# CCI - Chrome Corporation



## johnmwu3 (21 August 2006)

CCI got a huge volume today, maybe soaring next. Anyone know the reason?


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## Alfredbra (21 August 2006)

Very interesting big volume the last few days perhaps an announcement is about to be released? Inside trading maybe?


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## Alfredbra (27 August 2006)

Do you hold john? Looking from the charts it would be so easy to day trade with this stock as we see occuring patterns.


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## Ken (29 September 2006)

Any updates on this stock?

Had biggest volumes for a while on the whole of the asx and has since dropped off.

I got a tip off a mate not long ago about CCI, turns out it was the other CCI holdings.


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## Alfredbra (29 September 2006)

Been watching them every day. Dont know much about the company myself however just have been lookin at the charts. CCI ranges from 14% up or down when it moves, so I say it would be good for quick short trades however there is high risk obviously. Anyone know much about the fundamentals of this company and what we can expect the sp to do in the following months? I am so tempted to buy in right now.


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## Out Too Soon (22 November 2006)

Is it a buying op at the moment? Wouldn't matter if it was for me, as per usual Pestpac brokeng is pacdup.


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## Out Too Soon (13 February 2007)

How low can a sp go before a co disapears into nothingness???  
having released another quadrillion shares start of this month to pay the secretarys retainer the sp dropped .005 to .004   . 
I wish I could short stocks, this one is a sure thing, 25% drop next mth when more shares are released to pay that sassy secretary.(& the office rent).


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## cmh888 (7 July 2007)

I am a member of a trading group and we have been running for 9 months. We currently hold OXR, BMN, QOL and CCI (previous trades have been PDN, HVN, PST, AGX, TOE).

I am wondering if anyone has any opinion on CCI (Chrome Corporation). I am considering selling BMN (Bannerman) to accumulate more CCI.

We bought CCI at 12c a few weeks ago and they closed on Friday at 16.5c. The reason we decided to buy CCI was:

1. The company has been idle for some years (over 10 yrs), but recent announcements are encouraging re. recommencing mining (chromite).
2. The company previously mined underground which was expensive, and at a time when chromite prices were very low. During this period, share price was as high as around $3.00
3. The new proposed form of mining will be open-cut (much less expensive), and chromite prices are much higher.
4. The area the company will be mining holds over 50% of the world's chromite deposits.
5. The company is expecting mining approval from the Department of Mining and Energy between now and October, at which time mining will commence immediately.

Any feedback would be appreciated. Sell BMN and accumulate more CCI???


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## nioka (8 July 2007)

It would have been a good one to have in the stock comp. 800% rise. Where it will go now is a guess. Ask YT he's the guru. Did it have a capital reconstruction though. I believe it did.


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## Ruprect (8 July 2007)

I think it was a 1 share for 20 held restructure from memory. And given it was trading at around .005 prior to that, its friday close of 15 or 16c isnt a bad result. Not sure long term, it was on my watchlist, but havent paid much attention to it lately.


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## cmh888 (8 July 2007)

Yes that's right, there was a 1 for 20 consolidation. Trading after the consolidation started at 12 cents, and Friday close was 16.5 cents (over 30% increase). It seems reasonable to me that an idle company (not mining, not income generating at all) which is recommencing production, has nowhere to go but up in share price terms??? Like I said, I currently hold these shares and am probably going to accumulate more this week - maybe this is wishful thinking! 

CCI doesn't satisfy any of my normal trading criteria, but there are lots of green lights for this company leading up to mining approval between now and October (a bit like Queensland Ores QOL in terms of an expected increase in value leading up to the opening of their Moly mine). 

Also, for the share price to be up around $3 previously at a time when operations were expensive and chromite prices were low, it would seem reasonable that lower cost production and higher income from chromite would resurrect this sleeping beauty. I have my fingers crossed.


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## Alfredbra (10 July 2007)

I bought 26,150 CCIO last year and haven't looked at anything since today and I still have them there. Can I sell them or exercise them or whats the go?


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## Rimtalay (14 September 2007)

China chrome ore import in 7 months up by 38.3% YoY 


It is reported that China’s chrome ore imports climbed in January to June 2007 to 2.834 million tonnes valued at USD 620 million up by 38.3%YoY and 86.3%YoY respectively as compared with the same period of 2006. Import price averaged USD 219 per tonnes up by 34.7%.

South Africa and Turkey are the top exporters with 802,000 tonnes and 558,000 tonnes respectively up by 140% YoY and 88.4% YoY. The two countries provided 48% of China's total imports during the period. Imports from India dropped dramatically by 32.8% YoY to 521,000 tonnes owing to export quota and export tariff.

Increased prices and higher import volume can be attributed to the following reasons.

1. A severe undersupply emerges in China's domestic market as its crude stainless steel output registered 5.3 million tonnes in 2006 up by 68%YoY. The figure is expected to grow to some 7 million tonnes this year. However, the country's proven reserve of chrome ore merely recorded over 10 million tonnes and few of them can be exploited due to inconvenient transportation and high exploitation costs. In such a case imported chrome ore become the main sources to feed domestic demand. 80% of the consumption is derived from overseas resources and China thus becomes one of the major importers of Cr ore.

2. Exporters are negatively affected by policies. India was the largest exporter to China, but it began to impose an export tariff of INR 2000 per tonnes (USD 44 per tons) on chrome ore from this March 1st 2007 following the release of export quota. Average import price for Indian chrome ore thus gained by 68.6%YoY to USD 293.6 per tonnes in January to June 2007. China then turned to South Africa and Turkey for resources yet Turkey followed India to raise export price. Besides, South Africa adjusted policy in a bid to export high value added ferrochrome instead of raw materials such as chrome ore to China.

3. Ferrochrome price advances prop up chrome ore price. Stainless steel producer have agreed with South Africa on price hike of USD 0.08 per pound in Europe and USD 0.07 per pound in Japan for the second quarter. Export price for South African ferrochrome has risen to some USD 0.9 per pound hitting a new high. This also drives up chrome ore price.

Against such a backdrop, a united import strategy should be framed to raise China's pricing power in chrome imports. The country should also broaden import channels and accelerate reserves. Besides, is should speed up the research and development of substitutes and set up recovery system to promote reutilization.

China had imported 4.321 million tons of chrome ore in 2006 up by 42.9%YoY.


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## ands (24 September 2007)

hehe... up 0.5c (4%) with a volume of 2 today! 13c now, but what happened to this stock it was taking off for no reason (up to about 23c) just before the recent market correction and since the market has recovered, this stock has done no such recovery. Was there anticipation of some good news back then or ppl seeing good value? When are they hoping to get the Ruighoek Project up and running?


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## Rimtalay (9 October 2007)

Going bush in South Africa 


Friday, 5 October 2007

CHROME Corporation bought an old mine in the bushveld for $8 million and is bringing it back into production. By Tim Slater - RESOURCESTOCKS* 



An example of a typical open cut chrome mine 


Chrome Corporation managing director Brian Thomas 


The Ruighoek Mine is located in the Western Bushveld of South Africa 

About two hours drive northwest of Johannesburg at the Ruighoek Mine in South Africa's Western Bushveld, Chrome Corporation is preparing to process bulk samples in a trial mining program.

Later this year, it aims to begin commercial production of about 300,000 tonnes of chrome per annum, targeting the global non-metallurgical chrome market.

It expects to be granted a mining right for open cut operations in October or November.

Chrome Corporation managing director Brian Thomas said a chromite seam on the Ruighoek Farm had indicated resources of 5 million tonnes of chromite plus a further 23Mt of inferred resources. 

The company has identified a significant resource in another chromite seam which it believes could extend the open cut mine life by another two or three years.

It acquired the Ruighoek mine in 2005, raising the funds by offering $6 million in listed convertible notes and $2.25 million in loan notes. 

Chrome Corp has raised a further $5.5 million in equity since from retail investors to fund a feasibility study, site maintenance, permitting, debt servicing and partial debt repayment.

Thomas said getting the mine to an almost operational condition has taken much longer than expected, due mainly to the exhaustive regulatory requirements of the Department of Minerals and Energy.

These have included finding a reputable Black Economic Empowerment (BEE) partner, Aka Capital; transferring the mine's prospecting rights under the new South African Mining Act of April 2005; preparing environmental assessments; and working with contractors in the emerging small company mining consultancy industry to complete feasibility studies. 

Thomas said BEE partners must hold 26% equity in mining projects and reputable partners are hard to find. 

"One of the great challenges of working in South Africa is finding a good BEE partner. There are plenty of people who purport to be BEE partners but finding good ones is hard," he said.

"We thought we had one back in the middle of 2005 but their demands became absolutely untenable so we broke off negotiations and started the search for another."

That's where having good industry contacts in the country is handy. Chrome Corporation chairman Richard Linnell, who has extensive experience working in South Africa with Billiton and its subsidiary company Samancor, introduced the Chrome team to several other potential BEE partners.

"Eventually we found Aka Resources, owned by Aka Capital and chaired by Reuel Khoza, who has good connections in the South African business community," Thomas said. "He is also the chairman of Nedbank and a board member of the Johannesburg Stock Exchange."

Chrome is a bulk commodity industrial mineral used primarily in the manufacture of stainless steel, with 90% of the world's production of 20 million tonnes (2006) of chromite used in this process. The remaining 10% is consumed in the refractory, chemical and foundry industries. 

South Africa's Bushveld Complex holds 80% of the world's reserves of chromite and is the site of more than 50% of the world's production. 

The Ruighoek Mine hosts extensive infrastructure, including two decline mine shafts, a decommissioned concentrator, mine offices, stores, workshops and a 42-house township, which have all been maintained securely since the mine's closure in 1993. 

The area is serviced by grid power, telecommunications, roads and a railway siding 45km to the south. 

The deposit itself occurs in a series of flat-dipping, parallel layers that occur throughout the Bushveld igneous complex.

Most of the mining operations will be carried out by contractors with Chrome Corporation employing a mine manager, samplers and a surveyor.

Chrome had considered building its own treatment plant for chromite at an estimated cost of $5 million, but it is now considering an offer from a neighbouring producer to use its facility and will be processing at least two bulk samples at the plant as part of the trial pit process.

Thomas said after researching the international chrome market, which is dominated by three ferrochrome producers – Xstrata, Samancor Chrome and Kazkrom – the company decided to target the bulk of its product at the smaller non-metallurgical foundry, chemical and refractory market.

"Back in 2005 we had a good think about where we were positioned in the chrome business," he said. "We were originally going to just mine chrome, wash it, stick it on a ship and send it to China, it was going to be real simple.

"But we didn't understand the dynamics of the chrome market which is a managed commodity and is dominated by the three main players which control between two-thirds and three-quarters of the global chrome market." 

Thomas said because of the dominance of the big three producers, small chrome producers were virtually price takers. "That is not a nice place to be because you have no bargaining power whatsoever," he said. 

"After we had done the research, we realised the big guys are not interested in this end of the market because they are vertically integrated with their own mines, ferrochrome furnaces and sales divisions to the stainless steel industry. 

"They are not really set up for what they think of as niche products, which suited us."

Foundry sands are used to make castings in foundries, the chemical grade is used for a variety of products including car accessories, and the refractory grade is used in foundry applications because of the metal's high melting point. 

Targeting the global non-metallurgical market, estimated to be about 2Mtpa, also tied in with the mine's estimated annual gross output of 300,000tpa, net non-metallurgical product of about 200,000t.

"We were going to be 10% of the market which is a very big number when you think about an industry which is very well managed," Thomas said. 

"We decided that 300,000t was a good target and that would probably get us in that 150,000-200,000t a year of non-metallurgical chrome and wouldn't disturb the market.

"But more importantly it doesn't destroy our own market because there is no point flooding the market."

The company's exclusive sales agent in South Africa, Metalloy Trading, has negotiated letters of intent with three off-take parties to purchase the chrome products and negotiations are continuing with two other groups. 

A majority of the chemical and refractory grade product will be sold to consumers in Europe and the US, with the foundry sands being sold to both local South African consumers and global customers. 

Chrome Corporation was listed in April 2005 after WA-based mineral explorer Preston Resources acquired a 100 per cent interest in the company, which was previously privately owned.

The original Chrome Corporation was formed to buy the old Ruighoek Mine from private South African company EBCK. The mine was previously owned by Batlhako Mining, a subsidiary of Samancor, which is jointly owned by BHP Billiton (60%) and Anglo American (40%). 

Samancor's interest in Ruighoek ceased in early 2004. Plummeting chrome prices had forced the closure of the mine in 1993, when it was producing chrome ore at the rate of 75,000 tonnes per annum using traditional hand-held underground methods.

But times have changed and the chrome price, set through bi-lateral agreements between producers and consumers, has more than tripled in the past 15 years from a low of $US65/t in 1993 to over $US200/t this year. 

The price rise is the result of the huge increase in stainless steel production and the recent trend of substituting chrome for nickel in stainless steel due to soaring nickel prices.


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## Rimtalay (17 November 2007)

Chromite supply problems mount.
Print This Page E-Mail 
11/16/2007 07:10:52 AM EST
CHEMICAL BUSINESS NEWSBASE - INDUSTRIAL MINERALS

The unexpected shutdown of Benguet Corp's Masinloc chromite mine in the Philippines has aggravated the already tight chromite supply situation in Asia'. Operations at the Masinloc mine, the Philippines' sole producer of refractory grade chromite with a capacity of 100,000 tonnes/y, have stopped abruptly with no official announcement from Benguet's management. The owner of Cofermin Rohstoffe GmbH, a European chromite trader which has a contract with Benguet, said that the mine was reportedly flooded and investment was required to pump the water out. The closure has generated much confusion as chromite demand has been particularly strong. The mine's output is exclusively dedicated to the refractory market. The mine, which is also called the Coto chromite deposit, is also a supplier to the Asian market, where chromite is enjoying robust demand. China, in particularly, is using increasing amounts of metallurgical grade chromite, which is produced as a by-product of refractory-grade chromite. China's booming stainless steel industry has helped drive prices for non-metallurgical grades of chrome. Some players are hopeful that the supply situation would improve with the discovery of new chromite sources. Lanxess said that its ore reserves increased 80 M tonnes following additional exploration in its Rustenburg chromite mine in South Africa's North West Province. The UK's Chromex Mining Plc is also set to start work on the Mecklenburg Project to mine chromite ore, while Oregon Resources Corp is working to develop a heavy minerals production in Oregon, USA, including production of surface-mined chromite ore.


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## cmh888 (17 November 2007)

Rimtalay said:


> Chromite supply problems mount.
> Print This Page E-Mail
> 11/16/2007 07:10:52 AM EST
> CHEMICAL BUSINESS NEWSBASE - INDUSTRIAL MINERALS
> ...




Interesting - the timing that is. CCI got as high as 16c this week. A huge percentage increase in a short period of time. Thanks for that article, and the last one you posted. I am holding and hoping.


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## ands (5 March 2008)

I can't believe after all this time waiting for the Ruighoek Project to come online as a mine, CCI are going to sell it to AMCOL with shareholders receiving a discount to the current share price. I love the sound of the line in the announcement, "The Company intends to retain sufficient capital to conduct a detailed assessment of an increasing number of global resource opportunities...".  I bet that just means the directors will receive more from this offer then the shareholders. Another case of directors looking after themselves over the shareholders.


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## cmh888 (5 March 2008)

I agree. Very disappointing. I offloaded my holdings at 18 cps when the announcement came out today. They will payout UP TO 15 cents per share to shareholders. Lots of gray area in that announcement (i.e. a lot of room for the company to do other than what they suggest in the announcement). Can't complain though, bought in at 12cps so that's a tidy 50%


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## cmh888 (8 March 2008)

*Serious Misconduct by Chrome Corporation - CCI*

I, and many other CCI holders, sold up on Wednesday the 5th of March on a very negative price-sensitive announcement by this company. The announcement was 'amended' two days later (too late for most). The links to these announcements are below. I have also added the text from the complaint I have lodged with ASX and ASIC. I would strongly encourage others who held CCI and sold on the 5/3/08 announcement to do the same.

*Link to announcements*

http://www.asx.com.au/asx/research/...s.jsp?searchBy=asxCode&allinfo=on&asxCode=CCI

*Details of complaint, as lodged to ASX and ASIC*

_On the 5th of March 2008, company CHROME CORPORATION (CCI) released a price-sensitive announcement stating that they were selling their mining project, and that the proceeds of the sale would 1. repay debt, 2. fund future interests, 3. payout shareholders at UP TO 15 cents per share.

At the time of the announcement CCI shares were trading at around 18 cents per share. Given the figure of “UP TO 15 cents per share”, I (and many other CCI shareholders) sold on the logic that 18 cents per share was more profitable than 15 cents per share. I watched as the share price plummeted, and as millions of shares were off-loaded by investors.

Two days later (7th March 2008), the company released another price sensitive announcement. The company wished to “clear up any confusion” from the previous announcement, and declared that the proceeds from the sale would equate to shareholders receiving 28.5 cents per share, and 24.4 cents per share following repayment of debt – a difference of almost 10 cents per share from their original announcement two days before.

The volume of shares traded for this company (and in relation to this company’s average daily volume) was phenomenal on release of the first announcement. Investors were selling their stocks quickly, and with good reason. However, Chrome Corporation’s massive error in (simple) calculation announced two days later would have most likely seen these investors hold their shares to make an additional >70% profit! I certainly would have.

I would like to know how such a gross miscalculation could be made by the company. I would like to know who was buying these millions upon millions of shares that were off-loaded on the 5th of March (and why they would buy them for a premium of between 16 and 18.5 cents per share when the company announced that they would only pay shareholders out at UP TO 15 cents per share). I would like to know why, 9 days prior to the initial announcement, Merrill Lynch & Co. became a substantial holder (form signed on the 7th of March when the amended announcement was released)._


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## ghostworld (8 March 2008)

If I were you, I would also contact the media. I'm sure the financial review would be interested in doing a dodgy management story.

Their reasoning was unclear as to why the original market update was much lower than the latest one.


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## cmh888 (8 March 2008)

Yes, I think I will forward my complaint on. Thanks for that idea. I am so furious about this. The worst announcement of the year = the highest buy volume of the year, and at prices which defy any financial reasoning (unless you know something the general public doesn't!). I smell a big fat rat.


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## ghostworld (8 March 2008)

cmh888 said:


> Yes, I think I will forward my complaint on. Thanks for that idea. I am so furious about this. The worst announcement of the year = the highest buy volume of the year, and at prices which defy any financial reasoning (unless you know something the general public doesn't!). I smell a big fat rat.




Depending on who the buyer's are and if they now hold a majority share in the the company, the recent announcement could have been used for an arbitrage play.

They either made an educated guessed or know someone privy to the company's accounts that the sale receipts less liabilities were going to be more that 16c. It is only illegal if they used insider information. 

For the company's management and directors however its a different story. The announcements they released were unclear and the 10c discrepancy needs to be better explained (if they can explain it at all). Looks like they may have been either fraudulent or negligent. 

Hopefully the regulators get to the bottom of this.


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## bvbfan (9 March 2008)

I read the announcement as it came out and I understood that a capital return was likely upto 15c. I didnt't read the announcement saying the company was worth 15c.

I don't know what other projects CCI has but if they had any they may be worth more than 1-2c a share, heck even the shell could be worth 500K or  so


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## ta2693 (10 March 2008)

Cmh888. Are you still going to lodge the complaint on you 18c trading price?
Today's price is only 17.5c. The ppl who sold at 18c are actually better off.
Why is it the case given the 41m asset sell announcement making the price 24.4 per share.


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## cmh888 (10 March 2008)

Yes, have already lodged the complain, and with good reason.

The first announcement stated that on selling their mining project (their *only *project), CCI would repay debt, keep some funds to scout new areas of interest, and return UP TO 15cents per share to shareholders. After this sale, the company is worth nothing. It will then become one of the thousands of prospecting companies, from my understanding. I think it is very suspicious that hundreds of millions of shares were traded down on the first announcement (compared to the company's average daily trading volume). These trades obviously had to be met with way 'out of the ordinary' buy orders. For the company to announce two days later that their return of UP TO 15 cents per share was, in fact, incorrect by over 70% (in the negative), was absolutely negligent and, in my opinion, highly suspicious given the extra-ordinary volume of buy order placed at prices which were higher than the return the company had announced on the 5th of March.

The other dirty act on the part of CCI when it came to these announcement is that the company has really put share holders over a barrel. The sale of the mining project has to be approved by shareholders, yet shareholders really don't have any option BUT to approve it - they have already gone ahead and borrowed the $6 million from AMCOL to redeem convertible notes, which is repayable from the proceeds of the sale! If the sale doesn't go through (i.e. if shareholders don't approve it), then CCI is is debt to AMCOL to the tune of over $6 million (some penalty fees there). With the company's already poor financial situation, the share price will absolutely plummet. So the only real option is for the sale to be approved.


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## Rimtalay (13 April 2008)

Chrome Corp is in play, chrome ore is fetching record prices. There are other companies looking at this project. Don't be too quick to sell your shares.


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## TheAbyss (26 May 2008)

One sale prospect down and a new one with an additional 25% premium arises plus two other interested parties.

Well spotted Rimtalay "Chrome Corp is in play, chrome ore is fetching record prices. There are other companies looking at this project. Don't be too quick to sell your shares. "


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## YOUNG_TRADER (26 May 2008)

Hey guys,

Just saw this before 

I've taken a small position at 24.5c, looks like an arbitrage play to me

They have a takeover offer of $51m cash 

They owe $6m 

Net offer = $45m cash

*145m shares on issue = 31c value*

Looks like arbitrage to me, this is the second cash offer and is trumping a previous offer of $45m, in addition the company has recieved anohter 2 expressions of interest for the project, if a bidding war ensues it would be great for shareholders

Thoughts?

p.s. sorry about posting so late, its been a busy day


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## michael_selway (26 May 2008)

YOUNG_TRADER said:


> Hey guys,
> 
> Just saw this before
> 
> ...




Hm what is Chrome? are there any up to date price history charts?

thx

MS

Business Description 
Chrome Corporation Limited (CCI, formerly Preston Resources Limited) is a minerals exploration and development company, focused primarily on the Ruighoek Chrome project in South Africa.


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## TheAbyss (26 May 2008)

A lot of info on CCI plus on the Chrome industry and product including price over time etc in their AGM preso as per attached link

http://www.chromecorp.com/investors/presentations/cci_agm_pres_nov07.pdf


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## kenny (26 May 2008)

Hi Michael,

CCI has about 143.56 million shares, was reconstructed out of the ashes of a  WA nickel play (Bulong) and the directors picked up the Ruighoek project from Biliton/AngloA for about $8 million back in 2005. This was covered by about $6 million in convertible notes.

They've done a feasibility study to demonstrate the presence of about 1.5 million tonnes of chrome (~44%) which should be more than enough to justify an open pit setup. I think Bil/Anglo had previously done some underground mining of the chrome back when it was much cheaper per tonne. This was why they moth balled the plant.

The Ruighoek plant is not far from Johannesburg and near other chrome plays. Note that CCI also have exploration rights to surrounding areas and also significant tax losses from the Bulong nickel mess in a past life.

I hope this helps as a starter. I don't hold CCI currently but am looking again.

Cheers,

Kenny


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## YOUNG_TRADER (1 July 2008)

Having originally bought these at 24.5c I bought a few more at 20c and more today at 17c, avg is now 19c

Today the company announced that the original all cash takeover will be going through

and that after Tax, cots, loan repayments and all other matters the company should still have about *$31m in the bank = 21c-22c*

Am I missing something here?

Surely a company with this much cash  should trade at least close to cash backing? not at such a discount

Also this is a mining company that has a huge cash war chest and management that have shown they can buy a cheap prject and sell it for a profit

Will be interesting to see how this all unfolds


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## ta2693 (1 July 2008)

I am burnt by this one too. How come it come to 15c 
My explanation may because of the politic situation of south Africa. The riot and  chao affects all companies doing business in South Africa.


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## YOUNG_TRADER (2 July 2008)

ta2693 said:


> My explanation may because of the politic situation of south Africa. The riot and  chao affects all companies doing business in South Africa.




Hi Ta,

They're selling their project in South Africa, so really what happens there shouldn't concern us,

What the company will effectively be is a big cash box and given how hard it is these days to raise cash I reckon that they should trade at a premium to cash

Also managment have sorta proved themselves as wealth creators via the acquisiton and then profitable sale of this project

After Tax, cots, loan repayments and all other matters the company should still have about *$31m in the bank = 21c-22c vs 16c SP * is the market really this ineffcient and out of whack at the spec end?


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## urgalzmine (2 July 2008)

YOUNG_TRADER said:


> Hi Ta,
> 
> They're selling their project in South Africa, so really what happens there shouldn't concern us,
> 
> ...




Hey YT

on Commsec it shows that CCI has 1672 million shares outstanding in june 2007.  But according to this website: http://investing.businessweek.com/businessweek/research/stocks/snapshot/snapshot.asp?capId=5415927

They have 143 million outstanding shares???


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## bvbfan (3 July 2008)

They consolidated the share structure earlier http://www.stocknessmonster.com/news-item?S=CCI&E=ASX&N=366002


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## kenny (3 July 2008)

My suspicions as to the causes for the sp weakness and sub NTA trading:

1. The loss of blue sky premium afforded by the potential for a bidding war by other suitors for the Chrome project.

2. The lack of firm direction for the company post sale.

3. The usual suspects of market weakness and exit of quick money.

Most of all though, I think when the management formally announce commitment to the return of capital and the clearance of debt (convertible notes) then we should see a strengthening in the sp. Even better if we hear about what wealth creating strategy CCI will be taking in the future.

Markets can be leery and wary of management who have funds burning a hole in their pockets and no dedicated plans. There is perceived risk in someone rushing out to spend the funds on the latest fad sector.

regards,

Kenny


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## YOUNG_TRADER (3 July 2008)

Still 22c in cash is 22c in cash

and the company has indicated they will be giving back up to 15c of that, so buying at 15c-16c gives you a free carried look into wha the company will do with its remaining cash, ie what projects it will go after next

Mr Market is a really funny beast atm


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## kenny (3 July 2008)

I agree, YT. 

But 15c cash in hand is better than 15c sitting in the company's account. I could use it how I wish; including buying more CCI. In the company accounts, it could disappear in the accounting or used up with no control or say by shareholders.

Still, one could do worse than buying a dollar for 80c.

Cheers,

Kenny


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## YOUNG_TRADER (4 July 2008)

I find it amusing how people forget, most if not all mining companies, especially the specs trade at huge premiums for having SFA!

Yet CCI with 21c -22c cash to come trades at a massive discount

Say what you will but the facts are

1. Management acquired a project a few years back for $8m or so and our now selling it for $41m = 500% return

2. They will have a huge cash box of $31m 

3. They will be giving shareholders back about 15c per share per their guidance

4. They will still have plenty of cash left to acquire new projects and hopefully repeat this highly rewarding exercise


Interesting article I was reading too

Here's a stock with little downside risk but appealing upside potential.

The listed Chrome Corporation (CCI.AX 


CHROME CORP3 July,200803/07/2008 17:41 Sydney, Australia.
Value Change % Change 
0.145 -0.015 -9.380% 

Company overview
Real-time quote
CCI.AX , 0.145, -0.015, -9.380%) has copped two bids so far this year for its main asset ”” a 74% equity in the Ruighoek chrome project in South Africa. Both offers are worth more than five times the $8 million price paid by CCI three-and-a-half years ago for the asset.

With the price of chrome metal soaring (due to rising demand as a substitute for the more expensive nickel in stainless steel) it's possible there could be more suitors in the wings before the auction is over.

Any sale will result in a capital return of up to 15c a share ”” or two-thirds of the company's share price of 22c at the close of last week's trade. The company will remain a listed cash-box ready for new opportunities.

Chrome Corporation was born out of the shell of onetime West Australian nickel hopeful which almost went under with the failure of its Bulong lateritic nickel project in the late 1990s. Capital reconstructions and shareholder changes followed and three-and-a-half years ago directors came across the opportunity that is now restoring its fortunes.

South African solicitor Martin Brinks was trolling through titles to idle prospects seeking opportunities under that country’s "use it or lose it" minerals policy.

What turned up on the lawyer's radar was the moth-balled Ruighoek chrome project, a mine and treatment plant operated by a joint venture of Billiton (60%) and Anglo-America (40%) from the early 1960s until 1993. Annual production was 75,000 tonnes of contained chrome from underground operations before the project closed and the plant was put on care and maintenance. The price for chrome was then about $US65/tonne. Today, the price is $US300-350/tonne for lump ore comprising 40% chromium oxide.

The Australian company bought the idle project for $8 million, including the issue of $6 million in redeemable convertible notes in April, 2005.

The company has since invested in a feasibility study to re-open the project as a larger open-pit operation with capacity to produce 300,000 tonnes of ore/year. By mid-2006 the company reported a resource estimate in the old workings of 1,555,576 tonnes of 44.44% chromium oxide, including a measured reserve of 416,146 tonnes.

The company also has prospecting rights or applications over surrounding ground with resource potential estimated at 12.9 million tones of similar ore.

The project site is described as being two hours drive from Johannesburg on the western rim of the Bushveldt igneous complex, which is the source of 60% of the world's chrome.

CCI now has 143.56 million issued shares, which sold as low as 8c last year before the potential value of the project attracted investor attention. Earlier this year they traded as low as 16c, but they shot to a high of 24c after the company announced on March 5 a proposed agreement with AMCOL International Corporation to sell its 74% interest in the Ruighoek project for $41 million.

AMCOL is a New York-listed specialty minerals company headquartered in Arlington Heights, Illinois, with operations in 26 countries. Its market capitalisation is around $US1.2 billion.

At the price bid, and after deducting $6 million for redemption of the convertible notes, that represents net cash/share of 24.4c. At the time of the announcement, CCI directors proposed a meeting to approve the deal for April 11 followed by with a proposed capital return of up to 15c, leaving the still listed company with not less than $8 million in net cash.

On April 4, CCI announced an unsolicited offer of $45 million cash for the same asset from New York venture capital firm York Capital Management. That would lift the net cash backing for each CCI share to 27.2c. The company’s planned general meeting to approve the first deal was cancelled and re-scheduled to June 30 or such earlier date to be announced.

Other assets remaining with CCI apart from the cash, include its value as a shell of at least 1c a share plus substantial tax losses from its Bulong disaster. That's why I see no downside in it, a certain if perhaps modest profit and potential for further upside in the next month or two.


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## Pimping (4 July 2008)

hmm getting very tempted to buy in now she is sitting at 14.5c not a lot of buyers though... YT can you explain in laymans terms the potential scenario as it is at the moment? I am really liking what i am hearing 


DYOR


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## Gspot (4 July 2008)

I've put my hand in for a few @ 15c.
As you say YT, nothing to lose and everything to gain in I get them.


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## mobcat (4 July 2008)

Yep the markets are a Funny beast at times make no sense at all ...yes in deed ....... I hold quite a bag of CCI @ around 18 and happy to be on board at that level now its showing a 20% discount to my buy price F..... If I No whats going the market will pick up on this OP soon and like a Blip on the screen it,s gone ......Might move some MHL Woof Woof and buy some more CCI at free money level LOL


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## kenny (4 July 2008)

No argument that CCI is undervalued in relation to it's expected NTA or cash once the deal goes through. I continue to hold on this basis.

Good "Speculator" article too, YT. There was a follow up article from that 7th May one; here's the excerpt for those who haven't read it.

Cheers,

Kenny



> Chrome-plated chance tarnishes
> 
> On May 7 this column took a punt on Chrome Corp (CCI.AX
> CHROME CORP4 July,2008
> ...


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## Gspot (4 July 2008)

Well I got my lot @ 15c.
Now I just wait, to get my 15c per share payout, and I've got something for nothing. 
In today's world, can this be true?


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## dubiousinfo (4 July 2008)

I agree, this is a nice little arbitrage play. I had them on my watchlist in the low 20's when it looked like a rival bid might be made.

When they went to 15c decided to jump in. Have been accumulating for the last week.


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## mobcat (27 August 2008)

Strange Vol today out of the blue CCI has trade 2.5 million shares @ 12 cents ,maybe somebody is locking in a loss , but hope it,s somebody buying because they know something is about to happen 

Just wish i had of bought my parcel at 12


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## System (11 August 2010)

Chrome Corporation Limited (CCI) is now known as Pacific Niugini Ltd (PNR).

Discussion of this company now continues in the PNR thread, which can be found here: https://www.aussiestockforums.com/forums/showthread.php?t=20273

This thread has now been closed.


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