few $$$ in directors fees.
> THINK AGAIN !!!!
> What is your knowledge of future zircon sales and demand into China.
> IE. Only 12 months ago manganese was selling for US$2.20/dmtu and now Korean companies are paying up to US$23/dmtu, most shareholders didn't have a clue when Mn went up 130% in 6 weeks in May - June 07.
> ...




TTY has abandoned compulsory takeover of OLY  - achieving 67.4% of OLY shares. 90% were needed for comp takeover.

(sees story on www.wabusinessnews.com.au - sorry cant post exact link - keyboard dodgy!??)

Not sure of the implications of this for TTY and its shareholders.   Must admit - I, like nioka am a bit worried by the spending spree.   ??


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## Rimtalay (29 April 2008)

Seems to me everyone thinks they  know more how to manage TTY than the management. Why is everyone so worried, they are building a company for the future.
 If you're all so worried sell out. 
I'd be more worried if they weren't using this market volitility to their advantage. 

*Mineral sands’ time comes again *
By Tim Treadgold 



PORTFOLIO POINT: When Chinese builders need paint and tiles, expect a jump in demand for raw materials used in both. 


No sector of the mining industry has been a bigger disappointment over the past five years than titanium minerals. But a series of recent corporate deals, and confident assessments of future demand, point to titanium and zircon catching a second wave of Chinese commodity demand. 

The most optimistic view of the outlook comes from Rio Tinto, one of the world’s biggest producers of titanium minerals, which are largely used to make pigment for paint, and zircon, which is used to make tiles and other ceramic products. 

The most pessimistic assessment comes from the Kolsen syndicate led by Australia’s second richest man, James Packer, which lost patience and earlier this month sold most of its strategic, but non-performing, investment in Iluka Resources, Australia’s biggest titanium minerals producer. 

For investors, such diverging views cloud an assessment of whether a sector that completely missed the resources boom first time around might catch it this time – or whether there are better profits to be made elsewhere. 

Non-believers in titanium minerals (or mineral sands, as they were once called) will not be swayed by Rio Tinto’s bullish projections about Chinese demand for paint and bathroom tiles. Of course there is a chance that Rio Tinto is simply “talking up” a business unit as it fends off BHP Billiton’s takeover advances. 

Believers, especially those swayed by an argument that China’s “inward” focus on more and better housing for its workers, as the global economy sputters under the weight of the US recession, will need to dust off their titanium and zircon files because there are not many ASX-listed entry points into what has traditionally been a “late cycle” resources play. 

Best bets are: 

Iluka. Despite the sell-off by the Packer-led Kolsen syndicate, and repeated disappointments, Iluka remains the cleanest entry into the sector. This time it has the benefits of a more clearly focused management team, a pipeline of new projects, and the potential for a surprise bonus from an obscure iron ore asset, a 1.25% royalty paid by BHP Billiton from its Area C mines. Iluka received about $20 million last year from the royalty and is pondering whether to keep it, sell it, or pass it over to shareholders as an in specie asset distribution. 
Gunson Resources. It has rivalled Iluka as an investment dud but recently announced a major increase to reserves at its proposed Coburn project in WA, which is being developed with Chinese assistance. 
Matilda Minerals. Developer of a small mine in the Tiwi Islands off the Northern Territory, but spreading its interests to Queensland’s Cape York, and at the centre of a corporate move by the former chief executive of Consolidated Minerals, Michael Kiernan. 

Other players in the titanium/zircon space with the potential to benefit from the forecast increase in demand from China are: Australian Zircon, which started production at its Mindarie mine in South Australia late last year; Bemax Resources, which is effectively a mini-Iluka with assets in WA and the Murray Basin off western NSW and northern Victoria; and a curious new entrant in the game, Epsilon Energy, which started life as a uranium explorer but last week added zircon and titanium to its search inventory. 



Before looking at the “pro” side of the titanium/zircon argument, it is important to consider why the Kolsen syndicate sold two-thirds of its stake in Iluka, crystallising a loss estimated at $20 million. For a syndicate that includes some of Australia’s smartest business people this was a monumental admission of failure, which could reasonably be interpreted as the ultimate vote of no confidence in Iluka and the titanium business. 

For James Packer, the Iluka exit was most probably an exercise in cleaning up a piece of unfinished business inherited from his father, the late Kerry Packer. In mid-2005, the Packer family provided about half of the $120 million required to buy a 7.2% stake in Iluka. Money also came from investment bankers Mark Carnegie and John Wylie, and mining investor Robert de Crespigny. (To read more on de Crespigny's latest venture, see ‘Mr Gold’ rolls up his sleeves). 

Kerry Packer’s death six months after the Kolsen raid probably signalled the death of the syndicate, too, but it took until Iluka launched a $350 million rights issue last month for Kolsen to find a way to orchestrate the sell-down of two-thirds of its Iluka shares at an estimated $4.10 a share, about $1 less than its rights-issue discounted entry price of $5.06. 

Since the Kolsen sell-off, Iluka shares have retreated below the $4 mark, with recent trades around $3.91. As well as being hit by production declines and rising costs at ageing mines in WA, Iluka’s exports have been hammered by the rising Australian dollar. 

Iluka chief executive David Robb believes the worst is over for his company after a big capital raising and the re-financing of debt – two significant achievements in difficult markets 

“We’ve got the wind at our backs,” Robb told EurekaReport. “Clearly the recapitalisation, both the debt re-finance and the rights issue, have been pivotal for us.” 

Funds raised will be used to develop Iluka’s next generation of mines in the South Australian section of the Eucla Basin near Ceduna, along with other new projects in the Murray Basin, and to eke out residual resources at its mines in WA. 

Robb, a former senior executive with Wesfarmers, has been instrumental in applying stricter financial disciplines at Iluka, and in focusing the business on generating shareholder value, a hallmark of his previous employer. 

He argues that titanium and zircon will be beneficiaries of the inward-looking phase of China’s economy. “We are traditionally a late-cycle beneficiary of economic growth,” he says. “Demand for our products is more consumer driven, and that’s accelerating in China.” 

Robb acknowledges that Iluka was “not a beneficiary” of the first wave of China’s rapid growth which was focused on infrastructure projects such as ports, roads and power. “Are we about to catch the second wave? In my opinion, yes,” he says. 



Robb is not alone. He's flanked by Michael Kiernan, one of the most prominent entrepreneurs in the mining industry. Kiernan has been busy assembling a portfolio of iron ore and gold assets since departing Consolidated Minerals and has recently added titanium and zircon to his shopping list. Through Territory Resources he has snatched a 34% stake in Matilda Minerals, and is wrapping up a takeover bid for an Indonesian-based (but Australian listed) titanium miner, Olympia Resources, having gained a 65% stake in his target. (To read more on Kiernan's resource portfolio, see New kids on the gold block.) 

“It’s all about China,” Kiernan says. “Titanium and zircon really are the second wave, and to understand that you only have to look at the amount of residential development taking place across the country. 

“Infrastructure was the first wave. Now the move is into urbanisation as 300 million people move into China’s cities. Every one one of those people will need tiles for their bathrooms and paint for their walls.” 

Kiernan and Robb could have been reading directly from a March 13 titanium minerals review by the head of the Rio Tinto Iron and Titanium division, Harry Kenyon-Slaney. 

Graphs used by Kenyon-Slaney show that Chinese use of pigment is far behind that of the US. But, more interesting than a direct comparison of China against the US is to measure China’s consumption of steel, copper, aluminium or nickel against per capita use in the US. This shows steel use at close to 80% of that of the US, copper, nickel and aluminium at close to 50% and pigment use at around 10%. 

The key message from the Rio Tinto view is that pigment use in China is set to soar, with projected annual consumption growth running at 15% for at least the next four years. 

The newest boy on the block (but from an old mining family) is Matt Gauci, managing director of the uranium explorer Epsilon Energy. He says he had added mineral sands to the search list because of the outlook for zircon. 

Gauci, a nephew of former MIM Holdings chief executive Vince Gauci, says Epsilon has renegotiated a farm-in agreement with its parent company, Heron Resources. The original deal on exploration tenements near Balladonia, on the WA side of the Eucla Basin, had only been for uranium. It now includes mineral sands. 

“Zircon prices have been on the rise for five years and the outlook is for much higher prices in the future,” Gauci says. “The reports we’ve received indicate a looming shortage, especially of zircon, and that means strong demand. 

Five years of disappointing profits have suppressed most investors’ interest in the titanium minerals and zircon business, and ground down the enthusiasm of the big guns behind the Kolsen syndicate who raided Iluka three years ago. 

The question now is whether Kolsen sold too soon and whether a second wave of demand for different mineral products is building in China.


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## Dukey (29 April 2008)

Rimtalay said:


> Seems to me everyone thinks they  know more how to manage TTY than the management. Why is everyone so worried, they are building a company for the future.
> If you're all so worried sell out.
> I'd be more worried if they weren't using this market volitility to their advantage.
> .




Well - everyone is entitled to an opinion Ritmalay...  so don't take someone asking questions about your favourite stock as a personal attack on you.  
Having said that - Mr K seems to have his finger on the pulse - and as you say - it's either trust his judgement ... or sell out.    The only worry is the amount of cash TTY have spent on a failed (& hostile) t/o bid for OLY.

...so I'll ask again - what implications for TTY   of the current situation with OLY.    No takeover, but TTY now holding 65%.
???   what happens next???

-dukey.


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## nioka (29 April 2008)

Rimtalay said:


> If you're all so worried sell out. .




 I have sold out TTY. In my humble opinion I think there are much better investments. The declining SP over the last three months while TTY has been looking at those new investments and taking their eye off iron ore tells me that a lot of others think the same.


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## Mozi (29 April 2008)

Dukey said:


> ...so I'll ask again - what implications for TTY   of the current situation with OLY.    No takeover, but TTY now holding 65%.
> ???   what happens next???
> 
> -dukey.




Have a read of clause 3.3 of the Bidder's Statement dated 11 March 08  (http://www.territoryresources.com.au/files/On_Mkt_Bidders_statement.pdf). Sorry, that I can't copy the clause into this message, maybe someone else can - my excuse is that I'm new to this .

But in short, it says that if TTY acquires between 50.1% but less than 90% of OLY, that TTY will:

- try to have its own people appointed to the board of OLY;
- continue with OLY's mining activities;
- review OLY's operations, assets etc;
- review future employment of OLY's present employees;

and that the above will only be done with the approval of the OLY board, ASX rules etc etc. But as a majority shareholder, I would think that TTY have a fair bit of say in the matter. Or is that too naive of me?

OK, I've got my first message out, hurray


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## Dukey (29 April 2008)

Mozi said:


> Have a read of clause 3.3 of the Bidder's Statement dated 11 March 08  (http://www.territoryresources.com.au/files/On_Mkt_Bidders_statement.pdf). Sorry, that I can't copy the clause into this message, maybe someone else can - my excuse is that I'm new to this .
> 
> But in short, it says that if TTY acquires between 50.1% but less than 90% of OLY, that TTY will:
> 
> ...




Welcome!! Mozi - and as good a first post as I have seen   - goes a long way to answering my question anyway.  ... guess I should've had another look at the bidders statement myself!!

Not 100% sure but you would think a board pos'n should be appropriate, and would hope that both parties can work towards the same goal  .. rather than waste TTY/OLY shareholders $$ by getting into a sh!tfight over  control.
...  ... but it was a 'hostile' bid,  so there will most likely be some bad blood to sort out.

Maybe Kiernan and the OLY board should get together for  a good old bush networking session - ie. BBQ and a few beers round the camp fire.


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## SenTineL (30 April 2008)

I dont see how they are taking the pulse of their iron ore business when they are shipping ore out and are a producer....

Weird that share price gone down again today.


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## Rimtalay (7 May 2008)

Unfortunately there are a lot of short term TTY shareholders  who expect the shareprice to increase everyday. 
Re OLY, wait a few weeks and TTY will go back for the second bite. I doubt whether TTY management  expected more than 40% at the first bite, and look what they got 65%. This is like playing poker, OLY shareholders now can't sell  unless they are willing to take 7c, and no serious buyers until 4c. There will be pleny of OLY shareholders who wish they had sold at 10c.  What will happen the next time they are offered 10c. All but a few diehards will sell. 
This is a lesson on how to do a takeover at the minimum price.


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## pattyp (7 May 2008)

Rimtalay,

I sold my TTY this week... Yep, I lost faith... And i'm not an impatient investor... Quite the opposite... I just like it when things are simple and transparent and easy to forecast.

TTY needed to get that resource upgrade in yesterday... Not chase 5 other businesses in an attempt to diversify... MK has dropped the ball IMO. 

And you may say that there is revenue and profits coming in... I agree that that is great... Except he is burning it on his empire building. There are so many issue here I just cant sleep at night holding TTY anymore.

I even struggle to do a DCF now because it involves valuing multiple other business.

I'll definitely keep watch and perhaps revisit TTY when MK shows me what the size of his upgrade is and when he has finished his takeovers.

IO producers/Explorers are a dime-a-dozen... Plenty to choose from, a lot with great potential, a lot with little...

Just my opinion... 

Pat


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## Dukey (7 May 2008)

I hear you Pat.
I sold this morning for exactly the same reasons - was stoked to get over $1.

Good luck to those still on board - I'd like to see MK's empire flourish and maybe it will - but everything has to be crystal clear IMHO.   Been duped before.

-Dukey


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## Who Dares Wins (8 May 2008)

I agree with the 2 previous posts.

Some time ago now MK said that it was his intention to bring several other companies in under the umbrella of TTY, hence the name change from Territory Iron to Territory Resources. 

He also said however that MON would remain a stand alone company. Well it would seem that he has changed his mind without advising anyone.

I got out of MON last year luckily but now find that everyday I effectively own more through holding TTY!

There has been disscusion on the MON thread that bankruptcy is a possibility if things don't turn around in the very near future and if that were to happen I would not want to be holding the parent company. 

All this combined with an undisclosed $7m cash loan to MON from IRL - another MK company - has really put me off. 

I'm thinking the same as pattyp, TTY is still on my watchlist but for the meantime I'm out.


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## Rimtalay (10 May 2008)

Too many TTY shareholders don't seem to have the slightest idea.
1)They think that you can drill a JORC resource in 5 minutes during the wet season. A 4x4 can't even get to the site let alone a drill rig.
2)They expect immediate upgrades in the resources without drilling.
3) So many think that MK wants to takeover MON even though he said he won't. This is all without any proof except that TTY have taken a stake in MON, it's a company  the management know will turn the corner very shortly and will make money even on the shareprice increase within 12 months. Better than leaving your cash in the bank if you can double it.
Did you know MON, poured 1400 ounces of gold last week, from a weeks production. This is twice previous production and this is just the start. 
I can only say I'm very happy that you all sold out, because I picked up another 60,000 TTY shares at 86 cents last week. So who is the fool?
 I note that MK bought another 100,000 TTY and 100,000 MON. 
He must be a fool too!!! Or is he much smarter than you all realise. You know what I think.


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## Dukey (10 May 2008)

Rimtalay said:


> Too many TTY shareholders don't seem to have the slightest idea.
> 1)They think that you can drill a JORC resource in 5 minutes during the wet season. A 4x4 can't even get to the site let alone a drill rig.
> 2)They expect immediate upgrades in the resources without drilling.
> 3) So many think that MK wants to takeover MON even though he said he won't. This is all without any proof except that TTY have taken a stake in MON, it's a company  the management know will turn the corner very shortly and will make money even on the shareprice increase within 12 months. Better than leaving your cash in the bank if you can double it.
> ...




... and we bow to your obvious superiority in all departments Mr R   .... may all of us idiots who don't think exactly what you think shrivel and die in our beds... 

good luck to you.


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## pattyp (10 May 2008)

My problem Rimtalay is its all Guess work when weighing up TTY... And it is for u also if you be honest with yourself...

If you are an insider than good luck to you... You r lucky and i'm sure your risks will pay off because you have an edge.

I don't know what MK is doing... He is running his own show and not being extremely clear about his master plan.

I like TTY, I think I like MK... But right now I feel I can place my dimes somewhere that I don't have to spend too much time wondering and guessing... Worrying about.

Why cant you see it from my (Others) perspective... I have heard the forum arguments from u many times... read TTY reports... Seen the actions being taken... and I feel uneasy about it.

Cheers - and no disrespect to you. Just not for me anymore.

BTW - I took my coin from TTY and put it in BAU and am in about the same place (Minus brokerage) had I held TTY...


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## pattyp (10 May 2008)

One more point Rimtalay - I have never criticised you... Only the company... U tend to get quite disrespectful and derogative towards others who differ in opinion!

Either you have formed WAY too much attachment to TTY or you are TTY...?

The tone is not necessary either way. Be happy with your profits and be happy for me because I now sleep easier.

Pat


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## Rimtalay (12 May 2008)

Well, since you're now sold, hopefully I don't have to read so many negative uninformed comments in the future. Maybe you should tell Richard Elman of Noble that he is wrong too. He can then sell out and will be able to sleep better at nights too. But good luck to you, I mean no malice. 
http://www.thisisnoble.com/index.php?option=com_content&task=view&id=447&Itemid=64


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## pattyp (12 May 2008)

Rimtalay said:


> Richard Elman of Noble that he is wrong too.




Rimtalay,

I am MORE then willing to tell Richard Elman that I have concerns - In fact I've had these discussion with a few chairs and directors.

I think you are over capitalised in TTY, you are far too emotionally attached to it. Take off the rose glasses for a minute.

Just because there is a BIG company with an investment doesn't mean all is rocking! Look at CNP... Loads of BIG investors and creditors there.

Please go are Read the BAU thread here on ASF (From Start) - Then come back here and tell me that I'm not a detailed and thorough analyst.

Also take a look at BAUs performance during the last 2-weeks... I know which stock I'd rather be in - Especially since TTY has rolled back to near where I sold out.


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## jozepp (23 May 2008)

Michael Kiernan has flagged his company’s intention to become involved in the sale of FreightLink. 
http://www.businessspectator.com.au/bs.nsf/Article/Mining-rail-Territory-EUUXE?OpenDocument

The company and its key infrastructure asset, the rail line bisecting the continent, are up for sale after FreightLink faced difficulty meeting its debt obligations from the project’s construction.

Kiernan yesterday revealed Territory’s intention to become involved in the sale.

“Territory Resources, together with our partner, Noble, plan to declare our interest that we would like to become involved in a possible acquisition,” Kiernan told SCLN.

Territory has become one of the major customers of the rail line since it began mining at its Frances Creek operations last year, with 500,000 tonnes of iron ore transported from the mine to Darwin port since operations began.

“The bottom line is, as Andrew Forrest says, mining of iron ore is not necessarily digging the iron ore, it’s the delivery,” said Kiernan.

“Logistics is the single largest cost area of iron ore and any way you can reduce the operating costs in that area is significant.”

Kiernan said Territory would be very keen at the least to acquire the rolling stock on the railway the company currently uses for its iron ore exports.

However, he said he was not sure at this stage what sort of investment may be required, although the rolling stock associated with Territory’s operations alone is worth “in the order of $10-12 million”

“We’d be keen, and we will be declaring an interest to UBS either on our own or together with a consortium; we’d be more than happy to be involved in an acquisition of FreightLink,” he said.

He added that Territory’s plan had only been formulated this week and the company would be declaring its interest to UBS in the next few days.

Finished in 2004, the Darwin–Adelaide railway cost some $1.2 billion to build, including a $500 million injection from the federal, NT and South Australian governments.

Adelaide-based FreightLink posted an after-tax loss of more than $50 million last year despite posting 70 per cent growth in volumes transported last year.

The company has appointed bank UBS its adviser going into the sale and it is rumoured Queensland Rail, Babcock & Brown Infrastructure or Asciano could be interested in buying the business outright.

According to The Australian newspaper, state or federal government involvement could also be a possibility.

John Hoyle, an editor at Railway Digest, told the paper that the governments which helped finance the railway would not allow it to close even in the absence of a suitable buyer.

FreightLink chief executive John Fullerton has also said publicly this week that rail services would not be affected by the sale process.

The railway line has become a key piece of infrastructure for the burgeoning minerals industry in the NT and SA.

Mid-tier miner Oxiana signed a 10-year contract with FreightLink last year over the haulage of concentrate from its Prominent Hill development in South Australia. Prominent Hill is due for commissioning in November.

Singapore-based Om Holdings is another key customer, freighting manganese from its Bootu Creek operations to Darwin.

Kiernan said he had not held discussions with any of the other emerging or existing miners using the railway over Territory’s planned involvement.

In the meantime, Kiernan said it was business as usual for Territory.

“We’ve had discussions with [FreightLink] and they have adised there will be no impact on our operation at all.”


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## bs1974 (27 May 2008)

I like TTY for the following reasons.

Production up and going with a ramp up in progress.

Relationship with chinese which is very important which may lead to joint ventures maybe buyout ops.

Ore at 62%

Diversifying into other profitable areas ( I am all for IO but it is wise I think to have other revenue streams in the future). Mineral sands and copper are both good ones.

Good experienced management 30 years which is lifetime almost for me.

Rail and port access. 7 days to china.

Spending on more exploration which will add more years to the mine.

And my favourite under $1......

They will hit their 10 year mine life target imo without a problem. That gives the breathing space to get cashed up for more acquistions more exploring more diversification. Take a 3 year view on this one I doubt you will be disapointed.

Not the biggest out there but they have the head start.


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## SenTineL (5 June 2008)

not much joy with the SP at the moment for TTY, keeps going down even after today's announcement or no announcement. it's all a downhill slide at the moment


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## mike85 (8 June 2008)

i know what you mean SenTinel... down down down 
so many other iron ore juniors are going off at the moment and TTY are still going down... ahh well


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## kingbrown (10 June 2008)

iam thinking on getting aboard the TTY tram 
Now the price seems more appealing 

Just one major concern 
Have these guys got much ore in reserve ?


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## Dukey (16 June 2008)

kingbrown said:


> iam thinking on getting aboard the TTY tram
> Now the price seems more appealing
> 
> Just one major concern
> Have these guys got much ore in reserve ?




Having just had a look over the MON thread again - I'm very glad I sold out of TTY when I did.  suggest you guys check that thread  and the last few pages of this one before jumping in....  esp. in regard to $$$ moving quietly between MK companies.

-dukey


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## nq6 (23 June 2008)

Hi  Any one out there think TTY is a good buy at 64 cents ?  If so why?               Seems a cheap buy, being a producing mine.  Looking for discussion on this one    NQ6  IN North QLD


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## pattyp (23 June 2008)

Its a pretty good price... I keep a very close eye on TTY...

BUT...

Trend is your friend, and the wider market is against you.

I'm waiting for things to settle, lots of emotional stuff going on with TTY, fundamentals are pretty good but you will maybe sleep easier by executing a little patience.

Just my opinion, I'm no expert, you make your own choices, etc...

Pat


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## Sean K (23 June 2008)

nq6 said:


> Hi  Any one out there think TTY is a good buy at 64 cents ?  If so why?               Seems a cheap buy, being a producing mine.  Looking for discussion on this one    NQ6  IN North QLD



aq6, (nice nic ) to work out if a company is 'cheap', or not, the first thing you should do is work out the companies market cap (shares on issue / share price) compared to their income, potential income, peer comparison, and IGV, and assets ++. Lots to consider. 

Maybe you could look at those things and tell us if it's a good buy? 

And, if you have a charting mind look to see if it's hitting support or is trending in any particular way?


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## SM Junkie (23 June 2008)

I would not be suprised if Monarch Gold (in suspended trading) is having impact on the SP.  Personally I don't like that TTY are a substantial holder in MON, he is using one company to prop up another.  Surely this has to be a concern to TTY investors


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## nioka (23 June 2008)

nq6 said:


> Hi  Any one out there think TTY is a good buy at 64 cents ?  If so why?               Seems a cheap buy, being a producing mine.  Looking for discussion on this one    NQ6  IN North QLD




 The discussion on TTY has been carried out on this thread. In my opinion the situation has not changed. The management have digressed from their iron ore business into speculative other ventures. To decide on a share value you have to take those into account. I personally decided there were better investments in the fields that TTY were moving into than the ones they chose. I made my decision 2 months ago and that has proved correct so far. DYOR.


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## oldblue (23 June 2008)

nioka said:


> The discussion on TTY has been carried out on this thread. In my opinion the situation has not changed. The management have digressed from their iron ore business into speculative other ventures. To decide on a share value you have to take those into account. I personally decided there were better investments in the fields that TTY were moving into than the ones they chose. I made my decision 2 months ago and that has proved correct so far. DYOR.




My sentiments exactly!
TTY took my eye a few months ago. I was attracted to the idea of a smaller scale iron ore producer with good contacts, good infrastructure ( rail and port) and able to take early advantage of the demand for ore at high prices. About that time, MK announced that TTY was to become a diversified miner, or words to that effect, and started to acquire holdings in various other companies. I backed off then, watched and waited. It seems a pity that the iron ore business isn't getting the attention it probably deserves but it doesn't appeal to me at present.


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## jman2007 (23 June 2008)

Dukey said:


> Having just had a look over the MON thread again - I'm very glad I sold out of TTY when I did.  suggest you guys check that thread  and the last few pages of this one before jumping in....  esp. in regard to $$$ moving quietly between MK companies.
> 
> -dukey




Dukey,

Probably agree with you on that point, TTY's exposure to MON definitely playing a part in the re-rating of the company imho. I simply do not know enough about TTY's current operations to comment on their prospects, but I think potential investors should take the MON link into consideration.

My 

jman

Disclaimer: dnh TTY/MON


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## nq6 (24 June 2008)

Hey Kennas Thanks for the great input , especially the tone of your comment .  Great stuff , NQ6[ Newbie]


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## prawn_86 (25 June 2008)

Ann Out: MK 'Resigns'

Wonder how much board pressure there was on this resignation.

Now that one of the crucial question marks (MK) about the comapny is gone it will be interesting to watch the price. This is about the only IO producer i know that has gone backwards. If i had spare cash i would do a bit more in depth analysis.


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## Sean K (25 June 2008)

nq6 said:


> Hey Kennas Thanks for the great input , especially the tone of your comment .  Great stuff , NQ6[ Newbie]



Ni nq6, I've suggested some of the things you can do as a 'newbie' to start developing your own analysis skills, instead of just relying on other people. There is no 'tone' in the comment, just facts. Good luck with learning how to evaluate a company's value, or potential value. Kennas


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## Dukey (25 June 2008)

prawn_86 said:


> Ann Out: MK 'Resigns'
> 
> Wonder how much board pressure there was on this resignation.
> 
> Now that one of the crucial question marks (MK) about the comapny is gone it will be interesting to watch the price. This is about the only IO producer i know that has gone backwards. If i had spare cash i would do a bit more in depth analysis.




Yes indeed - I would love to have been a fly on the wall in those meetings!!!   And if TTY can sort out / recover most of the dollars dished out to related companies, then they could stage a nice comeback....   will be watching.

-Dukey

(not holding) - DYOR.


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## Miner (25 June 2008)

It is more than likely MK is going to join Salvation Army or floating a new company with Hillary Clinton to woo US share holders

It is for him the time to go for hibernation or salvation.
Please you may also see my post in IRL

He has left the abandoned ship MON, IRL and now TTY. Can he play golf or carry 16 kg load to work in a mine ? 
Possibly will return like ALan Bond again


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## SenTineL (25 June 2008)

hmmm yeah it will be interesting to see what happens
TTY should take advantage of the new Iron ore prices negotiated by RIO 
i wonder how much this will affect them, some solid gains in the last day and at the start of today, but has a lot of ground to make up.

will be interesting to see Fat Prophet's take on it since they recommended this as a buy a few times


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## oldblue (25 June 2008)

This news has re-kindled my interest in TTY!
The critical issue now is what can/will be done about TTY's interests in the other companies. Some of them are substantial and collectively there is a lot of capital involved.
I assume that Noble's interests would be best served by an orderly exit from some or all? I'm sure most other shareholders would welcome regaining a focus on iron ore.


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## chewy (26 June 2008)

looks like thats on the cards oldblue...

TTY in trading halt: - the trading halt is requested until Monday or the release of an announcement on the realignment of the company going forward


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## Motogoon (2 July 2008)

Fairly new to the sharemarket, very new to tty and i was wondering what are the thoughts on mondays announcement, is it good news? I flippen hope so!


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## oldblue (2 July 2008)

Motogoon said:


> Fairly new to the sharemarket, very new to tty and i was wondering what are the thoughts on mondays announcement, is it good news? I flippen hope so!





The good news is that TTY are going to concentrate largely on the iron ore business and that Nobles appear to be supportive.
The potentially bad news is that we don't know what it will cost them to exit from the other, unwanted activities.
Overall, I think it's a positive move.



Disc: Not holding but interested.


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## gilbo (2 July 2008)

Interesting position MK & the TTY board have got themselves into. All directors owe a fiduciary duty to the company to act in good faith and in the best interests of the company and so some questions do spring to mind. Has TTY's rather large investment in MON really been in the best interests of TTY or MON? Has MK acted under a conflict of interest as a TTY & MON director?

I guess this won't be an issue if TTY and MON come to some sort of agreement that allows TTY to protect shareholder value, but there may be developments if MON calls in the administrators or TTY's investment devalues significantly. With a range of penalties for a breach of these duties available under the Corporations Act as well as common law I presume that there will be some shareholders of TTY watching proceedings rather closely.


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## 2BAD4U (2 July 2008)

This is the latest from The West Australian newspaper - 

http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=82272

For the record, I don't hold TTY and sold out of MON when TTY started proping them up. Made me scared (obviously rightly so with the benefit of hindsight). IMO there should be some serious questions asked of MK and what has gone on with MON.


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## nioka (2 July 2008)

Rimtalay said:


> Too many TTY shareholders don't seem to have the slightest idea.
> 1)They think that you can drill a JORC resource in 5 minutes during the wet season. A 4x4 can't even get to the site let alone a drill rig.
> 2)They expect immediate upgrades in the resources without drilling.
> 3) So many think that MK wants to takeover MON even though he said he won't. This is all without any proof except that TTY have taken a stake in MON, it's a company  the management know will turn the corner very shortly and will make money even on the shareprice increase within 12 months. Better than leaving your cash in the bank if you can double it.
> ...




Rimtalay,
 I couldn't resist bringing this gem up again. I'm often wrong but my thoughts on TTY and MON were right on the mark as far as I can see.

 You were right though, Rimtilay, when you said that the management were about to turn the corner. However the management turned a different corner to the one you had in mind and now that corner has been turned TTY may just get on with being a good iron ore miner.

 Your expensive TTY shares may just regain their value if you can hold them long enough.


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## Motogoon (3 July 2008)

Fat Prophets are liking this one and were still recommending to buy last week, to be honest thats why i bought in, have they got it wrong?


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## mfsperth (11 July 2008)

*Territory Resources*

After resolving the Monarch Gold diversion, TTY now needs a clear focus on maximising value from its iron ore operation.
At 1.5 mt a year from Francis Creek, TTY should be grossing at least $150m pa, and netting at worst $75m.
Any sales going through Noble it is to be hoped are on a strict commission basis as an agent (perhaps no more than 15%). Any payment which is considerably greater than normal commissions could be seen as rewarding Noble as a shareholder more than other shareholders.


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## MR. (3 August 2008)

Should post more on ASF.  So, Territory Resources.....  Referring to the latest June Quarterly Report released Friday and March Quarter Report.

Are these figures being fiddled?  Make your own judgement!

For the nine months to the end of March Receipts from Product sales and Debtors minus expenses (Production and Admin) Totalled a loss of $410,000-  ie  -$7.993 million Sept07, +$5.884 million Dec07 and +$1.699 million for March08.  

For the twelve months released on Friday now there is a loss of $20 million!  That's $20 million for the 12 months but last quarter the loss totalled just $410,000-  for 9 months. These figures are from mining costs deducted from sales.  What?

It appears as per section 1.16 of Friday's report that there has been pre-shipment “advances” from Noble and these sums have been in the past put in the column of “1.1 receipts from product sales and related debtors”  (Although the goods haven't been supplied yet)  Anyone would have assumed that this column would have been for actual sales not (advanced sales paid in advance)  Hmmm.

Now it appears that TTY as per 1.16 of the latest report has advanced payments for iron ore and now we will list them as borrowings.  The advanced payments or “borrowings” (which did not exist on the last quarter report) has totalled $42.75 million and as per (1.17)  with $15.556  being the repayment.  So, what about the remaining (1.16 – 1.17) = $27.194 million.  Is that advanced payments for undelivered Iron Ore as well?

So three conclusions IMO:
1)TTY has been putting advanced payments from Noble in 1.1 (to make out extra sales) and to keep the bottom line looking OK.
2)TTY has now “fabricated” the loans owed to Noble. Things are not looking good of late and if this company is broke, Noble will receive returns from the sale of assets.  
3)I have no idea of what I'm talking about. But isn't this the reason  ASF exists, surely its not just for ramping.  

If you want to know where all the money has come from for all these investments in “other securities” it has been coming from (1.14 PROCEEDS FROM ISSUES OF SHARES, OPTIONS, etc.)  totalling $85.6 million in the past 15 months. Of that left in cash, is just $1 million with $27 million still owed in (now NEW BORROWINGS) How that extra $7.6 million for the 3/7/08 payment fits in is unclear and there is another 28 million owed from MON (which is broke).


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## nioka (3 August 2008)

Mr. 
You raise some interestiong points. I think you could refer to TTY as creative accountants and mining speculators rather than as an iron ore miner. 

I jumped ship here a little while ago, as you can see from my earlier posts. It is a decision I do not regret. However the company could get straightened out, get rid of the parasitic investments, concentrate on iron ore and return to profitability. I may reinvest if I see those things happening.


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## MR. (3 August 2008)

nioka said:


> Mr.
> You raise some interestiong points. I think you could refer to TTY as creative accountants and mining speculators rather than as an iron ore miner.




Exactly,  in 9 months of shipping Iron Ore TTY can't turn a profit from the Iron Ore.  They have lost 20 million from sales in the last 12 months. 
(referr to LATEST accounts)

As the price sinks lower "Buyer Beware"
I thought $0.75 was a fair price but then on Friday the June Quarter was released. 

TTY appears to be going broke !  

Investors have also been mislead...


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## lenal (17 August 2008)

commsec now allow 40% margin loan on this stock, can't be that risky. especially with the appointments of mike donaldson and fiona harris, I think this is a good long term stock. of course the sod's at the bank may just be trying to pull my pants down. happy punting


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## kingbrown (18 August 2008)

Good work guys 
Was looking to buying back into TTY 
but i thought i should jump on ASF for a check 

Will now definately run away on this one
Especially in this market 
I feel for the poor buggers that jumped on when she hit her highs 

cheers P.


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## foxyshres (20 August 2008)

Opinions people? A good buy at this price or 2 risky? Very little dialogue on this one given recent events!


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## nioka (20 August 2008)

foxyshres said:


> Opinions people? A good buy at this price or 2 risky? Very little dialogue on this one given recent events!



 When there is something new on TTY you will progably hear about it first on ASF. No news probably means no good news.


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## StatsMan (14 September 2008)

foxyshres said:


> Opinions people? A good buy at this price or 2 risky? Very little dialogue on this one given recent events!




I think this still has potential as a good stock.  The iron ore operations look like they will be quite profitable, but at the moment the mine life is quite short.  Hopefully, further drilling will increase the resource size and mine life.  As for the mess with Monarch Gold etc, it seems that the new board are trying to move on and focus on reliable, profitable business opportunities.  This is a good thing for a smaller company.  I bought some and plan to buy some more at the current price, but I wouldn't go putting al of your eggs in this basket, there is obviously some risk associated with backing a smaller player.


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## oldblue (15 September 2008)

A few days ago TTY were queried by the stock exchange re their statement to the effect that their $24.5m loan to failed miner, Monarch Gold, was " not material". This from a company with a market cap of about $135m!
I'd be waiting to see what comes of this, although it looks like the $24.5m is lost, not to mention the original equity investment in Monarch, before getting involved.


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## nioka (15 September 2008)

oldblue said:


> A few days ago TTY were queried by the stock exchange re their statement to the effect that their $24.5m loan to failed miner, Monarch Gold, was " not material". This from a company with a market cap of about $135m!
> I'd be waiting to see what comes of this, although it looks like the $24.5m is lost, not to mention the original equity investment in Monarch, before getting involved.




Can I suggest that the loss with Monach has already been factored into the SP or TTY. The change of management has probably also corrected the problem to an extent. Therefore it should not mean a further drop in the SP but it is also the reason for there not being a chance of an immediate upside. ( personal opinion DYOR.)


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## oldblue (15 September 2008)

nioka said:


> Can I suggest that the loss with Monach has already been factored into the SP or TTY. The change of management has probably also corrected the problem to an extent. Therefore it should not mean a further drop in the SP but it is also the reason for there not being a chance of an immediate upside. ( personal opinion DYOR.)




I agree, nioka.
I'm no techie but to my untrained eye the TTY SP appears to be in a longterm downtrend since last December. I'd be looking to see this broken before getting too excited.


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## SenTineL (19 November 2008)

I forgot to post this but Fat Prophets receommended it as a hold in the last week or 2, will post more details as i have them.

I can't see many companies recovering shareprices from these lows


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## oldblue (19 November 2008)

SenTineL said:


> I forgot to post this but Fat Prophets receommended it as a hold in the last week or 2, will post more details as i have them.
> 
> I can't see many companies recovering shareprices from these lows




No, it doesn't look too promising. Market cap now down to $38m, price and demand for iron ore falling out of bed. Time for big shareholder - Nobles? - to come to the rescue?


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## Motogoon (20 November 2008)

SenTineL said:


> I forgot to post this but Fat Prophets receommended it as a hold in the last week or 2, will post more details as i have them.
> 
> I can't see many companies recovering shareprices from these lows




Ha! Fat Prophets, probably some more irresponsible advice from them, they also said tty was a good buy at .80c!

They may be right this time but their recommendations in the last few months have been a sea of 70-80% losses & i certainly won't be holding anything because they said to!


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## inenigma (9 March 2009)

S&P have removed TTY from the All Ords Index

They've also removed Oceanagold Corporation (OGC) from the All Ords Index, didn't that come close to winning last month's comp ??


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## happytown (1 June 2009)

ann out before open this morning regarding a resource upgrade at frances creek



> ...
> 
> *112% increase* in the resource estimate for its flagship Helene 6/7 Deposit, the principal source of high-grade ore at its 100%-owned Frances Creek Iron Ore Mine, located 200 km south of Darwin in the Northern Territory.
> 
> ...



potentially the only good news s/holders in this co have had for a long time

that and the fact they use swick for their drilling

sp currently up approx 7% on neither here nor there volume

cheers


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## oldblue (1 June 2009)

happytown said:


> ann out before open this morning regarding a resource upgrade at frances creek
> 
> potentially the only good news s/holders in this co have had for a long time
> 
> ...




What is the significance of them using Swick?

I'm interested, being a SWK shareholder. ( Hope TTY are paying their bills!)


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## trainspotter (20 July 2009)

Roll on the 12th August. Hopefully by then a deed of agreement can be reached with their financiers. Clearup some debt and start moving forward !


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## MR. (27 August 2009)

12 August 20..... ? 

Click TTY from time to time, but nothing to see..........  suspended.......

Perhaps by the time she starts trading again the boom will have returned!


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## trainspotter (21 October 2009)

Back in the market .... heady start and made 28 cents .... finished at 22.5 cents with near 3 million changing hands. Whoooooeeeeeeee ... got out for cost on this one. (less brokerage fee of course) Cheque is in the mail.


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## nioka (30 July 2010)

As a TTY holder I was interested in the following news item"


"The Kanatarka State Government of India that mines 
46 Million Tonnes of iron ore each year and exports 60% of this ore has officially announced the ban of Iron Ore from 10 of its ports to China and has urged the other Indian mining regions to do the same.

The Kanatarka share of Indian iron ore exports is approx 27Mt, out of the total 100Mt that India exports to China. 

This is now GONE from the world Seaborne Trade as of Monday!

At the minute with subdued Iron Ore demand this will provide a floor to the Spot Price of Iron ore of around $110 per tonne, $23 less than current spot price, but when demand rises in next 4 weeks for the peak season the supply shortage of 27Mt will increase the peak price of the ore!

If more Indian States join the ban the price of Iron Ore will spike!

http://www.dnaindia.com/bangalore/report_karnataka-government-bans-export-of-iron-ore-from-10-ports_1415194"


This should be good for the small iron ore miners that sell on the spot market as does TTY.

TTY is climbing out of the black hole it found itself in. Debt to Noble is slowly being paid back and its reserves are increasing. It will soon be operating with surplus funds. Hopefully the new management will not squander the profits as was the case with TTY in the past. The SP is starting to reflect the positive results and in my opinion it will continue to improve further as the debt is paid.


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## trainspotter (30 July 2010)

High activity but still in decline. Hopefully as nioka pointed out they will be able to trade back with a surplus.
Code Last % Chg Bid Offer Open High Low Vol 
TTY 0.260  *-5.45% * 0.260  0.270  0.270  0.275  0.260  373,137


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## nioka (2 August 2010)

The release of an upgrade to reserves has had a great reception on the market today with a 20% increase in the SP. News report (company announcement) as below.

"Territory Targets Further Mine Life Extensions with a $4.67M Exploration programme underway toextend mine life beyond 2014
Australian iron ore producer Territory Resources Limited (ASX: TTY – “Territory” or “the Company”) is pleased to advise that a re-optimisation of the deposits has extended the mine life at its 2 Mtpa Frances Creek Iron Ore Mine in the Northern Territory with a 50% increase in Ore Reserves that will
underpin continued iron ore production at the mine until at least 2013.
Territory said today that is has also unveiled a three-pronged programme to further extend the mine life at its operation at Frances Creek. A budget of $4.67 million has been approved for the 2011 financial year to aggressively explore for and develop iron ore resources both in the near-mine environment and within a 35 km radius of the Frances Creek operation.

50% Ore Reserve Upgrade
The Ore Reserve upgrade follows a re-optimisation of the existing resource inventory after taking into account recent increases in the iron ore price as well as earlier product specification changes, and the inclusion of scalps and low-grade stockpiles. In addition, the Fe cut off grade has been reduced to 50% at all deposits to be consistent with the head grade cut-off at the flag ship Helene 6/7 deposit.
The Company has taken the opportunity created by the new market metrics to change the mining parameters at Frances Creek to access more of the Company’s resource inventory. The new metrics have allowed for a re-assessment of the pit shells and optimisations as higher iron ore prices have
allowed access to deeper ore that was previously uneconomic to extract. The new, larger pit shells have higher strip ratios and costs but allow for the Company to increase the value and return on the Resources.
The re-optimisation has resulted in conversion of additional Indicated Mineral Resources to Ore Reserves, increasing the total Probable Ore Reserves at Frances Creek as at 30 June 2010 to 5.69 million tonnes grading 57.8% Fe, 0.10% P, 8.8% SiO2 and 3.5% Al2O3."


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## prawn_86 (2 August 2010)

Is Keirnan still involved in these guys?

I would never invest in a stock he is involved with, as for him it seems more about directors wages and free shares than creating shareholder value.


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## nioka (2 August 2010)

prawn_86 said:


> Is Keirnan still involved in these guys?
> 
> I would never invest in a stock he is involved with, as for him it seems more about directors wages and free shares than creating shareholder value.




No. I sold out because of his management and investing style but bought back in recently when it was obvious that TTY had a good reliable partner in Noble, Keirnan was gone and new management appeared to have a sound plan to return the company to profitability. TTY are reducing debt at a great rate and will soon have some decent cash to work with.

A different TTY to that of the past. Their bad reputation kept the SP at a low level for some time allowing a cheap entry. That bad reputation is slowly disappearing. That is how I see TTY.


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## nioka (4 August 2010)

Iron ore output drop keeps markets tight: UNCTAD

Topics:Commodities.On Friday 30 July 2010, 20:19 SGT 

Iron ore output fell in 2009 for the first time in seven years despite continued growth in trade to record levels, keeping market conditions tight and prices high until 2012, a UN thinktank said Friday.

Global output of the raw material for steel fell by 6.2 percent year-on-year in 2009 to 1.588 billion tonnes, the UN Conference on Trade and Development (UNCTAD) said in a report on the iron ore market.

China, once the world's largest iron ore producer, was only the fourth largest producer with output of 234 million tonnes last year behind India (257 million tonnes), Brazil (300) and Australia (394).

The report said mining output declined in most countries last year except Australia and South Africa, while Chinese domestic production was expected to fall even further this year due to widespread mine closures.

Nonethless, trade in iron ore reached a record 955 million tonnes in 2009, growing by 7.4 percent over the previous year largely thanks to increasing Chinese imports, UNCTAD added.

Australia exported the equivalent of 92 percent of its output, an increase of 17 percent, ahead of Brazil and India.

The report cautioned that supply would continue to lag behind demand in the short term, while pricing had become more obscure following the breakdown of an annual benchmark negotiation process on iron ore markets earlier this year.

"We think that this year and next year the world iron ore market will be characterised by tight conditions," said UNCTAD official Alexei Mojarov.

Mojarov predicted that new iron ore mining capacity coming online would gradually bridge the gap with continuously growing demand over the coming years.

"We believe that in the future the supply will gradually catch up and prices will gradually decline from present extreme levels but will stay at a higher level than 2008," he told journalists.

The report said 75 million tonnes of new cpacity came on tap last year, with 685 million tonnes expected to come onstream between 2010 and 2012.

The annual report was compiled by UNCTAD and Swedish mining analysts Raw Materials Group.


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## nioka (5 August 2010)

Here is some TTY news that is worth a read.

http://au.news.yahoo.com/thewest/bu...revived-territory-on-lookout-for-second-mine/

Just two years after being forced to the brink of collapse, Territory Resources plans to spend at least $500 million acquiring and developing a second iron ore mine.

The iron ore miner has spent much of this year running the ruler over iron ore projects around the world, particularly in Australia. Hong Kong commodities trader and Territory's biggest shareholder Noble Group, which will bankroll the acquisition, is also understood to be interested in Africa and is pushing for a deal to be done sooner rather than later.

In a fillip to the iron ore junior's credentials as one of the best turnaround stories of the year, Territory chairman Andrew Simpson said the company expected to be debt free by the end of this year if iron ore prices remained stable.
In the meantime, he said, the focus was on acquiring a project that could be brought into production within three years and generate minimum annual production of five million tonnes.

Speaking on the sidelines of the Diggers & Dealers conference in Kalgoorlie-Boulder yesterday, Mr Simpson said Territory's ideal project would probably cost at least $500 million to buy and develop.

Although the company hopes it can clear its debts by the end of the year, the acquisition is not contingent on the debt being repaid.

Mr Simpson and managing director Andy Haslam will fly to the Eastern States next week for the company's first roadshow in two years in a bid to sell its vision of a debt-free, two-operation Territory.

Territory's Frances Creek mine in the Northern Territory has enough ore to run until at least 2013, based on production of 2mtpa.

Territory came near to collapse amid the global financial crisis when a series of inter-company loans left it crippled by debt. It was thrown a lifeline late last year by Noble, which agreed to take on the company's most pressing debts.

Mr Simpson told the conference yesterday that when he inherited the chairmanship of Territory, its iron ore mine was "easily the highest-cost operation in the world" and its portfolio was a mixed bag of assets, most of which have since been sold. "The only thing those projects had in common is that they were burning cash faster than Tiger Woods on a Saturday night," he said.


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## earthgas (23 January 2011)

This stock is relatively quite compare other Iron ore stocks in recent time, I believe it is a reasonable time to entry or accumlate. Noble group should be a great partner to have, but I guess the market is still reluctant to give it a huge re-rating due to the previous finance problem. I am happy to hold, and buy more. DYOR.


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## J&M (24 May 2011)

Big jump today up over 50% 

Territory Resources announced that the company and Exxaro Resources, a South African-based mining group listed on the Johannesburg Stock Exchange, have executed a Bid Implementation Agreement under which Exxaro will offer to acquire up to 100% of the FPO shares in the company by way of an off-market takeover bid at $0.46 per share. In the absence of a superior proposal, the offer is recommended by a majority of the Territory Board. Furthermore, each recommending director has agreed to accept the offer with respect to all shares owned or controlled by them. The company also reported that it has now ceased discussions with Noble in relation to the non-binding proposal announced on 10 May 2011. Territory Recommeds A$0.46 Cash Per Share Takeover Offer (Requires Adobe Acrobat Reader)


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