# CLE - Cyclone Metals



## chansw (19 November 2006)

Anyone on this one? It is headed by Ian Burston, the same Chairman as Aztec Resources. They have already signed a few MOUs with some big Chinese firms. Also, an Indian firm, Essar Group, is looking into it as well.


*Indian firm interested in Cape Lambert*
November 17, 2006 - 5:47PM
http://www.theage.com.au/news/Business/Indian-firm-interested-in-Cape-Lambert/2006/11/17/1163266772555.html

Large Indian corporate house Essar Group is reportedly in discussions with iron ore hopeful Cape Lambert Iron Ore to build a pellet plant at its namesake project in Western Australia.

According to media reports out of India, Essar is looking to take a stake in Cape Lambert and build a pellet plant at the project site.

Cape Lambert declined to comment, but sources close to the company confirmed that representatives for Essar have conducted due diligence on the project and had meetings with Cape Lambert management.

Essar has interests in the manufacturing and service sectors including steel, oil and gas, shipping and construction.

Cape Lambert is looking at a potential 15 million tonne per annum operation coming onstream by 2009 and costing about $600 million.

A pellet plant could add a further $1 billion to the capital cost.

Ironically, Cape Lambert chairman Ian Burston ruled out the construction of a pellet plant at a briefing in August, citing the added cost would put a big question mark on project economics.

Cape Lambert has signed non-binding agreements with three Chinese outfits for potential equity stakes in the company and offtake from the project.

However, Cape Lambert has said it is in negotiations with other groups with a view to selecting a partner that it is not only committed to take ore, but also develop the project.

Shares in Cape Lambert edged one cent higher to close at 31.5 cents on Friday.


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## Taurisk (19 February 2007)

Hi
I have been holding this stock for quite a while on the advice of a friend who had travelled to the West to check out the mines and came back very enthusiastic; but so far nothing much has happened to the sp.

Today I saw a posting on another site saying that Indian companies are looking for iron ore in the Cape Lambert region.  I did some more checking and found this heading: (I don't subscribe to Business News, sorry)

"Cape Lambert hoses down Essar agreement speculation


Written by Andrew Hobbs 
Leederville-based iron ore company Cape Lambert Iron Ore Ltd has moved to hose down speculation of an agreement with Indian steel giant Essar Group, saying the company remained in negotiations with other parties. "

CFE have stated in the past that they don't want to tie themselves down to any deals until they know how large their deposit is.  It is apparently a very large deposit.  It seems they are being courted by various parties, including the Chinese (CITIC). 

Cheers

Taurisk


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## Brujo (23 March 2007)

Anyone awake to this one?

Up 28% today on huge volume, up about 50% this week.


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## mildew79 (23 March 2007)

awake to it but money tied elsewhere   ha ha


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## Halba (23 March 2007)

consolidation in the iron ore sector is occurring refer SDL thread


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## mildew79 (23 March 2007)

boards still pretty thin atm. must have been insto backing an iron ore deal? anyone got the listings?


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## noobs (23 March 2007)

CFE in pre-open announcement pending


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## sampson (23 March 2007)

i am hearing all sorts of rumours, take overs, deal with the chinese about to be signed.. all kinds of things.


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## noobs (23 March 2007)

We'll know soon enough Sampson


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## nomore4s (23 March 2007)

noobs said:
			
		

> CFE in pre-open announcement pending




Sorry I'm fairly new and never seen this before - what exactly is going on? Is it in a trading halt? Until ann is released?


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## noobs (23 March 2007)

Trading Halt till Tuesday


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## mmmmining (23 March 2007)

Oh, boy, someone finally recognize the value of this one. It was beaten up to semi-death when people are in favor of hematite no matter where the location is.

Magnetite is fine if the resource is huge. But most importantly,

Just look at the map, it is within a stone throw from a port.


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## sampson (23 March 2007)

Talks with a third party. Why didnt they go Trading Halt before the obvious leak?

ASX wont be too happy.


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## nomore4s (23 March 2007)

sampson said:
			
		

> Talks with a third party. Why didnt they go Trading Halt before the obvious leak?
> 
> ASX wont be too happy.




Sampson just out of curiosity where did you find out this info?


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## happytown (23 March 2007)

nomore4s said:
			
		

> Sampson just out of curiosity where did you find out this info?




nomore4s,

Have a look at today's ann at 3.27, in particular the response to question 2.

cheers


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## nomore4s (23 March 2007)

Thanks Happytown, was busy when ann came out and didn't have a good look at it, will do now.


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## mmmmining (24 March 2007)

CLIO.L, AIM List code finished at 27.25p from 14.75p, equal to: 36c to 66c Aus. 

"Australia-based mineral exploration company Cape Lambert Iron Plc said on Friday it was in talks that may lead to a part disposal of its iron ore project"


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## BSD (24 March 2007)

They have traded on the AIM last night

Closed A$0.68 equivalent

http://finance.yahoo.com/q?s=CLIO.L


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## chansw (24 March 2007)

*China stokes iron ore fever * 

24th March 2007, 10:45 WST

http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=24333

"Meanwhile, Cape Lambert Iron is believed to be on the verge of securing a major Chinese group, most likely Sinosteel, as a partner in its namesake $1 billion magnetite project. 

The company yesterday called a trading halt after a query over a 25 per cent surge in its share price to 46.5 ¢ and said “commercial negotiations with a third party are continuing”. "


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## BSD (26 March 2007)

JACKPOT!!!
____________________________________________________

Australian miner Cape Lambert Iron Ore Ltd. (CFE.AU) said Monday it has concluded a major deal relating to its key iron ore project.  

  Chief executive Tony Sage said the company has closed a major deal with a Chinese entity and an announcement will be made to the stock exchange Tuesday morning. 

  "We did complete a deal and the shareholders have a right to know as quickly as possible," Sage told Dow Jones Newswires in an interview. 

  "We have just flown back in from Beijing with the documents and we are getting ourlawyers to go through it and we are just awaiting a payment to solidify a deal." 

  Cape Lambert Friday said it is in discussions with a third party which could lead topart sale of its iron ore project in Western Australia, leading to speculation a major Chinese company will sign an offtake deal and take a controlling equity stake. 

*  Prior to speculation about a deal Cape Lambert had a market capitalization of about A$80 million, and Sage said the transaction was about four times that size.

  "The market will get a bit of a shock tomorrow," Sage added. *

  Cape Lambert shares last traded at 46.5 cents, valuing the company at about A$115 million. 

  Sage confirmed the deal relates to the company's magnetite iron ore project in the Pilbara region of Western Australia and will require shareholder approval. 

  "Shareholders have to approve it because it is our major asset, but 48% of the stock is concentrated with four people who have been very instrumental in getting the deal done," he said. 

  With its key Pilbara project having a resource of 2.5 billion tons of magnetite iron ore, Cape Lambert has been in talks with Chinese steel major SinoSteel for eight monthsbut Sage would not confirm the identity of the entity involved or details of the deal. 

  The Perth-based company has said a project with annual output of five million to seven million tons could be up and running in late 2009. 

  Chinese steel makers have been keen to sign offtake agreements with Australian juniors developing new iron ore projects. 

  Soaring contract prices and the dominance of three major suppliers are driving the Chinese to look to lock in new sources of supply for their booming steel industry.


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## AJ_ (26 March 2007)

I hold this one from a way back....

Well if it opens at the price of the AIM listed price of 32p, then that would be 77cents !!! (from last price of 46.5 cents)

Looking at some nice moves in the next few days I'm sure !!!


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## AJ_ (27 March 2007)

And here is the news!

Quite big since the company was only capitalised at about $80mill.



> LONDON (Dow Jones)--Chinese Investor to acquire 70% of Cape Lambert Iron Ore Project for US$192.5 million (approx AUD$250 million cash)
> 
> ** Chinese investor to acquire a 70% stake in the Cape Lambert Iron Ore Project for AUD$250 million cash (values project at approx AUD$350 million)
> 
> ...


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## mmmmining (27 March 2007)

New deals with Singaporeans. Imply CFE at 75c fully diluted. 

Finally, I am glad Singaporeans joint the resource game. It becomes more and more interesting. I believe Chinese will feel the pinch. There is no more cheap resource assets any more! Want it, pay fair price.


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## Brujo (27 March 2007)

What's everyone's thoughts on why this has appeared to have fallen short of expectations?

Agree with the valuation of 75c per share, which doesn't allow for any further exploration upside, or future possibilities for the company, so todays share price action would appear slightly disappointing (if a 90% rise in the space of a week or so can be called disappointing!).

Is it the hurdles yet to be reached of JORC-resource thresh-holds, or a "show me the money" cynicism?  I tend not to get caught up in hysteria, but this genuinely appears to have missed the mark somewhere....or what is it _I've_ missed?


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## nomore4s (27 March 2007)

Brujo said:


> What's everyone's thoughts on why this has appeared to have fallen short of expectations?
> 
> Agree with the valuation of 75c per share, which doesn't allow for any further exploration upside, or future possibilities for the company, so todays share price action would appear slightly disappointing (if a 90% rise in the space of a week or so can be called disappointing!).
> 
> Is it the hurdles yet to be reached of JORC-resource thresh-holds, or a "show me the money" cynicism?  I tend not to get caught up in hysteria, but this genuinely appears to have missed the mark somewhere....or what is it _I've_ missed?




Agreed I thought it might have run a bit harder today as well.


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## Stimpy (27 March 2007)

Anyone who bought on Friday - and lots did - will have made a very quick, very tidy profit. Odds are that most have no idea about the actual value, they were just in for a quick buck because their mate told them to buy.

There are yet others who bought between April and June 06 who are selling at or below cost.

There's also the fact that the deal is conditional on the report which is a couple of months off, and only then will the big $'s change hands.

Seeing as the closing AIM price was about 30.75p IMHO there's no reason the price won't reach this level once things settle down.


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## nomore4s (27 March 2007)

Really getting sold down now. I think your right Stimpy, when things settle a bit and alot of the shorter term traders are out and the report is back, we should see a good increase.
IMHO some buyers getting a good deal today, considering the deal the company has released today. The fact Best Decade Limited has put down a $2mil deposit with a non-refundable amount is a good sign that both parties are pretty sure the deal is a goer.


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## kiwiloe (27 March 2007)

A pretty lame market reaction to the announcement, I thought.

Somebody buys 70% in a deal that values the shares at $1.40 (leaving out the options), and CFE is, as I write, selling for $0.51 cents.

I took the opportunity to top up, thank you everyone who rushed in to give away their shares  (albeit probably making a tidy profit).


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## chris1983 (27 March 2007)

kiwiloe said:


> A pretty lame market reaction to the announcement, I thought.
> 
> Somebody buys 70% in a deal that values the shares at $1.40 (leaving out the options), and CFE is, as I write, selling for $0.51 cents.
> 
> I took the opportunity to top up, thank you everyone who rushed in to give away their shares  (albeit probably making a tidy profit).




Well I took a profit on my FOX resources and I'm onboard these now.

*"Chinese Investor to acquire 70% of Cape Lambert Iron Ore Project for US$192.5 million (approx AUD$250 million cash)"*

CFE - 247,576,062 (Market Cap (Undiluted): 126,263,792 )
CFEO - 136,511,800

Exercise Price (cents): 27.7 
Expiry Date: 31/10/2008 

The oppies will bring them an additonal 38 million.  

Fully diluted market cap at 52 cents is just under 200 million.

They are getting 250 million in the deal and are retaining a 30% interest~!  Add the money from the options..I see this as easy money.  Can anyone else shed light to why the SP hasn't moved yet?  Is the market just slow??


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## nomore4s (27 March 2007)

Yeah Chris I think it's pretty cheap at the moment considering the upside to come with this deal, good entry point imo, if I wasn't fully invested I would probably be looking to buy more at around 52c.


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## chris1983 (28 March 2007)

Huge buy order just went through in the UK.  The UK investors aren't slow like the aussies.

27-Mar-07
15:05:26 24.25 1,000,000 T £242.50k

Thats the equivalant to 59 Aussie cents.  I think we may see some action tomorrow.


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## mmmmining (28 March 2007)

chris1983 said:


> Well I took a profit on my FOX resources and I'm onboard these now.
> 
> *"Chinese Investor to acquire 70% of Cape Lambert Iron Ore Project for US$192.5 million (approx AUD$250 million cash)"*
> 
> ...



I tell all my friends to buy PNN when Sinosteel pay good money (that time) for 60% of the SA uranium interest. It implied PNN at 75c+ for that deal only. But the share is traded at 55c-65c for quite a few weeks before it took off. 

As far as my calculation, this deal worths 75c on fully diluted basis. But Just a few uncertainties around:

1. The deal might fall apart
My answer: I don't worry about this. The value of this company is huge simply because its location, so close to a port. You can have a project with very little transportation headache. 

2. CFE might waste the money on some dodge gold mining purchasing, or so.
No answer yet: Then we need to exam the capability of the management. Anyone has good knowledge about it? Thanks.


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## chris1983 (28 March 2007)

West Australian Article attached below.  Im happy with the performance thus far.  It can only get better IMO


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## nomore4s (29 March 2007)

Getting sold down a bit today


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## BSD (29 March 2007)

Any ideas on the sell-off ???

I am guessing anyone prepared to sell a $0.70 NTA share for $0.48 two days after an excellent announcement falls into the following category;

a. Couldnt afford to settle after buying on rumour 
b. Couldnt afford to settle after buying on fact
c. Packed their dacks seeing an 'easy money idea' (see $0.70 NTA claim) fall by 8%
d. Doesnt trust management with a couple of hundred bars in the pocket not to buy some ratsh!t project
e. Combination of the above


Any other ideas?

I have been in this for some time now and have averaged-up; so am comfortably in-front but perplexed. 

There was a major shareholder (of dubious background) selling down their stake before the announcement who still held a substantial stake. I wonder whether they are 'ongoing' in their selling?

All of the crossings today were in crumby lines however, which screams 'discount brokers' and hence my call RE: unable to settle.

Was interested in some other viewpoints.


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## mmmmining (29 March 2007)

BSD said:


> Any ideas on the sell-off ???
> Was interested in some other viewpoints.




It happened to PNN. A deal with Sinosteel valued the stock at 75c+ But the share are traded at 55-65c for quite a while. You know what I did? adding positions. 

Nothing is wrong. Prime location, huge resources. Think it this way, it only worth 30c/share a couple of weeks ago. Either you did not want it, or you were happy to own it, why not now? Relax, or take a look at uranium stocks....


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## BSD (29 March 2007)

mmmmining said:


> Either you did not want it, or you were happy to own it, why not now? Relax....




As I have mentioned mmmmining - I have been filling my boots pre and post the announcement.

I liked it before the deal and am very relaxed (AND profitable) now  !!!

I am simply interested in understanding the mindset of the sellers

The T+3 crumbs can be very persuasive!


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## Glenhaven (29 March 2007)

I bought this week at 52c. I just cannot understand why the price is falling and to-day quite weak. It is down 6.7% in London at the moment.

There must be something I am missing.


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## Zamac (29 March 2007)

Glenhaven said:


> I bought this week at 52c. I just cannot understand why the price is falling and to-day quite weak. It is down 6.7% in London at the moment.
> 
> There must be something I am missing.




I dont think your missing anything.  The sell down is crazy IMO.  I have a nice holding and I'm just waiting for the indicated resource to come out confirming 300 million tonnes to ensure the deal goes through.

From the article I attached it says that it is expected to occur "within four to six weeks" for the indicated resource to come out.  The company currently has an inferred resource of 2.5 billion tonnes.  I'm willing to wait.


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## nizar (29 March 2007)

Amazing how every1 here seems astonished with the sell off.
Doesnt any1 remember that this went from 38c to 62c in a few days?

Dont you guys know that these spec stocks can come down as fast as they shot up?

Ever heard of PUMP and DUMP??


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## chris1983 (30 March 2007)

I dont base it on spec etc etc..I already know they have gone up a lot.  But.  I am basing it off the deal.  I gave the rundowns above.  I think if you hold..you'll be fine.  With some nice gains to be made.


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## Glenhaven (30 March 2007)

nizar said:
			
		

> Amazing how every1 here seems astonished with the sell off.
> Doesnt any1 remember that this went from 38c to 62c in a few days?
> 
> Dont you guys know that these spec stocks can come down as fast as they shot up?
> ...




Yes we have all heard of Pump and Dump, the view held is that based on the news it should have gone higher. I think that this is more likely profit taking and that this stock will rise once the profit takers are out.


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## kiwiloe (30 March 2007)

> a. Couldnt afford to settle after buying on rumour
> b. Couldnt afford to settle after buying on fact
> c. Packed their dacks seeing an 'easy money idea' (see $0.70 NTA claim) fall by 8%
> d. Doesnt trust management with a couple of hundred bars in the pocket not to buy some ratsh!t project
> e. Combination of the above




Take your pick, it doesn't really matter. 
Yes it is a little disconcerting to watch a stock drop after a ground breaking announcement, just got to hang in there, if you are a long term investor, & not just a speculator.

I have held AZC for years, and even though they are finally into production, the share price has only just started to move in a positive direction.

The positives are that this deal will allow CFE to look into other projects.

It also means that they won't have to go to shareholders for project capital costs.

They will also save about $16-20 million dollars a year in interest , which will go straight to NP.

A year ago Collins Stewart placed a conservative DCF valuation on CFE of AUD 97 cents.

Like Zamac says,  probably nothing much will happen to the share price until the resource figure comes out in "4-6 weeks"


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## Glenhaven (30 March 2007)

Announcement just out re additionsal information on Chinese investor. The shares must rise to-day.


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## chris1983 (30 March 2007)

The JORC confirming the deal will be the one to set the price off.  I don't know what this message will do but it definately shows confidence by the chinese.

I would like to say..anything the chinese touch lately turns to gold.  Still cheap at these prices.  The chinese need commodities and they are cleverly buying anything up that they can which shows great potential.




Glenhaven said:


> Announcement just out re additionsal information on Chinese investor. The shares must rise to-day.


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## captjohn (30 March 2007)

nizar said:


> Amazing how every1 here seems astonished with the sell off.
> Doesnt any1 remember that this went from 38c to 62c in a few days?
> 
> Dont you guys know that these spec stocks can come down as fast as they shot up?
> ...




Yes Nizar I agree......BHP investors wait 3 years for SP to double ......& CFE does it in 3 days.  Wowie !!........traders double their money  then get out...onto the next announcement... doing a ...(quote nizar  pump &dump)!!
Why wait 6 weeks!! etc etc.
Personally I'm reading up on cfe, researching to buy in for long term......so far it's looking good with all upside..


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## skint (30 March 2007)

Regardless of the short term oscillations in the SP, the future is looking pretty damn good for CFE. Fully diluted the market cap. is about $200m and in a few months they will have about $275m in cash and still retain 30% of the Cape L project. Mr Ding is exercising 40m options (13.7% of CFE), so obviously he has little doubt about the 300m tonnes of ore being proven up. Confirmation of the resource should be the bomb that gets the SP moving. On a radio broadcast, Tony Sage also states that they are eyeing up a couple of large iron ore projects in Australia and South Africa. Someone on HotCopper wrote that they heard on the grapevine that the South African project was huge. Then again, there's a lot rampers at HC who claim the share they are spruiking will triple by morning tea and be a ten bagger by lunch. Nonetheless, CFE for mine seems to be extremely cheap ATM.


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## chris1983 (30 March 2007)

When you mention the fully diluted market cap that is also after they receive 38 million in cash from converted oppies.  As a 12 month hold im expecting to have some nice profits from these.


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## captjohn (30 March 2007)

chris1983 said:


> When you mention the fully diluted market cap that is also after they receive 38 million in cash from converted oppies.  As a 12 month hold im expecting to have some nice profits from these.





Just got a bundle @48 cents ... so now have yet another thread to keep an eye on for info. & IMO iron ore looks good for the future


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## skint (30 March 2007)

captjohn said:


> Just got a bundle @48 cents ... so now have yet another thread to keep an eye on for info. & IMO iron ore looks good for the future




Would you mind buying a few more million at market please? Just take it out of petty cash!


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## mmmmining (30 March 2007)

captjohn said:


> Just got a bundle @48 cents ... so now have yet another thread to keep an eye on for info. & IMO iron ore looks good for the future




It is a steal. With the deal valued at 75c+ per share fully diluted, and buyer purchased 40m unlisted option. What else do you need? 

I guess such opportunity is pretty rare.


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## chris1983 (30 March 2007)

mmmmining said:


> It is a steal. With the deal valued at 75c+ per share fully diluted, and buyer purchased 40m unlisted option. What else do you need?
> 
> I guess such opportunity is pretty rare.




I have to agree with you fully on this one mmmmmining.  I got it because I worked out what the deal would be worth for them.  All we need is for the deal to be confirmed..IMO its a done deal.


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## skint (30 March 2007)

chris1983 said:


> I have to agree with you fully on this one mmmmmining.  I got it because I worked out what the deal would be worth for them.  All we need is for the deal to be confirmed..IMO its a done deal.




I agree. It's a done deal. To trigger the $250m payment, all they have to do is independently varify (3-4 weeks) what they already know they have in the ground . They have many times the 300m tonne resource. Given the weakness in SP at the moment for what the project (and company) is worth, it would be surprising if it wasn't on a few big player's radar. Hopefully some bigger action when the dust settles.


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## monaliza (31 March 2007)

I looked to FMG production target on 2008,it is 45 mt/year
and it has 2.4 bil. tonnes resources.
If you compare that to CFE which has 2.5 bil tonnes @30% 
Its production target on 2009 is 5-7 mt/year.
Why CFE not having the target as FMG????????????


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## mmmmining (31 March 2007)

monaliza said:


> I looked to FMG production target on 2008,it is 45 mt/year
> and it has 2.4 bil. tonnes resources.
> If you compare that to CFE which has 2.5 bil tonnes @30%
> Its production target on 2009 is 5-7 mt/year.
> Why CFE not having the target as FMG????????????




Different kind of ore. FMG is hematie, can DSO (Direct Shipping Ore) without processing. But CFE is magnetite, need processing into about 65% concentrate. So the processing is the bottleneck.

By the way, for CFE, recoverable resources is about a third of the total resources. 2.5bt magnetite is equal to about 800mt recoverable resources.

Nevertheless, it is still a significant resources, like $48b in ground value, particularly so close to railway and port.

So CFE needs to do a lot of drilling to upgrade the resources to indicate or measured category.


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## chris1983 (31 March 2007)

mmmmining said:


> Different kind of ore. FMG is hematie, can DSO (Direct Shipping Ore) without processing. But CFE is magnetite, need processing into about 65% concentrate. So the processing is the bottleneck.
> 
> By the way, for CFE, recoverable resources is about a third of the total resources. 2.5bt magnetite is equal to about 800mt recoverable resources.
> 
> ...




hmm thanks for that little overview mmmmining.  I dont know too much about iron ore etc etc.  I mainly got in due to the deal.  I also saw they had a huge resource close to the railway and port as you have stated in your earlier post.  If a Chinese investor is willing to back them like he has..to me its a good idea.  As long as the deal goes through I feel I am on a great longer term play.  The cash at bank they will have is a huge bonus..allows them to explore other avenues such as progressing some other projects or even acquiring some new ones.  The oppies will come into play.

*"Chinese investor, Mr Ding Liguo, to purchase 40 million unlisted CFE Options(“Options”)"*

Thats going to bring us an additional 15 million.

*"Mr Ding has confirmed his intention to convert Options to ordinary shares in the near future (providing approx AUD $15 million to company)"*

CFEO options also expire on the 31/10/2008.  That will bring an additional 38 million.  These guys are going to be rolling in money.

Add the 250 million dollar deal into the picture.  All they have to do is fund their 30% interest they have retained.  See the quoted section below taken from one of the West Australian articles.

*"Cape Lambert chief Tony Sage said yesterday the deal with Mr Ding's investment vehicle, Best Decade, would enable the WA Junior to fund fully its remaining share of the $600 million-plus magnetite project near Wickham.

It would also leave $100 million to invest in other projects, once outstanding options are exercised next year."*

Okay so they will have 100 million to invest plus the additional 15 million from Mr Ding when he decides to convert his options.  115 million in total they will have and the 30% interest from the Wickham project has allready been funded for.  Looks great.  They will aquire some other significant projects with that kind of money.


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## mmmmining (1 April 2007)

chris1983 said:


> *"Chinese investor, Mr Ding Liguo, to purchase 40 million unlisted CFE Options(“Options”)"*




Mr Ding can see the value of the company, why cannot us? I am pretty sure he might exercise the options very soon if he want a board seat.


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## Halba (1 April 2007)

This looked too low grade for my liking. As mmining says processing is an issue. Its not a world class deposit due to its low grade. However they are looking for african iron ore acquisitions so it is a punt....Usually when buying iron ore you need 58%+ Fe and low phosphorus, silica, and over +150mT tonnage. That is what I'd look for and I currently hold AQA and SRK.


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## mmmmining (1 April 2007)

Halba said:


> This looked too low grade for my liking. As mmining says processing is an issue. Its not a world class deposit due to its low grade. However they are looking for african iron ore acquisitions so it is a punt....Usually when buying iron ore you need 58%+ Fe and low phosphorus, silica, and over +150mT tonnage. That is what I'd look for and I currently hold AQA and SRK.




Everything has a value, even your old shirt. This is why 2.5bt low grade ore company is worth a nickel compare FMG. There are different ore type, by the way. 

We are not getting into two much technical details. I guess a man who is willing to pay $250m, for 70% of the project has put a price on it, You like it or not.

It valued the company over 70c/share on full diluted basis, Plus 10c+/share from option exercise. Total for 80c+. 

The company will have 60c+/share cash for this deal on fully diluted basis.

Now the share price is 47.5c because of the risk of no deal. But Mr Ding's purchase of option has almost reduce this risk significantly. 

Now the simple mathematics is:

Does it worth to risk 17.5c (assume share will be back to 30c if no deal) to make possible 32.5c+?


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## Freeballinginawetsuit (1 April 2007)

Halba said:


> This looked too low grade for my liking. As mmining says processing is an issue. Its not a world class deposit due to its low grade. However they are looking for african iron ore acquisitions so it is a punt....Usually when buying iron ore you need 58%+ Fe and low phosphorus, silica, and over +150mT tonnage. That is what I'd look for and I currently hold AQA and SRK.





Ore grades are of absolutely no relevance......the relevance is that CFE define thier JORC on the deposit to 300MT, thats all. The aggreement with BD is binding if so.

Whats of relevance is what CFE management does with the liquid funds from BD. The reality is if they did nothing and just contributed to the JV, shareholders at current SP would be sitting on company with a liquid premium above its MC. Thier rare on the ASX

Hopefully CFE management don't blow the opportunity!


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## chris1983 (1 April 2007)

All I care about is the deal going through.  Once thats done I know 100% in my mind I'm on a winner.  Ore grades etc etc may be low grade..but I wouldn't of even looked twice at this company if the deal with Best Decade didn't arise. 

250 million dollar deal for 70% of their deposit.  Options coming into conversion will bring 38 million.

Once options are exercised they will have 100 million at bank to aquire new projects and the 30% interest they hold in the project would be allready fully funded.  An additional 15 million from Mr Ding when he converts his options (Huge sign of confidence from Mr Ding).

The hurdle to overcome.

Get an indicated resource of 300 million tonnes from an inferred resource of 2.5 billion.  They expect to have this in 4-6 weeks.  This was an easy one for me to put money into.  Lets hope the deal doesn't crash and burn..anything can go wrong but once it is completed I'll be smiling.


----------



## chris1983 (2 April 2007)

*Ferret's Stock to Watch: CAPE LAMBERT IRON ORE LTD*

_Find a highly prospective iron ore explorer, cum producer down the track and link it with a Chinese buyer and you have stock that is hard to go past. The word buyer is on two counts, one in buying into the company and the other being the source of buying its production.  This is a company that will take time to come to fruition, but shareholders have the prospect to prosper if everything goes according to plan.

On Friday Cape Lambert Iron Ore Ltd (ASX:CFE) reported to the ASX that a Chinese investor, Mr Ding Liguo, had entered into a contract to acquire 40 million Cape Lambert options from a third party. The purchase of these options by Mr Ding follows the news earlier this month that Best Decade Holdings had entered a binding conditional agreement with Cape Lambert to acquire 70 per cent of its namesake iron more project in Western Australia for $250 million. 

The options to be acquired are due to expire on October 31, 2010, with an exercise price of 37.7c, but Mr Ding has formally indicated that he intends to convert the options to ordinary shares in the near future, which would generate $15.08 million for Cape Lambert. On the conversion of the options Mr Ding would hold 13.7 per cent of the issued capital in Cape Lambert and become one of the company's top five shareholders.

In addition to the acquisition of the options, the company has accepted a request from Best Decade that the purchaser of the 70 per cent interest in the Cape Lambert project will be Mr Ding, the sole beneficiary and a director of Best Decade Holdings.  Cape Lambert director Tony Sage said: "We believe that Mr Ding's acquisition of these options and confirmation to us that he intends to convert them into a significant equity position in the company proves how highly he regards our management and technical teams, and most importantly our plans moving forward."  However, the half-year result didn't augur that well after Cape reported a consolidated entity tax loss of $3.2 million, although it was much better than the comparable 2005 period which saw $15.5 million wiped off the books.

The last large loss for the six months was largely due to the impairment of exploration assets in relation to the Romanian SACU Project resulting in an additional expense of $2.1 million.  Meanwhile work on the Cape Lambert Iron Ore project continued during the half year toward the preparation of a bankable feasibility study and commenced in respect to environmental permits for the Cape Lambert Iron Ore project.   Resource definition drilling at the project began last July within the central target area and continued up to December 15 when drilling ceased for the Christmas/New Year period.
 The company had completed 69 reverse circulation (RC) drill holes for a total advance of 18,052 metres.  The company is scheduling the recommencement of RC drilling in early April, once the RC rig is available and all outstanding DTR results have been received and interpreted.   Priority drill targets will be immediately to the north of the central target area and along strike and down-dip of drill holes MA209 and MA210, which returned thick DTR intercepts of 164 and 202 metres respectively with high Fe concentrate grades and low deleterious elements.

The mineralisation in this area is open along strike and down-dip. Work also commenced during the quarter on consolidating Robe's drilling data along with new drill data into a single digital database in anticipation of preparing a resource concentrate model for preliminary open pit mining studies. This necessitated the installation of a new server and appropriate database software._


----------



## chris1983 (2 April 2007)

I topped up this morning and am hoping for the deal to be realised in the next 4-6 weeks.


----------



## chris1983 (2 April 2007)

Well below is my valuation on Cape Lambert.  Feel free to question what I have written.

CFE - Total Class Issue:	*247,576,062*

Market Cap (Undiluted):	*$116,360,749*

CFEO - Total Class Issue: *136,511,800*

Market Cap (Undiluted):	*$30,032,596*

Chinese investor, Mr Ding Liguo, to purchase *40 million unlisted CFE Options*
(“Options”)

Total shares on issue –  *424, 087 862*

Current price is 47 cents

Fully diluted market cap is *$199, 321 295*

Now if you work out the monetary value the company will receive it will be worth.

*$250 million* (deal with Best Decade)

*$38 million* once options are converted.

Additional *$15 million*

In total this is *$303 million* in cash value to the company.

But out of this *303 million* only *115 million* will be left for the company to aquire further projects because the rest of it will be used to fund their 30% interest in the project that Best Decade aquired 70% of.

As stated in the West Australian..

_“It would also leave Cape Lambert with around $100 million to invest in other projects, once outstanding options are exercised next year”_

This is how I know *115 million in cash* will be left for the company because you have to add the additional 15 million from Mr Dings options once converted on top of the $100 million left over from the deal with Best Decade.  This would leave the company with *115 million cash* in total and the 30% interest in the project is fully funded.

When you put a valuation on the company I believe the value should be the total value of the company divided by the shares

*$303 million* divided by the fully diluted share holding of *424, 087 862*

= .714

So once the deal is confirmed I am expect atleast around a 70 cents valuation on the company.


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## Freeballinginawetsuit (3 April 2007)

Chris,

Ive tried to make sense of CFE price action in recent days and considered the fundamental scenario also .

So like you I have taken a punt, nothing big .........35000 oppies at 22c today! I'm with you on this one, seems a gimme, lets hope the seems turns out to is!


----------



## chris1983 (3 April 2007)

Freeballinginawetsuit said:


> Chris,
> 
> Ive tried to make sense of CFE price action in recent days and considered the fundamental scenario also  .
> 
> So like you I have taken a punt, nothing big .........35000 oppies at 22c today! I'm with you on this one, seems a gimme




I hold just a bit more than you Freeballing.  I also hold the oppies.  Im expecting 70 cents to be reached in the short to medium term for the head share.  Thats 23 cents above the current price.  I dont think we will have any troubles with this.  I just feel very safe with this stock..due to the deal being carried out with Best Decade.  If that fell through then I will be out..and out fast.  The deal needs to go through and it looks like it will.  23 cents up would bring you and I a nice little profit because the oppies will follow the head share.  Good luck mate   Now we have to hang in there for the next 2 months.


----------



## monaliza (3 April 2007)

chris1983 said:


> I hold just a bit more than you Freeballing.  I also hold the oppies.  Im expecting 70 cents to be reached in the short to medium term for the head share.  Thats 23 cents above the current price.  I dont think we will have any troubles with this.  I just feel very safe with this stock..due to the deal being carried out with Best Decade.  *If that fell through then I will be out..and out fast.  The deal needs to go through* and it looks like it will.  23 cents up would bring you and I a nice little profit because the oppies will follow the head share.  Good luck mate   Now we have to hang in there for the next 2 months.



It is about the deal,without deal everyone will be out fast.
What about long term investor,if there is no deal


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## chris1983 (3 April 2007)

monaliza said:


> It is about the deal,without deal everyone will be out fast.
> What about long term investor,if there is no deal




Its about the deal to me.  Long term you are still fine..there will still be a company..they will still have a deposit.  But I have worked my figures out based off the cash they will receive and the backing of the chinese.  Thats the main reason I hold.  You can hold longterm if you want..there is nothing to say these guys won't have success if the deal with best decade fell through.


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## nomore4s (3 April 2007)

I really don't understand the sell down on this stock. They've negotiated a great deal, I'm not sure what the market wanted/expected?
I can understand the sp not taking off till the deal is confirmed in a few months but for the sp to be sold back to the level it has really surprises me.
It broke down past what little support there was at 45c, the next level of support looks to be at 42c, but more likely at 40c.


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## james888 (4 April 2007)

Change of director's interest notice---director sells on market on 2/4.


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## mmmmining (4 April 2007)

Director selling into strong price action is not a strong indicator, if selling into falling price, the company is in trouble. In this case, it is OK to me.


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## Mousie (4 April 2007)

mmmmining said:


> Director selling into strong price action is not a strong indicator, if selling into falling price, the company is in trouble. In this case, it is OK to me.




It's not even a question of strong/weak price action. The price never reached the supposed valuation in the 1st place, so unless everyone here is wrong about the "correct" valuation of CFE supposing the deal's success, why'd he sell?

I don't think a director being a director doesn't know CFE's valuation. Something doesn't smell too good here IMO


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## chris1983 (4 April 2007)

Mousie said:


> It's not even a question of strong/weak price action. The price never reached the supposed valuation in the 1st place, so unless everyone here is wrong about the "correct" valuation of CFE supposing the deal's success, why'd he sell?
> 
> I don't think a director being a director doesn't know CFE's valuation. Something doesn't smell too good here IMO





Doesnt mean anything to me.  If Mr Ding starts selling then I'll worry.  He acquired 40 million unlisted oppies

_"Chinese investor, Mr Ding Liguo, to purchase 40 million unlisted CFE Options"_

He has put faith in the company..if a Director sells a minute amount of shares and options to the equivelant of 300 grands worth whats the big deal.  Maybe he needed some cash.  I would sell your shares if your worried because nothing is concrete just yet.  Thats a risk I'm willing to take though.


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## Mousie (4 April 2007)

chris1983 said:


> Thats a risk I'm willing to take though.




To each their own. Hope it gets better for ya then


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## chris1983 (4 April 2007)

Mousie said:


> To each their own. Hope it gets better for ya then




Havn't lost anything.  It can only get better.

If not I need capital losses anyway.  Wont hurt  

Ive weighed everything up.  The deal is all I need to go through.  If it falls through thats something i'll have to live with.


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## Glenhaven (5 April 2007)

He sold a large part of his shares at 54c just after the announcement. I think this is a bit of a worry.

I hold. The worst thing is I might of been one of the buyers as I bought on the day he sold.


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## nomore4s (5 April 2007)

Glenhaven said:


> He sold a large part of his shares at 54c just after the announcement. I think this is a bit of a worry.
> 
> I hold. The worst thing is I might of been one of the buyers as I bought on the day he sold.




Does anyone know what he paid for the shares? Maybe he sold them to freehold the rest?
There could be a number of reasons for him selling.
As far as the deal is concerned imo it still looks good for a number of reasons.
a) Mr Ding buying the options, is a sign of confidence in the company, project and the deal.
b) The fact Best Decade has put a deposit down with a non refundable amount suggests to me that they can't see there being too much of a problem with the target being met for the deal to go ahead.

There could of course be things happening behind the scenes that we don't know about, but imo it is still looking ok pending the results to come.


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## chris1983 (5 April 2007)

Glenhaven said:


> He sold a large part of his shares at 54c just after the announcement. I think this is a bit of a worry.
> 
> I hold. The worst thing is I might of been one of the buyers as I bought on the day he sold.




Too many times investors lose focus.  He doesn't even hold a large portion of the company.  Like I said I'll be more worried if a message was released saying Mr Ding sold his shares.  I only bought into this company based off the deal so if it doesn't go through thats the way it goes.


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## Ruprect (5 April 2007)

Chris, im with you - ive been watching this forum for a while - but ive just joined. I should play my part.

Glenhaven, get a grip. Look at the deal that CFE have done - if they can prove the resource, (which from all accounts is probable, but not without risk), then the sp will shoot back up. And it is then that the ONE director who sold down SOME of his shares will be the loser, because they will head higher (probably much higher) than the 54cents he appears to have sold at.

Dont forget, there are other directors with significant holdings.

I hold, and am happy to take the risk with this one.


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## Joe Blow (5 April 2007)

Off topic posts removed. Back on topic please gentlemen, sans the personal attacks.

Thank you!


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## skint (10 April 2007)

1million shares gobbled up at market (.46-.48)!


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## Glenhaven (16 April 2007)

Ruprect said:


> Chris, im with you - ive been watching this forum for a while - but ive just joined. I should play my part.
> 
> Glenhaven, get a grip. Look at the deal that CFE have done - if they can prove the resource, (which from all accounts is probable, but not without risk), then the sp will shoot back up. And it is then that the ONE director who sold down SOME of his shares will be the loser, because they will head higher (probably much higher) than the 54cents he appears to have sold at.
> 
> ...





This is still week. Maybe the deal is not going to happen. The grades are not very good.


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## Glenhaven (16 April 2007)

Glenhaven said:


> This is still week. Maybe the deal is not going to happen. The grades are not very good.




I meant weak not week of course.


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## chris1983 (16 April 2007)

Its only been just over two weeks.  They expected it to take 4-6 weeks.

"Get an indicated resource of 300 million tonnes from an inferred resource of 2.5 billion. They expect to have this in 4-6 weeks."

So I guess its a waiting game untill they get the indicated resource of 300 million tonnes.  A 4 week wait is still needed.


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## Brujo (16 April 2007)

Glenhaven said:


> This is still week. Maybe the deal is not going to happen. The grades are not very good.




I must admit, my first reaction was that this is an easy kill. Buy now in the 40s, and just wait till the stock is more fairly valued at 70c+.

But talking to "iron-ore types", the general reaction I get is a shrug and a mumbling about low grades at depth.

So I'm not going in with my eyes closed, by any means. But chris1983 sums it up beautifully: get a 300m tonne indicated resource from a 2.5 billion tonne inferred resource.

A deal of this size I'm sure would have been entered into with a fair degree of optimism of reaching the hurdles - a smashed share price and wounded pride are the prices the directors will pay if they are not reached.


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## Glenhaven (16 April 2007)

Brujo said:


> I must admit, my first reaction was that this is an easy kill. Buy now in the 40s, and just wait till the stock is more fairly valued at 70c+.
> 
> But talking to "iron-ore types", the general reaction I get is a shrug and a mumbling about low grades at depth.
> 
> ...




It does look like a no brainer if the deal goes through. It's just that the lack confidence of the market makes me doubt that the deal will be finalised. You would think that proving up the tonnes is not an issue, so all it can be is the certainty of the chinese investor. Does anyone know that he can really complete.


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## chris1983 (16 April 2007)

Glenhaven said:


> It does look like a no brainer if the deal goes through. It's just that the lack confidence of the market makes me doubt that the deal will be finalised. You would think that proving up the tonnes is not an issue, so all it can be is the certainty of the chinese investor. Does anyone know that he can really complete.




I think you summed it up well Glenhaven.  I expect to lose money if the deal falls through..not too much though.  The SP will definately fall initially if the deal isn't realised.  If the deal is finalised I expect to make a good profit.  I have a decent holding in the options.  Mr Ding did take up 40 million unlisted oppies though..this shows confidence from Mr Ding.  Just have to wait and be patient guys.

_"This agreement is conditional on Cape Lambert providing the purchasers with an independent geological report confirming an indicated JORC compliant resource of 300 million tonnes. The Directors expect the report to be completed in Q2, 2007."_

They just need to prove the 300 mt resource..I dont know..I guess there are always means and ways to get out of an agreement?  But I just thought they looked like an easy stock to make money on.  Many investors are still treading water atm waiting to see whats going to happen.  To me..those guys waiting on the sidelines will miss out because once that announcement comes out I expect them to run..and run hard.  Good luck to the holders.


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## skint (17 April 2007)

16 April 2007
The Company Announcements Office
Australian Stock Exchange Limited
Via E Lodgement

CAPE LAMBERT FINALISES OPTION AGREEMENT TO ACQUIRE
ADJACENT TENEMENTS IN WESTERN AUSTRALIA

Iron ore exploration and development company Cape Lambert Iron Ore Limited (ASX: CFE, AIM:
CLIO) has finalised an option to acquire three tenements (E47/1233, E47/1248 and E47/1271) in the
Pilbara region of Western Australia, following the documentation of an option agreement with Mr Kim
North.

On 15 January 2007, CFE announced it had signed an exclusive option agreement to acquire the
tenements. CFE has until 31 October 2007 to exercise the right to acquire the tenements.
*These highly prospective tenements are located adjacent to the Company’s Cape Lambert Iron Ore
Project (EL47/1462) and increase the size of this tenement holding to approximately 350 sqkm.
Recent exploration drilling at the project has confirmed the presence of a new, high-grade
mineralised zone, which appears to extend into the optioned tenements.

This significant mineralised zone will be subject to an extensive drilling campaign, with results
expected to be received by the Company in the coming 2-3 months.*Under the terms of the option agreement, Cape Lambert has paid Mr North AUD$200,000 and issued him with 600,000 CFE ordinary shares.

Yours faithfully
CAPE LAMBERT IRON ORE LIMITED
Tony Sage
Executive Director
For more information please contact:
Cape Lambert Iron Ore Ltd
Tony Sage +61 8 9380 9555
Ian Burston +61 0 413 998 784
Australian Enquiries:
Professional Public Relations – David Tasker +61 8 9388 0944/ +61 433 112 936


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## ta2693 (17 April 2007)

It looks to me the option holders believe the deal is going to success but the shareholders do not think so. The cfeo is close at 0.22 and the ex price is 0.28, which add up to 0.50 and it does not change very much from the beginning of april. But the price of share closed at 0.42
I hope the interesting phenomena is not because of Chris1983 and his mates holding a decent position and still support the price of cfeo.


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## chris1983 (17 April 2007)

ta2693 said:


> It looks to me the option holders believe the deal is going to success but the shareholders do not think so. The cfeo is close at 0.22 and the ex price is 0.28, which add up to 0.50 and it does not change very much from the beginning of april. But the price of share closed at 0.42
> I hope the interesting phenomena is not because of Chris1983 and his mates holding a decent position and still support the price of cfeo.




haha its not because of that   I really watch the SP with no interest atm untill they release news in regards to.........

_"This agreement is conditional on Cape Lambert providing the purchasers with an independent geological report confirming an indicated JORC compliant resource of 300 million tonnes. The Directors expect the report to be completed in Q2, 2007."_

Its amazing how long a 4-6 week wait is.  There could also be delays..who knows what will happen..I dont see whats so hard in waiting. Its only been just over 2 weeks.  As long as they dont go to half the price in the process.  I have faced the fearrr of losing money if the deal isn't realised.  If it doesn't go through I'll lick my wounds and move on.  Good luck to the holders.


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## ta2693 (17 April 2007)

If the option price is not manipulated, I tend to believe the deal going to success. Because most option traders are more professional and think independently so this indicator may be more reliable.


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## mhtrieu (17 April 2007)

chris1983 you have a lot of balls  

After reading the annoucement on the director selling his stock. I sold my holding at 46c for a big 90cent profit after brokerage.

In my opinion If the director was THAT confident about the deal he would have waited for the deal to go through before selling. Will be an interesting few weeks for CFE


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## chris1983 (17 April 2007)

mhtrieu said:


> chris1983 you have a lot of balls
> 
> After reading the annoucement on the director selling his stock. I sold my holding at 46c for a big 90cent profit after brokerage.
> 
> In my opinion If the director was THAT confident about the deal he would have waited for the deal to go through before selling. Will be an interesting few weeks for CFE




Yeah I guess that could of put people on edge.

He sold 375,000 shares for a total value of $202,500

and

400,000 30 cent oppies for a total value of $103,250.

I'll be worried if I see Mr Ding sell any of the 40 million unlisted CFE Options that he purchased.  How do they go about selling unlisted options?  Just wondering.  Anyone know?  I feel pretty comfortable with the level of risk.  I can afford to take a loss anyway if it fell through.  I dont think it will though.


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## skint (18 April 2007)

chris1983 said:


> Yeah I guess that could of put people on edge.
> 
> He sold 375,000 shares for a total value of $202,500
> 
> ...




I think Mr Ding has already expressed his intention to convert his .37c options shortly. After going into it further, I'm not too concerned about the deal going through as extensive data already exists. What I'm waiting for is the drilling results of the new tenements (2-3 months) and TS to announce what "the seriously exciting projects" that they're "running the ruler over" are. Certainly have enough cash for further growth.


----------



## nomore4s (18 April 2007)

chris1983 said:


> Yeah I guess that could of put people on edge.
> 
> He sold 375,000 shares for a total value of $202,500
> 
> ...




I'm not too worried about this for a number of reasons,
a) The other directors haven't sold, and they own a few more shares than Tim Turner ie Antony Sage owns 1.6m directly and some more indirectly.
b) And when he sold the testing would have only just started (if it had even started) so I'm not sure how he would have had any indication that the target of 300mil tonnes wouldn't be met, as all current data suggests that that target will be obtainable.

But I have been known to be wrong before. I'm willing to take the risk and hold to see what happens, I think it will be worth the reward if the deal does proceed.


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## MR. (18 April 2007)

chris1983 said:


> He sold 375,000 shares for a total value of $202,500
> 
> and
> 
> 400,000 30 cent oppies for a total value of $103,250.




Giday guys, I have been reading your messages for a while and I wanted to post ...MY... opinion on the above share sales by Tim Turner. Perhaps you might agree with me... 

Tim still owns just over 1,000,000 oppies at 30 cents which expire 3Q next year. How much will it cost to convert all these oppies? Yep its $300,000-.  Tim appears now to have the money to convert his 1,000,000 oppies to shares in the company because of the above recent sales. 
I would have done the same. 

By not being too greedy (in his recent sales) tim now has a solid footing in the company and he can now roughly doubled his fully paid share holding when he converts the oppies. (I don't see any reason why he would convert the oppies in the near future though.) To conclude the sale of the shares by this director is no news either way. 

Some other positives : 
   =The price of iron ore has recently been upgraded by experts which predict the current high ore prices will remain until 2013. 
   = Delong Holdings (Ding) is making a new bigger factory in china to be finished in 2010. He is going to need Iron Ore.   
   = China mines magnitite of similar quality to the ore held by Cape Lambert.  Ding knows exactly what he is buying.
   = Delong Holdings (Ding) over the past approx 8 weeks is now 50% higher in its share price...... Shanghai Shenzhen 300 Index (Shanghai Stock Exchange) is about 25% higher over the same period of time. 

A share correction there worries me a little if it happened before that first payment.. 

CFE shares will change once either Ding converts the 40,000,000 oppies or the deal is settled by the first payment from Ding. 

I own shares in CFE. I am not an adviser. These are just my comments on CFE. I like reading all of yours comments. regards


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## chris1983 (18 April 2007)

MR you said exactly what I was thinking.  I didnt say it because I know someone will come back and say...well why didnt he just wait and sell them at a higher price.  Glad someone said what I was thinking though


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## MR. (18 April 2007)

So why didn't he wait???..... 
I agree with HIS decision to sell. Isn't it always good to know exactly where you stand. It has nothing to do with any inside information. He knows his position now in concrete and he dosen't need to give it another thought until mid next year.... Wouldn't that be good !


----------



## skint (18 April 2007)

MR. said:


> Giday guys, I have been reading your messages for a while and I wanted to post ...MY... opinion on the above share sales by Tim Turner. Perhaps you might agree with me...
> 
> Tim still owns just over 1,000,000 oppies at 30 cents which expire 3Q next year. How much will it cost to convert all these oppies? Yep its $300,000-.  Tim appears now to have the money to convert his 1,000,000 oppies to shares in the company because of the above recent sales.
> I would have done the same.
> ...




Re: Tim Turner. Well done Sherlock Holmes a Court! I agree with your "some other positives", although the increase in Delong Holdings SP would obviously be influenced by other factors in addition to CFE.


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## MR. (19 April 2007)

re: Appendix 3B

CFE - Total Fully Paid Issue:	249,924,531

CFEO - Total options Issue: 136,511,800    =     $37,813,769

Share options not on ASX :  114,050,000    =     $83,812,119

                                                 + Mr. Ding's $250,000,000

Total shares on issue =       500,486,336


             Total value with all options exercised = $371,625,888

(Excluding current CFE's NTA)  the above = $0.667 per share.

Can someone confirm this total.


----------



## skint (20 April 2007)

MR. said:


> re: Appendix 3B
> 
> CFE - Total Fully Paid Issue:	249,924,531
> 
> ...




Total shares on issue =       500,486,336

CFEO - Total options Issue: 136,511,800    =     $37,813,769
Share options not on ASX :  114,050,000    =     $45,998,350
Mr Ding                                                 =     $250,000,000
Total cash =    $333812119

$333,812,119 divided by 500,486,336 = $0.667 (I suppose the short answer would have been yes, your final figure appears correct)

If you include Mr Ding's valuation of CFE's stake in the mine (ie. 30% of $350m = $105m or $0.21 per share), you get $.877 per share. "Cheap at twice the price" appears as though it may apply to CFE in a very literal sense. Any further increase in the resource base from the new tenements or the addition of the possible acquisitions Tony Sage has referred to (South Africa & Aust.)and who knows how much higher the SP should or would be?


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## MR. (20 April 2007)

Thanks for having a look SKINT.

Yes 2 of my totals were not correct in my posting to you. 

Share options not on ASX : 114,050,000 = $45,998,350 , not $83,812,119
Total value with all options exercised = $333,812,119 ,  not $371,625,888
But we both agree $0.667 

I came up with a total of share holders "weeks ago" at about 524,000,000 then I read "chris1983"  424,087,862. Now we know the true figure of which we have been trying to calculate. 

That is "500,486,336 shares"  @ $0.667

SKINT, totally agree that 30% of the mine is in addition along with other assets owned by CFE to the above price. 

re: "Delong Holdings shares up 50%" as I posted earlier. I was indicating that the strength of Mr. Ding to keep his part of the contract is looking good financially.


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## nomore4s (20 April 2007)

Some bigger quantites sitting at 42c & 43.5c.


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## skint (20 April 2007)

MR. said:


> Thanks for having a look SKINT.
> 
> Yes 2 of my totals were not correct in my posting to you.
> 
> ...




Mr Ding, I seem to recall reading in is only 37 years old and has been successfully expanding at the rate of knots for some time. Certainly no Ding-a-ling! I agree, he's the least of our concerns. CFE had been in negotiations with several potential investors from more than one country. They were definitely in a very strong position to not have to revert to a shonky wanna-be and would obviously have heavily scrutinised his ability to deliver.


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## Ruprect (20 April 2007)

Thats right - and the moment we see a signal or announcement that he has converted his options, we should see another spike in the sp imo.


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## mildew79 (23 April 2007)

potential agressive play. high risk. buy at break. need volume confirmation at break


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## Glenhaven (24 April 2007)

The price is getting weaker. It appears that a number of holders either think the deal is dead.


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## chris1983 (24 April 2007)

Glenhaven said:


> The price is getting weaker. It appears that a number of holders either think the deal is dead.




Why would the deal be dead?  Just wondering.  I think a number of users have no balls?


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## Glenhaven (24 April 2007)

chris1983 said:


> Why would the deal be dead?  Just wondering.  I think a number of users have no balls?




I just think the market is signalling that is unlikely to happen. Why is this so, I wish I was in the know. I know you do not agree, but I still think that directors selling even moderate amounts (I think it was over 50% of his holding) at a time when the deal is saying buy is an indicator of doubt about the deal happening.

I hope that you are right and that I am being overly pessimistic.


----------



## chris1983 (24 April 2007)

I really dunno.  Theres gotta be some form of risk to make large gains.  I just dont know how the deal could fall through.  How many more weeks wait now?  3 weeks Max.  So things should start to get interesting.


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## Glenhaven (24 April 2007)

If the price states to pick up as we get near the date, then this will be a positive sign.


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## mildew79 (25 April 2007)

it is quite normal for the boards to dry up at this stage in situations such as these. punters shall get on the board (buy or sell) nearer d day. stocks like these are always a good test of nerve whilst awaiting news  

im staying away until volume returns. as i said above with chart, break of short term down trend on volume will get me interested again.


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## Glenhaven (28 April 2007)

Cape Lambert Iron Ore says drilling to start by end April
LONDON (Thomson Financial, 27 April 2007) - Cape Lambert Iron Ore Ltd said it expects to start drilling on its iron ore project in western Australia by the end of April with another 10,000 m diamond core drilling program scheduled to begin in June.

The iron ore exploration company said its objective is to define sufficient ore reserves to produce 10-15 mln tonne per annum of magnetite concentrate over a 20 year mine life.

The company also said it expects to complete a resource update by the end of July.

Last month, Chinese businessman Ding Liguo entered into a contract to acquire 40 mln Cape Lambert options, giving him a 13.7 pct stake in the company on exercise. TFN.newsdesk@thomson.com rsh/tc


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## MR. (28 April 2007)

CAPE LAMBERT IRON ORE REPORT FOR THE QUARTER 
Info:
http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1471360&source=RNS

News extracts:
CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007.

There are 112 DTR results outstanding for drill holes MA233, MA234, MA264 and MA266. There has been an unprecedented delay in receiving the remaining 112 DTR results, but the Company has been advised that they will be available early May 2007.


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## chris1983 (28 April 2007)

Thanks for the update guys.  I knew there would be delays.  I'll just sit tight on my holding..tuck them away.  If investors get impatient i'll top up for a cheaper price.


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## MR. (28 April 2007)

Just another 4-5 more weeks! I can think of worse news. Then I hope to see those 40,000,000 oppies. The first major payment from Ding for the 70% will be one month after confirmation of the 300Mt by contract. 

The sp (at $0.40) is half what I think the company is easily worth. I have already considered topping up again at this price.


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## Glenhaven (28 April 2007)

I would expect the price to rise on Monday and show something running up to the first week of June. I will consider buying early next week.


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## Halba (28 April 2007)

Glenhaven said:


> I would expect the price to rise on Monday and show something running up to the first week of June. I will consider buying early next week.




Don't know about yourself, but it is not prudent to add to a losing position. Consider trade management/stop losses/position sizing. Chris is probably doing the right thing by just sticking it out and not adding more. Remember opportunity cost is there, and there are so many other stocks that can do well in the next year.


----------



## chris1983 (28 April 2007)

Glenhaven said:


> I would expect the price to rise on Monday and show something running up to the first week of June. I will consider buying early next week.




I allready have a decent sized parcel in the oppies.  They havnt gone much under what I paid.  I like to average down my original price so if the oppies dropped to 15/16/17 I will be buying.  I still feel confident on this deal going through.  The quarterly report confirms that.

_"CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."_

Like I said before I feel very strongly that this is a done deal.  Once the deal is confirmed SP could easily jump 30/40 cents from here.  See below.  A past post to show the possibilities once the deal is confirmed. 

*CFE - Total Class Issue: 247,576,062
CFEO - Total Class Issue: 136,511,800*

Chinese investor, Mr Ding Liguo, to purchase 40 million unlisted CFE Options
(“Options”)

Total shares on issue – 424, 087 862
Fully diluted market cap is *$173, 8761 023*

Now if you work out the monetary value the company will receive it will be worth.

$250 million (deal with Best Decade)
$38 million once options are converted.
Additional $15 million from Mr Ding when he converts oppies

In total this is *$303 million in cash* value to the company.

But out of this 303 million only *115 million* will be left for the company to aquire further projects because the rest of it will be used to fund their 30% interest in the project that Best Decade aquired 70% of.

As stated in the West Australian..

_“It would also leave Cape Lambert with around $100 million to invest in other projects, once outstanding options are exercised next year”_

This is how I know 115 million in cash will be left for the company because you have to add the additional 15 million from Mr Dings options once converted on top of the $100 million left over from the deal with Best Decade. This would leave the company with 115 million cash in total and the 30% interest in the project is fully funded.

When you put a valuation on the company I believe the value should be the total value of the company divided by the shares

$303 million divided by the fully diluted share holding of 424, 087 862

*= .714 cents per share*

So once the deal is confirmed I am expect atleast around a 70-80 cents valuation on the company.  I like knowing how much money I could possibily make once something is confirmed.  It all depends on your confidence for the deal to go through and I am still very confident.  Whether or not the SP of the company rises to the value is has in cash and assets is unknown.  But I think it will.


----------



## MR. (28 April 2007)

"HALBA", good advise. I don't want to just read positives about a stock. 

Some of us have invested interests in CFE, so we tend to sway on the positive side. Purposely and not. I'm interested in the facts. If good or bad information arises in the future, I hope to find it on this site. Before I find it somewhere else. 

I would like to know why someone sells at $0.40 or similar. I don't see too much wrong with CFE. Its good to read CFE management is organised as indicated in todays release but I read little other news and no good news regarding the 300MT.


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## chris1983 (29 April 2007)

MR. said:


> "HALBA", good advise. I don't want to just read positives about a stock.
> 
> Some of us have invested interests in CFE, so we tend to sway on the positive side. Purposely and not. I'm interested in the facts. If good or bad information arises in the future, I hope to find it on this site. Before I find it somewhere else.
> 
> I would like to know why someone sells at $0.40 or similar. I don't see too much wrong with CFE. Its good to read CFE management is organised as indicated in todays release but I read little other news and no good news regarding the 300MT.




What more could you possibly be looking for?  What we need to know is stated in the quarterly report.  

_"CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."_

You want to know why someone sells at 40 cents?  I guess we ask..has anyone sold at 40 cents on here?  Please post your reason.  I could come up with a few.  Some investors dont believe in the deal.  Some investors are impatient and expect things to happen overnight.  Some investors werent happy with one director selling a small portion of his shares.  Some investors arent happy with the resource and the quality of the resource.

I really dont care for any of those reasons..but I have just posted them for you to see the negatives that others would be seeing.  What matters is the deal going through and everything seems on track.  Some people sit on a stock for 6 months waiting for a 100% gain.  If this deal is realised..based off the monetary value it could go up 100% easily.  That kind of possibility to me seems like a very possible outcome.


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## mhtrieu (29 April 2007)

Hi chris1983,

At 40c if the deal falls through you risk the stock dropping 20% down to 32c, which is the price this stock use to trade at before the deal. 
If the deal goes through there is atleast a 50% gain to be made.

At 40c the risk Vs return dont look too bad considering CFE has just released a quarterly report with some news that they are doing something about the China deal. 

Anyone feel like a gamble??


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## Kimosabi (29 April 2007)

chris1983 said:


> What more could you possibly be looking for? What we need to know is stated in the quarterly report.
> 
> _"CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."_
> 
> ...




The question I've got, is why did ROBE River bother building a +200km railway, Pannawonica etc etc when there was dirty great load of Iron Ore on their Door Step


----------



## chris1983 (29 April 2007)

mhtrieu said:


> Hi chris1983,
> 
> At 40c if the deal falls through you risk the stock dropping 20% down to 32c, which is the price this stock use to trade at before the deal.
> If the deal goes through there is atleast a 50% gain to be made.
> ...





I never call my investments gambles..I call them educated gambles.   Naa really..this one has it risks but weighing everything up I think it is leaning more to the positives.  Just my opinion.  The possibilities for gains in the SP are far greater than the losses.


----------



## chris1983 (29 April 2007)

Kimosabi said:


> The question I've got, is why did ROBE River bother building a +200km railway, Pannawonica etc etc when there was dirty great load of Iron Ore on their Door Step




Not sure.  I dont know the history of the iron ore deposits in the area.  Maybe it wasn't viable at that time?  Did they previously own the tenements did they?  Like I said...all I'm looking at is Cape Lambert confirming the 300mt resource which is expected for the first week of June.  If Robe river could of developed it earlier..I dont really care.  Mr Ding is showing the interest in Cape Lamberts deposit and for me to make money the deal must go through..simple as that.


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## MR. (30 April 2007)

Kimosabi; said:
			
		

> The question I've got, is why did ROBE River bother building a +200km railway, Pannawonica etc etc when there was dirty great load of Iron Ore on their Door Step




Don't you people sleep.
Mesa J, near Pannawonica is hematite. Cape Lambert being magnetite. Seven years ago Robe found the extraction of magnetite too expensive and built the rail instead to extract Hematite. Magnetite is now cost effective to extract and refine.

CFE reported that the results of the 300mt would be finished in 4-6 weeks which we are now in  the middle of now. CFE released in their quarter report, that they appointed RSG Global to be the independent geologists. Maybe its just me, but I would have thought this should be old news, considering they said that these independents findings would be finished now. 

anyway its good to see some more support today.


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## chris1983 (30 April 2007)

Hey MR.  Naa I dont sleep.  Im in Perth so Im usually on pretty late.  It is good to see the support come in.  I'm happy to be holding right now and I'm looking forward to the first week of June


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## MR. (30 April 2007)

chris1983; said:
			
		

> Hey MR.  Naa I dont sleep.  Im in Perth so Im usually on pretty late.  It is good to see the support come in.  I'm happy to be holding right now and I'm looking forward to the first week of June




Hey I'm in Qld I'm miles away. You can just zip up anytime and get some on ground info (inside info) now wouldn't that be good.


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## Glenhaven (30 April 2007)

Halba said:


> Don't know about yourself, but it is not prudent to add to a losing position. Consider trade management/stop losses/position sizing. Chris is probably doing the right thing by just sticking it out and not adding more. Remember opportunity cost is there, and there are so many other stocks that can do well in the next year.




I know you are right, but I bought anyway. Had my order on at 41c, but as I was going out to golf changed it to 40.5c and so only got 25,000. At least it was the low for the day.

I am still looking for a steady increase in price over the next month.


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## chris1983 (30 April 2007)

Glenhaven said:


> I know you are right, but I bought anyway. Had my order on at 41c, but as I was going out to golf changed it to 40.5c and so only got 25,000. At least it was the low for the day.
> 
> I am still looking for a steady increase in price over the next month.




I always add to a losing position if I like the stock and I have worked out the value behind a stock.  Once again though CFE's value is determined via this deal going through but I feel confident enough to top up if I had the cash.  I did it all the time with my erongo (ERN) at the beginning.  Initially bought at 55 and bought on its dip when it hit a low of 40.  I always will average my prices down though..not up.

It really depends on how much I like the stock.  If I had money I would of definately topped up when the options hit 19/20.  Thats just me though.


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## Glenhaven (10 May 2007)

Moving at last up 3c to 45c this morning. I may even get square in the next day or so. As we get closer to the date it will continue to move up.


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## ta2693 (10 May 2007)

Finally ppl wake up. It is very happy to see my red figure turn into green although I still have not made any profit from this yet.


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## chris1983 (10 May 2007)

ta2693 said:


> Finally ppl wake up. It is very happy to see my red figure turn into green although I still have not made any profit from this yet.




Wait untill the deal goes through.  First week of June and we will get an idea of whats going to happen.


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## mhtrieu (10 May 2007)

chris1983 said:


> Wait untill the deal goes through.  First week of June and we will get an idea of whats going to happen.




Hey Chris1983

I took up a small parcel when i saw it bounce off 40c twice. Todays annoucement has probably brought back confidence to the market.


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## nomore4s (10 May 2007)

mhtrieu said:


> Hey Chris1983
> 
> I took up a small parcel when i saw it bounce off 40c twice. Todays annoucement has probably brought back confidence to the market.




Yeah looked like it, best day for a while. See what tomorrow brings plenty  more green I hope.  A little bit more vol today as well.


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## chris1983 (11 May 2007)

mhtrieu said:


> Hey Chris1983
> 
> I took up a small parcel when i saw it bounce off 40c twice. Todays annoucement has probably brought back confidence to the market.




Nice to have you onboard.  This is another 3-4 weeks wait then the real gains will come.  I want to see this deal sealed with Best Decade.  Then I can hold my options with a lot of confidence.  Im quite confident right now but untill it is a done deal I will still be watching carefully.


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## kiwiloe (11 May 2007)

Finished at 20.5 pence in London last night (=49 cents Australian), that's 4.5 cents premium on last Aussie trade yesterday, so would expect a cent or three improvement today on the ASX.


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## smoothsatin (12 May 2007)

CFEO had some serious buying pressure on Friday, 1 million + traded.

.245/.25 at present............


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## Ruprect (14 May 2007)

Just broken 50c on nearly 3 million shares traded today.

Well done guys for sticking this one out.


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## chris1983 (14 May 2007)

Glenhaven said:


> I know you are right, but I bought anyway. Had my order on at 41c, but as I was going out to golf changed it to 40.5c and so only got 25,000. At least it was the low for the day.
> 
> I am still looking for a steady increase in price over the next month.




Not a bad little profit for a 2 week hold Glenhaven.  I'm waiting for the deal to be secured.  You will be counting even larger profits hopefully in 2-3 weeks time.


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## Glenhaven (14 May 2007)

Yes, I am now in profit. 100,000 at 53c and 100,000 at 40.5c. At closing I am up $8,000 odd after costs.

As I said in an earlier post I expect them to nudge up until the end of the month. I will sell half if they get to 60c.


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## chris1983 (14 May 2007)

Glenhaven said:


> Yes, I am now in profit. 100,000 at 53c and 100,000 at 40.5c. At closing I am up $8,000 odd after costs.
> 
> As I said in an earlier post I expect them to nudge up until the end of the month. I will sell half if they get to 60c.




You have gone in a lot harder than me   I have just under a quarter of your holdings but in the oppies .  They are running a little early considering they were expecting results to be out in the first week of June.  I guess it is anticipated for the deal to be secured.


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## nomore4s (14 May 2007)

chris1983 said:


> You have gone in a lot harder than me   I have just under a quarter of your holdings but in the oppies .  They are running a little early considering they were expecting results to be out in the first week of June.  I guess it is anticipated for the deal to be secured.




lol, you both make me feel poor  . I brought in at 43c before the first ann about the deal (on a t/a basis), I got a feeling this company might have a bit of a leak, as there was alot of buying before the deal was annouced orignially and it looks likely to happen again. Will be interesting to see how hard it runs over the next few weeks.


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## chris1983 (14 May 2007)

nomore4s said:


> lol, you both make me feel poor  . I brought in at 43c before the first ann about the deal (on a t/a basis), I got a feeling this company might have a bit of a leak, as there was alot of buying before the deal was annouced orignially and it looks likely to happen again. Will be interesting to see how hard it runs over the next few weeks.




Dunworry nomore4s..I dont have too much in the market.  My fund has been building for the past year.  Looking forward to becoming a bigger fish on the market.  Need a few more winners..hopefully CFE is one of those winners.  We have crunched the numbers on the deal earlier within the thread and I'm getting pretty excited as to whats going to happen.  It looks to me as a clear trend reversal on the charts.  I just want that announcement out for confirmation.  Good luck to holders.


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## nomore4s (14 May 2007)

chris1983 said:


> Dunworry nomore4s..I dont have too much in the market.  My fund has been building for the past year.  Looking forward to becoming a bigger fish on the market.  Need a few more winners..hopefully CFE is one of those winners.  We have crunched the numbers on the deal earlier within the thread and I'm getting pretty excited as to whats going to happen.  It looks to me as a clear trend reversal on the charts.  I just want that announcement out for confirmation.  Good luck to holders.




lol, it's ok Chris, I've only just begun trading in shares and only have a small amount of capital in the market atm, as I learn more I will slowly increase this. Provided this deal goes ahead (which imo is looking good) we should all have a bit more capital to invest in the market. There is not much we can do now except wait for an ann, we all know how good the deal will be if it does go ahead.


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## chris1983 (15 May 2007)

nomore4s said:


> lol, it's ok Chris, I've only just begun trading in shares and only have a small amount of capital in the market atm, as I learn more I will slowly increase this. Provided this deal goes ahead (which imo is looking good) we should all have a bit more capital to invest in the market. There is not much we can do now except wait for an ann, we all know how good the deal will be if it does go ahead.




Trading strongly again in the UK.  Currently at 23 pence..looking good.  Im hoping this run continues..its really showing some great potential.

0.23 GBP	=	0.546905 AUD


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## MR. (15 May 2007)

Glenhaven; said:
			
		

> Yes, I am now in profit. 100,000 at 53c and 100,000 at 40.5c. At closing I am up $8,000 odd after costs.
> 
> As I said in an earlier post I expect them to nudge up until the end of the month. I will sell half if they get to 60c.




I hold a similar quantity to you Glenhaven. My average is similar @ 0.45 and I only hold shares no oppies. I was pleased it didn't break that $0.40 mark which was my "buy more" because I hold enough and it wasn't going to drop my average price down much anyway. You brought your average down well. 

Of interest Robe calculated approx 255 million tonnes 7 years ago. Within the same CTA "central target area." CFE needs only to drill deeper (which has been done) and find 45 million tonnes. On a area of 5000m x 600m the average find across the CTA needs to be 12 metres deep of iron. I am confident that the extra 45MT has been found. (if you do some calculations from the CFE drill data remember many of the drill holes contain iron already found buy Robe)

calculations for average find needed: 5000m x 600m x 12m (say average depth) x 2 (soil doubles in size out of the ground) / 3 (33% magnetic iron extracted) x 2 (1 cubic metre of iron weighs approx 2 tonne) = 48MT  

"Delong holdings" SP is at least 50% higher than it was when Ding signed the contract. Ding would be feeling mighty cashed up at the moment.

I'm not going anywhere. I did buy for the medium term. I was eyeing off CFE before the deal. However I didn't buy until after.


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## Ruprect (18 May 2007)

Check out the latest announcement, re board changes etc. Just been released.

Main points are that they confirm that Mr Ding has purchased the 40 million options. And that they are nearing completion of the resource estimate, and that certification should be completed by end of July.

Thats a very good start re Mr Ding. If he converts the options to shares, which they have indicated he will do, we should see a nice re rating.


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## Glenhaven (18 May 2007)

Must say that I thought the announcement would have moved the price up more. Probably because it's a down day the impact is lower than it otherwise would have been.

It has increased my confidence level.


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## MR. (18 May 2007)

Picked up that ann quick. Thanks RUPRECT. At first I thought that ding had converted the options. But No. Good info thou from CFE. Keeping us informed.


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## mahmoodf (23 May 2007)

Hello everyone

I have been following this stock with much interest, but don't own any shares in it.

I don't understand one thing:

If you look at the company presentation that Cape put out on *14/08/2006*, they state that they have 2.5 Billion Tonnes @ 30%Fe with *1.4bt in Indicated Resource category* and 1.1bt in Inferred Resource category
(250m depth & 25%Fe cut off).

They also state that they have 1.2 Billion Tonnes @ 33%Fe with *0.67bt in Indicated Resource category* and 0.53bt in Inferred Resource category
(250m depth & 30%Fe cut off).

So what I don't understand is what is the issue in proving up 300Mt as an Indicated Resource? According to their presentations, they already have it. Or am I completely missing something?

Thanks for your help.


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## nomore4s (23 May 2007)

mahmoodf said:


> Hello everyone
> 
> I have been following this stock with much interest, but don't own any shares in it.
> 
> ...




mahmoodf, from what I understand they have to get independent confirmation they have at least 300Mt to finalise the deal, and as you have stated it shouldn't be a problem as long as they have miscalculated or been fudgeing  the data.


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## MR. (23 May 2007)

Indicated 300mt!

I believe CFE hadn't drilled any further holes from Robe's drilling when CFE came up with their higher totals. It was CFE's consultant which estimated these upgrades. (maybe ?)

When 300MT was part of the contract I asked why not higher? and concluded as above. That is why I posted about a week ago Robes 255MT which I hope is true and we are looking for a further 45MT.

I think many are in the same view by the share price increase last week.  CFE published that diagram of the cross section of the 200m thick iron run to their 07p17 drill hole.


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## mahmoodf (23 May 2007)

I'm sorry to say this, but your replies have not cleared up the air for me. Referring back to the report of 14/08/2006, here is what it says:



> This Resource was calculated from 22,662 metres of Robe historical drilling consisting of 189 drill holes
> Qualification: The mineral Resource is based on information compiled by Martin Reynolds who is a fellow of the Australian Institute
> of Mining & Metallurgy. Mr Reynolds is a Director of Mackay & Schnellmann Pty Ltd, an independent geological consultant. Mr
> Reynolds is qualified as a Competent person as defined in the 2004, “Australasian Code for Reporting of Mineral Resources and
> Reserves” (JORC).




Is this not an independent view? I still don't understand the issue of the 300Mt required as Indicated Resource when in their report they already have a JORC resource qualified at over this amount by an independent geo. Can someone please explain this to me.


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## Stimpy (24 May 2007)

It's been a long time since I looked at this but I think the issue is that while there may be 1.4BT in the ground not all of it is economically viable.

The 300MT has to be within a certain zone of surface mineralisation to be able to mine it with an open pit. I seem to recall that a lot of their resources are deep, much deeper than Robe drilled, and while it's nice to have resources they don't add value if you can't dig them up and sell them for a profit.

Anyone care to set me straight?


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## mahmoodf (24 May 2007)

Rather than take guesses, I will put forward this question to Cape Lambert and see what they say. Thank you for all the replies so far.


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## mahmoodf (24 May 2007)

Hello everyone

I got a prompt response back from the company. The company does have a JORC compliant resource as stated already.

Best Decade (Mr. Ding and co) requested another independent resource estimate for their due diligence.

I guess it's a bit like getting an opinion from two or three doctors about a medical condition.

I feel a lot more confident now and have bought shares in CFEO. Good luck to all holders.


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## nomore4s (24 May 2007)

mahmoodf said:


> Hello everyone
> 
> I got a prompt response back from the company. The company does have a JORC compliant resource as stated already.
> 
> ...




Thanks for the info mahmoodf. There really shouldn't be to many problems getting the JORC to finalise the deal then. But I guess we have to wait till end of July to find out.

Also in the last ann there was this:
"Establishment of joint venture office
Cape Lambert would also like to advise that it has opened a joint venture office to, in conjunction with Mr Ding, develop the Cape Lambert Iron Ore project."
This is positive imo as both companies have gone to the trouble to set up an office for the jv, which means they are pretty confident the deal will go through.


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## skint (24 May 2007)

nomore4s said:


> Thanks for the info mahmoodf. There really shouldn't be to many problems getting the JORC to finalise the deal then. But I guess we have to wait till end of July to find out.
> 
> Also in the last ann there was this:
> "Establishment of joint venture office
> ...




In the 3rd quarter report it states that:
 "CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."
The same report also states that the "updated resource model is scheduled to be completed by the end of July."
My understanding therefore, is that the 300mt compliance is due by the first week of June (ie. the deal is confirmed) and that full definition of the resource is due by the end of July. Any thoughts on my reading of the situation?


----------



## nomore4s (24 May 2007)

skint said:


> In the 3rd quarter report it states that:
> "CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."
> The same report also states that the "updated resource model is scheduled to be completed by the end of July."
> My understanding therefore, is that the 300mt compliance is due by the first week of June (ie. the deal is confirmed) and that full definition of the resource is due by the end of July. Any thoughts on my reading of the situation?




I think you are correct, as when the deal was first ann they said 4-6 weeks which is the early June, I'm telling myself July to allow for any delays and so I don't get impatient. Some of these companies are constantly 2-3weeks behind schedule releasing info.


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## skint (24 May 2007)

nomore4s said:


> I think you are correct, as when the deal was first ann they said 4-6 weeks which is the early June, I'm telling myself July to allow for any delays and so I don't get impatient. Some of these companies are constantly 2-3weeks behind schedule releasing info.




Too true. Announcements on time appear to be the exception rather than the rule. Finished nicely today though, considering the ords was down by more than 1%.


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## MR. (24 May 2007)

mahmoodf; said:
			
		

> I'm sorry to say this, but your replies have not cleared up the air for me. Referring back to the report of 14/08/2006, here is what it says:
> Is this not an independent view? I still don't understand the issue of the 300Mt required as Indicated Resource when in their report they already have a JORC resource qualified at over this amount by an independent geo. Can someone please explain this to me.




MAHMOODF, I have got some extra information which I based my opinion on. Referr (LONSEC report dated september 2006). On CFE's website. 
Apart from slight differences in iron grading how does Robe estimate 255 million tonnes and CFE (using those same drill samples) come up with 1.2 billion?????? I am confident that Robe used an independent geological consultant as well! When I find 2 doctors telling me something completly different I want to know what that 3rd says!

Nomore4's & Skint. 
For CFE's updated resource model estimated end of july (nothing to do with contract. Just update from drilling) as you know. The contract 300MT estimate is 1st week of june but by contract must not be longer then the end of June. Ding has 4 weeks from compliance with regard to the 300 million tonne to pay his first large installment payment.
I hope to see Ding's options turned into shares sooner than that installment payment. 
I hope this info helps.


----------



## billhill (24 May 2007)

Going off the current topic at the moment guys, but if the deal with best decade goes smoothly then CFE will end up with 250 million in cash. So obviously some of this money will go to development of cape lambert but that will still leave them with substatial reserves. Anyone else think this company may be in a good position to aquire another project. Where do people think this company is headed.


----------



## nomore4s (24 May 2007)

Thanks MR. cleared a few things up. I too would like to see Dings oppies converted asap. Well not long to wait now anyway only a few more weeks hopefully. Today was quite a good day (up 5.5%) considering the general market being down by around 70pts.

Billhill, I'm sure the company will be looking at new projects (as stated in one of thier ann - see below) with the left over cash from the deal if and when it goes ahead. What those projects will be, your guess is as good as mine.

“The company will retain a significant equity holding in the asset and now have significant cash reserves that will allow us to evaluate and possibly acquire other projects. We are in the unique position of having sufficient cash reserves that will allow us to run the ruler over a number of
seriously exciting projects.”


----------



## mahmoodf (24 May 2007)

Hi MR

If you look at the ASX release dated 24/08/2005 (titled "Cape Lambert Iron Ore Project") when CFE was trading as IGL, that is when the independent analysis was done by CFE and that is why they purchased the project. Because they were able to get a substantial increase on the resource size.

But you make a very good point about how Robe came up with one set of figures and Mackay and Shnellmann (the consultants that CFE used) came up with another set of figures from basically the same data set.

I now understand why Mr. Ding wants another opinion. I would too if I was shelling out $250 million smackeroonies!  

So thank you very much for pointing me in the right direction. I feel confident though that CFE have the goods. Ian Burston is no fool and if he is on board this, then I have faith.


----------



## Ruprect (24 May 2007)

billhill said:


> Going off the current topic at the moment guys, but if the deal with best decade goes smoothly then CFE will end up with 250 million in cash. So obviously some of this money will go to development of cape lambert but that will still leave them with substatial reserves. Anyone else think this company may be in a good position to aquire another project. Where do people think this company is headed.




I might suggest something from left field. CFE could reasonably make a special payment to shareholders. For instance, the 192 US is equiv to about 235 million Australian. A special payment of say .40 cents per share would cost about 200 million aussie, assuming all option holders exercised their right, and of course they would to be eligble for a payment. 

That would leave CFE with $35 million from the Ding payment for the iron ore project, plus about $70 something million from exercised options, = over $100 million.

So thats over $100 million to pay for their 30% share of the development of the project, and the remainder to invest in other projects, while still retaining a 30% interest in the project, which will bring in ongoing revenue for the next decade or more. 

I guess though that is dependent on how much a 30% share of the development costs.

A return to shareholders is after all what is supposed to occur when companies make money. Just my thoughts.


----------



## Broadside (24 May 2007)

Ruprect said:


> I might suggest something from left field. CFE could reasonably make a special payment to shareholders. For instance, the 192 US is equiv to about 235 million Australian. A special payment of say .40 cents per share would cost about 200 million aussie, assuming all option holders exercised their right, and of course they would to be eligble for a payment.
> 
> That would leave CFE with $35 million from the Ding payment for the iron ore project, plus about $70 something million from exercised options, = over $100 million.
> 
> ...




Nice idea Ruprect but companies rarely elect to make themselves smaller, even if it is to the benefit of shareholders.  Much like governments of any persuasion.  It must be human nature.


----------



## Ruprect (25 May 2007)

Lol, i know! Its very wishful thinking. But the directors do hold a significant number of shares themselves..good way to take an easy profit... 

If they make strategic investments however, the benefit will come in a share price move and potential dividends as a producer. They will be one of the limited number of explorers making the move to being a producer, albeit as part of a JV. That gives them good cred, so any further ventures should be keenly watched and supported.


----------



## skint (25 May 2007)

Closed higher at .52c in London overnight. It would be good to see that reflected in the Aust. SP today.


----------



## MR. (25 May 2007)

Ruprect;192 US is equiv to about 235 million Australian. A special payment of say .40 cents per share would cost about 200 million aussie said:


> I agree with the figures you have put forward there not far different to what I calculate. Although the mine total was suppose to cost 600 million and perhaps as much as 800 million total. 30% of that (CFE share) is 180 and 240 million. I have thought they might pay a dividend if the mine did cost 180 million. I have also read somewhere that Sage has suggested a dividend maybe paid.
> 
> The main reason why I like CFE is because they are now and will be in no debt. So many other companies are in debt. I still see CFE at ground floor and we have calculated fully diluted $0.677 per share in cash (at 250 million AUD Ding) + we will have a 30% mine, Iron ore being in demand and management in place to bring it all together. As for the 300mt I don't see that as the main hurdle it is the payment. Ding can walk away at anytime and lose only 2 million.  I know by contract he is suppose to pay.


----------



## mahmoodf (25 May 2007)

Hi MR

Can he walk away even if Cape prove they have 300Mt? Is it not a binding agreement? I thought the only way out would be if Cape cannot prove 300Mt indicated resource.


----------



## MR. (25 May 2007)

mahmoodf; said:
			
		

> Hi MR
> 
> Can he walk away even if Cape prove they have 300Mt? Is it not a binding agreement? I thought the only way out would be if Cape cannot prove 300Mt indicated resource.




Ding can walk away if the 300mt is not proved and he loses $750,000. 
If it is proven then that bindings agreement you mentioned states he has to pay. Show me the money.


----------



## mahmoodf (25 May 2007)

LOL, thanks MR. Those are exactly my thoughts. Lets hope that the JORC compliant resource that Cape have been claiming since about 2005 of 2.5Bt is certainly that. I hope the geo that did the work didn't make a typo some where!!!  ;-)


----------



## camaybay (30 May 2007)

I have been following the dialogue and thought that the chart looked like cup and handle pattern. Good if the verification is confirmed. No typos please!
Not holding.
DYOR


----------



## chris1983 (30 May 2007)

Yeah Im waiting for the confirmation of the deal with Mr Ding.  The first week of June is drawing near.  Im excited.  Good luck to holders..hopefully we dont get any delays.


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## chris1983 (31 May 2007)

From the last quarterly report..see below

_"CFE is pleased to advise it has commenced initial compliance with regard to the 300 million tonne indicated resource by the appointment of RSG Global as the independent geologists. CFE anticipates completion of verification by the 1 week of June 2007."_

Time is running out..tick tick tick..moment of truth is upon us.  Hopefully we get the message next week and there are no delays.


----------



## MR. (31 May 2007)

Cup and handle! I just see iron ore fil'ings. Happy to hold even if slight typo because 300mt is only 17% more than Robes 255mt. Cfe has found alot more iron ore since they began drilling. I would be concerned if CFE had to come up with something like 600mt for the contract. 

Tick tick and another day goes by.


----------



## Ruprect (1 June 2007)

Price Sensitive ann just out. CFE to create new subsidiary - Global Iron. Not the news we have been waiting for, but this does indicate a spin off...

Will transfer Iron ore projects to this company, excluding cape lambert project. If this doesnt cause a positive stir for the sp, i'll probably eat my shorts. Not that id need them in this weather...

"Cape Lambert intends to spin this company out into a new ASX listed entity and distribute its
shareholding in Global to the CFE shareholders. It is expected that following the proposed
spin-out, Cape Lambert shareholders will hold approximately 20 per cent of Global by way of
an in-specie distribution by Cape Lambert of the shares it holds in Global. The in-specie
distribution is subject to shareholder approval, Global completing a capital raising of
$2,500,000 and receiving conditional approval to list on ASX."

I also note from the release that CFE are proposing a success fee of $10m (shares) to Westlink for arranging the Ding 70% aquisition and that "Details regarding the sale of the 70% interest in the Cape Lambert Iron Ore Project and the
success fee payable to Westlink will be contained in the notice of meeting to be sent to
shareholders shortly."


----------



## MR. (1 June 2007)

MR.; said:
			
		

> Ding can walk away if the 300mt is not proved and he loses $750,000.
> If it is proven then that bindings agreement you mentioned states he has to pay. Show me the money.




Thanks ruprect. 

Re: "show me the money" as i posted earlier referring to mr. Ding's 192us million. I have some news ***not known to most.*** What do you know about a share that no one else does?

I don't think Ding is going to buy the mine.
I don't think Best Decade is going to buy the mine either....
I think and judge for yourselves, the buyer will be Delong Holdings the actual steel manufacturer.

Delong Holdings has issued bonds taken up by Citigroup in two parcels of 175 and 50 million usd. Totalling $200,000 usd. Closing date if 8/6/07 or friday next week. Too close not to be linked! 

I have found the money. Now will Delong use it for the mine? I bet they do.

This puts the money worry to rest for me.

information for your judgement. see may 22 and may 26 ann'

http://info.sgx.com/webcorannc.nsf/...w&RestrictToCategory=DDELONG HOLDINGS LIMITED

A question if Delong is expected to make 3 million tonnes of steel next year how much would the iron ore cost? At 3 million tonnes of iron ore (which I am sure is light on) if purchased for $40-usd (which I think is light on as well) Delong will spend $120 million on ore next year minimum.

Regards a happy holder. MR. Sherlock Holmes 

Now "Show me 300 mt."


----------



## MR. (1 June 2007)

Midday (cfe $0.50 no change) (cfeo 25.5 +4.1%)

"There are times when great investment opportunities are as plain as they appear.
We tend to except complexity, so we find it hard to accept that the market sometimes throws up extraordinary bargains." (platinum asset management)


----------



## skint (1 June 2007)

MR. said:


> Midday (cfe $0.50 no change) (cfeo 25.5 +4.1%)
> 
> "There are times when great investment opportunities are as plain as they appear.
> We tend to except complexity, so we find it hard to accept that the market sometimes throws up extraordinary bargains." (platinum asset management)




Were platinum asset management refering to CFE or is this a generic quote? Well done on finding the money. It does appear to be too much of a coincidence (amount of money and the date) to not apply to Cape Lambert.


----------



## arkady (1 June 2007)

Going by a press release late March, Mr Ding is pretty keen to make his mark in Australia.

The business connections of new Perth Glory owner Tony Sage already look to be paying dividends, with the club announcing a new CEO and a sponsorship deal with a Chinese steel company claimed to be one of the most lucrative in Australian football.

Former West Coast Eagles sponsorship manager Scott Gooch was on Tuesday unveiled as the Glory's new chief executive - while Delong Holdings becomes the club's joint major sponsor, with a one-year deal worth $750,000.

And it could also lead to games with Chinese Premier League side Zhejiang Lucheng, which is owned by Chinese tycoon and chairman of Delong, Liguo Ding.

"Delong Holdings want to introduce their brand in Australia and believe Perth Glory is an ideal vehicle to drive that program", Sage said.


----------



## Ruprect (1 June 2007)

Well, Mr., I am impressed! Great find. Amazing what you can pick up with some research isnt it? Much thanks.

I think if we look at the recent upward movement in the sp, it occurred around the 22nd of May, the day that Delong announced their fundraising.

I note from the Delong release that "The net proceeds from the issue of the Bonds will be applied by the Company for core business
expansion and for funding possible strategic investments, joint ventures, acquisitions and/or for our
general corporate and working capital purposes."

Given the amount raised, it seems awfully coincidental doesnt it? Almost too coincidental. We shall see.

Delong and Best Decade are basicly one and the same, Mr Ding is the chairman of Delong, and Best Decade hold over 70% of the shares in the company.


----------



## chris1983 (1 June 2007)

MR. said:


> Thanks ruprect.
> 
> Re: "show me the money" as i posted earlier referring to mr. Ding's 192us million. I have some news ***not known to most.*** What do you know about a share that no one else does?
> 
> ...




Excellent research Mr.  This is what the forums are all about.  Im impressed by your research.  Happy to be holding and waiting.


----------



## MR. (1 June 2007)

MR.; said:
			
		

> Midday (cfe $0.50 no change) (cfeo 25.5 +4.1%)
> 
> "There are times when great investment opportunities are as plain as they appear.
> We tend to except complexity, so we find it hard to accept that the market sometimes throws up extraordinary bargains." (platinum asset management)




SKINT, just a quote from a booklet I have from Platinum. Platinum did not referr to CFE. It just appeared to match CFE. My opinion only. sorry.


----------



## MR. (2 June 2007)

*Re: CFE - Cape Lambert Iron Ore & (Global Iron)*

re: "CFE to create new subsidiary"

If these under valued extra iron ore assets are transferred to Global Iron, CFE management has valued them at $625,000- (cfe share holders only own 20% + the $2.5m to be raised.) At first I thought fine, try and use these assets to their full  protential. But is (20%) too low ? I can't say, perhaps it is too high. I hope they have valued these extra assets correctly.

We will know once we see who the share holders are who take up the shares to raise the $2.5m in Global Iron. I would like to see a maximum share holding from CFE management put on Global Iron. ??

"Global Iron" sounds awfully international, I wonder if any of those other projects which they were putting their ruler over will end up here. Whatever, I didn't want to see CFE buy some other project anyway. 

Info anyone?


----------



## chris1983 (4 June 2007)

CFE and CFEO is beginning to move.  Ive been waiting some time for this deal to be confirmed with Best Decade.  I personally think 1 months wait was an easy wait..it should bring out a nice profit.  Of course anything could go wrong but I feel very confident.  Confirmation is due this week some time..


----------



## Ruprect (4 June 2007)

chris1983 said:


> CFE and CFEO is beginning to move.  Ive been waiting some time for this deal to be confirmed with Best Decade.  I personally think 1 months wait was an easy wait..it should bring out a nice profit.  Of course anything could go wrong but I feel very confident.  Confirmation is due this week some time..




Yes Chris, this one made a very good move today, as far as i can see, finished close to a 12 month high on close, 54.5c on its highest turnover since the announcement of chinese aquisition in late March. 

I think the increased turnover and upward price movement is a very positive sign. Just prior to the agreement being announced, the sp surged ahead on decent turnover. It may be following a similar pattern now. 

Seeing some resistance at 55c, but some very large single buys went through today, so wouldnt take long to remove that if the sentiment is there. Or if something or somebody is indicating an imminent announcement. 

Watching very closely tomorrow.


----------



## nomore4s (4 June 2007)

Broke out of ascending triangle today, smashing through the resistance at around 51c/51.5c. Hopefully it will test 55c tomorrow.
It will be interesting to watch the volume tomorrow, with 4mil traded today, if increased vol tomorrow could be a good sign regarding an ann about the confimation of the 300mt, seeing as it looks like there was a leak of info back on the 27th of March with over 35mil traded before the trading halt to ann the deal (green circle).


----------



## Ruprect (5 June 2007)

Another very strong day for CFE/CFEO. Over 7 million traded, share price pushing up to 58c on close. Its a good sign for something approaching.

One nice little buy at close, the order came in at 4.09pm, for close to $260,000 worth. One buyer, thats big.


----------



## billhill (5 June 2007)

Ruprect said:
			
		

> Another very strong day for CFE/CFEO. Over 7 million traded, share price pushing up to 58c on close. Its a good sign for something approaching.




Agree very good sign. If CFE announces a confirmation of the deal with best decade in the next couple of days i think today is a good sign that someone is leaking information.


----------



## MR. (5 June 2007)

"Initial Director's Interest Notice" as released ASX this afternoon.

Peter Neil Landau joined the company as CFE released on the 18th May on the ASX. 
"Initial Director's Interest Notice" released this afternoon indicates that shares can be taken up by Peter at anytime now. Current holding nil. Perhaps as soon as 300mt confirmed or granted from board?


----------



## mahmoodf (6 June 2007)

From today's West Australian, dated Wednesday 6th June, page 57:

*Chinese tycoon ready to invest*
John Phaceas

Chinese steel tycoon Liguo Ding is expected to make his initial $75 million investment in the Cape Lambert Iron's namesake magnetite project within days after visiting the Pilbara site yesterday.

Mr. Ding agreed in March to pay $250 million for a 70 per cent stake in the project and last week secured an $US175 million ($209 million) convertible note facility with Citigroup Global Markets.

Mr. Ding must pay an initial $75 million when Cape Lambert confirms an indicated resource of at least 300 million tonnes, from its existing 2.5 billion tonne inferred resource.

Mr. Ding visited the site yesterday and Cape Lambert is now expected to formally confirm its initial indicated resource target within the next fortnight. Once Mr. Ding has made his initial investment, the next $137 million is due three months later with the outstanding $37 million due once feasability studies are complete.


----------



## MR. (6 June 2007)

mahmoodf; said:
			
		

> From today's West Australian, dated Wednesday 6th June, page 57:
> 
> *Chinese tycoon ready to invest*
> John Phaceas
> ...




Thanks Mahmoodf, appreciate your posting. 
If anyone else picks up press articles could they also post them to this site.


----------



## Ruprect (6 June 2007)

good work mahmoodf.

powering along at the moment, after falling to 56cents just after open, its now getting seriously ready to test the 60cent mark. Just traded at 59.5. 

If it passes 60c, its anyones guess where it could go.


----------



## skint (6 June 2007)

MR. said:


> Thanks Mahmoodf, appreciate your posting.
> If anyone else picks up press articles could they also post them to this site.




Not a press article but Collins Stewart has valued the company currently at 
.96c

Collins Stewart Valuation
Discounted Cashflow
"We value Cape Lambert on the basis of the cashflows generated by the
project using a standard discount rate of 8%. We would expect a company
that was in the early stage of completing a feasibility study to trade at 25%
of the project’s NPV, this would rise to 50% once the full BFS is completed.
On this basis we set a fully diluted short-term fair value of A$508m,
A$0.96/share, 40p/share, which is 100% above the current price."

By extension they value CFE at $1.92 once the BFS is completed.


----------



## MR. (6 June 2007)

skint; said:
			
		

> Not a press article but Collins Stewart has valued the company currently at
> .96c
> 
> Collins Stewart Valuation
> ...




I noticed the above written in another chat room this morning. I can see how you could have taken this as current and transferred it here straight away. (skint no offence) However this was current when it was written on the 12th April 2006. I'm sure I'm not the only one who picked up on this straight away. To those, thanks for setting this site straight. Is it really needed? 
http://www.capelam.com.au/aurora/assets/user_content/File/ResearchReportCollinsStewart120042006.pdf

I'm not about to sell. Sorry to the short term traders.

Where did the West Australian News article come from?


----------



## chris1983 (6 June 2007)

Definately looking very good.  This investment is paying off.  The calculations made earlier as to the value of the deal are starting to come through.  Happy to be holding a decent parcel in the oppies.  I think this one will continue to run untill the announcement.  Remember we worked out a value of around 70 cents purely from the cash they would receive from the deal.



			
				chris1983 said:
			
		

> Now if you work out the monetary value the company will receive it will be worth.
> 
> *$250 million* (deal with Best Decade)
> 
> ...


----------



## MR. (6 June 2007)

skint; said:
			
		

> Total shares on issue =       500,486,336
> 
> CFEO - Total options Issue: 136,511,800    =     $37,813,769
> Share options not on ASX :  114,050,000    =     $45,998,350
> ...




Above worked out on the 20th of april 2007. Similar to Chris1983. Just thought it might be of help to repost as well.


----------



## mahmoodf (6 June 2007)

MR. said:


> Where did the West Australian News article come from?




From today's West Australian newspaper. 

I only subscribe to the hard copy version of the paper, not the electronic copy.

You can call them and ask them to confirm what I have posted:

http://www.thewest.com.au/default.aspx?ContentID=3

The story is on page 57 of todays West Australian (Wednesday, June 6th).


----------



## skint (6 June 2007)

MR. said:


> I noticed the above written in another chat room this morning. I can see how you could have taken this as current and transferred it here straight away. (skint no offence) However this was current when it was written on the 12th April 2006. I'm sure I'm not the only one who picked up on this straight away. To those, thanks for setting this site straight. Is it really needed?
> http://www.capelam.com.au/aurora/assets/user_content/File/ResearchReportCollinsStewart120042006.pdf
> 
> I'm not about to sell. Sorry to the short term traders.
> ...




No offence taken. I was keenly watching the SP heading north and didn't check to see the date on the report. I'll consider myself to be suitably chastened and trottle off to the corner with the dunce cap. This is pure speculation, but wouldn't that report be truer now than a year ago given that Cape Lambert is over a year closer to fruition with the money almost at hand from Ding/Best Decade/Delong? Regardless, I still consider CFE to be overdue for a re-rating. The reasons for this have already been outlined previously. One accepts them or doesn't I guess. I'm sitting on a very tidy profit but will be holding for the deal to be confirmed and in anticipation of further acquisitions.


----------



## MR. (6 June 2007)

mahmoodf; said:
			
		

> From today's West Australian newspaper.
> 
> I only subscribe to the hard copy version of the paper, not the electronic copy.
> 
> ...




Thanks mahmoodf. Don't doubt the story just thought I'd ask the question while I was at it. I will try the following site tomorrow. 
http://www.thewest.com.au/default.aspx?MenuID=32


----------



## CanOz (6 June 2007)

Good looking chart IMO...one for my watch list. If it breaks out i'll be lurking for an entry on the pullback.

Cheers,


----------



## chris1983 (6 June 2007)

CanOz said:


> Good looking chart IMO...one for my watch list. If it breaks out i'll be lurking for an entry on the pullback.
> 
> Cheers,




This is just my opinion..but you could of picked the break well before the announcement.  Fundamental anlysis makes you extra cash if you can read and investigate the companies announcements.  Good luck to holders.  The chartists should be jumping onboard this one soon as a break looks likely.


----------



## CanOz (6 June 2007)

chris1983 said:


> This is just my opinion..but you could of picked the break well before the announcement.  Fundamental anlysis makes you extra cash if you can read and investigate the companies announcements.  Good luck to holders.  The chartists should be jumping onboard this one soon as a break looks likely.




Point taken Chris...and i'm sure there were a few good chartists that picked it up on a scan and got when it broke the DT...i just wasn't one of them thats for sure...

Fundy/techy...whatever your poison, no matter, its all in the skew!

Good luck with it.

Cheers,


----------



## nomore4s (6 June 2007)

chris1983 said:


> This is just my opinion..but you could of picked the break well before the announcement.  Fundamental anlysis makes you extra cash if you can read and investigate the companies announcements.  Good luck to holders.  The chartists should be jumping onboard this one soon as a break looks likely.




T/A can also give you an early entry as well Chris.
I brought into this on the 23/03/07 (green circle) for 43c on the breakout from 40c (green line) because of the massive volume, something had to be up so I took a punt with a stop, then it went into a trading halt later that day and the deal was ann, wasn't going to sell after that, although if it dropped under 40c I would have been tempted (original stop).
Also with T/A you could of brought in earlier if you were willing to take a little more risk (blue circle) although you could still set a tight stop. I think Dutchie trades off these types of set ups.
And the final entry could of been with the break above 51c/52c (the yellow line), as it got turned away from this area earlier, once it broke through this resistance there was a good chance it would run being so close to the deal being finalised, this is were some F/A would have helped (I topped up with some oppies at about 25c).

IMO with these smaller caps and lower priced stocks it helps to have a general F/A of the stock at least, even of you do generally trade with T/A, as with a deal like the one CFE has negotiated can give you a signal of what is to come.
Chris, I'm not knocking F/A as blokes like you and YT seem to do very well, alot better than me at any rate, but I can't do the research you guys can and I understand T/A alot better. And like Canaussieuck says its doesn't really matter as long as you make money


----------



## chris1983 (7 June 2007)

I was just saying it works with both ways guys..just to prove a point to the chartists.  I guess if you got in on the green circle..being a proper chartist you would of sold on the dip after that strong run the first time around and looked for a re-entry when it started to tick back up in that little cup handle?  Is that what they call it?  I'm just trying to point out this one was always going to be a no brainer the closer the deal came to fruition.


----------



## nomore4s (7 June 2007)

chris1983 said:


> I was just saying it works with both ways guys..just to prove a point to the chartists.  I guess if you got in on the green circle..being a proper chartist you would of sold on the dip after that strong run the first time around and looked for a re-entry when it started to tick back up in that little cup handle?  Is that what they call it?  I'm just trying to point out this one was always going to be a no brainer the closer the deal came to fruition.




lol, love the whole chartists vs T/A thing, I got in on the green circle but didn't sell due to the deal, not really a proper chartist either. I guess you could've sold and re-entered though for a little extra profit.
Anyway it's all looking good now for holders, just bring on confirmation of the deal, show me the 300mt, and then the show me the money.


----------



## chris1983 (7 June 2007)

The head share is going strong touching 52 week highs even though the market is down.  Currently at 62.  Really good signs.  Atleast I have a few up today   Go the longs!  Lets see that 300MT.  Whos getting excited?


----------



## Ruprect (8 June 2007)

after dropping like everything else, CFE staging a good comeback, some medium to large size buy orders coming in to bring this back to the 60c mark. 

Very positive sign on such a poor day imo.


----------



## Ruprect (8 June 2007)

CFE powering along now, just took out 200,000 shares at 63cents in one hit. Oppies up to 36cents. Now up for the day.

I think there are some people who expect the annoucement to be out after the long weekend. They may be right. We shall see.


----------



## Stimpy (8 June 2007)

All this talk of confirming 300MT seems to have made a lot of people - not necessarily those on this board - think that the actual resource is only 300MT.

I'd just like to jump on my high horse for a second to remind everyone that CFE state on the front page of their website:

"The Cape Lambert Iron Ore resource is a JORC Code compliant resource of 2.5 billion tonnes (at 30% Fe at 250 m depth & 25% Fecut off)."

All done. I feel much better


----------



## Porper (8 June 2007)

Ruprect said:


> CFE powering along now, just took out 200,000 shares at 63cents in one hit. Oppies up to 36cents. Now up for the day.
> 
> I think there are some people who expect the annoucement to be out after the long weekend. They may be right. We shall see.




This share is going silly at the moment.Either day traders have latched on which will be a bad thing or it is being re-rated.I think the latter as the buy orders are large, not your typical day trader volume.

I hold and am seriously thinking about doubling my position and a stop at breakeven.Not a good time to enter as the low risk entry well and truely gone.Maybe a momentum trade ? From being in the red it is up 0.05 now to 0.67.

Will be interesting to see if there is profit taking at close (day traders) or strong buying.This will tell all.


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## chris1983 (8 June 2007)

Porper said:


> This share is going silly at the moment.Either day traders have latched on which will be a bad thing or it is being re-rated.I think the latter as the buy orders are large, not your typical day trader volume.
> 
> I hold and am seriously thinking about doubling my position and a stop at breakeven.Not a good time to enter as the low risk entry well and truely gone.Maybe a momentum trade ? From being in the red it is up 0.05 now to 0.67.
> 
> Will be interesting to see if there is profit taking at close (day traders) or strong buying.This will tell all.




I just think its strong buying in anticipation of the deal with Best Decade being settled.  Iron ore is also hot atm.  Loving the rise in a down market.  Holding long on this baby.  With that cash they receive from the deal I dont think this mob will mess anything up.  The experience that Dr Ian Burston holds will be instrumental in seeing this company grow larger and profitable.


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## Ruprect (8 June 2007)

no, this doesnt look like day traders at all. there were some very big orders in the last hour, including one for another 200,000 at close for 67.5. Finished at that price, which was the high for the day. Nearly always a very positive sign.

The strong support here on such an awful day points to something very close here imo.

On a side note, the oppies here for once are trading at a discount to the heads, nearly 2 cents. For the last few months they have traded at a very decent premium to the heads, sometimes up to 6 or 7 cents. With such a long expiry, October 08, these might prove to be a good buying opportunity. My disclosure, i hold both.


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## chris1983 (12 June 2007)

Oppies are trading at a good discount to the heads.  Looking really good for CFE with good signs.  Strong volume...increase in SP.  The announcement as we all know is drawing near.


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## chris1983 (14 June 2007)

Looking very strong today...when will this announcement come.  The interesting thing will be once the announcement is released.  Might be a LOT holding for a quick buck?


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## Ruprect (14 June 2007)

I think there are some holding for a quick buck for sure. I think last Friday's interest may have shown that they thought the announcement would come tuesday.

I spoke to a broker friend in WA last night, he said that they are expecting an announcement tomorrow or Monday. He didnt have any inside info, just a prediction i think. Although he did say there are some people waiting on the sidelines waiting to see if the announcement is positive. 

Its not bad so far for those of us that have held for a while.


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## skint (14 June 2007)

Ruprect said:


> I think there are some holding for a quick buck for sure. I think last Friday's interest may have shown that they thought the announcement would come tuesday.
> 
> I spoke to a broker friend in WA last night, he said that they are expecting an announcement tomorrow or Monday. He didnt have any inside info, just a prediction i think. Although he did say there are some people waiting on the sidelines waiting to see if the announcement is positive.
> 
> Its not bad so far for those of us that have held for a while.




Presumably (and hopefully) your broker was refering to buyers on the sideline waiting to get in, rather than holders looking to sell into the good news. Given the strength in CFE over the past week, I'm surprised the options are trading at a discount to the heads, especially considering they're Oct 08 oppies (long way to run). I expect that may well change when the announcement is released.


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## Ruprect (14 June 2007)

Sorry Skint, yes, buyers. He basicly said that in his opinion, there are people who are interested in spec plays, but those with a future of actually producing. He said its much like they have done with FMG but on a smaller scale.

Yes, surprising with the options, given they have traded at a large premium to the heads for the last couple of months. Oct 08 is a long time.


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## moneymajix (14 June 2007)

Hi Rup

I am not sure if I understood the meaning of your last post.

Do you mean the broker is saying CFE is like a mini-FMG?

Thanks in advance.

Cheers


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## Ruprect (14 June 2007)

Im not being very clear today am i?? Lol.

Not really, more so he was referring to the way people started to move on FMG when the mine looked like becoming a reality. I guess that some people have a lower threshold for spec plays than some of us, want to see something actually happening or looking like happening in the not too distant future. By smaller scale i guess he means, an operating mine, but not looking for the next BHP or RIO etc.


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## moneymajix (14 June 2007)

Rup

Thanks for that clarification.

I guess some people will be buying on definite news.

Cheers


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## Ruprect (14 June 2007)

CFE looking set for a good close, might even get to .70, for an all time high. Late trade has been promising.


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## MR. (14 June 2007)

Tick, Tick Tick and another day goes buy. 

Good to see Delong/Ding is organized with the money.!!
I suspect ding's trip out last week was to find out what was going on. He raised the money as he should have 4 weeks after the deal should have been finalized. I'm glad someones organized.
I sold 1/2 my holding last Friday. I have waited long enough so I covered myself just incase. The other 1/2 will see the deal. 
Question to anyone whom is in the know. If there are some big sellers selling for the same reason as I did, how do you tell the difference between a big seller and a big buyer? ie: (Big seller sellers below ask. or/and comsec buys big on behalf of smaller holders) Then "hey its a run" Its a week later now and the deal has not been confirmed.


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## skint (14 June 2007)

MR. said:


> Tick, Tick Tick and another day goes buy.
> 
> Good to see Delong/Ding is organized with the money.!!
> I suspect ding's trip out last week was to find out what was going on. He raised the money as he should have 4 weeks after the deal should have been finalized. I'm glad someones organized.
> ...




Hi MR. I'm not sure I understand your query but here's my understanding. Comsec (& the exchange) processes the buy and sell orders (small or large) as they hit the system. They don't pool a number of orders and then place these orders as one large one. The reason it is known that there's a lot of large orders (buy) going through many times in the past week is that, for example, 550k (buy) went through *at least *twice in two individual hits, minutes apart. Before that there was a sequence of 200k buy orders going through in rapid succession. The same pattern hasn't been seen on the sell side ie. the orders have been much lower. Sometimes a large seller will try to leak out their shares in a series of smaller parcels but to sell a great many they would obviously need to do many more sales, which hasn't happened. Otherwise the SP would have been lower. I believe its these large orders that have had the most significant effect on the SP simply through sheer weight of numbers. A big player wants in. Lets hope the big player knows what they're doing! 
Late announcements? Seem to be the norm these days. Why would Ding raise the capital if he doesn't expect to use it. Remember the $250m deal is only reliant on 300mt being independently confirmed. No other conditions. No escape. I'm sure he would have been in constant contact and knows exactly when he will need the money IMHO.


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## MR. (15 June 2007)

Thanks Skint. 
So let me put it this way. If the exchange had alot of "Commsec" buy orders at a particular limit price registed with the exchange in a row, could an order appear bigger than actual?  Transactions after those initial 200k's are buyers jumping on. Alot of people would have been watching.

Good luck to the holders.


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## skint (15 June 2007)

MR. said:


> Thanks Skint.
> So let me put it this way. If the exchange had alot of "Commsec" buy orders at a particular limit price registed with the exchange in a row, could an order appear bigger than actual?  Transactions after those initial 200k's are buyers jumping on. Alot of people would have been watching.
> 
> Good luck to the holders.




No, if Commsec received 10 orders of say 50k at the same time, they will always appear as 10 orders of 50k. Therefore, if you see 550k disappear in one hit, it is one buyer. I agree that the flurry of activity that followed the big orders was other buyers jumping on, no doubt influenced (at least in part) by the big orders. Good luck with the shares you've retained pending the announcement.


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## MR. (16 June 2007)

skint said:


> No, if Commsec received 10 orders of say 50k at the same time, they will always appear as 10 orders of 50k. Therefore, if you see 550k disappear in one hit, it is one buyer. I agree that the flurry of activity that followed the big orders was other buyers jumping on, no doubt influenced (at least in part) by the big orders. Good luck with the shares you've retained pending the announcement.




Skint, thanks for your info'. I don't usually follow individual buy orders but CFE  has been an interesting experience. Good luck with your holdings. 

re: Not a press article but Collins Stewart has valued the company currently at 0.96c Getting back to that Collins Stewart report CFE will only own 30% of the mine once the deal is confirmed.  I can only reject that Collins Stewart’s report. 
The way I value CFE is on the return expected from production. Perhaps this simplistic information can confirm others calculations.

Selling price of  $70- AUD Tonne.
FOB cost of extraction and processing = $30- AUD Tonne.
Profit per tonne of $40- per tonne x 15 million tonnes per year = $600 million AUD yr.
(70% profit is Ding’s) so 30% of profit is CFE’s = $180 million per year.
Divided by 500 million shares = $0.36 per share.
If a P/E of 8 was used considering both (RIO and BHP trade at 10) The value I put on CFE is $2.88 in 2010. 
Round figures $3.00 because of the lack of debt held by CFE. 
Basically CFE at a share price of $0.60 can 5 times it value by 2010.

If I use the same calculation method on FMG, CFE is so much more attractive. FMG can only double at best. The reason why CFE has under performed Collins Stewart, Lonsec etc is because magnetite mines would have found raising finance extremely hard. This has changed with examples of Australasian Resources, Fortescue Metals (magnetite holding), Gindalbie Metals and Cape Lambert. Thanks to the Chinese and the high prices of Iron Ore.  Skint expects CFE is due to be re-rated and I totally agree but CFE must confirm that 300mt’s.


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## Ruprect (16 June 2007)

Cheers MR. Some very interesting figures there. 

One of the things i sometimes like to look at is the non listed options that are distributed to Directors, employees etc from time to time. 

As we well know, some directors like to issue themselves with options which are very close to being in the money - sometimes it is used as remuneration, sometimes as bonuses, and sometimes its just plain dodgy. Im not sure that last one applies here.

In CFE's case, various options were distributed in December.

16.4 million to brokers, consultants, directors and employees at an ex price of .40 cents, before 31 Dec 2007. Was out of the money then by 4c.

3.3 million to Directors only, ex price 90cents, 30 June 2008. Out of the money then by 54c.

3.3 million to Directors only, ex price $1.40, 30 June 2009, out of the money then by $1.04

Its the last two which have caught my attention. We see unrealistic options pricing from time to time, but a $1.40 option for a .36c stock? 

What i take from this is what the Director's think CFE's long term future can be. So their price targets, which are probably well understated given that this is their incentive payment, are 90cents by June next year and $1.40 by June 2009.

A $1.40 sp is currently more than double the latest close price. Double share price in just 2 years. As i say though, imo, that is a very conservative target by the directors. 

If the deal is confirmed, we will see some traders take their profits, (and well done to them), and then long termers start to buy in, perhaps with some institutional support. And my little side prediction, subject to the deal being confirmed, is a whole bunch of brokers etc progressively issuing their own price targets and buy recs for CFE.


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## smoothsatin (16 June 2007)

Ruprect said:


> and then long termers start to buy in, perhaps with some institutional support.




I know for a fact, much of the volume in the last two weeks has been from Institutional buying.

Opinion = this should stop any crazy sell off like last time, hopefully confirmation via official announcement will have a positive or at least neutral effect on sp.....


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## MR. (16 June 2007)

I wrote the following this morning:
Basically CFE at a share price of $0.60 can 5 times it value by 2010.

I'll just further clarify that production needs to be 15mt per year to have a share price of $3-. This may not be in 2010 because production is expected to start lower and build up to 15mt. This is my opinion based on my calculations. dyor please.


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## mahmoodf (18 June 2007)

smoothsatin said:


> I know for a fact, much of the volume in the last two weeks has been from Institutional buying.




How do you know this SmoothSatin?

Thanks for your post MR. I am waiting eagerly for three things : confirmaiton of the 300Mt (fingers crossed!), the latest resource announcement (due end of July) and the result of the feasability study.


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## Ruprect (22 June 2007)

A couple of things on CFE.

First, got a run in Mining Journal Online today: (AIM)

http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=2921


_Cape Lambert Iron Ore also features in the top 10 best-performing companies over the three months to June 20th, more than doubling its share price. Profiled by WMS in October 2006, it has incorporated a 100% owned subsidiary, Global Iron Ltd, and proposes to transfer all of its iron ore assets, excluding the Cape Lambert Iron Project in Western Australia, to this company in exchange for shares in Global._

Second, there was a good late run for CFE shares just before close. Hit a low of .66 for the day on very light trade, before finshing strongly on .69. About 60% of the days trade came in the last hour. CFEO also finshed well on 39.5.

Probable reason for the spike was the notice of general meeting annoucement which came out just after 3pm. They say it was dispatched to shareholders on 15 June, but havent got mine yet. 

The meeting details specifically 2 things, one is the approval of shareholders for the aquisition by Ding, the other approval by shareholders to set up global iron, which will result in a distribution of Global shares to CFE holders, 1 for 80 CFE held. 

The aquisition notice clearly states again that the deal must be finalised by July 31, based on the JORC report which they have until that date to complete. *But, they still estimate that the report will come in June - thats in the next week.*

To add to that, the general meeting is being held on 16 July, before that deadline of 31 July. That means the report will come between now and the 16th. *However, i think based on the fact that they will need to give shareholders time to look again at the deal, the report will be out well before then. I think the next week should be very interesting...*


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## smoothsatin (22 June 2007)

I looked into my crystal ball and it said something will happen with CFE today..........................


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## Pommiegranite (22 June 2007)

smoothsatin said:


> I looked into my crystal ball and it said something will happen with CFE today..........................




unless you can provide evidence that you own a crystal ball, your statement will be construed as ramping


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## MR. (22 June 2007)

Thanks for the link ruprect and your comments. I also have not received anything in the mail, so your not alone. 

Notice of general meeting (page 6, 1.2) Timetable 
"Estimate of JORC report to be june 2007 and must be by end July 2009/7"

I researched and confirmed personally with Cape Lambert that the 300mt JORC Report "had" to be received by the end of June by contract. I can not explain why the 31st of July is now the maximum. 

"Other tenements" thats where they are. Near GRR Grange Resources. I own GRR because it is similar to CFE and only 80km's from Port Albany and they have been working on the project since 2003. Will a company like GRR get a boost from CFE's confirmed Sale? If someone wants to look into GRR see you on that thread.  

Looking forward to the 300mt confirmation "any day"


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## chris1983 (22 June 2007)

Really starting to run now guys.  Announcement is around the corner?  Breaking 72 this morning was a big deal I think.  Theres another block at 73 but I dont think its going to hold.


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## MR. (22 June 2007)

Volume is a lot higher this morning. 
First 15 mins cfe higher than yesterdays total vol.
  '     30  "    cfeo    "   "   " " "

CFE near double volume 1st 1/2 hr.
But you all know this.
Maybe to be expected. no news though.


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## chris1983 (22 June 2007)

MR. said:


> Volume is a lot higher this morning.
> First 15 mins cfe higher than yesterdays total vol.
> '     30  "    cfeo    "   "   " " "
> 
> ...




Dont you love it when things play out as predicted.  Now we just need a few announcements to confirm everything!


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## MR. (22 June 2007)

chris1983 said:


> Dont you love it when things play out as predicted.  Now we just need a few announcements to confirm everything!




Yes those "announcements" I am sick of this waiting. It made me sell 1/2 my holding in CFE 2 weeks ago. Although yesterday I did pick up some CFEO at $0.38 (because I couldn't stand missing out) only 1/4 of the value I sold in CFE.
I'm going to get a life now and do something else. Its hard not to watch!
Hope the day goes well for the holders.


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## mahmoodf (22 June 2007)

Hi all

Like everyone else, I am hanging out for this announcement.

In the meantime, I did some numbers. Based on data in the General Meeting notice from yesterday, I tried to figure out what MCAP to cash ratio Cape would have *IF*:

1). The Ding deal goes through.
2). All options are exercised, even the $1.40 ones.
3). We have a SP of $1.40.

Please see attached spreadsheet for all the information. It shows that at a SP of $1.40, Cape would have a fully diluted MCAP of close to $736 million with a MCAP to Cash Ratio of 2.2. I am very comfortable with that.

Here is an article I found that explains this ratio a little better.

http://www.dealmakerdaily.com/column/4/4236.html

I would be interested to hear what others think.


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## moneymajix (22 June 2007)

More good news. Up in London tonight. Not sure who follows who.



CLIO CAPE LAMBERT GBX 31.75 +3.50  +12.39


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## nomore4s (22 June 2007)

Good day today, have a look at the volume. Highest since the massive volume before CFE went into trading halt and the deal was originally announced.
People wanted in today, do you reckon this company has a leak? 
I'm betting the confirmation isn't too far away now, hopefully early next week. And judging by the volume and price today I'm also betting that they've got the 300mt, but we'll find out soon enough either way.


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## Porper (23 June 2007)

moneymajix said:


> More good news. Up in London tonight. Not sure who follows who.
> 
> 
> 
> CLIO CAPE LAMBERT GBX 31.75 +3.50  +12.39




Good rise yesterday and a close on the highs would suggest that we haven't reached the intermediate wave 5, larger degree wave 3 yet, although theoretically we could have.

My technical outlook below, but from a fundamental point of view the Ding deal must be factored into the price now, it seems from announcements that it is a formality.Will it be a buy the rumour sell the fact reversal ?


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## Ruprect (23 June 2007)

It would be hard to imagine a reversal, although yes, it is starting to hit around the mark of where we *first *thought the sp would be when the deal was confirmed. But 2 things. 

Firstly, i think that in this current hot iron ore climate, with an upward trend on the ore price and continued demand, we may well have underestimated the target price.

Secondly, although there are some traders in on this one, waiting for the expected bounce from the deal (buy on rumour, sell on fact), i expect them to be offset by the investors who will now buy this stock for the long term potential. Explorer to Producer, with the added bonus of spin off of Global Iron as a spec play. Indeed im sure there are some who have already done so, with others waiting on the sidelines for the deal to be confirmed.

As an observation, because the CFE sp has settled for the past week or two around the 66-76c range imo it hasnt totally factored in the deal so the confirmation will see some more traders head into the stock, potentially pushing the price higher in the short term. The excitement surrounding a major announcement will generally cause a price spike, usually with a retrace a day or two later, but all things being equal, usually above where the sp was prior to the announcement. I also dont think we can underestimate the value of the media in this one, a major Chinese deal confirmed should cause some extensive coverage, bringing CFE to the attention of a wider audience.  

When the deal was orignally announced, subject to confirmation of resource etc, the sp opened at 60c. We are only 16c above that, with the confirmation of the resource approaching very soon.


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## skint (23 June 2007)

Ruprect said:


> It would be hard to imagine a reversal, although yes, it is starting to hit around the mark of where we *first *thought the sp would be when the deal was confirmed. But 2 things.
> 
> Firstly, i think that in this current hot iron ore climate, with an upward trend on the ore price and continued demand, we may well have underestimated the target price.
> 
> ...




I tend to agree with those sentiments Ruprect. Other FE players have just continued to rise as they progress from explorer to producer. No doubt some will sell into the confirmation, but as you pointed out other more risk averse players will enter on confirmation. What may have not been factored in (and what may provide a further catalyst for a continued run) is the updated resource model that's due out in late July. A substantial increase in the resource may put some more wind in the sails. Although the SP may run, retrace, run again etc.. in the short term, I'm happy to be holding for longer term gains. Other FE miners have increased steadily (and often dramatically) as production approaches and I'm holding on the expectation that CFE will follow suit. Good luck to all.


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## Go Nuke (23 June 2007)

Well Im happy to say thta I have now joined the CFE bandwagon, although i wish i had done so when I first heard the Cptn mention it. It was about 42c then

Iron ore is still hot property and as I posted a link on the HLX thread, RIO is set to continue expansion work of their Iron Ore facilities to increase output in the comming years.

Lets see what happens from here.


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## MR. (23 June 2007)

Ruprect, Skint, 
I agree with both of you. So many iron ore plays have by far out performed CFE over the last few months. Cfe had the deal announcement included and has not gained as much as others. We could easily under estimate CFE's gains in the short term if we were not careful.  

I purchased CFE over many Hematite companys because they all seemed to be in the middle of nowhere with resources not large enough for me to be interested in them. So many of these have gained far more than I expected. In fact it has appeared "just buy any Iron Ore company YOU CAN'T GO WRONG."
CFE can be shipping before so many others using their own transport and Port.

Mahmoodf 
Happy to have a look at your CFE.xls file but I can not read this file. (My system is too old) Can you post it on the forum? "$1.40" I don't know how you have come to this figure but would like to investigate.


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## nomore4s (23 June 2007)

Qoute:
"Mahmoodf 
Happy to have a look at your CFE.xls file but I can not read this file. (My system is too old) Can you post it on the forum? "$1.40" I don't know how you have come to this figure but would like to investigate."

Here you go MR.


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## mahmoodf (23 June 2007)

MR. said:


> Happy to have a look at your CFE.xls file but I can not read this file. (My system is too old) Can you post it on the forum? "$1.40" I don't know how you have come to this figure but would like to investigate.




MR., what system are you running buddy? Windows 82?!!???   

I used $1.40 as a base point so that all oppies would be in the money so to speak.

What I was trying to get a figure on was what if every oppie was exercised, what sort of MCAP and MCAP to Cash ratio would CFE have if they had a share price of $1.40.

In this scenario, Cape would have a value of $333 million due entirely to cash reserves and $400 million for its other assets. Not too shabby at all.


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## smoothsatin (24 June 2007)

Porper said:


> My technical outlook below, but from a fundamental point of view the Ding deal must be factored into the price now, it seems from announcements that it is a formality.Will it be a buy the rumour sell the fact reversal ?




Hi, i suspect that won't be the case, for a few reasons:

1) the grade of Ore is higher than most expect (i.e roughly double the required level)

2) The price didn't rise last time because (in part) so many people were down after buying at .6 and .7 6 or so months earlier, so just wanted to get out, which formed a classic cup, bottoming out at .4. We are blue sky now.

3) Continued Institutional buying over the last few weeks shows their commitment to the stock and are likely to overpower any selling pressure/profit taking.

Anyway, only time will tell....


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## MR. (24 June 2007)

mahmoodf, 
Yes I need a new computer but usually does the job intended. 
OK, now I know where the $1.40 came from its just a base point. You had me stumped. The only flaw I see in the calculation is that although it will have a lot of cash (at the moment) we don't have anything else. What good is the iron ore sitting in the ground unless we are going to sell the 30% stake as is. We need the money to build the mine. I don't think its worth $1.40 using your calculations. 

I see that CFE is worth "as straight forward calculations go" $250m + cfe 30% = add all this together including all oppies and I see the figure being where the share price is roughly today. Information like the deal looks like it is $192m usd not 250aud and the 10m finders fee etc. etc. lowers our original calculation.
So for the future CFE is worth somewhere between the current price and ($3- which I posted earlier) I find it too hard to calculate a figure on the way to production its just what people are prepared to pay at any given time. I'll leave that to the so called experts.


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## mahmoodf (24 June 2007)

MR. said:


> I don't think its worth $1.40 using your calculations.




G'Day MR.

I never it said it was worth $1.40. I was just proposing a "what-if" scenario to see what sort of MCAP and MCAP to Cash ratio Cape would have at $1.40. 

I used $1.40 as a base price to allow for the exercise of all options and for the full dilutionary effect to be in play.

What my analysis tells me is that at this price, if you strip out all cash from Cape, there is about $400 million worth of value left over, above and beyond the cash value.

That is pretty cheap for a company that potentially could be mining 10Mtpa or more from a 2.5Bt resource for 20 years plus.

That is why I am really keen on seeing what the BFS comes up with. I like your base calculations as well where you used a 15Mtpa operation.

I agree that the value is somewhere between here and $3.

Personally, at $1.40, I think that Cape would still be cheap based on my analysis, the analysis that you and others have conducted and what other emerging iron ore producers are being valued at.


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## Ruprect (24 June 2007)

The way i read it is, if all options (minus the 90c and 1.40) are converted, there will be 542,553,003 shares on offer.

The deal, 192.5m us, will convert to around 227m au, not 250m. Or did they do the deal in AUD and just use USD for the announcement? If its USD the currency has weakened since the deal went through.

After bankable feas, tax, transaction costs, CFE estimate they will have $33 million woking capital based on the 250million AUD. However, i would expect that to reduce to around 12+ million, dependent on currency levels at time of conversion, and the reduced taxation costs because of lower currency. 

However, with the options converted (minus the 90c and 1.40), the cash position should be: Options - 76mil, Working Capital - 12mil, Cash at hand - 6.5mil - for a total of 94.5million, give or take.

Then we have the $120mil, spent for the 30% JV costs for the mine, which can only be classified as an asset.

In addition, there is the value of the resource, which will be dependant on commodity prices. I will leave that for others to determine.

At current sp, mcap with options converted would be 412m. I think that is undervalued, based on cash position which will open up other opportunities in the future, and the long term basis of the mine itself, from 10-15 years, perhaps longer. With the demand and prices for Iron Ore predicted to remain strong for the medium to long term, this bodes well for the long term future of this project.


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## Go Nuke (25 June 2007)

Does anyone think today might be the beginning of a retrace? or just down becasue the market is down?

I know its had a big run so maybe its just a pause

I bought in at the mid 70's so im thinking of selling and probably buying in again on the retrace


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## Ruprect (25 June 2007)

Its hard to see it as being a retrace. Its only down slightly from its Friday close, with the options up today. Trade was heavy, and buy side still looks quite strong.

It did hit a high of 80cents today, so there still looks to be some strong interest in CFE.

It should hold relatively firm while we wait for a confirmation of the deal. And if that is positive news, it should take another run.


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## mahmoodf (25 June 2007)

Go Nuke said:


> Does anyone think today might be the beginning of a retrace? or just down becasue the market is down?
> 
> I know its had a big run so maybe its just a pause
> 
> I bought in at the mid 70's so im thinking of selling and probably buying in again on the retrace




I guess that depends on your trading style and strategy Go Nuke. If your horizon is 24-30 months, then 5 cents here or there will not make much difference when there is a high liklihood of Cape being a $2+ stock (please see earlier research on this thread).

I don't know what the stock is going to do post announcement. I am going to take a small profit and hold some core stock as I think Cape are a beaut little company with everything in their favor: large resource, close to shipping and good management (Dr. Ian Burston).

Dr. Burston's connections cannot be discounted (former MD of Portman and Hammersley Iron). Burston rates right up there with George Jones.

Good luck with whatever you decide to do.


----------



## Porper (25 June 2007)

Go Nuke said:


> Does anyone think today might be the beginning of a retrace? or just down becasue the market is down?
> 
> I know its had a big run so maybe its just a pause
> 
> I bought in at the mid 70's so im thinking of selling and probably buying in again on the retrace




Well, today certainly wasn't good.Tried to push higher but sellers over powered buyers and finished near the days lows.

I would call this 1 each after Fridays rise.Next couple of days will give a better picture, but I would keep fairly tight stops.


----------



## Go Nuke (25 June 2007)

Well im going to hold.

I haven't really got enough for it all to be a big deal anyway. Just had some spare cash after selling out of CYC, so thought I couldn't go too far wrong with CFE.
It was either CFE or MUN (Mundo Minerals..which of course went up 25% today)

Hammersley Iron eh...my dad worked for them for years.
I grew up in Tom Price you see
Iron Ore is in my blood..lol

Thx guys.


----------



## mahmoodf (25 June 2007)

LOL, my Dad worked for the Health department in Port Hedland for about 9 years. He just retired.  

I have pretty much been around most of the mining towns up there. Great little communities.

I am looking forward to Cape powering along over the next couple of years.


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## ta2693 (25 June 2007)

how are you going to vote?
1 sale of interest in cape lambert iron ore project
2 issue of shares and options to brokers as success fee
3 approval for an equal reduction of capital
4 issue of options to employees and consultants
5 reappontment of Mr peter as Director


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## mahmoodf (25 June 2007)

I'm just a scummy option holder so I don't think I get a vote. Do I?

BTW, I was wondering if anyone has done any peer comparisons. Like how does Cape stack up against other magnetite plays? Or even other haematite plays? Would it be a valid comparison to compare Cape against haematite plays?


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## Ruprect (26 June 2007)

Resource Statement out, confirming that they have exceeded the resource requirement for the terms of the sale. Central target area shows indicated 654mt, and inferrred 323mt.

In the process of having this independently veririfed by RSG Global, and will have an announcement before general meeting on 16 July.


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## nomore4s (26 June 2007)

Ann out regarding the 300mt

"On 27 March 2007, the Company announced it had entered into a sale agreement with Mr Ding Liguo to sell 70% of the Project for approximately A$250 million in cash. The sale agreement requires the satisfaction of several conditions precedent (refer ASX release dated 27 March 2007) including;
a) Cape Lambert defining a minimum Indicated Mineral Resource of 300 million tonnes;
and
b) Secondly, Cape Lambert’s resource estimates being verified by an independent geologist.
The resource estimate set out in this announcement, whilst prepared by Golder is in satisfaction of a) above.
As announced in the Company’s Quarterly Report, released on 30 April 2007, RSG Global has been appointed as the independent geologist. RSG has commenced independent verification of the resource estimate, and is expected to complete this process prior to the shareholders meeting set down for 16 July 2007."

Part a confirmed now for part b, which looks to be a couple of weeks away.


----------



## mahmoodf (26 June 2007)

Excellent news. Now for the really important bit, the share price reaction to this news! Will it be up or down?


----------



## skint (26 June 2007)

mahmoodf said:


> Excellent news. Now for the really important bit, the share price reaction to this news! Will it be up or down?




May be those that will sell into the good news, although others will be entering. Regardless of where the SP moves in the short term, I'm expecting the updated resource model due out in late July should see CFE follow in path of other FE players, if it hasn't beforehand. Hope so, anyway.


----------



## chris1983 (26 June 2007)

Happy with the news..Thats what we have been waiting for fellas.  Now we just need to wait for the reaction.  As some of you say there may be holders selling into this but IMO it would be silly.  There definately will be though but IMO this is one to hold long.


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## moneymajix (26 June 2007)

Nice to get confirmation of what most expected.

I think this stock will exceed one dollar at some stage.

I am wondering how much value the the spin off of some of the iron ore assets will provide to shareholders.


----------



## Ruprect (26 June 2007)

I have to say that i am a little surprised at the slight retrace today, given the confirmation of the resource this morning, for much more than the 300mt required for the contract.

I am assuming that there will be a few who are waiting to see the indpendent confirmation, as well as the ink on the contract and the money changing hands.

Still holding.


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## chris1983 (26 June 2007)

Ruprect said:


> I have to say that i am a little surprised at the slight retrace today, given the confirmation of the resource this morning, for much more than the 300mt required for the contract.
> 
> I am assuming that there will be a few who are waiting to see the indpendent confirmation, as well as the ink on the contract and the money changing hands.
> 
> Still holding.




I'm still holding too.  I think this is a good long termer.  Lots of iron ore right next to the port.  crazy stuff why this one would be sold down.

_"The resource is located 5kms from the coast, 10 kms from Rio Tinto’s Cape Lambert iron ore port with direct connection to nearby infrastructure (highway, gas and power) and the townships of Karratha, Roebourne and Wickham. The projects favourable location also places it close to nearby Port Dampier and Port Hedland, that provide alternate export ports to overseas markets."_


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## mahmoodf (26 June 2007)

Found this on Sphere's website (ASX : SPH). Provides some interesting comparisons of the major up and coming magnetite iron ore producers. Cape doesn't get much of a mention but it gives a good idea of what sort of ballpark figures the other companies are using for their CAPEX and OPEX. 

http://www.sphereinvestments.com.au/index.php?option=com_docman&task=doc_download&gid=63&Itemid=93


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## LetItRide (26 June 2007)

Yes it was a frustrating day with the way the market reacted to the announcement.  Let's hope it's just a minor hiccup and the final vote of confidence arrives when the Golder report is released.


----------



## Love Zn (26 June 2007)

mahmoodf said:


> Provides some interesting comparisons of the major up and coming magnetite iron ore producers.
> http://www.sphereinvestments.com.au/index.php?option=com_docman&task=doc_download&gid=63&Itemid=93




Thanks for the link.  I've been looking at getting into some iron stocks, especially with the way most are heading in the last few weeks and Zn coming down.

I like to see how companies are compared and at what stage they are at.  This doesn't have CFE, but also found this interesting http://www.mtgibsoniron.com.au/uploads/Midwest Iron Ore Book_Jan 07.pdf

I just find it interesting, the share prices and their market cap from some of the shares in recent forum hype, they seemed to be over priced when compared to those mentioned in these two reports and that was 12-6 months ago.

Or maybe you could look at it that some of these are undervalved.


----------



## Ruprect (27 June 2007)

Very interesting trade today, with nearly 12 million shares changing hands, down 1.5cents, so thats holding up very well with a lot of sellers being met by heavy buyers. So thats about 30 million shares traded in the last 3 days.

The one thing that is of note is the lack of trade in the options, only 175k traded to 1pm, extremely low. Im not sure if im reading it correctly to assume that the traffic in the heads may suggest heavy buying moves by investors/institutions rather than traders? Investors being those who wouldnt generally play the options. 

Any thoughts?


----------



## canglan (27 June 2007)

LetItRide said:


> Yes it was a frustrating day with the way the market reacted to the announcement.  Let's hope it's just a minor hiccup and the final vote of confidence arrives when the Golder report is released.




I wasn't surprised at all by the way market has reacted. Remember when the 300m deal first announced? The SP went down to 40c from a healthy 55c. I think some traders just sell them off for short term gain, which brings down the price in a mid-term base. Combining this with the overall weak market, it makes sense to me. I am now seeking for a re-entry point around 68-70c.


----------



## Go Nuke (27 June 2007)

canglan said:


> I wasn't surprised at all by the way market has reacted. Remember when the 300m deal first announced? The SP went down to 40c from a healthy 55c. I think some traders just sell them off for short term gain, which brings down the price in a mid-term base. Combining this with the overall weak market, it makes sense to me. I am now seeking for a re-entry point around 68-70c.




Well looks like you got your entry point today

At least my watchlist isnt a TOTAL sea of red today


----------



## LetItRide (27 June 2007)

canglan said:


> I am now seeking for a re-entry point around 68-70c.




Looks like you'll be able to get back in at that price after today. Although it might even drop below that with the market sentiment at the moment. 

Did anyone else notice the 10million share purchase at .725 today at 11:29am?


----------



## mahmoodf (27 June 2007)

LetItRide said:


> Did anyone else notice the 10million share purchase at .725 today at 11:29am?




I didn't. Good pick up LetItRide. Cape has around 250 million shares currently on issue. That is nearly 4% (10/250) of the company changing hands in one trade! This one trade accounted for 71% (10/14) of the volume today.

Out of curiosity, is it possible to find out who the buyer and seller were? I guess unless someone posts a substantial holder notice or a ceasing to be a substantial holder notice, we won't know.


----------



## LetItRide (27 June 2007)

mahmoodf said:


> I guess unless someone posts a substantial holder notice or a ceasing to be a substantial holder notice, we won't know.




That information doesn't need to be released up until 30 days after purchase. Even be then in this case its pretty unlikely because unless its over a 5% stake it doesn't need to be declared.


----------



## skint (27 June 2007)

LetItRide said:


> That information doesn't need to be released up until 30 days after purchase. Even be then in this case its pretty unlikely because unless its over a 5% stake it doesn't need to be declared.




I didn't see the 10m trade go through. What price did it go through at and how quickly was it snapped up?


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## mahmoodf (27 June 2007)

Go to http://www.stocknessmonster.com/ to see all the trades for CFE. The 10,000,000 stands out like a sore thumb.


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## Ruprect (27 June 2007)

I think im getting sloppy, totally missed that 10mil trade go through, was curious why the trade was so high in comparison to the oppies! In my defence, i wasnt watching all day!

However, a 10mil on market trade is a large degree of confidence in this one. If thats not a prime example of major institutional/investor support, i dont know what is.


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## Ruprect (29 June 2007)

Having traded down for all of the day, hitting 65 cents, very large buy orders went through on both the heads and the options in pre close to push CFE up for the day. 320k trade on the heads, and 210k on the options. Same thing happened to MGO.

CFE did say there would be an annoucnement prior to the 16th of July. Thats just 10 trading days away. Could we be seeing something next week perhaps?

That single 10 million share trade still leaves me with a great deal of confidence here.


----------



## Porper (2 July 2007)

Ruprect said:


> Having traded down for all of the day, hitting 65 cents, very large buy orders went through on both the heads and the options in pre close to push CFE up for the day. 320k trade on the heads, and 210k on the options. Same thing happened to MGO.
> 
> CFE did say there would be an annoucnement prior to the 16th of July. Thats just 10 trading days away. Could we be seeing something next week perhaps?
> 
> That single 10 million share trade still leaves me with a great deal of confidence here.





CFE is retracing on very little volume at the moment.

People took profits on the announcement, which appears to have fizzled out.

I am waiting for the volume to come back in with a good solid close and I will be back in for another low risk high return trade hopefully.

It should bounce from the end of the projected wave C at around 0.60, the target is around 0.93.

That's my take anyway.


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## Porper (7 July 2007)

Porper said:


> CFE is retracing on very little volume at the moment.
> 
> People took profits on the announcement, which appears to have fizzled out.
> 
> ...




Looks like I am posting to myself here   , never mind, may be of some interest to some people.

A good bounce today  although volume was disappointing, but the fact remains wave C could have finished and we could be into our wave 3 leg higher to around the 0.93 area.(We didn't quite get to the projected 0.60, just one cent off).

A break through wave A would signal this.A break through on volume would be a stronger signal.

Risk reward would be just under 4 with a stop just below the wave C low at 0.605. and a buy stop at 0.675.

Maybe not a high enough risk reward set up for me, I'll have a "discretionary" think about it


----------



## skint (7 July 2007)

Porper said:


> Looks like I am posting to myself here   , never mind, may be of some interest to some people.
> 
> A good bounce today  although volume was disappointing, but the fact remains wave C could have finished and we could be into our wave 3 leg higher to around the 0.93 area.(We didn't quite get to the projected 0.60, just one cent off).
> 
> ...




Hi Porper, Thanks for posting the charts. Although I trade on the fundadmentals, its always good to see a chartist's perspective. From your chart, are you suggesting that a break through .67c on volume may indicate a run into the nineties? Quite a few potential catalysts could provide the volume IMO. These include Mr Ding exercising his options, the results of the General Meeting, the first payment for the deal and the updated resource model. All these are due over the next few weeks. For reasons outlined earlier in this thread, I believe the fundamentals remain very strong with CFE. I'll be holding as I don't believe true value has been factored into CFE in comparison to others in the iron ore business. As CFE moves toward production, I can't see any reason for CFE not to follow the way of MMX and others and lose is laggard status, unless the whole project falls over. Nothing has indicated to date that this is likely. Quite the opposite in fact.


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## Porper (7 July 2007)

skint said:


> From your chart, are you suggesting that a break through .67c on volume may indicate a run into the nineties?




Hello Skint,

The first signal would be a break of 0.67, yes.Confirmation would be a break of 0.72.

Note that my projections are minimum targets.

Also be aware that if we break up there could be a retrace to around the level we are at now, maybe a bit higher before heading higher again.


----------



## CanOz (7 July 2007)

Noce one Porper, flirting with all time highs too.

Some good ole fashion trendlines and support and resistance there too.

What your take on a position and or the R/R?

Cheers,


----------



## Porper (7 July 2007)

CanOz said:


> Noce one Porper, flirting with all time highs too.
> 
> Some good ole fashion trendlines and support and resistance there too.
> 
> ...




Can,

Look at my post 3 or so  above this one for R/R position.

It's panned out nicely up to now, I don't hold at the moment but am very tempted.

The only thing that concerns me is the last bar up on bugger all volume.

The risk is if we buy now it just ranges for a while before moving up.

Downside looks minimal though which is something I always look at first.


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## chris1983 (7 July 2007)

Thanks Porps for the charts.  We are all still waiting for that deal confirmation.  Once that is through we are looking good.  Price movement on friday is hopefully a good sign on whats to come.  Investors loading up before the deal is confirmed.  Ive been waiting for this for quite some time but its an easy way to make money IMO.  Its really not that long to wait to grab an easy money.  I mean we have 300mt confirmed..Ding has bought options..Ding owns steel mills..Ding is loaded and he needs iron ore..how obvious do you need it to be.  Thats why I loaded up in the low to mid 20's for the oppies.  If the deal did fall through there would be a slide initially..but I just cant see how it wont go ahead.


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## Ruprect (7 July 2007)

Well said Chris. I think we did see on Friday the start of the moves of those who rightly expect the announcement of the confirmation in the coming week. It has to be out before the meeting on the 16th.

I think also we cant underestimate the 10million single trade that went through at 72.5c last week. A confirmation of the deal might well result in more of the same - big players taking a significant stake. 

The benefit of that occurring will be that the sell down by short term traders after the confirmation would not result in the downward movement again like it has after the intial announcement and CFE's own resource confirmation recently. Any selling pressure would be offset by serious investors looking for the next iron ore explorer moving to producer.

If that occurs, we could be in for a serious re-rating. I also note that by the middle of July, (which is this week) CFE expects to have the results of recent drilling, with more to come soon. So not only will we have the potential of confirmation this week, we should have drilling results.

_Up to 30 June 2007, the Company had completed 11 RC holes for an advance of 4,425
metres. These holes were designed to infill to the north of the southeast extent of section
13,200 east (refer Figure 2 and 3).
The Company expects to receive the DTR results from the first two RC holes toward the
middle of July._


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## jammin (7 July 2007)

Porper, great chart, the wave count (IMH beginner opinion) looks solid. I feel the  form of wave 4 (completed Thursday) alternates with the form of wave 2, lending further "confidence" in the count.


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## porkpie324 (7 July 2007)

After forming a near perfect gravestone doji on 25/06/07 the shares were distributed on volume which is a definate sell, yesterdays sp rise was on average volume, so perhaps some caution with CFE.
  Having said that, CFE is not on my shortlist and I hav'nt done any fundemental analysis.porkpie


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## MR. (11 July 2007)

I'm still hanging in there. If I had a mine and $192 us million was on the line I would think that I'd make sure the 300mt is proved up asap. Unless. 

CFE release of 600mt CTA recently (couple of weeks ago). Confirmation included both Robe's data and CFE's samples. I would suspect the geo's for ding might exclude Robes data. Where's the dirt?

Anyway, with the recent price increases in Iron Ore and demand I think if the resource was just shy of 300mt a deal will still be struck with ding. 
How are you guys holding up?


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## Ruprect (11 July 2007)

Going alright MR.

We should see something from them tomorrow or Friday. Bit hard to run a meeting on Monday asking for people to vote on the confirmation if it doesnt exist!

But they did say an announcement before the 16th, and they have been pretty good with updates in the past.

The expectation of an announcement may be reflected in late trade, hitting the 70c mark, and threatening to break through it.


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## mahmoodf (11 July 2007)

MR. said:


> How are you guys holding up?




Very well MR! As Ruprect has alluded, hopefully we will get an announcement either tomorrow or Friday. And fingers crossed it will confirm that Cape have the 300Mt resource to satisfy Mr. Ding and start the cash flowing.


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## Ruprect (12 July 2007)

well thats it, only one more day to go...well, all things being equal, the announcement regarding confirmation or not should be out after close today, first thing tomorrow...or even during the day.

Not sure how they could leave the announcement until monday, given thats when the meeting is on.

Oh the suspense.....


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## MR. (13 July 2007)

OK Guys good to here your still hanging in there with me.  I have some news. I spoke to Tony Sage and got this information direct.

The Geo’s Golder and RSG were given the same information at the same time. Golder came up with a resource far in excess of 300mts as per ann’ a couple of weeks ago. RSG has to do more work than Golder because the Chinese have given them extra tasks which have nothing to do with the actual confirmation of the 300mt. So this perhaps might be the delay. Tony did confirm that “The Chinese agreed to accept data from Robe’s results.” 
Both Tony and Ian (Tony claimed) both have no doubt that there is in access of 300mt’s. He added that if the result was only 300mt’s the Chinese will be thinking “what have we done” 
Robes finding’s were in excess of 2 billion tonnes, Tony claimed. I didn’t go into depth of the 255mt as I have written about earlier. (perhaps a little late to bring this up, we know Golders result)
The Chinese have 8 staff assigned to the jv. Three are already at the jv office. Three million dollars has already been spent by the Chinese, housing, cars etc. Is this an indication that the Chinese are worried?
Tony also pointed out that he has exercised some of his options. 

OK now I have looked into these options (asx 2/7/07) it appears no one else has bothered to. The market fell down to $0.32 cfeo and $0.61 cfe in the days after the option ann’. The market saw the release as bad news as it appears. Now why would Tony exercise (indirect 1) 1.5 million options at $0.40 totalling a cost of $600,000- ? They expire at the end of the year! (Tony spent $600,000)
He already has 11.6 million fully paid shares in (indirect 1)
If he wanted the money why not just sell some of the 11.6 million.

If Tony sold all the 1.5 million shares just exercised in one of the up and coming announcements at $1.20 per share he has the cash to exercise the rest of (indirect 1) options of 4.5 million by the end of the year. I hope its the (second ann’ being the cash in the bank) but if it got near $1.20 before hand I can’t blame him. Now why did he spend $600,000 dollars? comments anyone?

Tim Turner’s sale on the 4/4/07 (asx 6months) is different to Tony’s when he does sell. Tony has put his money up first. Although I would still have done as Tim Turner did if I was him.

Ruprect if there is any bad news it will not be today.  

Many of you are in Perth. I am in Qld. Is or Can anyone get to that meeting on Monday?


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## mahmoodf (13 July 2007)

Resource has been confirmed by independent geologist as satisfying the sale condition. Shares are steady, not much movement at all. Maybe the resource figure is not big enough?


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## moneymajix (13 July 2007)

This is one strange stock. You would think it was take off with the confirmation. 

The sale is to be confirmed (if they get the numbers) at the AGM on 16 July.

Current price is 71.5c, up nearly 3%.


INDEPENDENT GEOLOGIST CONFIRMS INDICATED MINERAL RESOURCE OF 300 
MILLION TONNES SATISFYING CONDITION FOR 70% SALE OF THE PROJECT 

KEY POINTS 
● Independent Geologist, RSG Global Consulting Pty Ltd (“RSG”), has now completed its estimate of the Mineral Resources within the Central Target Area at the Cape Lambert iron ore project (the “Project”); 

● RSG has confirmed a minimum Indicated Mineral Resource of 300 million tonnes; 

● The sale condition precedent requiring Cape Lambert to define a minimum Indicated Mineral Resource of 300 million tonnes has now been satisfied; and 

● The final condition precedent to be satisfied by Cape Lambert for the sale of 70% of the Project is shareholder approval and a shareholders meeting is scheduled for Monday, 16 July 2007 to consider this matter.


----------



## Mumbank (13 July 2007)

I am in NSW and also can't go to the meeting on Monday. WOuld be great to get a first hand report from someone after the meeting.  Anyone going?


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## Ruprect (13 July 2007)

Well, as much as id hoped for a surge on confirmation, the history of this one shows that there is a sell down after major announcement, followed by slow recovery. The difference this time is the sell down is very minor on pretty light trade.

Im holding, waiting for the big players to enter, as they did a couple of weeks back. Im not stressed, like many of us here, still sitting on about 70% profit. 

An indepenent confirmation of the resource, more drilling results to come and iron ore price predicted to rise considerably over the next few years. 

I see a lot of upside for CFE over the next few years.


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## MR. (13 July 2007)

Well isn't that strange. Are we all just sheep? 
Didn't you guys see a trade at something like $0.725 for 10,000,000 a week or two ago? Now what is different? Between then and now?

mahmoodf, I didn't expect CFE to publish the actual results. They are actually better than I thought they would be. I expected and Tony Sage confirmed, that it was only going to be published as "CFE has more than 300mt confirmed."

We didn't really need to know 793 MT's because this is only a part of their resource. Tony Sage is expecting the resource to be 4 billion tonnes once the drilling is completed.


----------



## mahmoodf (13 July 2007)

MR. and Ruprect : I totally agree with your comments.

A 300Mt indicated resource has been confirmed and verified by an independent geologist as outlined in the Ding deal.

Shareholder ratification should take place Monday, 16th July.

Shortly afterwards, Mr. Ding should be paying Cape US$57 million (30% of US$192 million).

Three months later, another US$106 million will be paid to Cape (55% of US$192 million).

The fundamentals of this project are constantly improving. If people want to sell, that is their perogative. I hold as I believe there is much more upside to come.


----------



## mahmoodf (13 July 2007)

http://www.brr.com.au/event/CFE/1827/25135

Sounds pretty good to me.  

It sounds like they will not have to wait for BFS now.


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## MR. (13 July 2007)

mahmoodf, thanks for the link. I haven't looked there for a while. 

The 1st payment will be one month after the official contract release next week after meeting.

I put my money where my mouth is today and i purchased some more oppies. 

Delong Holdings has the money and CFE has the FE. And theres a contract.

Can anyone go to the meeting on Monday?


----------



## mahmoodf (13 July 2007)

MR. said:


> I put my money where my mouth is today and i purchased some more oppies.




Good on ya MR.

Here are my thoughts on the deal. Any comments appreciated.

Ding has agreed to pay US$192 million. I am quite sure that this was done at a fixed FX rate of 0.76. Why? Because in the broadcast, Tony says that AUD$75 million is due in 4 weeks time. This equates to US$57 million. Which is 30% of US$192 million.

So in total, Cape will get AUD$250 million cash.

Now the project itself. Lets say the project will have a CAPEX of AUD$500 million. This means that Cape will have to come up with AUD$150 million (30% of CAPEX) and Ding will have to come up with AUD$350 million (70% of CAPEX).

Obviously the same applies with revenue split. If Cape can get a 15Mtpa operation going, with net revenue of US$30/tonne, that equates to US$450 million EBITDA. Applying FX of 0.85, tax of 30%, this leaves AUD$350 million profit. Cape's share will be 30% of this or AUD$105 million. On a PE of 10, that equates to a MCAP of over $1 billion. If Cape has around 500 million shares after options exercise, we are looking at a share price of around $2+.

And don't forget the $100 million that Cape has leftover to play with along with potentially AUD$30 million+ if all OCT08 options are exercised! 



MR. said:


> Can anyone go to the meeting on Monday?




I am based in Perth and will try and get down there but can give no guarantees.


----------



## lazyfish (13 July 2007)

Hi guys,

Sorry for asking a dumb question, I don't own shares as of yet, can I still go if I am interested?

TIA


----------



## MR. (14 July 2007)

lazyfish; said:
			
		

> Hi guys,
> 
> Sorry for asking a dumb question, I don't own shares as of yet, can I still go if I am interested?
> 
> TIA




I can not see any reason why you would be rejected from the meeting. It would be in CFE's interests that potential Share holders attend. Now option holders would be attending and they can't vote so visitors I would think will be encouraged to attend. I think you will need to check with CFE. 

Mahmoodf, the meeting would be most interesting. I'd love to hear the questions asked and their answers. There would be so many questions which we have not even thought of. As you seem to be a fair poster on this thread (not just a ramper)  I'd be interested in your comments if you attended.  

The Geologist RSG with a deal of 250 million on the line had to be very conservative. They had to be 100% confident that there is in excess of the 300mt's. I'd hate to think of the litigation towards RSG if they made a mistake. If I was RSG I'd either not have taken the task on or I would have been very conservative.

CLIO in London up a bit at 30.25 (+3.4%) overnight.


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## MR. (16 July 2007)

Tony Sage (TS) last week said to me “he can see the share price going ten times. Look at Fortescue”
Since the S/P has sat at $0.60+ for more that a month, I would assume that this is the S/P he is referring to. I questioned the fact and withdrew my argument when I remembered whom I was speaking to. 

I calculated a share price at $3- 
Mahmoodf has calculated $2-+
TS believes in $6- 

It will be interesting after the meeting and later in the week if Ian Burston exercises some of his options as TS did. TS’s option exercise was a vote of confidence I believe .


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## mahmoodf (16 July 2007)

MR, based on public knowledge, I have more confidence in your figure and my own figure for the SP going forward. If Cape does get to $6, great. But I'm not sure how TS has come up with $6. Obviously he is much closer to the action than we are.

Regardless, IMO Cape provides good value going forward 18-24 months.

It will be interesting to hear how today's GM pans out. I did not go due to work committments.


----------



## lazyfish (16 July 2007)

Hi guys,

I went for the meeting this morning. Here are some from the Q&A. I got some more on paper but left them at home so if there's anything more I will edit this post.

1) the Ding deal status
3 out of 4 things cleared. 
a) Resource report (ok)
b) Board approval (ok)
c) Shareholders approval (ok)
d) FIRB approval for Ding (takes max 35 days, Ding's doing it, and if they don't hear back from FIRB they can assume it's being approved. Just for formality, almost never rejected)

2) Someone asked why the share price hasn't gone up, still in 67-70 cents range

Most brokers don't think Ding can make it because he's not famous. Once the first payment is through there should be a surge in share price. Ding has lots of assets (over a billion AUD and over a billion SGD? didn't hear this part clearly), already has 3 employees working on this JV and secured a property in Perth to carry this on. Board is very confident this will go through.

3) Estimated production

15mt/yr. Although initial production is likely to be 5mt-7.5mt/year. This is to cut down the risk of having no production at all if the 15 mt plant have issues. 

4) Production commencement date

2010 is the earliest, as it is possible to have no access to other companies' jetties. If they order to build it now it can only start in 2 years time.

The board also mentioned the possibility of other projects. 

That's it for now, I will update after I check my notes.

Cheers


----------



## MR. (16 July 2007)

Thanks lazyfish,

http://www.firb.gov.au/content/who.asp?NavID=48

FIRB Board examines proposals by foreign interests to undertake direct investment in Australia and makes recommendations to the Government on whether those proposals are suitable for approval under the Government's policy.


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## jammin (16 July 2007)

lazyfish said:


> That's it for now, I will update after I check my notes.
> Cheers



Thanks for that Lazy and looking forward to any further detail from your notes.
I am going to have to modify my trading plan to include some weighting for the location of GMs. My experience is that only boring GMs/AGMs are held in Sydney.(Well the ones I have attended have been). This meeting sounded much more interesting. How was the tea and bikkies?


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## mahmoodf (16 July 2007)

Thanks for the great update lazyfish.



lazyfish said:


> Once the first payment is through there should be a surge in share price.




I agree with this comment. Cape has done everything required of it. It is now upto Ding to do his bit and come up with the first payment.


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## lazyfish (16 July 2007)

Didn't know I can't edit my own post anymore, but anyhow, this is what I have left on my notes...

1) How does CFE guarantee the price of ore sold with only 30% interest?
Market condition will be set in the J/V agreement. Chairman do not think this is a problem.

notes

$750,000 of the deposits which Ding has already paid are non-refundable even if conditions are not satisfied.

Chairman hinted at dividends after Ding pays up.

Board talked about 80 CFE shares -> 1 Global Iron shares for share holders, which will happen in few weeks. 

Board talked about exploration of other projects, saying they have been too focus on Cape Lambert in the past. Something about 110(?) tenement and exploration rights. Sorry I have no idea what they were talking about and I ran out of paper. :hide:

The Celtic Club, where the AGM is hold, is quite a run down place. I like the board being prudent about any spendings though.

I am a total noob at this so apologies if I got anything wrong. I am pretty convinced that Ding will pay up given all he has done (deposit, staff, office), so I picked up some CFE myself today .

Cheers


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## Ruprect (17 July 2007)

From AAP and also running in The Australian online. Might generate some more interest over the next few days.

*Cape Lambert sale approved *
_LAMBERT Iron Ore shareholders have approved the $287 million sale of a majority stake in its Cape Lambert magnetite project to China's Best Decade.

Shareholders overwhelmingly supported the sale of a 70 per cent stake in the West Australian project for $US250 million ($287.67 million). 

Cape Lambert previously announced that the project had potential to produce 15 million tonnes a year, starting production in 2009 and costing about $600 million to develop. 

Magnetite is low-grade iron ore and requires intensive processing to produce a saleable material, unlike the high-grade hematite ore that can be shipped directly to customers. _


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## MR. (17 July 2007)

Lazyfish, 
                thanks for your comments and I hope our share holdings prove to be worth while. I have half in fully paid shares and half in options. My average price with options exercised is $0.50 each. Not as good as Ruprects 70-80% increase but he is a hardened trader and I not and I can’t help assessing the risk from time to time and adjusting my holding accordingly. Unfortunately i suspect that we may see the share price slide in the next couple of days. Many have been jumping on for a quick buck with little to no research. By the way the true meaning of noob would have to be some of the posters on the (“hot copper” forum. But at least they sometimes come clean.)

Perhaps I can answer some of your questions:

I would not be surprised if dividends were paid. I have suspected this for a long time. With Tony Sage’s recent exercise of his options could only add to the probability of dividends. 

CFE has access to something like 110 tenements a few hundred km’s north of Albany in W.A.    CFE has access to these gold mining tenements to look for iron ore. Providing that CFE does not interfere with the gold mining. I assume that  ALL these tenements are being spun off into Global Iron. As CFE has not started exploring on these tenements they feel (along with the majority of share holders) that a separate company is best.  I agree in concentrating on one project, but I disagree if it proves that we have lost alot of our share holding rights to management. Time will tell.

Of all the research I have done the simplest of calculations assures my holding. The mine is worth 350 million (based on 250 million for 70%) divided by 500,000 shares = $0.70

Also if you didn’t already know 200 million US was being raised by Delong Holdings. The buyer for Cfe can be either Ding or Delong by contract. Delongs proof of capital raising can be found in late May at :
http://info.sgx.com/webcorannc.nsf/...w&RestrictToCategory=DDELONG HOLDINGS LIMITED

My work is done here. I am not selling. 
Good luck guys with what ever your intentions are. Cheers MR.


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## moneymajix (17 July 2007)

Well,

This stocks never seems to go up when you expect it to, that is on good news.

0.640c 

Down 0.035c
(-5.185%) 


Guess, holders will have to be patient a bit longer.


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## Go Nuke (17 July 2007)

Thanks for that Info MR.

Your right Moneymajix..the share price is going backwards after what i thought was good news!lol

Will the share into Global cost anything? Like a rights issue. Or is it just a privalige for being a CFE holder? (Sorry Im new to shares)

Well im holding. Only because Im not willing to take a loss


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## mahmoodf (17 July 2007)

MR. said:


> Of all the research I have done the simplest of calculations assures my holding. The mine is worth 350 million (based on 250 million for 70%) divided by 500,000 shares = $0.70
> 
> My work is done here. I am not selling.




I couldn't agree more MR. The only spanner in the works is that for some reason, Ding does not decide to pay. I am happy to take this risk and hold as I think Ding's intentions are clear: he wants the steel and he is prepared to raise money (convertible notes issue) to fund this acquisition.

Once the first payment has been made, that should see Cape move to a new level, although with Cape, every time there is *good* news, the shares go in the opposite direction!     :


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## skint (18 July 2007)

MR. said:


> Thanks ruprect.
> 
> Re: "show me the money" as i posted earlier referring to mr. Ding's 192us million. I have some news ***not known to most.*** What do you know about a share that no one else does?
> 
> ...




Here's an earlier post by MR. with more substance. It appears as though Ding may have organised the money some time ago. At least MR. included some facts. I'm happy to be holding for final confirmation and the updated resource model which should increase the tonnage substantially, according to TS.


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## mahmoodf (18 July 2007)

anglecare said:


> *unsubstantiated allegations removed*




*Anglecare*, here is the information I have been able to find on Ding via Google from publicly available sources. To my amatuer eye, it appears that Ding has a pretty good track record and reputation. Would you care to share where you are getting your information from, who is the investor selling down and what reports (newspaper etc) there are that suggest Ding as being a shady operator?

Obviously, Ding (through Best Decade) can decide not to pay the cash. So there is some risk there. But all the evidence seems to infer that he is serious on growing his steel empire, especially the convertible notes issued last month by Delong Holdings that are worth around AUD$230 million.

----------------------------------------------------------------------------------------------------------

http://knows.jongo.com/res/article/3786

Mr. Liguo Ding is the Chairman of Board of China Delong Holdings Co. Ltd. (Listed in Singapore SGX), the first Chinese private steel-making company listed in a oversea stock and exchange market. From 1998 to 2003, Mr. Ding was the Chairman of Tangshan Liguo and from 1992 to 1998, he was the Chairman of Tangshan Changcheng Rolled Steel Factory. 

In 2005, Mr. Ding was ranked 46th in the Forbes 2005 List of Richest Chinese, and honored "China Top Ten Outstanding Youth". 

Mr. Ding also holds various positions of commissioner of Chinese General Chamber of Commerce and Industry, commissioner of All-China Youth Union, and trustee of China Association of Young Entrepreneurs, and etc. 

Mr Ding holds a diploma in Machinery Manufacture from the Hebei Polytechnic University in the PRC, and education experience in the MBA program of Tsinghua University from 2002 to 2003, and currently holds a joint professorship appointment in the enterprise management program of Hebei University of Economics and Business.

----------------------------------------------------------------------------------------------------------

http://forum.channelnewsasia.com/viewtopic.php?p=976439&sid=b41485747713039b080da106026291ad

CHINESE companies in general have to overcome the negative perception investors have of them. It is worse if they get on board the Singapore Exchange via the backdoor. Which is why the chairman of Delong Holdings, the China-based manufacturer of hot-rolled coils, felt that the market is yet to accord his company a fair value despite it delivering on its promises in the last two years. 

Delong Holdings entered the Singapore market via the reverse takeover of Teamsphere in 2005. For financial year 2005, it chalked up net profit of $121.5 million on turnover of $861 million. And last year, it managed a net profit of $131.2 million on a turnover of $945.3 million. 

From its financial statements, the numbers look pretty good. 
Cash flow generated from its operations amounted to $176 million. Net profit margin has been steady at 14 per cent in the last two years. Meanwhile, return on equity was 41 per cent and return on assets 17 per cent. The only concern is its relatively high short-term borrowings relative to its liquid assets. 

Its chairman Ding Liguo, a young man at just 37 years, has grand plans for the group. And he is realistic enough in his time frame: 'We intend to be the top 500 global companies in 30 years.' 

The immediate step towards that goal is to grow domestically. 
Delong put in place a new production line at the end of last year, and that will add 800,000 tonnes to its production capacity this year. Its annual capacity will therefore increase to 2.4 million tonnes, and to three million tonnes next year. 
The expanded capacity is expected to contribute to its bottom line as demand from its customers - manufacturers of pipes and machinery and infrastructure builders - continues to be strong, and Delong is expecting its net profit margin to remain stable. 

In addition to organic growth, Delong will also buy up other steel mills as the industry is going through a mandatory consolidation. China's national steel industry is to have 10 
mills producing 50 per cent of the national total by 2010, with that number rising to 70 per cent of the output by 2020. Currently, the industry is still quite fragmented with over 800 players. 

In recent years, private enterprises encouraged to take part in the steel sector by the government have grown into an important player, accounting for more than 36 per cent of the national output, according to a China Daily report. 

And Delong is one of those private enterprises that have proven their mettle. According to China Iron and Steel Association, Delong is the second lowest-cost steel producer in China, after Taiyuan Steel, with a yield of 98.5 per cent. And it doesn't 
stint on investing in technology in order to climb up the value chain. 

It has a company-wide incentive scheme tied to profitability and its worker welfare standards are above those required by law. On top of that, it has embarked on three green initiatives, including establishing a coal gas emission recycling facility and an operation to recover iron and steel sludge for reuse as raw materials. 

Based on its performance record, it is logical to think Delong will be able to add value to the mills it acquires. Mr Ding estimates Delong will require four billion yuan (S$785.2 
million) - to be funded by internal resources, bank loans and new capital - for its acquisitions. 

According to Mr Ding, since uber-investor Warren Buffett announced that he has a stake in Korea's steel maker Posco, a lot of people are looking at steel companies. He's had an offer to take Delong private at 50 per cent higher than its recently traded price. He was unwilling to sell, because 'I don't know how the market value shares, but I know what I can make next year and the year after.' 

At its last traded price, the market is valuing Delong at nine times its earnings last year and 6.7 times its expected earnings this year. 

In a fast liberalising market like China, an astute entrepreneur can really make serious money for himself or herself and those who bet on them. Yan Cheung, chairwoman of Nine Dragons Paper, and Zhong Sheng Jian of Yanlord are two good examples.

----------------------------------------------------------------------------------------------------------

http://www.steelguru.com/selectednews/index/2006/005/010/archives.html

*Delong targets 10 millions by expansion & acquisitions*


Singapore based Delong Holdings Ltd said that it plans to be one of the top ten steel makers in China in the next five years, producing more than 10 million tonnes a year and to achieve that target, the firm will buy steel makers and iron ore mines in China, and is already in talks with several companies, both state owned and private. Mr Ding Liguo Delong's executive chairman said "To be among the top ten steel producers in China you have to have at least 10 million tonnes of production."

Mr Ding said the steel industry in China was suffering from overcapacity but that with stringent technological and environmental standards introduced by the government last year several smaller mills were likely to sell out to bigger players. He said a technical enhancement program launched by his firm would boost production to 2.4 million tonnes a year by the end of 2006, from 1.4 million tonnes in 2005."But to grow beyond that, acquisition is the only way" he said.


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## Porper (18 July 2007)

anglecare said:


> *unsubstantiated allegations removed*




Well, I quite enjoyed the story anglecare, you could write a book with all those conspiracy theories.True or false really is irrevelant from my standpoint anyway.

I have ammended the chart as the ABC I had labelled was incorrect .

I am not totally  happy with the count now, as this ABC pattern seems to be extending a little too far.

However if CFE goes down to 0.52 the chart is definitely incorrect and my bear hat would go on.My bet is that we may retrace to around the blue area on the chart then start to move aggressively up again.

I will be on the look out for a bounce with good volume in the next few days with a stop at 0.52 providing a very good R/R.

Just going back to angs story.If somebody is offloading a load of shares they are doing a crap job.They didn't sell enough into the rise up to 0.80.

Also look at the volume on the recent down days.......there isn't any.Day traders are getting out, the smart money isn't.....yet, can all change of course.

I have my piggy bank open and ready to pounce


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## lazyfish (18 July 2007)

anglecare said:


> *unsubstantiated allegations removed*




According to this news report, Ding was interviewed during a *MAJOR*  meeting in Hebei province. (22nd June - 23 June, 2007). I could not find any thing else after that but when I do I will post them here. Sorry this is in Chinese.

Link: http://news.21our.com/readnews.asp?id=1586135

Cheers,


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## mahmoodf (18 July 2007)

G'Day Lazyfish

You can use the Google translator to convert from Chinese to English. I did that on the link you provided and there is nothing of worry.


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## lazyfish (18 July 2007)

Hi Mahmoodf,

Thanks. I can read Chinese, I was merely saying that according to this news article Ding was still in China during the meeting which took place 22-23 June, 2007.  He was interviewed and wasn't in any sort of trouble at that time.

Cheers,


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## mahmoodf (18 July 2007)

LOL, my sincere apologies Lazyfish. I re-read your post and realize I had misunderstood it! :bonk:

Great to have someone with linguistic skills such as yourself on board.


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## nomore4s (18 July 2007)

Porper said:


> Well, I quite enjoyed the story anglecare, you could write a book with all those conspiracy theories.True or false really is irrevelant from my standpoint anyway.
> 
> I have ammended the chart as the ABC I had labelled was incorrect .
> 
> ...




Porper, the only thing that is worrying me atm is the lower high and lower low that have been made. For me if the next rally doesn't break the last high of 72c (there looks to be alot of resistance at 70c), I will be exiting the final position of my trade.
But in saying that I like this stocks fundies with the deal etc and have already closed one position out in very good profit at 65c, so I'm also looking for the bounce with some volume to enter another position, but as stated I will exit all positions if the sp stalls at 70-72c again or makes another lower high.


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## rub92me (18 July 2007)

Ruprect said:


> Or is this just dawnewbee at it again under a different guise?



Same poor spelling, so you could be on to something there. Hah, another conspiracy theory. Will it ever end?


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## blacksheep (18 July 2007)

Agree. The share looks like on a downtrend. If it breaks under 0.58, I will sell all my holding. I don't like the thin volume with the downtrend. I am afriand it will come a day with hugh voulme with 10-20 spreads down at opening.

In fact, I am getting uncomforable about this Ding issues. As I talked to some Chinese steelmaker in Jiasu Provience last week. They are seeing tougher government rulings against steel industry in coming years, especially towards Private steelmaker. The general understanding among them are if government starts to slow down the industry, it will start cutting off with private ones first. The only safe ones are the state-owned like Bao, Ansteel, etc. Therefore, I am thinking to switch to GBG instead, at least the Ansteel is behind it.

Any comments?


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## Ruprect (18 July 2007)

Yeah, i have a comment, or i guess that should be a question. How is it that both you and angelcare both have concerns with Ding, yet fail to explain the basis of the concerns?

Oh, and i note that of your 4 posts, 3 are on GBG and 1 on CFE. Wow, and funnily enough, angel has 3 posts, 2 on CFE, one on GBG.

No, im not much into conspiracy theories...not really.


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## Porper (19 July 2007)

blacksheep said:


> Agree. The share looks like on a downtrend. If it breaks under 0.58, I will sell all my holding. I don't like the thin volume with the downtrend. I am afriand it will come a day with hugh voulme with 10-20 spreads down at opening.




So Blacksheep, what is your basis for saying 

"I am afraid it will come a day with huge volume with 10-20 spreads down at opening." ?????????????????????

Sounds like a scare tactic to me, wont work on here blacksheep, try Hotcopper or somewhere.

Nomore, yes there is a lower high and lower low but don't forget that with an abc correction this is almost always the case.The correction is impulsive so is a counter trend.In other words the trend now is down but is a small correction to the larger trend up.

As I said in my earlier post, the abc correction doesn't quite look right, as in it is larger in time and price than I would expect, but is still valid.


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## starbucks (19 July 2007)

Let's people say whatever they like. The important thing is what yourself believes. 

New day with new hopes. Let's pray CFE will be do fine from day on. Only time can prove if we are right or wrong.

0.6 is a key support. I believe it will rebound to test 0.7 level. If it breaks out, then it's fine. Otherwise, going under 0.6 will cause some worries. Because it shows still testing lows.


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## Sean K (19 July 2007)

Ruprect said:


> Yeah, i have a comment, or i guess that should be a question. How is it that both you and angelcare both have concerns with Ding, yet fail to explain the basis of the concerns?
> 
> Oh, and i note that of your 4 posts, 3 are on GBG and 1 on CFE. Wow, and funnily enough, angel has 3 posts, 2 on CFE, one on GBG.
> 
> No, im not much into conspiracy theories...not really.



Interesting that, isn't it Ruprect? It's always amusing when people from out of the blue turn up ramping or downramping on the same threads. They not only lose just a little bit of credability, but when they try and sign up with a third personality, well, that's just downright embarrassing. Very embarrassing.


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## nomore4s (19 July 2007)

Porper said:


> So Blacksheep, what is your basis for saying
> 
> "I am afraid it will come a day with huge volume with 10-20 spreads down at opening." ?????????????????????
> 
> ...




Porper, I too think the count is still valid and am looking for a bounce of the 58c area - 61.8% fib line, but just posted up my concerns with the current sp movement as I'm also a bit worried about the size of the ABC correction and the "look" of a couple of the bars, there is more analysis on Cans thread "My open book trading plan" in reference to VSA analysis.


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## Go Nuke (19 July 2007)

nomore4s said:


> Porper, I too think the count is still valid and am looking for a bounce of the 58c area - 61.8% fib line, but just posted up my concerns with the current sp movement as I'm also a bit worried about the size of the ABC correction and the "look" of a couple of the bars, there is more analysis on Cans thread "My open book trading plan" in reference to VSA analysis.




Looks like you were right!

CFE bounced off a low of 58c today. However its a shame that today is Thursday. Lets hope there isn't anymore profit taking before the weekend.


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## Sean K (20 July 2007)

kennas said:


> Interesting that, isn't it Ruprect? It's always amusing when people from out of the blue turn up ramping or downramping on the same threads. They not only lose just a little bit of credability, but when they try and sign up with a third personality, well, that's just downright embarrassing. Very embarrassing.



Or, even when a they sign up with a forth nic and say practically the same things.  It's not hard to pick really.


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## MR. (20 July 2007)

Joe Blow said:


> Angelcare - at this forum we require people to substantiate these kind of statements. If you cannot substantiate them in any way then please do not make them, as in that case all they amount to is unfounded rumour and may be perceived by others as an attempt to downramp the stock.
> 
> If someone is dumping this stock in large quantities then no doubt we will soon see a 'Ceasing to be a substantial shareholder' notice amongst CFE's announcements.
> 
> Until that time, if you are unable to provide any substance to your claims then it would be best not to make them, or perhaps make them at another forum where they don't mind those kind of rumours being posted.




I wasn't going to waste my time giving my opinion on this kind of talk that Joe Blow is speaking of. But I have some news and what more I can back it up.

If Angelcare and Blacksheep (which have posted together on gbg) can not come up with proof they should be suspended. Waisting everyone's time and tarnishing Ding's name. Joe Blow do you want people like this on your forum? 

http://info.sgx.com/webcoranncatth....D004643B6/$file/clarification.pdf?openelement

I found it hard to believe.

Anyway Delong shares down recently due to profit downgrade I'll post it anyway because I'm here. I'm not selling.

http://info.sgx.com/webcoranncatth....4825731D0046A898/$file/update.pdf?openelement


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## Joe Blow (20 July 2007)

MR. said:


> Joe Blow do you want people like this on your forum?




Mr. - We have since discovered that the accounts in question were being operated from the same internet connection and can only assume that it was the one individual posting under multiple usernames. 

These accounts have now been permanently suspended.


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## mahmoodf (20 July 2007)

Thanks for the URL MR. And thanks Joe for getting rid of these idiots. These forums are such a wonderful tool but there will always be people that abuse the system.


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## skint (20 July 2007)

MR. said:


> I wasn't going to waste my time giving my opinion on this kind of talk that Joe Blow is speaking of. But I have some news and what more I can back it up.
> 
> If Angelcare and Blacksheep (which have posted together on gbg) can not come up with proof they should be suspended. Waisting everyone's time and tarnishing Ding's name. Joe Blow do you want people like this on your forum?
> 
> ...




Good find MR. I'm more than a little surprised that a pitiful attempt at downramping by some galah in multiple and transparent pseudonyms on little'ol ASF came to the attention of a steel magnate in China. However, I was staggered that Ding/Delong bothered to respond! Not surprisingly, these dowramps questioned the ability of Ding having sufficient cash. I wish they'd responded to those unsubstantiated allegations as well. Might have got a few clues as to when everything will be finalised and the when the cash will be in the bank. SP is going nowhere at the present but hopefully the updated resource model and/or the first payment should change all that. Both of these shouldn't be too far off now.


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## ta2693 (20 July 2007)

I sent an email to Delong and asked them to confirm for me where is Mr ding. 
If I can get the reply, I will post here.


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## MR. (20 July 2007)

ta2693 said:


> I sent an email to Delong and asked them to confirm for me where is Mr ding.
> If I can get the reply, I will post here.




What happens if you don't get a reply? How easily rattled.

ASF as you know, can easily be viewed without logging in. Would it be out of the question if Delong Share holders read this thread? I don't think so. 

Delong dropped some 6.5% on the 18/7/07 before the Delong announcements  dated 19/7/07 which I posted earlier. The 18th was when the down ramping was being discussed here! (now deleted)

The reason I think Delong has taken this threat seriously is if its share price was suffering because of it (no other reason). Now, Joe Blow has confirmed multiple posts from the same internet connection. 
The story was fake. I'm not selling.


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## Joe Blow (20 July 2007)

I would like to add that the unsubstantiated allegations made by anglecare have now been removed from this thread.


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## MR. (24 July 2007)

Ian Burston exercised 1.25 million $0.40 options costing him $500,000- as per ann' today.
http://www.asx.com.au/asxpdf/20070724/pdf/313krvxf0x29x5.pdf
A couple of weeks ago Tony Sage spent $600,000- excercising $0.40 options.
The options arn't due until the end of the year.

Why do I appear to be the only one who thinks this is great news? 
The volume is low on both and the price has gone nowhere today. cfe $0.615 and cfeo $0.335

If the directors sold shares before Ding's payment they basically must do it now. Otherwise this would be a case of insider trading if Ding doesn't pay and the directors sold shares prior to bad news.

Remember Ding indicated at the start of april that he will convert his options in the near future.
This can happen at anytime. 

Both Tony and Ian have spent a combined 1.1 million of their own money. Why would they do that?


----------



## Porper (24 July 2007)

Porper said:


> Well, I quite enjoyed the story anglecare, you could write a book with all those conspiracy theories.True or false really is irrevelant from my standpoint anyway.
> 
> I have ammended the chart as the ABC I had labelled was incorrect .
> 
> ...




Well, 

according to my time cycle ratios, there is a strong possibility of a change in trend from today up until Friday.

This doesn't mean we shoot out and buy.I am still waiting for some break up from this ABC correction with some descent volume.  The correction has maybe finished in the upper yellow zone, we shall see in the next couple of days.


----------



## mahmoodf (24 July 2007)

$2.8 million worth of options exercised yesterday. See the *Appendix 3B - Option Exercise* Cape have issued today.


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## MR. (26 July 2007)

Written by arsenaljuventus on HotCopper yesterday:
If Directors want to sell the shares why go through converting their options then sell. wouldn't it be easier if they just sold their shares that they currently hold?
I think the message here is they want to show the market that by converting options at 40cents they know the deal is going ahead. 

I'm (MR.) pleased its not just me who thinks this is what they have done.  If they were worried about the payment from Ding how could they possibly part with an extra $1.1 million? 

Iron Ore Holdings IOH (not a holder) has jumped 100% in the last 3 days because Kerry Stokes agreed to buy  ½ the company in a private sale. Now you can't tell me that money dosen't talk. I looked several times at this falling company and could not find a reason to buy IOH. Director leaving / resource findings minimal good but thin and deep. Then money turns up!

Our buyer needs the steel. IOH's buyer wants to turn the mine into a  ........tv station???

comments anyone? (not about IOH and its tv station)

Porper,
            thanks for your comments and graph. Still looking for position c? Its not a bad way to trade. You might miss the bottom but at least you still jump on with the volume and perhaps at a lower price than today, who knows! I can't say if my methods are best. I suppose your way works unless there is a trading halt???


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## mahmoodf (26 July 2007)

MR. said:


> comments anyone? (not about IOH and its tv station)




Hi MR

They could always sell on market and make an additional 25 cents per share or so depending on the option strike price.

However, I think they converted because they believe in the company and the project. And if they did convert and sell, that would send a really bad signal to the market.

I emailed TS last week and asked three questions:

1). What is the last date the first payment must be received by?
*Reply* : 16 August, 2007. This is 1 month from 16 July, 2007 GM where the transaction was approved.

2). Was a fixed FX rate used?
*Reply* : No.

3). What if no payment arises?
*Reply* : Deal is now unconditional (as all conditions have been met) and binding. Therefore, the parties can be taken to court by Cape and sued for the contract amount.

It is frustrating to watch Cape shares sliding when every other company with even a whiff of iron ore is rocketing along (CUL, IOH, SDL etc).

It will be interesting to see what happens to the SP in the run-up to August 16th (about 16 business days to go).

IMO, Ding/Delong will not pay until the last minute, simply because who would want to part with US$57 million early? I certainly wouldn't!    That is US$57 million worth that could be earning me interest in a bank at around 5%-6%. 

Regardless of the great fundamentals for Cape, the market will do as the market pleases. We just have to sit back and wait patiently.


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## MR. (26 July 2007)

MAHMOODF, Thanks for your feed back

Once again why excercise options when you already have plenty of fully paid shares to sell.

http://www.asx.com.au/asxpdf/20070330/pdf/311q2drs6z8c0b.pdf.

Ding stated that he would excercise his options in the NEAR future. I wouldn't have expected it before the 300mt's. I wonder if this will happen before the mines first payment? Everyone else is converting their options. 

40,000,000 options at $0.377 = $15,080,000-

We will just have to wait and see.


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## skint (27 July 2007)

CFE holding up well so far in an absolute sea of red. Options actually up from time to time, but its still a long way to the close. I wonder if someone knows the answer to this question. I hold the options (CFEO). If the company announces a special dividend, as TS has hinted at, will my options be able to be converted after such an announcement to receive the dividend? Alternatively, would I need to convert my options before a dividend announcement (if one is made)?


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## MR. (27 July 2007)

skint said:


> CFE holding up well so far in an absolute sea of red. Options actually up from time to time, but its still a long way to the close. I wonder if someone knows the answer to this question. I hold the options (CFEO). If the company announces a special dividend, as TS has hinted at, will my options be able to be converted after such an announcement to receive the dividend? Alternatively, would I need to convert my options before a dividend announcement (if one is made)?




I have the same question. However I have assumed that they don't need the extra cash from options, this is the reason for the dividend payout. What would they do with a flood of cash from dividends.

I expect if dividends are paid they will only be for full shares. The options have had and will have good returns to investors. Fully paid share holders have been disadvantaged. Its fair that dividends will be paid to existing full share holders only.  my opinion only. i hold more cfeo's than cfe's now.

Heres an old report I thought you could be interested in. (reelong Bonds.)

http://www.financeasia.com/print.aspx?CIID=81653


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## nomore4s (27 July 2007)

skint said:


> CFE holding up well so far in an absolute sea of red. Options actually up from time to time, but its still a long way to the close. I wonder if someone knows the answer to this question. I hold the options (CFEO). If the company announces a special dividend, as TS has hinted at, will my options be able to be converted after such an announcement to receive the dividend? Alternatively, would I need to convert my options before a dividend announcement (if one is made)?




Normally the option holders won't get the D/E and probably not enough time to convert after the special D/E is announced. I would also hazard a guess that when the work out how much the D/E will be they work it on how many fully paid shares there are, so they wouldn't want a flood of options converted. This is one of the disadvantages to having options.

I off loaded the last of my options today at 32c, and am now totally out of CFE, will be looking to re-enter though, probably before 16th of August and will probably purchase CFE to get the d/e. Just waiting to see what o/s markets do in the next few nights.

Good luck to holders


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## skint (27 July 2007)

I just emailed TS and was impressed at how quickly he responded. He was about to get on a plane and so his responses were very brief. My first question was:
" I currently hold the quoted Cape Lambert options (.277c/October, 2008). The company has previously raised the possibility of a special dividend at some point in the future. If a special dividend is announced, will I then be able to convert my options to receive such a dividend, or would they need to be converted prior to a dividend announcement. I realise this is speculation at this stage, but I thought it would be best to understand my position."
TS's reply - YES, YOU CAN WAIT

I also asked about his view on Ding's ability to front with the good stuff. He acknowledged that there had been some bad rumours but these were totally unfounded. He pointed out that Ding is 37th on the Forbes rich list in China and is currently worth $2.3Billion and owns 78% of Delong. The deal only needs the FIRB approval (quote - "Zero chance of not being approved") and the finishing touches to the RSG report (a formality).  

Reassuring responses and obviously pleased that my oppies will be eligible for any dividend, once I convert them. Presuming TS's plane isn't off to Rio (lol), I reckon this one's still got the goods for a re-rating upon confirmation of the deal (and of course the updated resource model).


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## MR. (27 July 2007)

Poor bloke. TS just returned my call. Everyone must have wanted him today. 

The payment will be on the 15th or 16th of August. The payment will be paid into I believe a solicitors trust account until the "FIRB" approval. So the FIRB wait if any should not hold up the payment. 

However there is that formality (skint) also pointed out. RSG's final report is due next Wednesday 1/8/2007. This will be the extra information Ding requested which is not part of the contract. TS did say that there is a slim chance the Chinese might request the 1/8/07 as the start of the contract. Its about 13 days different to the 15th/16th of August at worst. Not that we wouldn't be officially informed but its good to know before the down rampers.  

More DTR drill results are due very soon.

By the way he mentioned he was flying to Melbourne for the footy then onto London. 

cheers.


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## mahmoodf (27 July 2007)

MR. said:


> TS did say that there is a slim chance the Chinese might request the 1/8/07 as the start of the contract.




Hi MR

Did TS give any particular reason why they would ask for this? The contract clearly stated the conditions that were required. These have all been met by Cape. The money should be paid on the 16th at the latest.


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## MR. (28 July 2007)

MR. said:


> TS did say that there is a slim chance the Chinese might request the 1/8/07 as the start of the contract.




What exactly are the facts here? 
The conditions Mahmoodf, have been met as we all know. The RSG report confirming at least 300mt has been received and confirmation of this has been sent to Ding Liguo last week. The 30 days has begun. The date is the 15th or 16th of August for payment (the 16th as you confirmed). 

We ALL agree when the first payment should be made. 

I asked the question "What could possibly change the payment date if any?" 
TS : "The RSG report has not been received in FULL, its a slim chance"

This has not been brought up by Ding Liguo with CFE. This was TS's honest reply to a simple question.


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## nomore4s (31 July 2007)

Still in its downward trend atm, but looking like a bit of bullish divergence on the chart. Seems to have found some support around the 54c mark, needs some vol to confim I think.
Will be keeping close eye on this for the next few weeks.
Alot could depend on the overall market though.


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## thooh (6 August 2007)

I stock up some CFE and CFEO before. Now I thinking to buy a bit more since the price is low. But I wondering which one is good to buy in CFEO or CFE Any suggestion???


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## ta2693 (6 August 2007)

thooh said:


> I stock up some CFE and CFEO before. Now I thinking to buy a bit more since the price is low. But I wondering which one is good to buy in CFEO or CFE Any suggestion???



I can not believe it will come back to this price level.
I believe Ding would keep his promise to pay. after Ding's payment, CFE will have 70c/shares on hand, why did ppl so worry and sell it at 47c? 
Anyway,Buying CFE is his company's longterm decision and will not be changed so easily.


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## nomore4s (6 August 2007)

ta2693 said:


> I can not believe it will come back to this price level.
> I believe Ding would keep his promise to pay. after Ding's payment, CFE will have 70c/shares on hand, why did ppl so worry and sell it at 47c?
> Anyway,Buying CFE is his company's longterm decision and will not be changed so easily.




ta, atm it's probably got more to do with the current market then anything to do with Dings payment.


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## Santoro (7 August 2007)

ta2693 said:


> I can not believe it will come back to this price level.
> I believe Ding would keep his promise to pay. after Ding's payment, CFE will have 70c/shares on hand, why did ppl so worry and sell it at 47c?
> Anyway,Buying CFE is his company's longterm decision and will not be changed so easily.




Yes, it will be interesting to see the events around the 16th of August when the first payment is due. Would like to see this recover. Its hard to keep holding when there is a lot of double digit red so some will jump.


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## moneymajix (8 August 2007)

It is annoying to see the slide in the share price. 

The share price movements with this one have been perplexing. Recall the drop from 60c when we had the first run on good news?

Hold tight and we should see 80s. And there are those that think even more.

LOL to holders.


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## MR. (8 August 2007)

In the past couple of days there has been times when no one has wanted to buy CFE at 50 cents. The s/p has been lower then 50 cents but generally you could have picked up CFE's shares at 50 cents with ease. But few are there to be found. We will find them, yes, buying at say ## cents again, because... everyone else is???? Hmmm

I have found nothing major wrong with CFE or Delong.  I have concerns, yes, like others, but my last addition was at $0.325 cfeo. Average on my purchases I'm down. Four months.... and I'm down.

A new buyer can now buy better then me!

As I posted on this thread months ago: It is about the money. "Show me the money"
Not long now......


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## MR. (8 August 2007)

Take a look at CFE chart over the last month. 

Gee, there must have been some bad news to make the shares drop more than 30%!      Wasn't there??

The truth is there was "No" bad news. 
Just the expectation of a quick buck and it didn't happen.


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## thooh (8 August 2007)

If there is nothing major wrong with Ding or Delong we should see the price of CFE RAISE. But any Idea about CFEO


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## MR. (8 August 2007)

thooh said:


> If there is nothing major wrong with Ding or Delong we should see the price of CFE RAISE. But any Idea about CFEO




Yes, I think the price will rise. But don't listen to me I have just watched the share price fall some 40% from its high 6 weeks ago.

If something is wrong, I can't find it. (only the share price)

CFEO are options to buy CFE! The price is $0.277 or $0.28 in round figures to convert the options to full shares. So what ever CFE is, CFEO will be about 28 cents lower.


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## thooh (9 August 2007)

If the first payment have to pay on the 16/08/2007, then when is the second payment will due


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## thooh (9 August 2007)

MR. said:


> Tony Sage (TS) last week said to me “he can see the share price going ten times. Look at Fortescue”
> Since the S/P has sat at $0.60+ for more that a month, I would assume that this is the S/P he is referring to. I questioned the fact and withdrew my argument when I remembered whom I was speaking to.
> 
> I calculated a share price at $3-
> ...




I read this post and i don't really understand with what you guys try to said. Sorry I am very new on this forum.  Is that mean the CFE share price going to be few times higher? And base on what calculation? Can you guys explains...PLS.....


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## Go Nuke (9 August 2007)

I'd like to know what people think might happen when the first payment goes through?

Are people expecting a rise in the share price or a sell off of people taking some profits (though they would have missed some significant $$ if they didnt take any a short time ago)


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## thooh (14 August 2007)

If the payment will due very soon why did ppl still want to sell CFE at $0.53. Just can't believe the price still droping even the "good"news is on the way. I did try to email Tony Sage, however I still haven't got the reply from him. I wondering what will happen on the 16/08/07.


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## MR. (14 August 2007)

I have two links which might help with some concerns. Both have to do with Ding Liguo and Cape Lambert Iron Ore. Both written within the last two weeks.   

https://www.gohdirect.com/NASApp/sp...ion_id_=GXLiteSessionID--3026489623814794079&


http://www.je.st/news/China-s-Ding-expects-to-complete-Cape-Lambert-takeover-next-month,462320.html


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## skint (14 August 2007)

MR. said:


> I have two links which might help with some concerns. Both have to do with Ding Liguo and Cape Lambert Iron Ore. Both written within the last two weeks.
> 
> https://www.gohdirect.com/NASApp/sp...ion_id_=GXLiteSessionID--3026489623814794079&
> 
> ...




Hi MR, The second article requires a subscription. I was only able to read the partial headline. Does this article (Metal Bulletin) contain any more precise dates for the takeover beyond "by September" in it? Also what other info is in it? Cheers, Skint.
P.S.


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## MR. (14 August 2007)

skint said:


> Hi MR, The second article requires a subscription. I was only able to read the partial headline. Does this article (Metal Bulletin) contain any more precise dates for the takeover beyond "by September" in it? Also what other info is in it? Cheers, Skint.
> P.S.




I have also not read its actual content. I applied for a trial and was rejected. The content of the article, I believe, would not warrant the subscription cost. However I have not requested how much just for that particulr article would be if it was for sale! 

Point is overall, no news is not bad news!


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## thooh (14 August 2007)

HI, I just subscribe the free trial here is the nes from metal bulletin.


China’s Delong Holdings eyes takeovers as it targets steel output of 10m tpy
Singapore 03 August 2007 08:39

Delong Holdings is in takeover talks with two Chinese mills as part of its plan to boost steel output to 10 million tpy in the next three to five years, its chairman said. “We are in talks with two Chinese steel mills, and if successful we will be able to expand into a 10 million tpy steelmaker through the purchases,” Delong’s chairman Ding Liguo said at a briefing for the company’s financial results in Singapore on Thursday.

Ding declined to name the Chinese mills, but said they produce “similar products” to Delong. The Singapore-listed company, which operates a worksite in north China’s Hebei province, produced 2.4 million tpy of hot rolled coil last year.

The Chinese government’s clampdown on new steel capacity has made it impossible for Delong to grow organically, forcing it to consider acquisitions, Ding said. “Ten million tpy is considered the survival line for Chinese steel mills. In a few years, you will not be able to exist if you are not at least that big,” he added. Delong issued $200 million of convertible bonds in June and July which will be used as “starting funds” for the purchases. 
“The total sum will be much bigger than $200 million, but it will be worthwhile as we are targeting good assets,” he said.  Delong posted net profit of S$77 million ($51 million) in the first half of 2007, up 26.1 percent year-on-year. Its core revenue hit S$646.2 million, up 36.9 percent.  “Domestic hot rolled coil price declines in May and June, and surging costs in iron ore and coke, attributed to the smaller increase in net profit than in revenue,” Ding said.
Delong’s HRC output increased in the first six months of the year after it commissioned a second 800,000 tpy line in November, taking its rolling capacity to 2.4 million tpy. The company did not reveal the size of the increase. 

The company will be able to produce 3 million tpy of HRC by the end of the year when it increases its liquid iron capacity to over 3 million tpy by commissioning a second 1,080 cubic metre blast furnace to add to a furnace of the same size brought onstream in July. The company can roll HRC 520-1,100 mm wide and 1.8-14 mm thick.
Ding is also closing in on the purchase of a 70 percent stake in Australian iron ore hopeful Cape Lambert through Best Decade, a company he controls (MB Aug 2). 

Copyright © Metal Bulletin Ltd. All rights reserved.


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## thooh (14 August 2007)

Here is another one.

China’s Ding expects to complete Cape Lambert takeover next month
Singapore 02 August 2007 09:03

China’s Ding Liguo said on Thursday he expects to secure a 70 percent stake in Australian iron ore miner Cape Lambert by September.
“An independent geological report is expected to be available on August 15, and if everything goes smoothly we should be able to conclude the purchase by September,” he said. Ding, chairman of 2.4 million tpy Chinese hot-rolled coil producer Delong Holdings, made the comments at a press briefing in Singapore, where the company is listed.

Ding signed a binding contract with Cape Lambert in March through Best Decade, a 78-percent shareholder in Delong that counts Ding as a director (MB Mar 30). 

Best Decade agreed to buy a 70 percent stake in Cape Lambert for A$250 million ($213 million) on the condition that the Australian miner proves it has a JORC-compliant indicated iron ore reserve of 300 million tonnes.  “A reserve of 300 million tonnes is the bottom line,” Ding said on Thursday. “I am very optimistic that will be able to conclude the deal if [the reserve] meets that target.”

He noted that unnamed “competitors” from Russia were also interested in Cape Lambert and could be willing to make a higher offer, though he declined to comment further or name the companies.  Shareholders of Cape Lambert approved the sale of the 70 percent stake to Best Deacde in July (MB Jul 17).
Cape Lambert, located about 5 km from Rio Tinto’s port of the same name, is expected to start mining by the end of 2009. It has the potential to produce as much as 15 million tpy of iron ore concentrate with an Fe content higher than 60 percent. 

Copyright  © Metal Bulletin Ltd. All rights reserved.


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## skint (14 August 2007)

thooh said:


> Here is another one.
> 
> China’s Ding expects to complete Cape Lambert takeover next month
> Singapore 02 August 2007 09:03
> ...




Perhaps someone could enlighten me on something. This article refers to "unnamed competitors" from Russia possibly making a higher offer. My question is would CFE be contractually bound to sell to Ding? If another player simply made a takeover offer for the shares in CFE, presumably that would give them only 30%. Thoughts anyone? A higher offer certainly has some appeal.


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## MR. (14 August 2007)

Thanks Thooh. 
I asked Metal Bulletin could they send me the article in question early today. They have sent me a copy and it is as Thooh has posted. I wish I had gone to the trouble earlier.
The following link confirms Thooh's first post.
http://72.14.253.104/search?q=cache...ESE+NEWS+DING+LIGUO&hl=en&ct=clnk&cd=12&gl=au

Skint my opinion is
Delong Holdings still has not spent any of that 200 million raised. Regardless of these new steel mills.

Regardless of any higher offer, CFE surely must proceed with Ding Liguo unless 300mt's is not confirmed. CFE has straight out confirmed on the ASX that more than 300mt's has been confirmed by RSG. As stated to us both some weeks ago RSG's final report was a formality!!

I do not think Ding Liguo is going to on-sell to the Russians either. Wouldn't make any sence with Delong Holdings needing all that Iron Ore. As the following link indicates (more than a year old) Delong originally looked to buy a mine in China.
http://www.steelguru.com/selectednews/index/2006/005/010/archives.html#9081

If the Ding Liguo deal fell through (I don't know how) it appears to me his competitors might pick it up. Grange Resources today announced that it has signed an agreement with RIO so to increase the capacity of its mine. To me there appears to be some buyers floating around.


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## mahmoodf (15 August 2007)

thooh said:


> “An independent geological report is expected to be available on August 15




Hasn't this already been achieved? Or am I missing something here?


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## MR. (15 August 2007)

mahmoodf said:


> Hasn't this already been achieved? Or am I missing something here?




I expected it wednesday before last. Just running a bit late.
The interview with Ding was the following day which claims it is now expected today.

At 1:13 today a nice single buy of 450,000 cfe.
http://stocknessmonster.com/


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## thooh (16 August 2007)

Today share price lost more than 10%. Hope the "good" news is on its way. Is not I think probably will fall below $0.40


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## MR. (16 August 2007)

If you know something which I don't know about CFE can you tell me. 

I have been buying.

Its hard when I have already lost badly. But the sell off is a bit silly. Too many computers at home with too many people thinking that the price last traded is the price their shares are now worth.

Well I'm not selling. The shares I own are worth more. 

Stop selling. No news has been released.

(my wife is going to kill me for buying more)


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## thooh (16 August 2007)

I don't think CFE have anything wrong with it. CFE and CFEO just only affect by the overall share market. Even the share price is bit low but the turnover of the share volume is very high. 

I do stock up alot of CFE anf CFEO as well. But I not going to sell. Besides, I still want to buy a bit more. I believe they will release some news very soon.  Right now no news is good news. 

If the "good" news been release it today it only will stable the price of CFE and CFEO. Just like JB Hi-Fi, Commonwealth Bank and BHP. So I rather right now they not going to release any news until the overall share market back to stable.

P/S: This only my personal opinion, Please don't take it too serious.


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## MR. (16 August 2007)

I'm not sure who has survived today but here is some information:
(speculation if you want to call it that)

NEWS:

-The final RSG report has been received.

-The official deadline is 31/8/07 for the first installment payment. 

-Ding Liguo claimed "He will pay not only CFE but the world markets."

source MR.


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## mahmoodf (17 August 2007)

Last time I spoke to TS, the date was 16th August, exactly one month after the deal had been ratified at the GM.

If what you are saying is correct MR, then I am a little disappointed as Cape has not communicated this to the market.

Who is your source MR?


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## MR. (17 August 2007)

MR. said:


> However there is that formality (skint) also pointed out. RSG's final report is due next Wednesday 1/8/2007. This will be the extra information Ding requested which is not part of the contract. TS did say that there is a slim chance the Chinese might request the 1/8/07 as the start of the contract. Its about 13 days different to the 15th/16th of August at worst. Not that we wouldn't be officially informed but its good to know before the down rampers.
> 
> More DTR drill results are due very soon.
> 
> ...




Of all people, did I not warn you that this may happen. Its just bad luck it all happened on a day that the ASX had its worst day in 7 years.


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## ta2693 (17 August 2007)

I am just think if  Ding instead of paying the CFE, He  buy  CFE on market.
will this save Ding a lot of money


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## mahmoodf (17 August 2007)

MR. said:


> Of all people, did I not warn you that this may happen. Its just bad luck it all happened on a day that the ASX had its worst day in 7 years.




You are missing my point; I am still confident everything will go through, I just wish the information was communicated a lot better to the market.


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## MR. (17 August 2007)

mahmoodf said:


> You are missing my point; I am still confident everything will go through, I just wish the information was communicated a lot better to the market.




I know what you mean. I HOPE that either an ASX ann' or a West Australian news article is released to the market this morning. 

Although you asked directly to CFE (like I and others) about the 16/8, I don't recall this date being announced to everyone. The announcement I recall is that Ding Liguo has one month to pay. It really would not be unreasonable if an announcement came out today. 

Mahmoodf, I don't get the West Australian being in QLD. Is there something in todays paper?


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## Santoro (18 August 2007)

I think most news reports have indicated that Ding hopes to get things under wraps by September. Be mindful that things could easily be stalled, if Ding felt the deal is not as attractive or had concerns, the way to buy time is just don't pay and await legal action. 

My opinion is that he will come to the party, this guy is going to need a sizeable and reliable iron ore supply to realise his goals. 

The fed's decision should help stop the rot at the least.


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## moneymajix (23 August 2007)

Ann.

23 Aug 2007 12:01 ! Drilling and Sales Update 

Sale of 70% interest 

On 27 March 2007, the Company announced it had entered into a binding sale agreement 
with Mr. Ding Liguo or his nominee (hereafter Mr Ding) to sell 70% of the Project for a total 
consideration of US$192.5 million (“Sale Consideration”). 
The Sale Consideration is to be paid over three instalments (refer Notice of General 
Meeting despatched to Shareholders on 15 June 2007 for full details). Following the 
provision of the full independent geologists report to Mr Ding on 1 August 2007, the first 
instalment of US$57.75 million is due to be paid on 31 August 2007.
_________________
 48c, up over 10%


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## moneymajix (23 August 2007)

50c - up 15%

Oppies 29c - up 31% 


Ding to pay $57.5M US dollars by 31 August. With more installments to come.

Not sure what that is in Aussie dollars.

I should imagine the news will get a bit of media coverage which will give the stock more exposure.


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## prawn_86 (23 August 2007)

if i work it out correctly their market cap is approx half of the $250 mill they will be recieving. plus they still own 30% of the project.

meaning that assuming the deal goes through their market cap should be at least $250mill as that is what they will have in assets.

does this classify as a no-brainer or have i missed something??

shame i dont have any cash


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## moneymajix (23 August 2007)

Prawn 

Another thing, CFE also have other iron ore prospects which they will be spinning off into another entity.


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## prawn_86 (23 August 2007)

what is the downside MM? as you seem to know a fair bit about this stock.

i have only just heard about it and have not had a chance to research it thouroughly


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## moneymajix (23 August 2007)

Prawn 

I am not an expert and have been a holder since January (30s).

This stock has moved in unexpected ways. Manipulation by the registry was one explanation, I read?

Has been in the 70s and then slid into the 40s recently.

I had confidence in it, so kept holding throughout the rises and falls (in retrospect selling in the 70s would have been a good idea).

Would be good to get a chartists view on this one, too. 

I am sure some of the other posters on the thread would be more capable than me in providing some background - possible downside - to this stock.

I am planning to hold for a bit longer. 


Price check - oppies 30c, up 36.364%%


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## MR. (23 August 2007)

Well I can't tell you how good it is to see this announcement. Although it would have been a lot better for me a little earlier in the week. Perhaps I deserve it. Water under the bridge. Time to look forward not back.

I have positioned myself for the medium to long term. If the money is not paid I expect the share price to fall back to $0.15 cfeo and $0.30 cfe and I will still stick with Tony Sage. I believe the mine is viable with or without the current buyer. I have to believe in someone. 

As for research “Prawn 86” Just read this thread from March onwards. Then spend a weekend or two before the end of the month? But too much research perhaps is not good. I have a folder 2 inches thick just for CFE and perhaps I have a little way to go. 

As a “Warning” I believe this share has been manipulated in the past and expect that in the future. Just watching some of the trades this morning on low volume it climbed too quick. A lot may jump on this stock and I bet they will jump off before the release. Is there something wrong with that?  There is if your the last buyer and CFE is not paid for reasons unknown to us. 

Good Luck....


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## moneymajix (24 August 2007)

Market reacting positively to yesterday's announcement.

0.57c, Up 6c (which is up 11.765%)


 


First payment on Friday, 31 August. 

I think all monies from Ding are due to be paid by end Sept.

Hopefully, see increases in sp as milestones reached.


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## mahmoodf (27 August 2007)

First payment is due by COB this Friday.

Article from this morning's West Australian.


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## moneymajix (27 August 2007)

Thanks for the newspaper article.

Options are up quite a bit today - up 15.000% to 34.5c (up 4.5c).

Heads haven't performed as well at 55c - up 2%.


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## MR. (29 August 2007)

Chinese President Hu Jintao will visit Western Australia on Monday & Tuesday next week. Now if payment can be confirmed this Friday (31/8) or Monday it couldn't be timed better.    

http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=3635


----------



## jonojpsg (30 August 2007)

Can anyone tell me why CFE is only valued at $139m at yesterdays close when Mr Ding is paying $210m+ for a 70% share in the project?  Surely this should indicate a much higher SP in the near future?


----------



## MR. (30 August 2007)

skint said:


> Total shares on issue =       500,486,336
> 
> CFEO - Total options Issue: 136,511,800    =     $37,813,769
> Share options not on ASX :  114,050,000    =     $45,998,350
> ...




Above was calculated 3 months ago. Has change slightly, but still can be used as a basis. In my opinion the market does not think CFE will be paid. At one stage 7 weeks ago the market was so confident. 

I have given up predicting the outcome. There is only one way to find out.


----------



## MR. (30 August 2007)

- "Ding Liguo is believed to be in Australia".
   I have confirmed this from someone who should know! 

- Chinese President Hu Jintao will be in Western Australia this Monday to see some of the Chinese investments being made (mining).

Now it is my opinion, that it would be in the best interests for publicity that CFE and Ding Liguo make the expected transaction tomorrow.


----------



## moneymajix (30 August 2007)

MR.

Some news tomorrow would be awesome. It has been a longish wait for some.

Current price - 55c

Cheers


----------



## thooh (30 August 2007)

MR. said:


> Above was calculated 3 months ago. Has change slightly, but still can be used as a basis. In my opinion the market does not think CFE will be paid. At one stage 7 weeks ago the market was so confident.
> 
> I have given up predicting the outcome. There is only one way to find out.




*Since Mr DIng is here I think the outcome should be good. However the share price did not move a lot.  Maybe everyone still waiting for the news.*


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## GOSAFAS (31 August 2007)

Sorry to be the bearer of this news - BUT as a long term investor in this company, I am obviously very interested as are the rest of you to know whether or not Ding comes to light with the first payment.

I have this morning made several calls to the company who flick pass me from one guy to the next and NOBODY is prepared to say anything.

On this basis, I (who have always been a true believer) am beginning to have my doubts.

If this payment is delayed, then I hope we don't go down the path of the never never basis.

Still holding thumbs though


----------



## moneymajix (31 August 2007)

Gos

Why would they tell you over the phone - one way or the other - as it is very market sensitive news?


----------



## stoxclimber (31 August 2007)

There's no way they would tell you over the phone. That would be a CRIMINAL OFFENCE..and you shouldn't even be asking.


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## MR. (31 August 2007)

gosafas, hmmm thanks for your comments.

Well I'm not going to sell. Maybe you can sell me some of yours!


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## GOSAFAS (31 August 2007)

All I know that the 31st means the 31st. A "criminal offence" to ask whether money has been received? I think not! They have the problem if they know and nare not announcing it. My question to them was whether they wqere expecting the funds today. They could not comment  Read into it what you like!


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## stoxclimber (31 August 2007)

> A "criminal offence" to ask whether money has been received?




No, nothing wrong with that at all. It's perfectly fine to ask for market sensitive information and then make your trades based on that.


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## moneymajix (31 August 2007)

Consider that the information may be announced today and after 4pm (after market close).

So, I would not panic if there is no ann. prior to 4pm.


Wonder where the sp will go post cheque?


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## Ruprect (31 August 2007)

well there does seem to be some pressure building in late trade.

I still expect that Ding will follow through on the payment. After all, the required resource has already been confirmed. Certainly wouldnt be a good sign, for CFE to meet all the conditions, and then he pulls out.

In their last update CFE were quite clear that the first instalment would be paid by today.

Not unheard of though, for Chinese companies to run things to the last minute.


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## MR. (31 August 2007)

mahmoodf said:


> Well, looks like nothing has happened.




I didn't expect to know today. If they received the payment late in the day they would not be able to get it to the asx. London market is running. But no announcements.

But would we really expect such announcement before the australian market?

The traders would be right on to this....

I wonder if this whole process, the dates etc. etc. has been to keep the short term traders out so to establish who is actually interested in the company.  Look what happened after the 300 mt's was released, I was only one of few who purchased more. 

Perhaps in a perfect world...


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## mahmoodf (31 August 2007)

Well, if I don't hear something by Monday, that will start my alarm bells ringing.

I guess another day will not kill me.


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## MR. (31 August 2007)

mahmoodf said:


> Well, if I don't hear something by Monday, that will start my alarm bells ringing.




My alarm bells have been ringing for a month.   

I noticed tonight Delong Holdings was up by 4.6% today this is the highest for a while. 

I hope also some news is found over the weekend. I wonder if at close of london's market!


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## Santoro (1 September 2007)

Agreed, does make one nervous, but the newspaper clipping above posted by *mahmoodf* does say that the chinese delegation is due in Perth monday, my thoughts are that Ding will be with the delegation as part of the publicity and politics of this visit. 

Nothing better than a chinese steel tycoon to hand over a cheque with senior chinese political presence alongside. Kinda odd if Ding paid friday and the politicians arrive monday?? May even happen on the last day of the visit.


----------



## MR. (1 September 2007)

Santoro said:


> Nothing better than a chinese steel tycoon to hand over a cheque with senior chinese political presence alongside. Kinda odd if Ding paid friday and the politicians arrive monday?? May even happen on the last day of the visit.




SANTORO, good post. I'm kicking myself for not coming to this conclusion myself, I should have, I was so close. Thanks for your post. 

Following is a snip from (Bloomberg 28/8) and link re-posted.

The president will be accompanied by a delegation of *Chinese investors * and executives and will sign several agreements, including the *purchase* of minerals and commodities, he said, without giving more details. 
http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=3635

mahmoodf, thanks for checking the paper apprieciated.


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## Ruprect (3 September 2007)

well, there is an announcement, but cant see anything up yet.

Possible that if they are signing today, CFE to go into trading halt?


----------



## Ruprect (3 September 2007)

Yep, Trading Halt. 

I guess this is it, make or break! If the money comes through as planned, CFE is making the move from explorer to producer.


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## MR. (3 September 2007)

Ruprect said:


> Yep, Trading Halt.
> 
> I guess this is it, make or break! If the money comes through as planned, CFE is making the move from explorer to producer.




And it looks like you didn't choose CFE in ASF monthly comp' for Sept only August.

If what was pieced together on the weekend was right I thought there would have to be a trading halt. I was becoming very concerned....


----------



## Ruprect (3 September 2007)

Lol, no - well spotted. I was actually expecting a spike in the price on Thursday and Friday! 

Oh well, i'll be happy enough i suppose with a confirmation. Iron ore prices still arent showing any signs of slowing, and im quietly confident that CFE will increase the resource in a significant way with more drilling.


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## moneymajix (3 September 2007)

Looks like Cape Lambert is trading on the London Stock Exchange (AIM)

At 9.19am
CLIO CAPE LAMBERT GBX 22.25 0.00 0.00


http://www.londonstockexchange.com/...h.htm?wbc_purpose=Basic?w...?bsg=true&ns=clio


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## moneymajix (3 September 2007)

Reminded me of a saying a friend of mine introduced me to.

"You catch more bees with honey".


Honeybee.


----------



## thooh (3 September 2007)

Anyone has any breaking news, especially those from western australia I waiting but my patience is running out


----------



## Hot in Tropics (3 September 2007)

All,
Am a new poster to ASF.  I am a shareholder in CLIO and curious why the AIM traded price has not risen significantly today - assuming the deal is being signed/ratified in Perth today/tomorrow as part of China President visit.  And if the deal is not being completed, then a market reverse signal is equally expected.  But to trade on AIM and go nowhere is very very confusing.  

If the deal is signed, does anyone have a view as to what range the share price will trade at ?


----------



## Ruprect (3 September 2007)

The AIM as i understand, dont have the capacity for companies to go into a Trading Halt.

I think any lack of movement is probably because the trading halt here didnt indicate any information. CFE have said that the 31st was the deadline for the first payment, so traders might be considering that the announcement may be a confirmation of the payment - or a lack of payment and possible options after that.

Either way, we should know tomorrow or first thing wednesday.


----------



## MR. (4 September 2007)

thooh said:


> Anyone has any breaking news, especially those from western australia I waiting but my patience is running out




What do you mean? You have only held for 5 minutes! Your on for the best part of the ride!

Anyone notice that climb in the clio half way through trade?

Delong Holdings just purchased the 40,000,000 options from Ding Liguo! 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_881DBB51144EF3C94825734B003EFA41/$file/Option.pdf?openelement

-The Chinese president visits WA mines today. Is Cape Lambert too far away to visit? (there is an air port next door) 
-Will Delong Holdings go into a trading halt?

I expect it shall be an interesting day!


----------



## MR. (4 September 2007)

http://info.sgx.com/webcoranncatth....4825734B003EFA41/$file/Option.pdf?openelement


----------



## MR. (4 September 2007)

http://www.worldnewsaustralia.com.au/region.php?id=139625&region=21
"China's President Hu Jiantao will tour resource sites in Perth today ahead of flying to Canberra"

-Perhaps not a mine visit, 2 hr flight too far, perhaps the JV office in Perth.

-Certain wording in the SGX release makes me think there may not be a Trading Halt for Delong Holdings.


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## Ruprect (4 September 2007)

Be nice if the President was part of the whole thing. Imgaine the interest that would spark in China. Maybe im getting ahead of myself. 

Im assuming the team of Chinese might be involved in something with GBG at least, but a visit to all of the sites might be too hard. So the office sounds logical.


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## MR. (4 September 2007)

Agree with GBG. Even though GBG is a lot closer, what is there to see at either of the GBG or CFE magnetite mines? Dirt.....

Yes, getting ahead of ourselves but an office tour of JV GBG then onto JV CFE office is not out of the equation. GBG's market cap is 900 million. GBG's export is to be only 8 million tonnes per year. Now from the media we do expect a GBG office tour. As we know CFE is aiming to be a bigger mine with 70% owned directly by the Chinese.....  

I do hope all you guys still hold.....

Delong Holdings hasn't started trading today when it should have. It is not clear why? Perhaps the difference between buy/sell?? 23 minutes in.
http://stquote.sgx.com/live/st/STStock.asp?stk=delong


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## Hot in Tropics (4 September 2007)

Can we crystal ball gaze a little.  By my estimate, there is 498m shares and in-the-money options in issue.  CLIO has no debt on balance sheet; is about to receive $250m (30% now; 55% in 3 months; 15% later) cash.  $250m divide by 500m shares in issue = 50cents per share.  

My question simply is, where should the shares trade post halt assuming the deal is done more or less on the outlined terms ?

Surely 2 times cash eps is realistic.  How much more, or less ??  Interested in your views.


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## moneymajix (4 September 2007)

Delong Holdings Limited

OPTION TO ACQUIRE SHARES IN MINING COMPANY IN AUSTRALIA


http://info.sgx.com/webcoranncatth....4825734B003EFA41/$file/Option.pdf?openelement


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## Go Nuke (4 September 2007)

I wouldn't be suprised if the deal was going ahead and that there will be no further delay on payment from Ding.
I mean, think about it......How bad would it look for the chinese if they just happen to be visiting W.A NOW and a deal from one of their own well known business men fell through?

I wouldn't be suprised if the chinese govenment is more well informed of the Ding dealings than we are

I thought that there might not be much action in people waiting to buy into CFE because most probably factored in that Ding would come through with the goods. I mean sure there are those that will wait on the sidelines for confirmation, but Im a bit skeptical about the sp rocketing into space when the ann comes


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## Santoro (4 September 2007)

I expect this deal has been done by now, Delong trade should indicate that its moving ahead, re the share price...interesting....I.m thinking around 70-75 cents...


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## MR. (4 September 2007)

I guess China's President Hu Jiantao didn't call in for his Lamb' roast today. I hope Ding Liguo did. 
It would have made such a good story........

Anyway, fairy dust has now run out. My feet are back on the ground.
Trade is expected to open tomorrow.

good luck to the holders.


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## moneymajix (5 September 2007)

Hi

Any mention of CFE in the West Australian today?


This is going to be an interesting day. A nice one, I hope.


LOL.


----------



## mahmoodf (5 September 2007)

Nothing in this morning's West. Looks like whatever the news is is being held tightly to their chests.

Stock exchange opens 0830 AEST for company notices. So we will see something very shortly (upto 1000, market open).

Judging by what has happened in the past few days, with so many deals being signed out here in WA, I think it will be good news.

Or at least I hope it is!


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## MR. (5 September 2007)

Either Delong Holdings purchased the mine yesterday or Ding Liguo still is the holder. Delong could have purchased yesterday because their release on SGX was dated 3/8/07. "As of the date hereof"


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## surfingman (5 September 2007)

05 September 2007
The Company Announcements Office
Australian Stock Exchange Limited
Via E Lodgement

DELONG HOLDINGS LIMITED TAKES AN INITIAL 4.4% STAKE IN CFE
Key points:

- Delong Holdings Ltd (“Delong”) converts 12M unlisted Options in CFE, increasing

cash reserves by approx AUD$4.6M;

- Delong now hold a 4.4% stake in the Company;

- Prior to 30 September 2007 Delong will convert a further 28M unlisted Options, lifting its stake in CFE to 13.25% and providing a further approx AUD$10M to CFE; and

- First payment of sale agreement (approx AUD$72M) delayed by mutual
agreement to 30 September 2007.

Iron ore exploration and development company, Cape Lambert Iron Ore Limited (“Cape Lambert” or “the Company”) has welcomed a new major shareholder to its register, with Singapore listed Delong taking an initial 4.4% stake in the company through the conversion of 12,000,000 unlisted 2010 Options (at a price of AUD$0.377). The conversion of these options provides approx AUD$4.6M to the existing cash reserves of the company. Delong major shareholder and Chairman Mr Ding acquired these options through a private
transaction announced to the market on 30 March 2007. 

At the time he indicated that he wanted to convert these options so as to provide a tangible example of his long-term commitment to the Company and its operations. He has since transferred these options to Delong (refer Delong announcement to Singapore Stock Exchange). Delong will convert the balance of the 40M unlisted Options (28M raising a further approx AUD$10M) on finalisation of minor outstanding issues associated with the Sale Agreement. It
is expected that this will occur before 30 September 2007. At the completion of this conversion Delong will hold 13.25% of the issued capital of the company.

By taking such a meaningful stake in the Company Delong has not only provided the Company with a significant boost to existing cash reserves, but also gives a strong commitment of the role they would like to play in the Company and its development moving forward.

This is a good step forward but not great that the $50mil wasn't delivered on time.


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## MR. (5 September 2007)

Ann' out

http://www.asx.com.au/asxpdf/20070905/pdf/314d186kfg2j5p.pdfis 

It is good...... will hold.


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## GOSAFAS (5 September 2007)

This announcement confirms my initial thoughts.

Dings trying to buy some time here - who knows why? Is the deal ever going to go through? Well, I suppose when we see the colour of his money, then we'll know.

Maybe, he wants to assess the direction of the iron ore market over the next 2 - 3 weeks?

I'm losing trust in these people at a rapid rate. Any thoughts on the goings on?


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## prawn_86 (5 September 2007)

my thoughts...

its typical of chinese to do business in this way, and i will probably look at exiting soon. 

it shows bad management in my opinion, if a date is set and then not stuck to. No matter what countries they are doing business with. Plus there is a contract in place which isnt being enforced.


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## GOSAFAS (5 September 2007)

prawn_86 said:


> my thoughts...
> 
> its typical of chinese to do business in this way, and i will probably look at exiting soon.
> 
> it shows bad management in my opinion, if a date is set and then not stuck to. No matter what countries they are doing business with. Plus there is a contract in place which isnt being enforced.




I'm getting to the point that I will be steering well clear of any company that is relying on a china deal - seems they just do not keep their word and cannot be trusted!


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## prawn_86 (5 September 2007)

I should clairfy that I don't actually hold, but will be looking at exiting my fathers holdings.

But yes, not meaning to offend anyone out there, but the Chinese and most Asian countries tend to work on their own time frames rather than that set out by contracts or specified dates. And this doesnt show bad management in their eyes.

Its the joys of dealing with them, but can be a risky thing to do I guess, although I think the deal will most probably go through in the end, just when is unsure. Could even be next year lol


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## MR. (5 September 2007)

I have known for sometime that this date can be delayed if BOTH (BOTH)parties agreed.

The fact that some options have been converted indicates that the Chinese are still interested. The rest of the options have been agreed to be converted before the end of the month.

NBerardis on Hotcopper indicated this might be the case. Some of his posts prior I believed. So I wasn't too supprised if it was delayed until the 30th. 

The Audit outcome was still in excess of 300mt's.

I am still going to hold.


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## moneymajix (5 September 2007)

I will continue to hold a bit longer. Held since January through the ups and downs.  

If we can return to previous highs (around 80c) it will be worth it.

Patience.


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## MR. (5 September 2007)

Just got more information from CFE. They believe they have struck a good deal and I tend to agree. The contract was either/or. It appears one has failed to raise $. So we can now expect the other to buy.

Will hold.....

If you don't so be it.


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## surfingman (5 September 2007)

MR. said:


> Just got more information from CFE. They believe they have struck a good deal and I tend to agree. The contract was either/or. It appears one has failed to raise $. So we can now expect the other to buy.
> 
> Will hold.....
> 
> If you don't so be it.




Did you call CFE? to get this information.

The chinese will come through in my opinion, its just a matter of when. Delong holdings is in need of resources locked in to hedge prices it states it clearly on their site, they are looking at long term growth for a large company. A few more weeks is fine for such a deal, its the Chinese way unfortunately.


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## Ruprect (5 September 2007)

I actually think its a very good announcement. I would have preferred to see the money go through, but a committment from Delong to take a major stake in the company is very good in my opinion.

Has to be taken to its next logical step. If Delong were to pull out of the deal now, what would happen to the value of their shareholding? Yes, it would be seriously diminished, at least in the short term. Do we really think they would make a stupid decision like that to lose money in the short term?

Delays are a part of any business, we arent talking about a minor amount of money here, its a quarter of a billion dollars. They have to get it right in the first instance.

This aint the silver bullet type news that many short termers were hoping for, but for those of us that are holding long term, i think it is very good.

We are still talking about CFE being a mid range producer of Iron Ore for the next 15 to 20 years - and perhaps beyond. Nothing to sneeze at in my opinion. With such a small market cap, confirmation of the deal makes CFE well undervalued. Just my thoughts of course.


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## MR. (5 September 2007)

Did I call CFE?

NO. Do you like me sharing my information or not. I have put alot of work into this.


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## surfingman (5 September 2007)

MR. said:


> Did I call CFE?
> 
> NO. Do you like me sharing my information or not. I have put alot of work into this.




Just like to know the source of information, I wouldn't be here if I didn't like sharing information.


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## Hot in Tropics (5 September 2007)

CFE has not much cash left of its own.  So if the gravey train requests a 1 month delay to finalise minor details of the Agreement, then hard for Management to say No.  They did manage to get Delong to exercise 12m options, with a further 28m to be exercised in Sept.  

I took a look at Delong financials.  Share price seems to be trading on a very high PE ratio, about 15 to 18 times, if based on Delong making approx $100m net profit for 2007.  Half year 2007 recently announced was $42m.  But good news is they have the cash to be able to pay the A$240m, from a recent Convertible Bond issue. 

Comments about the Chinese mentality in honouring the original Agreement are misguided.  This is business.  The only colour issue is the colour of the money.  

My belief is the risk premium that the deal would not complete is now very much less than before.  Until the market takes the same view, this is an opportune time to "load up the truck"....... Then again, maybe it has .....


----------



## Hot in Tropics (5 September 2007)

Article dated 22 May 2007, at time of the CB issue. 

*Chinese steel maker issues renminbi CB*
_By Anette JÃ¶nsson,  |  22 May 2007  _

Read this article online at: 
http://www.financeasia.com/article.aspx?CIID=81653 


Delong Holdings raises US$175 million amid a positive earnings story and rising steel prices. 
Chinese steel manufacturer Delong Holdings has raised about US$175 million from another renminbi-denominated, US-dollar settled convertible bond at a time when the previous four such deals are still trading below par.

This time, however, terms looked slightly less aggressive which was seemingly confirmed by the fact that the offering was five times covered at the cheap end and that the bonds were quoted at 100.5 in the grey market following the pricing early last night. The Singapore-listed company’s good track record and expectations that it will embark on more earnings enhancing acquisitions likely helped attract investors, but according to sources, CB players were also drawn to the deal simply because it offered diversification away from Mainland real estate plays.

Since the first such deal in January this year, there have been six renminbi-denominated CBs sold to the international market with four of them coming from the property sector. Over the past month, there have also been several property-related CBs in other currencies as well as placements, which have resulted in a bit of market fatigue for the sector and made investors more sensitive to price.

The Delong deal, which was arranged by Citi, was offered with a fixed conversion premium of 35% over the S$3.30 closing price at yesterday’s morning session. The shares were suspended in the afternoon to carry out the transaction. 

While still quite high, CB premiums over the past month have typically been set at 45% to 50% - some even higher - making this one look quite reasonable. However, Delong’s share price has risen about 140% already this year in response to improving steel prices, which could make further gains a bit more of a challenge. If the share price continues to perform strongly, the issuer can call the bonds after two years, subject to a 125% hurdle.

The bonds, which pay no coupon and were issued at par, have a five-year maturity but can be put back to the issuer on the third anniversary for a yield of 3%. They were offered to investors with a wide yield range of 2.375% to 3.375%.

The final yield is higher than on the other renminbi-denominated bonds, which would have been partly due to the fact that yuan swap rates moved quite a bit higher after China raised its official one-year deposit rate by 27 basis points and the lending rate by 27 basis points last Friday. If fully converted, the CB will also account for a massive 80% of Delong’s current free-float, which means some extra incentive may have been needed to ensure the market would be willing to absorb it all.

In addition, one source says the company was conscious of the poor performance in the secondary market by SPG Land, New World China Land, Greentown China and Gome, and wanted to make sure it got a better treatment.

“This company is a first time issuer and it wants to demonstrate that it is a responsible user of the capital markets so that it will be able to come back as the consolidation story develops,” the source says. The fact that the bonds traded up slightly last night, suggests it was able to achieve that without leaving too much on the table, he adds.

About 75 investors were said to have submitted orders. Since it isn’t really possible to hedge either the credit or the equity, virtually all the participants would have bought the bonds because they believe in the equity story. And according to analysts that story is a positive one as Delong is a low-cost producer with a good acquisition track record that will likely be at the forefront of the consolidation trend in China’s steel industry.

The size of the bond issue is Rmb1.34 billion ($175 million), but there is also a Rmb191 million ($25 million) greenshoe that could boost the total funds raised to $200 million. According to the term sheet, the money will be used for core business expansion and for the funding of possible strategic investments, joint ventures or acquisitions, or alternatively for general corporate purposes and working capital.

The underlying assumptions include a credit spread of 370bp, although the bookrunner was said to have provided only a small amount of credit bid at that level while indicating that the appropriate longer-term level for Delong is more like 350 basis points. The stock borrow cost was set at 5% and the divided yield protection at 5%. 

This gave a bond floor of just under 95% and an implied volatility of 33%. The latter is quite high in light of the modest dividend compensation, but does compare with a historic volatility of above 50%. Still, such comparisons are rather academic since you cannot short-sell the shares. 

A China-based analyst covering the company says the sale of the CBs suggests Delong may be planning more acquisitions.

“It’s quite hard to get approval to expand capacity in China so the only way to grow the business is through M&A. If this deal can generate expansion it will be quite positive,” he says. 

Delong, which specialises in the manufacturing and trading of hot-rolled, mid-width steel coils, did commission a second hot-rolled coil (HRC) production line in mid-December 2006, which helped raise its annual production capacity by 50% to 2.4 million tonnes. It also allowed the company to move up the value chain through the production of HRCs of higher grade specifications with higher selling prices. 

This contributed to a 131% year-on-year increase in net profit in the first quarter to S$34.6 million ($23 million), while revenues rose by 32.2% to S$272.5 million ($179 million). The net profit margin widened to 12.7% from 7.3% in the first quarter 2006. The company said it expects its second quarter profit to be significantly better than the first quarter performance.

The company is also benefiting from a strong recovery in steel prices since the beginning of this year. In connection with the first quarter earnings release last week, Delong Chairman Ding Liguo, who is also the controlling shareholder, noted that international steel prices are expected to continue rising in tandem with increasing demand and that demand for steel in China is expected to grow at 10% per year for the next two years.


----------



## thooh (5 September 2007)

Very disapointed with the outcome. Even Is not a bad news but still not a good news either ....... Chinese company never keep their promise at all......... Is time for me to sell some of CFE n CFEO.


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## Santoro (5 September 2007)

prawn_86 said:


> I should clairfy that I don't actually hold, but will be looking at exiting my fathers holdings.
> 
> But yes, not meaning to offend anyone out there, but the Chinese and most Asian countries tend to work on their own time frames rather than that set out by contracts or specified dates. And this doesnt show bad management in their eyes.
> 
> Its the joys of dealing with them, but can be a risky thing to do I guess, although I think the deal will most probably go through in the end, just when is unsure. Could even be next year lol




The rich do this doesn't matter where your from, why do you think he's rich??
They have their own agenda....still worth waiting, if he's rich and in China, I'll back him..


----------



## prawn_86 (5 September 2007)

I think it shows bad management from CFE's point of view. They havent stated what the specific problem was and they have also said that the initial contract 'remains intact' until the one with delong is signed. 

So what happens if delong want different terms? Then it could be drawn out even longer.

Also, CFE havnt said anything about enacting penalty clauses or any of that kind of thing, if proceedings dont go to plan. 

As far as im concerned the timetable has gone out the window. If they delayed once, whats to stop them doing it again?


----------



## lazyfish (5 September 2007)

Off topic, does anyone know how much Mr. Ding got his 40M oppies for? Could he have paid more than the current market price for the 12M shares?


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## MR. (6 September 2007)

lazyfish said:


> Off topic, does anyone know how much Mr. Ding got his 40M oppies for? Could he have paid more than the current market price for the 12M shares?



I have estimated his shares are costing him in round figures $0.50 each....................................


----------



## Hot in Tropics (6 September 2007)

Announcement by Delong Holdings that Ding has transferred his Initial Agreement to buy 70% to Delong - as expected.  They have the available funds via the Convertible Bond.  Also says that the final terms of the Agreement are be finalised - CFE said in its announcement that these were materially unchanged.  

So, it is happening.  Share price imo being held back until the deal is finalised and at least until the initial 30% is paid.  And also probably until the second 55% instalment is paid.  

I imagine the management of CFE (with all those listed and unlisted options of theirs) can hardly contain themselves - but, like us shareholders, patience is required.  

Maybe Ding is buying time awaiting the Reserve to be boosted to higher levels, as 300Mt is not a huge, world class type deposit.


----------



## Hot in Tropics (6 September 2007)

Picked up this snippet on Mining News website:

CAPE Lambert Iron Ore is close to establishing a new flagship project after its cash injection from Delong Holdings, but it won't be in the Pilbara.

Anyone any idea what this is about ??


----------



## Santoro (6 September 2007)

What kind of interest would you earn on the 30% deposit in a month...wouldn't this too delay the rest of the installments by a month...so what kind of interest would you get in a month for 250 million?


----------



## moneymajix (7 September 2007)

This is the Mining News article.


CAPE Lambert Iron Ore is close to establishing a new flagship project after its cash injection from Delong Holdings, but it won't be in the Pilbara.

Cape Lambert has welcomed the Singapore steel manufacturer's investment after it converted 12 million unlisted options worth $AU4.6 million to take a 4.4% stake in the company.

Delong plans to convert its remaining 28 million options within days to take its share of the company to 13.25%, amounting to a $14.6 million cash injection.

Cape Lambert executive director Tony Sage said there were several options for how to use the extra cash, after the bankable feasibility study on the Cape Lambert project was complete.

"The first thing we are going to do is look at a new flagship project because we are only going to be a 30 percent stakeholder in this one (Cape Lambert)," he said.

"We've sent our technical team to see two or three (potential prospects), I won't say where at the moment because we are under confidentiality.

"If we don't get that, what we might do is a capital refund to shareholders but it looks highly likely at this stage that as soon as the funds come in we'll be in a position to make an offer."

The new project will still be iron ore but not located in Western Australia's Pilbara region, where Cape Lambert was, with Sage saying the company "doesn't think there are any more elephants up there."

"That's why Ian Burston came on as executive chairman, he's got a 15-man team now working for Cape Lambert and when the Chinese come in, they've got eight of their staff so we'll be able to free up a few of our existing staff to the new project," Sage said.

"There are some very good, interesting projects that Ian Burston has worked on personally in his many years of experience.

"He's come across a couple that happen to be not tied up with anyone at the moment. As soon as we get the funds confirmed, we'll get out there and take one of these other projects on.

"We've got $4 million now, we'll get another $10 million probably within the next 10 days and we'll get the $75 million at the end of the month."

Delong chairman Ding Liguo acquired the options through a private transaction in March, before transferring the options to his publicly-listed company.

Ding will also transfer his 70% interest in the Cape Lambert project to Delong after buying the interest privately in March for $240 million in cash. 

Both parties agreed the first payment of this acquisition can be deferred until the end of September. Despite initial concerns, Sage said a delay of one month was more than offset by Delong taking a significant shareholding in the company.

Shares in Cape Lambert were down 1.5c to 51.5c in morning trade after closing down 2c yesterday.


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## moneymajix (7 September 2007)

http://www.theaustralian.news.com.au/story/0,25197,22369831-5005200,00.html 


China's Delong slowly increases stake in Cape Lambert 

September 06, 2007 


SINGAPORE-LISTED Delong Holdings is building a 13.25 per cent stake in West Australian iron ore explorer Cape Lambert Iron Ore. 

Delong, a Chinese steel-making group, has gathered an initial 4.4 per cent of Cape Lambert's shares after converting 12 million unlisted options. 

That will increase to 13.25 per cent before the end of this month, when Delong converts another 28 million options. 

The first conversion provided Cape Lambert with $4.6 million. The second conversion will take the total to $14.6 million. 

Delong major shareholder and chairman Ding Liguo acquired the options privately in March, before transferring the options to Delong. 

"By taking such a meaningful stake in the company, Delong has not only provided the company with a significant boost to existing cash reserves, but also gives a strong commitment of the role they would like to play in the company and its development moving forward," Cape Lambert said. 

Mr Ding will also transfer to Delong a 70 per cent interest in the Cape Lambert iron ore project in the Pilbara region in Western Australia, which he agreed in March to buy for about $240 million in cash. 

The decision has delayed settlement of the acquisition until the end of September. 

Delong has a market value of about $1.2 billion. 

Cape Lambert closed down 2c yesterday at 53c.


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## MR. (7 September 2007)

Santoro said:


> What kind of interest would you earn on the 30% deposit in a month...wouldn't this too delay the rest of the installments by a month...so what kind of interest would you get in a month for 250 million?




Yes, but what kind of interest would you make on 15 million over 3 1/2 years? (options) 

Thanks Moneymajix for the articles..........


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## tt1900 (7 September 2007)

It's rare when I checked out delong's website. The English version showed the Best Decade holding limited had 77.55% shareholding as at 7 March 2007. It is not the same as showed in their annual report 2006. In the annual report the Citibank Nominees Singapore Pty Ltd is the largest shareholder holding 30.89%, as at 7 March 2007. So I went to check the Chinese version of the website, but cannot to find the corresponding section of shareholding. 

Then I start to wonder what this best decade company is, I ran Factiva database to check it out, only to find a few words:
Company Name
Best Decade Holdings Ltd
Location
British Virgin Islands
Ownership Type
Private
Industry
Iron/Steel/Ferroalloys

As I can't get much info on that best decade company, I begin to guess the following:

The Best decade is a state own company and partially owned by Mr Ding Liguo, the name have indicated the fast growing decade for the Chinese economy. The Chinese government are behind this offer. As I was born and educated in China, I know what resource means to our economic growth. Chinese government has more than a trillion US$ cash reserve, so its policy is encouraging local companies secure resources supply around the world, the Ministry of Finance will behind those offers. Just like the yankee secure the oil in middle east.

I found an article introducing Mr Ding Liguo comprehensively, more detailed than in delong's website, unfortunately, it is not written by English.
http://lunwen1.findfw.com/html/cfgs/_gtxz_ccdldg_1544.html 

At last I think this stock is a cheap buy, as this deal will definitely go through. I'm in at 0.545, looking for the 0.75, finger crossed.


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## moneymajix (7 September 2007)

tt1900

That is an interesting post. 

Being born and educated in China would give you a good idea of how things work there. As well as having Chinese language skills to read the various websites etc.

cheers


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## MR. (7 September 2007)

Interesting story and I'll admit it thats a little over my head. 
If true the sale looks good but if not, it is my opinion, things will still be good.
I tend to believe the later. 

-  By Delong converting all the options it will basically tripple the amount lost on the extra 30 days of waiting. CFE I still believe has made a good deal.

-  Delong has the money and little of it has been allocated in the recent past. So, Delong still has the money to buy the mine.

-  How can Delong pay for the mine on 31/8 without informing its share holders or voting? However in the past few days they have now been informed. Same goes with the options. 

-  I believe payment for the rest of the options will need to be voted apon by Delong's share holders also at the same meeting "the purchase of the mine." TS's 10 days time for the options sounds about right to me perhaps after a meeting. Who owns the majority of Delong? so I'm sure both will be past.  

-  I would have to be the worst trader in the market. I bought on highs and sold on lows ??? I still have not made a cent with my average costs higher than the market stands at present. I wonder how I would have weathered without sharing my information?    

-  This story has never looked better!


----------



## Hot in Tropics (7 September 2007)

I agree the story has never looked better.  But the share price is not going to perform until the $$$ are in the bank.  Even receipt of the first 30% instalment is not likely to move the market, since if Delong do not stump up the second 55% instalment, then CFE are left owning 70% and they have a lot of debt finance to arrange in order to move forward towards production.  

If that was to happen, would it be a good or bad thing to have Delong involved with the Project as 30% owners.  I think over time this would be lead to real conflict, so Delong really has to think long and hard about their total commitment to the project before they pay the first 30% instalment.  

And I personally think they have already decided to go ahead.  Just that both sides are going through the various motions to extract final concessions pre signing.


----------



## MR. (7 September 2007)

Hot in Tropics said:


> I agree the story has never looked better.  But the share price is not going to perform until the $$$ are in the bank.




"Show me the money" It has always been.

I believe that first payment will make all the difference. The second I have never been too concerned with. The conversion of the options l expect will make some share movement. But who knows. I didn't expect to see a high of 80 cents and a low of 32 cents recently.


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## MR. (10 September 2007)

http://www.industrysearch.com.au/News/Delong_lifts_its_stake_in_iron_ore_explorer_Cape_Lambert-27967

Two items posted from the above article... 

1) He said Ding asked to have a representative on Cape Lambert's board, but would need to buy another 15-20 million shares on market to lift Delong's interest to 19.9 per cent.
"... we may see him, after this month, creeping up the register," Sage said.

2) The company has sent a technical team to Africa to assess three projects as there are not many large iron ore prospects remaining in WA, he said.
.......................

So my question is if Delong wanted to keep at least 19.9% of the shares on issue to stay on CFE's board, when would be the best time to buy shares to keep up with Options being excercised?

Here also is a second article:

http://www.news.com.au/heraldsun/story/0,21985,22369610-664,00.html


----------



## Hot in Tropics (11 September 2007)

134m options with exercise price of 28 cents, expiry October 2008 + another 50m option exercise price 33 cents, expiry October 2009.  Terms of the deal (that i remember reading) stated that management control and mine operation would remain with CFE.  

Ding is going to make the Management (and shareholders) of CFE rich assuming Delong coughs up the A$250m.  Feasibility study due for completion April 2008, so cost + debt package/ syndicated bank finance would be worked out in Qtr 2/3.  Ahead of the 134m options expiry in October 2008. 

If you are convinced Ding/Delong will complete, Buy now and hold.  Assuming all moves forward, the shares will surely trade above 60 cents between now and this time 2008.  10% return on investment with a free look at, what I think is potentially, considerable upside.  

Also bear in mind, underlying equity markets will experience much greater volatility going forward than in recent times.  

I dont see Ding buying a significant number of shares in CFE in remainder of 2007.  More likely he will be offered some of the 134m or 50m options (similar to the 40m he is in process of exercising).  Quid pro pro .... with a timeline of Qtr 3 2008 announcement.


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## thooh (14 September 2007)

Market is up but CFE is down. Look like no one is buying CFE at the moment. The Vol of CFE and CFEO is very low. Any news from Delong? Look like going to hold it until 31 of sep. Have no chance to get out before that time. I starting to get a bit worry since I hold a lot of CFE and CFEO.


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## moneymajix (20 September 2007)

Sp up - 55.5c

Ann.

UNTESTED MAGNETIC ANOMALIES IDENTIFIED AT CAPE LAMBERT IRON ORE
PROJECT.

KEY POINTS

● Several, large untested magnetic anomalies identified within 2kms of the existing
Cape Lambert resource;
● The anomalies have an equivalent magnetic response to that of the existing
resource;
● The anomalies, on drill testing, may increase the extent of magnetite mineralisation;
and
● Drill testing of the magnetic anomalies is planned for the December quarter.


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## nberardis (22 September 2007)

So one week to go,
Whats everybodies thoughts on the deal, is it going to go through?
What will the share price be, first week of october?
If the resource gets upgraded to 4bt+ what would be the share price then?


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## nberardis (22 September 2007)

My guess if all bodes well, 76 to 82c, assumming the deal goes through and doubling of the resource will push it close to the dollar


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## Sean K (22 September 2007)

nberardis said:


> My guess if all bodes well, 76 to 82c, assumming the deal goes through and doubling of the resource will push it close to the dollar



nberardis, Can you please expand on this to give us a more detailed insight into the calculations? Cheers, kennas


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## jman2007 (22 September 2007)

Kennas

I guess this is what you may be alluding too?

(Originally posted by JoeBlow)

"I have noticed some members posting price targets for stocks that are anywhere from ten to twenty times the current trading price of the stock and I am increasingly becoming uncomfortable with this practice. In my view without anything substantive to back it up with these kind of predictions are simply a form of ramping. If you are going to give a price target for a stock that is significantly above its current trading price I expect you to back it with some fairly comprehensive analysis or else I would prefer you not to do it."

In this case, target was modestly above the current trading price, but some figures would be nice to back it up!

Cheers
jman2007


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## Go Nuke (24 September 2007)

Can someone please tell me how they allocated the shares in Global Iron?

I recieved a WHOPPING 8 shares in Global!!:22_yikes:

Ok now its probably because I dont hold all that many CFE shares but I was just curious what the allocations where. ie-1 Global for every 8 CFE??

I'm too lazy to do the math.


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## moneymajix (25 September 2007)

They weren't too generous with the allocation of shares in Global Iron. 


Current moves on CFE

60.5c
up 0.065 12.04%

Lots of volume.



Due to hear re the millions from Asian interests will be paid (re 70% interest in CFE) by the end of the month.


Show me the Money!


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## thooh (26 September 2007)

HI all, I am a bit confuse with the news Delong release on the 05/09/2007.

Here is the link of the news.

http://www.listedcompany.com/ir/delong/newsroom/Investment050907.pdf


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## MR. (26 September 2007)

Announcement:

http://www.asx.com.au/asxpdf/20070926/pdf/314r6k6vjt7w6j.pdf

By mutual agreement payment has been moved forward 2 days to Tuesday the 2nd of October due to Sunday then public holiday.
........................

I hope that person who sold on Monday at the end of the day at $0.285 does not look at the price again..... Yesterday was a very good day.


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## thooh (26 September 2007)

Monday is public holiday???  What holiday is that? The holiday only happen in Western Australia or Whole Australia?


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## chansw (26 September 2007)

thooh said:


> Monday is public holiday???  What holiday is that? The holiday only happen in Western Australia or Whole Australia?



That is Queen's birthday for WA. I am sure the Queen has no idea that she has so many different birthday around the world.


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## thooh (26 September 2007)

MR. said:


> Announcement:
> 
> http://www.asx.com.au/asxpdf/20070926/pdf/314r6k6vjt7w6j.pdf
> 
> ...





WA having PUBLIC HOLIDAY but will the company place the trading halt duirng that time? I sure the share market will still open.


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## moneymajix (26 September 2007)

Another delay!

I think they should have paid by cob on Friday. 

At the end of the day, payment is the main thing, I guess.

Current sp. 61c


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## Sean K (26 September 2007)

Interesting situation. Looks to be recovering. Broken nasty downtrend by the look and making higher lows. Holding above 60 will be very important.


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## Go Nuke (26 September 2007)

Yer yet another delay.

Gee...one must wonder what the point of a "contract" is for??
Lets see if it bumps into that resistance at 70c or breaks through it


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## Ruprect (26 September 2007)

Well, its sort of a delay. Hard to get a deal put through on a Sunday, which was the deadline, partic on a long weekend. I think a couple of extra days isnt too much more to wait.

Nice to see the good recovery to the mid 60's again. Oh to have topped up at 30cents a month ago...!


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## Santoro (26 September 2007)

Come on everyone, the price is rising, the next installment is due which will make it rise more, you all got your GFE what more do ya want...a sure thing?


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## TheAbyss (26 September 2007)

There is a squeeze on the Bollinger band so a break is going to happen in all likelihood. Just a matter of which direction. Given the consensus on this forum onward and upward may be the correct call.


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## MR. (29 September 2007)

MR. said:


> -  How can Delong pay for the mine on 31/8 without informing its share holders or voting? However in the past few days they have now been informed. Same goes with the options.
> 
> -  I believe payment for the rest of the options will need to be voted apon by Delong's share holders also at the same meeting "the purchase of the mine." TS's 10 days time for the options sounds about right to me perhaps after a meeting. Who owns the majority of Delong? so I'm sure both will be past.




Posted by chris1983 on Hotcopper 19:28 Thursday 27/9.
“Definately looks promising. She should run further tomorrow. Last day to get in before the announcement on Tuesday you would think.”
......................
Friday chris1983 posts at 12:41 “I took my profit and ran this morning” 
......................

Good one chris1983. I'm alright stuff you! Would you explain? Or perhaps you were kicked off Aussie Stock Forums. 

I posted on the 7th of September what I was looking for (as linked above).... Does there need to be a vote? Best Decade (Ding Liguo) owns more than half the shares in Delong? However looking through their records listed with SGX Delong does vote and they usually give 2-3 weeks notice of a meeting. Delong still has not released any further details either! 
So After 6 months the final straw for the last of my holdings was the 2 million sellers stacked up in CFE in the afternoon between the high and low level for the day.   

I am no longer a holder of CFE or CFEO. 

My average buy cost was $0.32 CFEO. 
I lost a fortune a couple of days (after) that “Thursday” mid August. 

I hope CFE is paid. I just can't do this any more.


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## MR. (29 September 2007)

Sorry Chris tried to post your last post here. I just missed it before you totally vanished off HotCopper. I guess this says it all. Well done Aussie Stock Forums. As for Aussie Stock Forums they are cleaning things up and I see now so is HotCopper.  

Chris 19:28am the day before yesterday
“Definately looks promising. She should run further tomorrow. Last day to get in before the announcement on Tuesday you would think.” 

Chris 10:30am yesterday
“Buy side is getting stacked atm. I wonder if someone will step it up a bit.”

Chris 11:10am yesterday
“Thats whats obviously holding her back. There are supposed to be options exercised before the 30th.”

Chris 12:41pm yesterday
“There is too much of a risk factor whether or not the deal will go through. I wanted the deal to be confirmed because I would of held during the development of the project but I took my profit and ran this morning. Might re-enter if it doesnt go ahead after the SP drifts back down. For now I'll enter another iron-ore play that is more certain.

Good luck guys. I hope the deal goes ahead. Ding/Delong have been messing us around for way too long. Hopefully they hold true to their word on Tuesday and pay up.


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## moneymajix (29 September 2007)

MR.

I sold in the mid-60s yesterday also. Purchased in the 30s.

Have been holding since January and seen the share price move all over the place. In retrospect should have sold the first time it hit 60c or the later when it hit 80c.

We will find out on Tuesday if any money is going to be handed over.


If not, then I can only imagine the share price is headed south, at least in the short-term.


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## TheAbyss (29 September 2007)

MR. said:


> Sorry Chris tried to post your last post here. I just missed it before you totally vanished off HotCopper. I guess this says it all. Well done Aussie Stock Forums. As for Aussie Stock Forums they are cleaning things up and I see now so is HotCopper.
> 
> *Chris 19:28am *the day before yesterday
> “Definately looks promising. She should run further tomorrow. Last day to get in before the announcement on Tuesday you would think.”
> ...





Mr. Has there been some editing? I am intrigued as to how a computer would report the time incorrectly (Chris 19:28am ).  Did you insert the am?


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## MR. (29 September 2007)

TheAbyss said:


> Mr. Has there been some editing? I am intrigued as to how a computer would report the time incorrectly (Chris 19:28am ).  Did you insert the am?




On hot copper the date is displayed above the post. Yes I added the first line eg: chris 10:30am yesterday

The 4 dates/times I added and I also may have added the talking marks " " only. All else was directly from HotCopper. COPY AND PASTE


----------



## nomore4s (29 September 2007)

FWIW, My opinion is the deal is going ahead. There have been delays and changes involved with the deal but Ding has shown some sort of commitment by setting up offices and converting some of his options. The company still seems positive about the deal going ahead.

We will find out Tues or Wen whether the payment is made I suppose. It will be interesting to see the reaction to the sp either way.

Have attached a chart of Delong holdings from SGX. Looks like it has just broken out with good volume as well. Not sure if it's related to the CFE deal but thought I would post it anyway.


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## Santoro (29 September 2007)

nomore4s said:


> FWIW, My opinion is the deal is going ahead.




Mine too.
Ding wants to become one of the major steel players in China, he's gonna need some ore, and the way prices are moving for most of the significant iron ore player stocks it's not going to get any cheaper, he should lock this deal in. 

He is probably just stringing things along, I know I would that's alot of interest accumulating due to the delay.....back into Dings pocket...CFE management seem to believe its all going ahead.....patience people......


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## TheAbyss (29 September 2007)

MR. said:


> On hot copper the date is displayed above the post. Yes I added the first line eg: chris 10:30am yesterday
> 
> The 4 dates/times I added and I also may have added the talking marks " " only. All else was directly from HotCopper. COPY AND PASTE





No worries MR. Just asking the question. I can see that you were simply making the text easier to read. No offence intended.


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## MR. (30 September 2007)

TheAbyss said:


> No worries MR. Just asking the question. I can see that you were simply making the text easier to read. No offence intended.




None taken. I have always "tried" to back up any info posted. I did not expect the posts to disappear from HotCopper.

Perhaps HotCopper made an example of it.  Trading the stock is fine but there is a line and too many cross it. Its fraud..

good luck...


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## Sean K (30 September 2007)

MR and The Abyss, thank you for your input here and maintaining the standards that ASF try to keep. 'Pump and dump' is something we definately try to police as best we can to ensure the integrity of this forum. Cheers! kennas


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## GOSAFAS (3 October 2007)

Suspended AND whats worse probably the rumours circulating the market yesterday are probably correct. Mr Dingy has pulled the pin - why would you ever trust them? Why would you ever do business with them? Firstly stringing everone along and then this. I really really hope I'm wrong about all this and hope that I land up eating my words - I'm still a long term holder BUT resent being mucked around. I am sure that the resource is worth a lot more than what Ding was prepared to pay for it (am assuming the deal doesn't go through) and hopefully some Australian Group comes along with a decent binding offer OR CFE go it alone which could be a long expensive road.

By the way, these are my thoughts only and do not intend this to be financial advice of any nature at all.


----------



## Ruprect (3 October 2007)

Were there rumours circulating yesterday? I didnt hear them, anyone else? I know the SP retraced a bit, but that does happen with CFE!

I dont think we are really in a position to guess what the outcome is. And regardless, CFE are in a halt and we will find out soon enough if the 1st instalment has been paid.

If it has, its full steam ahead. If not, the resource is substantial so its a matter of finding another buyer. Not a lot of longterm downside in my opinion.


----------



## ta2693 (3 October 2007)

Ruprect said:


> Were there rumours circulating yesterday? I didnt hear them, anyone else? I know the SP retraced a bit, but that does happen with CFE!
> 
> I dont think we are really in a position to guess what the outcome is. And regardless, CFE are in a halt and we will find out soon enough if the 1st instalment has been paid.
> 
> If it has, its full steam ahead. If not, the resource is substantial so its a matter of finding another buyer. Not a lot of longterm downside in my opinion.



I agree with you. In addition, all small Fe resource companies performed weekly yesterday. I notice CFE, RVR, IOH,TTY,CNF were all down. SDL, AGO, just had a small rise.


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## Hot in Tropics (3 October 2007)

Broker report on Delong Holdings issued by OCBC Research on 2 october 2007, one of Singapore local banks.  Is suggesting Delong will only hold 30 to 40% equity in CFE iron ore project.  And that Delong will use the convertible note money raised previously to buy furnaces in China.  Maybe this is the source of rumours above.  Crunch time .....


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## nberardis (3 October 2007)

Am I reading the report right, it states delong now owns 70% in CFE project, if so done deal pending board approval and regulatory approval


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## jman2007 (3 October 2007)

nberardis said:


> Am I reading the report right, it states delong now owns 70% in CFE project, if so done deal pending board approval and regulatory approval




My interpretation of the report is different,

..."Subject to final negotiations, we approximate DLNG’s eventual stake to be in the range of 20-40% in equity so DLNG will fork out not more than US$30-60M."


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## enigmatic (3 October 2007)

My understanding of that document is that they are definetly going through with the payment for 70% of "The Project"
and due to the fact they will be divest a part to a consortium of other companies, therefore they will only fork out 30-60mil of the 150mil Equity

So im looking forward to the sp bouncing back from its slump due to all the doubt if the deal is going through.

With a 52week high of 80c i can easily see the stock jumping up to 90c before stablishing arround 70-75c

as the 250mil that they are receiving is worth arround 40cents a share, obviously investors have already taken alot of this into consideration

I'm a new investor so i suggest you do your own research before making an investment into CFE.


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## jman2007 (3 October 2007)

enigmatic said:


> My understanding of that document is that they are definetly going through with the payment for 70% of "The Project"
> and due to the fact they will be divest a part to a consortium of other companies, therefore they will only fork out 30-60mil of the 150mil Equity
> 
> So im looking forward to the sp bouncing back from its slump due to all the doubt if the deal is going through.
> ...




My mistake,

I've re-read that report and I agree with you, according to the report, it does sound as if Ding intends to go through with the 70% acquisition of Anketell (subject to Board and regulatory approval).  Whether or not he decides to divest his interest to a consortium of other smaller companies is something I can't answer, it's not as if we need any more rumours doing the rounds.

Out of interest, how are you arriving at your sp target of 90c and baseline support of 70-75c?

Cheers
jman2007


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## MR. (3 October 2007)

From memory Ding Liguo is worth approx 200m. 
Delong has a market cap of approx 1.2  billion thats “Market Cap”
It has been estimated that the mine will cost between 600 – 800 million. 
No wonder the bank thinks there will need to be a third party. Aspecially if Delong has to expand its steel mills to stay in China. 

This does not mean that Delong will not buy the mine short term. 

From Delong SGX 5/9/07  
 The investment in Anketell will amount to approximately AUD 240 million
and will be subject to, amongst other things, the approvals of the regulatory
authorities in Australia and that of the Company’s shareholders.

From CFE ASX 1/10/07 page 12 and 13
 Under the terms of the binding agreement, the purchaser has paid Cape Lambert a $2,000,000 deposit of which $750,000
is non-refundable. There remains a contingent liability in the amount of $1,250,000 should the Sale Agreement be
terminated.

Delong has indicated it will convert the balance of the 40,000,000 unlisted Options (being 28,000,000 - raising a further
approximately $10,000,000) on finalisation of minor outstanding issues associated with the Sale Agreement. It is
expected that this will occur in early October 2007. At the completion of this conversion Delong will hold 13.25% of
the issued capital of the Company.
As a consequence of the above delay, the first payment of $72,000,000 under the Sale Agreement has also been delayed
until early October 2007.
In the event that the Sale Agreement is not completed with Mr Ding, the Company will seek alternative funding sources
to continue with the strategy of developing the Cape Lambert Iron Ore Project.

We wonder what the minor outstanding issues are?
Ding Liguo can still buy the mine. He is the one under contract as far as we know.
------------
DLNG now owns
4.4% of the share capital of CFE and 70% of Anketell (pending regulatory
and board approval). 

Good pick up, from the side line watching with interest.


----------



## enigmatic (3 October 2007)

Currently there are 276mil shares released, with another 6million by the end of the year. 

Not including any of the cash they currently have the 250mil divided into the 282mil shares equals 88cents. 

After considering the fact that investors may ignore the fact that there may only be 282million shares by the end of the year and will only look at the fully diluted 506million shares.
will value the 250million at 49cents.

With another clear milestone, that will help step one closer to production. of "The Project"

Resources:	Iron Ore (2.5billion tonnes @ 30% Fe)
Production:	5-7million tpa (2009) have seen documents stating 10-15million

a project of this size and at this stage of its development would be worth arround close to $1-$2 this is a personal opinion based on a few stocks over the last year. taking the lowest as my baseline. and the fact that CFE own or will own 30%
its arround 30cents. giving me a minium of arround 80c.

so due to the fact that stocks are based on public opinion i have gone for the later approach, and what i have read over the last two months is that public opinion is that the project will be very great investment so i assume it would push over this with a small retrace.
with any of my estimations i try to take into account both value and public opinion

I'm a new investor so i suggest you do your own research before making an investment into CFE.


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## GOSAFAS (4 October 2007)

Getting the mine to work. Including logistical links to ports and supporting
infrastructure, we are expecting that it would take about US$500m to bring
the CFE mine online. Management anticipates that this project to be
financed with 70% debt (US$350m) vs 30% (US$150m) equity. Subject to
final negotiations, we approximate DLNG’s eventual stake to be in the
range of 20-40% in equity so DLNG will fork out not more than US$30-
60m. - Quote from the Singapore article. 

I am totally confused. From a really simplistic approach, I thought it was 70% of equity in the iron ore business. So either DNLG is going to offload some of the 70% at a profit (whatever! because that really sucks - means the shareholders of CFE could have had that profit as opposed to those of DNLG and I question the competency of the board of CFE if this is the case) OR all bets are off and there is now a fresh deal with Ding. If the latter is the case, this is pretty bad, because I can just see our friend Mr Dicky (Ding) stringing us along again and generally mucking around. We need to see some serious money hit CFE's bank account, otherwise for mine Ding should just PISS OFF.


----------



## MR. (4 October 2007)

Info from HotCopper. 
http://www.theaustralian.news.com.au/story/0,25197,22527040-16942,00.html

Delaying for the drill 

WHO knows how long is the fuse of former nightclub owner and budding iron ore entrepreneur Tony Sage, but non-payment of money is probably a sure bet to get him riled. Sage's company, Cape Lambert Iron Ore, remains in a trading halt after Singapore-listed Delong Holdings' major shareholder, Ding Liguo, failed to come up with a promised $70 million, which is part of a $240 million deal signed in March for Delong to take a 70 per cent stake in the company. 

It is understood Mr Ding could be stalling for time as Cape Lambert keeps returning drilling results at the Pilbara project.


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## resourcesman (4 October 2007)

hahaha, not an uncommon way for some chinese to do business (i am chinese)

[word limit should be changed to 50!!!]


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## GOSAFAS (4 October 2007)

Yeah, NOT very funny. Proves a few points -
a) The rumours circulating around the market earlier in the week and the end of last week have apparently been right on the money - unfortunately.
b) Dingy or Dongy whatever the goose's name is CANNOT be taken seriously - I certainly won't anymore.
c) In Australia, we don't USUALLY do business "this" way. In some circles, it is still not uncommon to do big deals with a handshake or phone call and the adage "my word is my bond" is normally the way things flow through. Granted, most big business is done by way of contract in AUS as was the Ding deal - apparently in China, business is done very differently. It is no wonder when talking to friends and associates about investments where China is concerned, there is always a lot of caution in the air. One mate always says, when the money starts flowing through, then you know its happening. Until then, you got nuttin'


----------



## MR. (4 October 2007)

It is not fair that I continue to post here when I have no interests in the company. So this is my last post on CFE. Someone needs to post that West Australian article here if one exists, I have not seen it but I have heard there is one today.

Ruprect, I did not hear rumours either. I acted on my own knowledge and made the decision. I   risked  “missing out” after about some 80 posts here and countless hours, it was not easy.  But whats the point of doing the homework and not acting on it? 

I hope for the holders that the money is paid today.

I have done business directly with the Chinese before, I must have just been lucky.............................


----------



## jman2007 (4 October 2007)

GOSAFAS said:


> Yeah, NOT very funny. Proves a few points -
> a) The rumours circulating around the market earlier in the week and the end of last week have apparently been right on the money - unfortunately.
> b) Dingy or Dongy whatever the goose's name is CANNOT be taken seriously - I certainly won't anymore.
> c) In Australia, we don't USUALLY do business "this" way. In some circles, it is still not uncommon to do big deals with a handshake or phone call and the adage "my word is my bond" is normally the way things flow through. Granted, most big business is done by way of contract in AUS as was the Ding deal - apparently in China, business is done very differently. It is no wonder when talking to friends and associates about investments where China is concerned, there is always a lot of caution in the air. One mate always says, when the money starts flowing through, then you know its happening. Until then, you got nuttin'




This is the last straw for me, I am out

I have to say I'm not altogether surprised at the turn of events, as some of my other recent forays into stocks affiliated with Chinese interests have similarly met an unhappy end.  This is not to say I do not believe in the merits of this project, in the contrary, CFE have done their utmost to satisfy Ding and his cohorts, but in this case the lack of transperancy in Chinese business practices in general has led to the current situation.  In the meantime, I am happy to sit on the sidelines and see what transpires.

I am merely expressing my own humble opinion here, and this is not meant to be taken as financial advice by anyone. DYOR

Cheers
jman2007


----------



## ta2693 (5 October 2007)

It is very sad to see CFE and Mr ding's deal end in a disaster for us. 
But I think it can trigger a good buying opportunity. CFE's resource is still there. CFE's huge low grade fe resource is very suitable for China's steel companies' need. There is thorough analysis by MR. in his previous post.  
CFE is a resource company. Without Ding's money, it still has sound finance situation. It still can run its business. Ding's step back is far from CFE's management failure. CFE's problem is totally different from RHG and Laf's problem. In my opinion, it only looks like a problem rather than real problem.

If ppl are panic tomorrow after the trading start, it may create a good buying opportunity for us.


----------



## thooh (5 October 2007)

Have a look this news. I found it on google news. It sound not good at all.  I wondering what will happen on friday. Hope everything is ok.

http://www.wabusinessnews.com.au/en-story/1/57309/Sphere-Cape-Lambert-battle-iron-ore-funding-issues


----------



## mayk (5 October 2007)

Hi guys, I am a new investor and by reading your post it seems that this stock is heading south. If this is the case I am already in loss over this stock, should I sell it with loss or hold on to it. Why are the investors running away? Do they know the result of drilling before hand? Also was their any other company in the same boat and what happened to them?


----------



## Hot in Tropics (5 October 2007)

Guys and maybe gals,
Cut this total cr*p about in Australia, we do this and we do that.  This is business, and people (from wherever they live and whatever colour their skin is) are not about to pay A$250 million lightly.  This is serious money going into potentially a serous project of about 10 to 20 years of mine life - read Supply Chain - and if I was the one paying the money, trust me, if I had qquestions or concerns then expect me to be an awkard bo**ocks.  The players in question are not here to satisfy muppets like us.  

As I have said before, crunch time.  

Sadly, I dont think Mr Ding is going to take a controlling 70% stake in CFE.  But I do think he is going to take between 20 and 30%, so that he can Equity Account for his investment.  He is the current best gift horse and you do not tell them to "pi** off".  

I do however hope I am entirely wrong !


----------



## prawn_86 (5 October 2007)

looks like they did tell them to Pi** off HotinTropics.

man am i glad i got out of this late last week. Made a quick 15% profit and now do not have to watch the share price drop, which i think it wil on open today. Probably one of my best timed trades ever.

CFE still has potential, but a lot of investors who wanted cash in the bank will probably bail now.


----------



## Ruprect (5 October 2007)

Oh well, you win some...

Yes, the sp probably will head south in the short term, but i think we cant discount the fact that it has proved that it has a substantial resource, with more to come. 

Im holding, will just put CFE in the back drawer for a while. They had interested parties in the company last year, so ive no doubt they will again. An Iron Ore resource like this wont be left alone.

Just disappointing that Ding couldnt meet his side of the bargain. Its not like CFE didnt do everything that was asked of them.

Good luck to those holding.


----------



## GOSAFAS (5 October 2007)

Hot in Tropics said:


> Guys and maybe gals,
> Cut this total cr*p about in Australia, we do this and we do that.  This is business, and people (from wherever they live and whatever colour their skin is) are not about to pay A$250 million lightly.  This is serious money going into potentially a serous project of about 10 to 20 years of mine life - read Supply Chain - and if I was the one paying the money, trust me, if I had qquestions or concerns then expect me to be an awkard bo**ocks.  The players in question are not here to satisfy muppets like us.
> 
> As I have said before, crunch time.
> ...





Mate, have you heard of the expression "let the buyer beware" - a translation from the latin "caveat emptor". Ding signed a binding agreement and didn't honour it. So why are you defending him? Are you chinese or something or feel you have to defend or protect his integrity? Of which he has none in my opinion by the way! If I sign something or say something, I honour it - those are my ethics - it has nothing to do with business or anything else. I chose not to do business with people who do not keep and/or honour their word - this has nothing at all to do with the colour of someone's skin or background - it is generic. However, it so happens, that these chinese are renowned for this type of behavior and that is why I would have told him to "P..S" off along long time ago!


----------



## marklar (5 October 2007)

The announcement reads as "screw you Ding and by the way, we found more valuable stuff!" I'm unhappy with the droop in share price but I think that's short term reaction to the news, I think management is doing the right thing by calling it off now and looking for more serious buyers.

m.


----------



## jman2007 (5 October 2007)

Hot in Tropics said:


> Guys and maybe gals,
> Cut this total cr*p about in Australia, we do this and we do that.  This is business, and people (from wherever they live and whatever colour their skin is) are not about to pay A$250 million lightly.  This is serious money going into potentially a serous project of about 10 to 20 years of mine life - read Supply Chain - and if I was the one paying the money, trust me, if I had qquestions or concerns then expect me to be an awkard bo**ocks.  The players in question are not here to satisfy muppets like us.
> 
> As I have said before, crunch time.
> ...




They absolutely told him to p$$s off mate

This is not a question about satisfying small fish like myself and other ASF members, but is more a question re the lack of transperancy in Chinese business pratices in general.  Let me tell you something, in this game if you do not come up with the goods, in this case a $70M down payment, then you're down the road son.

Ding did not even seek approval from the Foreign Investment Review Board for the transaction, so it shows just how serious he was about it, then had the audacity to try and change some of the original terms and conditions of the sale agreement.

I applaud CFE on their decision to send this guy packing, I personally believe it is in the long-term interests of all holders, large and small.  Believe me, CFE will now be vigorously launching negotiations with other interested parties and groups, this project has too much potential to be just left sitting in the ground.

Cheers
jman2007


----------



## prawn_86 (5 October 2007)

i would have liked to have seens CFE's management try to enforce the contract, or at least mention they had considered legal avenues but thought it would be too costly.

right from the first delay, i think they have shown weak management.


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## jman2007 (5 October 2007)

mayk said:


> Hi guys, I am a new investor and by reading your post it seems that this stock is heading south. If this is the case I am already in loss over this stock, should I sell it with loss or hold on to it. Why are the investors running away? Do they know the result of drilling before hand? Also was their any other company in the same boat and what happened to them?




Hi Mayk,

There is a fair bit of emotion running through this thread this morning, and a lot of upset investors running around wondering what to do with their stake, leading to some early panic selling.  I've just had a look at the buy/sell orders on commsec, and tbh, the damage isn't too extensive, and is not the end of the World as we know it.  There are currently some buyers around 49c, and a cluster of sellers at 50c, aggressively trying to bid the price back up. You'll probably find a lot of people will come out of the woodwork and try to pick up a bunch of these at a discount.

You need to decide for yourself whether you want to cut your losses and move on to another stock, or ride out this turbulence and hope that the sp rebounds.  Believe me, CFE wont be sitting on their laurels, other interested parties will now come into the fray and we can expect some intense negotiations to begin soon.

Cheers
jman2007


----------



## Ruprect (5 October 2007)

Perhaps, although maybe they were giving Ding every opportunity to go through with it. And he was probably adament that he would. CFE would have tried every avenue to keep the deal underway. 

But i think what is promising is that they havent been sitting back just waiting for the deal - work has still been progressing, so its not back to square one. Someone else can now walk in on a further advanced project.

I thought the SP would take a bigger hit short term, looks to be holding up very well so far. Shall see what the next few days brings.


----------



## ta2693 (5 October 2007)

The gap are filling. some serious ppl are accumulating it despite the bad news. I am holding to see how serious are those ppl's intention to buy.


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## jman2007 (5 October 2007)

Ruprect said:


> Perhaps, although maybe they were giving Ding every opportunity to go through with it. And he was probably adament that he would. CFE would have tried every avenue to keep the deal underway.
> 
> But i think what is promising is that they havent been sitting back just waiting for the deal - work has still been progressing, so its not back to square one. Someone else can now walk in on a further advanced project.
> 
> I thought the SP would take a bigger hit short term, looks to be holding up very well so far. Shall see what the next few days brings.




I think CFE management will learn a lot from this,

Perhaps they were a little naive going into this deal, but they certianly wont be anymore, and I agree, it does appear that they gave Ding every opportunity to fulfill his side of the MOU.  I actually think they have shown their true colours in terminating this MOU, a very brave and professional management decision.

cheers
jman2007


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## Go Nuke (5 October 2007)

Ruprect said:


> Oh well, you win some...
> 
> Yes, the sp probably will head south in the short term, but i think we cant discount the fact that it has proved that it has a substantial resource, with more to come.
> 
> ...




Im with you Ruprect.

CFE has either become a back drawer stock to sit and hold or time to accumulate more.
50c seems to hold fairly well and I mean its not like any of the fundamentals of what they have has changed. Iron Ore is still pretty hot to own with plenty of companies probably having a look at filling the void that Mr Ding has left.
Weren't the Russians looking at securing Iron Ore from another company operating out of Perth?
One could veiw this as a good time to buy.

p.s..though they have the perfect emoticon for todays events....:fan

DYOR


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## jman2007 (5 October 2007)

Dammit, still holding this one after my outburst last night

Holding up well today around 51.5c, well done to CFE holders who have not panicked and backed the management in their decision to terminate the MOU with Ding.  I maintain that the merits of this projects far outway the negatives, I wonder if we'll see another Chinese raid once the new round of negotiations begin.

jman2007


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## thooh (5 October 2007)

Evan is a bad news for market but I think is a right decision. I strongly believe a lot of compamy would like to purchase the "Iron ore project". I rather they terminate the contract than always delay the contract. So to terminate the contract is a right move. Besides, I think the SP is not too bad, still holding at 50cent. May be, next week will get better. I will continue to hold.


----------



## mas888moe (5 October 2007)

Hi guys,

Check out this article:
http://www.wabusinessnews.com.au/en...ron-Ore-cuts-its-losses-with-Chinese-investor

3 Companies are interested in making a deal with CFE and will be visiting be visiting the site shortly. 

Hope you guys are holding!


----------



## TheAbyss (5 October 2007)

Whilst there is room for the SP to decrease further, there could be an opportunity to be taken advantage of here.

1. CFE have stated that they will be increasing their resources "It looks like it's twice the size of what we've got and he would have ended up with 70 per cent of that for nothing under the terms of the original deal," Mr Sage said. 

Another comment regarding the increased reource from the Age today was "Mr Sage said the upside for Cape Lambert was that Mr Ding had effectively funded about $5.6 million out of about a $7 million extensive drilling program by exercising options in the company and losing a deposit"

Take away number 1 = Doubled the resource

2. There were others who had to leave the table after Ding won the first round who will be coming back for another bid according to Mr Sage.

Take away number 2 = Potentially there could be a bidding contest or at the very least expressions of interest put on the table.

3. The SP was trading around .50 prior to the US led correction which allowed Ding to take advantage and jump in at .40 which was a very small window of opportunity which he seized.

An entry point at around .50 has limited downside when you take into consideration the above 3 points.

I have put my money where my mouth is so we shall see. Good luck to all.


----------



## Santoro (5 October 2007)

Was never really happy about Ding holding 70%, in hindsight too much control, nothing to say he won't turn up again.

Good buying opportunity in the 40's, I'm picking more up thanks, Ding!! 

Prawn....only time will tell if your execution is truly good..15% with CGT??, too early to call that one


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## prawn_86 (5 October 2007)

it was only ever a quick trade for mine.

i still think there is long term potential, but show me a bank where i can get 15% minus CGT every couple weeks


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## nomore4s (5 October 2007)

prawn_86 said:


> i would have liked to have seens CFE's management try to enforce the contract, or at least mention they had considered legal avenues but thought it would be too costly.
> 
> right from the first delay, i think they have shown weak management.




I actually think they did the right thing by not trying to enforce the deal. If anything it shows strong management by breaking the deal and backing themselves to find another buyer, looks like they knew this was on the books and have made sure the door wasn't shut on the other interested parties.

Like they stated with the Aussie $ rising they would have lost a bit with the exchange rate, and if what was stated about the resource being larger is true they should be able to get a better deal.

They've also now got Dings money from the conversion of his oppies as well as the non refundable part of the deposit. So CFE haven't done too bad out of it.

All in all I think they've done a pretty good job, fair enough they let Ding string it out for awhile but they had to give him every opportunity to come up with the goods. It's not that easy to broker these deal, remember it is a lot of money at stake, with the pay off for an investor like Ding quite a few years away. It's business, and deals fall through all the time in business.

I don't hold atm.


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## stoxclimber (6 October 2007)

I doubt a court would have ordered performance of the contract, CFE would just get damages..in fact, they still can sue


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## ausepicure (7 October 2007)

THIS STORY BELOW FROM WA BUSINESS NEWS

The appreciating Australian dollar was the main reason Cape Lambert Iron Ore Ltd today decided to terminate its sale agreement with a Chinese investor, who had dragged his heels in making instalment payments.

Under a deal entered into in late March, the investor, Mr Ding Liguo, was to take a 70 per cent interest in the company's namesake iron ore project in Western Australia's Pilbara region for about $250 million.

Cape Lambert said Mr Ding had failed to satisfy a condition of the sale agreement and breached a memorandum of understanding with the company.

Executive director Tony Sage said Mr Ding requested a third extension of time to make payment instalments, which was unacceptable.

"He said it was the final request the first time and we just lost patience," Mr Sage said.

"We wouldn't have gotten our second payment, under Mr Ding's terms, until March next year and under our original contract, it was (due in) December."

The contract was in US dollars and could not be hedged, Mr Sage said.

"The $250 million deal at today's Australian dollars is $210 million, so that's a $40 million loss on the deal - that was a big contributor in our decision to cease negotiations.

"Some say the Australian dollar will hit parity with the US dollar and we would have lost more funds the longer it goes out.

"There's no way you can hedge it because there's not a fixed end point because you don't know if the guy was going to pay."

Another factor in deciding to cease negotiations was the value of a new discovery recently made at the project.

"It looks like it's twice the size of what we've got and he would have ended up with 70 per cent of that for nothing under the terms of the original deal," Mr Sage said.

Cape Lambert's lawyers are undertaking a cost-benefit analysis on whether to take legal action against Mr Ding.

Mr Sage said the company had started renegotiating new sales agreements with three major groups, which were conducting site visits in the next few days.

"All the way through, we've had three major groups that have been hounding us, saying they would pay a high price ... but the agreement with Mr Ding was exclusive, so we couldn't (enter into other deals)".

Mr Sage said the upside for Cape Lambert was that Mr Ding had effectively funded about $5.6 million out of about a $7 million extensive drilling program by exercising options in the company and losing a deposit.

Cape Lambert closed down 7.5 cents at 51.5 cents. 



*I think the smart ones will see the opps here.*


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## FUTUREFUND (7 October 2007)

Excerpts of article in the weekend AFR  quote  

"Cape Lambert Iron Ore, wont fret much about losing a $200 Million chinese deal writes Michalael Vaughan " The iron ore market is red hot and has been for most of the year as chinese steel mills scramble to secure long-term supply to be at the forefront of a government-forced consolidation of the sector. 

The Cape lambert project hosts a large iron ore resource and exploration work makes the perth based company confident it could extract a better deal from another party. Another steel mill has been waiting in perth all week for the deal to fall over and will visit the site on saturday. Another two are said to be very keen.  

Maybe Delong have done CFE a favour and CFE Know it and have been playing the game. The 5/10/07 announcement also stated the recent helimag survey had uncovered several large untested magnetic anomolies that have the potential to greatly increase the size of the deposit of the project.

Increase in the next contract for Iron ore price negotiations looking to be in the 20 -25% vicinity ! This all seems positive for Cape lambert.


FUTURE LOOKS BRIGHTER FOR CFE


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## Ruprect (8 October 2007)

If todays rise is anything to go by, it looks like the Ding transaction has been holding CFE back after all. 

This is too good a resource for other majors to hold back on, and will likely seize their opportunity shortly.


----------



## doogie_goes_off (8 October 2007)

That's a nice run on reasonable volume. I would have to think this is a low grade high impurity ore body even though the tonnage is impressive, I don't think the majors will be chasing it in a hurry. So where else will they get $ from?? is there any other reason I should buy??


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## ta2693 (8 October 2007)

I think the rise is because of article in weekend AFR. 
The gap is still there. I think we had better wait until it is back to 60c. Then I will add my position in CFE.


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## enigmatic (8 October 2007)

Well it looks like the announcement had a small effect on the sp which was corrected by long term investors hoping to build there holding while the price is low. Especially now they have confirmed increase in resource.
with this extra resource the deal that CFE make with any interested investor should be much better then the 210mil that we had with MR Ding.
This is definitely a better outcome then we previously had.


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## FUTUREFUND (15 October 2007)

Shandong Yangsheng International has confirmed its intention of taking either a 19.9% stake or 50 Million shares in Cape Lambert in its namasake project.

I believe this was the same company that were looking to acquire the same stake late last year? before the Delong announcement.

Has anyone any Info.


THE FUTURE IS BRIGHT FOR CFE


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## Go Nuke (16 October 2007)

Hey did anyone loose their Global Iron shares?

They gave them to me....then took them off me again and I have no idea why

Just wondering if anyone else had noticed the same.


----------



## moneymajix (16 October 2007)

Nuke

I just looked. Looks like they are gone. 
Had not noticed and don't know when they disappeared.

Weren't many anyway.

Cheers


----------



## Santoro (16 October 2007)

Go Nuke said:


> Hey did anyone loose their Global Iron shares?
> 
> They gave them to me....then took them off me again and I have no idea why
> 
> Just wondering if anyone else had noticed the same.




Yup, same thing, don't think they gonna trade for a while.....you can double check in one of their previous ann's....


----------



## BigJohnny (16 October 2007)

Santoro said:


> Yup, same thing, don't think they gonna trade for a while.....you can double check in one of their previous ann's....





                                                                                                                                                                                                                                                                                                                   They released the commencement not long after, will start trading @ 13:00pm on 18Oct07 .....................


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## MR. (16 October 2007)

Go Nuke said:


> Hey did anyone loose their Global Iron shares?
> 
> They gave them to me....then took them off me again and I have no idea why
> 
> Just wondering if anyone else had noticed the same.




I noticed I lost my "Globals" about a week ago. Perhaps it was because I sold? I thought it was a little unfair. Anyway....


----------



## GOSAFAS (17 October 2007)

Globals not lost. Have been esgroved. So basically the pidly amount we have will have to be held for a certain amount of time. If they're cheap enough on listing I'll top up and round them off.


----------



## Bullion (18 October 2007)

Anyone still following CFE? Seems the SP is lagging and in no hurry to hit the bottom.  Hopefully some good news soon or it could fall a lot more...


----------



## jackson8 (27 October 2007)

support for sp could be around 40c if it drops below this next level is 30 . the buy depth is quite shallow below 42c .management have stated they wont be looking for other investor till after release of any potential ? resource upgrade feb/march 08 
i wont be buying into this unless there is a reason too 
leading up to possible resource upgrade may produce sp results but who knows what the entry price may be jan feb next year


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## chrism0014 (4 November 2007)

Just viewed the webcast on....http://www.minesite.com/webcasts/forum_webcast_archives.html.

Tony Sage saying that he is not willing to sell halve of the project cause of future upside, but four months later company thet announce the Chinese are to be aquire 70% of the project. How things change in just a few months. 

Where would cape lambert be today if they sold halve of their share to Sinosteel 15 months ago. Any future sale of the project would that include the new tenements EL47/1462? 

Looking very closely at this company would have nice for cape lambert to have been closer to production ie 12-18 months.

Now that the deal fell through I assume they need to complete a BFS, any idea on date of completion. Good luck to all hoders.


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## jackson8 (4 November 2007)

2007 Annual Report – Chairman’s Report
It gives me great pleasure in presenting this report of your Company’s activities during the past financial year.
Significant progress has been achieved with the exploration program and a concentrated effort of Reverse Circulation
drilling and Davis Tube Recovery testing has led to a JORC Resource of 977 million tonnes of insitu mineral, grading
32% Fe and 39.6% Silica (SiO2).
Additional Reverse Circulation drilling is ongoing to further extend the resource and a diamond core drilling program
has been commenced to provide core for metallurgical testing.
These samples will serve to validate the mineral processing flowsheet which has been designed to concentrate the ore
to +65% Fe and < 5% SiO2.
It is envisaged that together with engineering and infrastructure studies now well advanced, that a bankable feasibility
study could be completed by the third calendar quarter of 2008.
Some interest in purchasing the project has been expressed by various Chinese interests, but after some commercial
discussion these fell away and the Company will continue to develop the project in its own right.
To this end we have acquired additional acreage adjacent to the Cape Lambert tenement which offers potential for ore
body extensions. Exploration of these areas will be undertaken in early 2008.
Together with the ongoing development of the Cape Lambert tenement we are also investigating offshore iron ore
projects and we feel that considerable upside exists to broaden and greater develop the Company.
Finally, I would like to thank the staff for their efforts in positively progressing the project and our shareholders for
offering their continued support.
Ian Burston
Executive Chairman
Cape Lambert Iron Ore and Controlled Entities
Chairman’s Report


----------



## Go Nuke (8 November 2007)

Hey did anyone know that CFE holds 5,959,500 (or 7.46%) stake in the company Jackson Gold Limited (*JAK*?

I came across this company after it came up on a stocklist scan with some good reults for a Uranium prospect.

I just thought it was interesting and would mention it.


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## ta2693 (11 November 2007)

CFE is 40c now 
I am going to accumulate CFE. 
reasons 
1st JM is out which is the main seller is out. the selling pressure will mitigate significantly.
2nd a JORC Resource of 977 million tonnes of insitu mineral, grading
32% Fe and 39.6% Silica (SiO2) never change. 
if you compare ARH and CFE, you will find they are so similar. ARH has got the momentum, CFE is probably next.
They are similar traits include Large low grade FE.Close to Port.Close to China etc etc


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## jman2007 (11 November 2007)

ta2693 said:


> CFE is 40c now
> I am going to accumulate CFE.
> reasons
> 1st JM is out which is the main seller is out. the selling pressure will mitigate significantly.
> ...




Tbh I am a little surprised in the lacklustre performance of the sp recently, with iron ore being so in vogue at the moment this project just appears to valuable to be left just sitting in the ground.  I think a huge positve factor here is the close proximity to infrastructure and a major population center.
You could be right ta2693, this could be an oversold stock at the moment, although I think we might have to wait until early next year before we see some more price triggering announcements.

Cheers
jman2007


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## kiwiloe (11 November 2007)

ta2693 said:


> CFE is 40c now
> I am going to accumulate CFE.
> reasons
> 1st JM is out which is the main seller is out. the selling pressure will mitigate significantly.
> ...




CFE quote Indicated and Inferred resource of 2.5 billion tonnes (30% FE)against ARH's 1.1 billion indicated and inferred (31.3% FE), if I read everything right.

JP Morgan were only a big seller on two days, so I don't think that had a big effect, in fact they were a buyer in between selling the two large lots.

The big thing ARH have is a Chinese steel coy going to lend them 2.1 billion dollars interest free to get the mine up and running and an off take agreement for 25 years.

Yes I think you are right, ta2693, CFE is a good one to accumulate if you have the patience to hold for a couple of years


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## kiwiloe (11 November 2007)

You just beat me to the punch Jman, but looks like we think alike.
Not surprised at the lack of action with the SP once the Ding deal fell through, plus CFE saying they weren't hot on finding a partner until they did more work on the resource.

From reading many of the posts through this and other forums, punters don't seem to want to tie their funds up in  a "no action" stock when there are so many others where they perceive quick money can be made (like uranium stocks at the  moment).


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## enigmatic (12 November 2007)

Is it possible that CFE will go it alone rather then getting someone to help with the funding? 
Im a holder unluckily i bought pre Backing Break down. so i paid more then there worth right now. To be honest i dont see the SP moving to much north and possibly droping to atleast 35c, and rising to at most 50c if its lucky before end of year.
The stock price should start moving north in Jan-Feb.

This one is definely worth holding, with a nice port at there doorstep.


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## MR. (15 November 2007)

Well can CFE come back?

Are you thinking what I'm thinking B1. I hope so B2. Because if your not I'm a bloody idiot. (which could be the case)

10% of CFE sold for how much? .... $0.7632 
That was on the 12/11/07
The market has been nowhere near this price! Hmmm

Best Decade has raised some money via Citigroup. Approx AUD $170,000,000 on what date, the 12/11/07. Hmmm

Did Best Decade just buy 10%? or did an associate? 
Will Best Decade buy 50% of CFE totalling $170m?
 ie: was (70% totalling AUD$240m) but slipped with the exchange to (70% totalling AUD$210m) So its a fair price for 50%.

good luck, here we go again.


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## MR. (15 November 2007)

Don't know what I'm talking about?

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3E1DA0EB1138F7B74825738F00261CBC/$file/EB.pdf?openelement
or/and
http://72.14.253.104/search?q=cache...NCE+ASIA+BEST+DECADE&hl=en&ct=clnk&cd=1&gl=au

Last nights announcement of 25.8 million shares 10.44% changing hands off market for $0.7632 per share. Todays close was $0.43

From CFE no further news on chasing Ding Liguo for payment or of any other interested party. Except they will do BFS first. 

Any comments?


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## Santoro (16 November 2007)

MR. said:


> Last nights announcement of 25.8 million shares 10.44% changing hands off market for $0.7632 per share. Todays close was $0.43




Thanks for you post. 
Where can I see this announcement?
Wonder if Ding will show again?

This is a good project, great location...sizeable reserves especially if adjoining tenements deliver similar results, shame wasn't all at 60%+ Fe


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## MR. (16 November 2007)

Santoro said:


> Thanks for you post.
> Where can I see this announcement?




Hello again, CA FIDUCIARY SERVICES released it and CFE published it on their website as the ASX requires them to. "Notice of ceasing to be a substantial holder"

http://www.asx.com.au/asxpdf/20071114/pdf/315trvw3tf7q1k.pdf


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## MR. (16 November 2007)

What are the facts?

Fact,  Ding Liguo signed a binding contract to buy 70% of Cape Lambert for US 192m in March 2007.

Fact,   Delong Holdings raised the funds to cover the purchase. (however in my opinion, Delong was never the purchaser but CFE's lawyers wanted Delong on the contract as back up.)
ie: Ding Liguo owns 70% of Best Decade and Best Decade owns most of Delong Holdings listed on the SGX. Stock exchange (singapore).

Fact,   Ding Liguo did not buy the mine as agreed. (but the payment was to happen on the 16th of August, credit markets tightened)

Fact,   CFE gave Ding Liguo / Delong one month extention. (my opinion What was CFE to do?)

Fact,   Failure of payment. CFE announces contract in breach. They would investigate legal proceedings. ((My opinion now is the market had to be told something.) Delong didn't pay because the money raised was never for CFE and/or Delong's management thought the money could be better spent on the actual steel manufacturing as that is what it was really raised for. 

Fact,  Little news released about legal proceedings or other buyers in the past 4-6 weeks. (my opinion now CFE believed Ding may still come up with the cash)

Fact,  many lost faith in CFE. (including myself)

Fact,  Best Decade raises S$220,000,000 in the last few days. Delongs SGX announcements are a wash (mess). (opinion If Best Decade wanted the money from citigroup these are now the 'hoops”.)

Fact,  after ASX close (CFE) 2 days ago, Ca Fiduciary Services releases that their 10.44% of CFE's shares have been sold for a price calculating to $0.7632 per share. The closing price that day was $0.395 (my opinion, why not buy on market? Because something might change the price quick.)

This could be most rewarding for CFE's management when so many lost faith. 

I got into CFE again yesterday based on this new information. I honestly was not going to ever own CFE again.  I stumbled apon Delongs website regarding Best Decade then that 10.44% share sale on CFE's Website.  Every Iron Ore stock price is well above where it was 8 months ago except those crap CFE stocks. (the company I chose along with Grange Resources GRR) I bought into CFE in April, it has been most disappointing.... perhaps until now. 

In my opinion perhaps "CFE has now become a sure thing." 

(this is my opinion only after getting the facts)


----------



## Santoro (16 November 2007)

MR. said:


> I got into CFE again yesterday based on this new information. I honestly was not going to ever own CFE again.  I stumbled apon Delongs website regarding Best Decade then that 10.44% share sale on CFE's Website.  Every Iron Ore stock price is well above where it was 8 months ago except those crap CFE stocks. (the company I chose along with Grange Resources GRR) I bought into CFE in April, it has been most disappointing.... perhaps until now.
> 
> In my opinion perhaps "CFE has now become a sure thing."
> 
> (this is my opinion only after getting the facts)




Thanks MR, I thought this was a great compnay, Ding's deal certainly was frustrating and annoying, but I too wondered whether Ding may turn up again (post 541), he obviously needs the resources, this site doesn't have many location issues, its on the coast, large, energy and rail passing through....what else do you want....true, higher grade ...but if prices keep going up the grade becomes less of an issue IMO.


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## dogwithflees1983 (16 November 2007)

Great post Mr.

I too own CFE shares and have also become quite dismayed recently with the southerly progession of its SP. I too feel the stock is undervalued, given the high iron ore prices. 

I'm holding, and hoping that the next 6 months will see CFE back around 70-80c mark


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## MR. (20 November 2007)

1) Who bought 10% of CFE for $0.76 per share as CFE asx release 14/11/07 ?

2) Why has Best Decade / Ding Liguo raised S$220,000,000 in the past week?

Are these forums only for ramping bull ****?


----------



## mas888moe (23 November 2007)

Finally some good news for CFE:

Check out the results of the helimag survey:
http://www.asx.com.au/asx/statistic...fe&timeFrameSearchType=D&releasedDuringCode=W


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## MR. (29 November 2007)

Is anyone going to the AGM tomorrow?

- Best Decade has raised US $100+ million and on the same day (as it appears to me) 12/11/07 someone/some group, bought approx 10% of CFE at a (or an average) price of $0.76 each. The highest closing price CFE has achieved ever happens to be that same price at $0.76 on the 22/6/07. 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3E1DA0EB1138F7B74825738F00261CBC/$file/EB.pdf?openelement
http://www.asx.com.au/asxpdf/20071114/pdf/315trvw3tf7q1k.pdf

- As per the OCBC report dated 1/10/07 as posted on Aussie Stock Forums on 3/10/07 the bank expected Delong to retain approx 30% of CFE and not 70%. The original contract of 70% was 240 million AUD which equals $103 million AUD for 30%. Also still not out of the question now.

.................................
"Danube" posted on HotCopper 09:44 5/9/07
Mr Ding and Delong both knew that it will be the Delong to purchase the 70% of the Cape Lambert Project a few months ago when it has raised US$200m, who only change the purchaser right on the day of first payment due? One logic explanation is Mr Ding want it for himself at first place, but failed to raise US$190m by himself. At the same time, he used the Delong's easy access to the debt market, raise enough money as Plan B.
..................................

Any opinions? Perhaps I am wrong... The share price is not giving me much support.....


----------



## Santoro (7 December 2007)

MR. said:


> 1) Who bought 10% of CFE for $0.76 per share as CFE asx release 14/11/07 ?
> 
> 2) Why has Best Decade / Ding Liguo raised S$220,000,000 in the past week?
> 
> Are these forums only for ramping bull ****?




MR. This one seems to be slowly gaining momentum, the bollinger bands were narrowing....looks to have some interest of late.....up 7.5% today on no news


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## Lachlan6 (7 December 2007)

I Entered the other day at $0.40. This looks good for a nice bounce at these levels. If still looking to enter, stop can be placed at $0.35. Three corrective waves down since June.


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## MR. (8 December 2007)

I guess you win some and you lose some.
Chartists appear to like what they see and yep, the share price finally closed at a better level.  

But its back to the farm for me. :bonk:


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## Real1ty (13 December 2007)

So i have been reading this thread and it seems that once the deal fell through, everyone has stopped posting and has no input on this stock anymore?

Aren't drilling results due out about....now?


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## jman2007 (16 December 2007)

Well yes and no,

Possible sp triggers will be any potential resource upgrade, but that isn't due out for at least 2-3 months, arguably 40c could provide a good entry level between now and then.  Probably a lot of people sitting on pretty reasonable losses atm, I imagine they'll be waiting until early next year to see what transpires.


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## Go Nuke (16 December 2007)

jman2007 said:


> Well yes and no,
> 
> Possible sp triggers will be any potential resource upgrade, but that isn't due out for at least 2-3 months, arguably 40c could provide a good entry level between now and then.  Probably a lot of people sitting on pretty reasonable losses atm, I imagine they'll be waiting until early next year to see what transpires.




Well that would be about right from my point of view.
I bought in at a higher price than where it is today but the resource they have hasn't changed, just that the deal fell through.

As long as iron ore stays popular for awhile longer and hopefuly CFE can upgrade their resource in the future, then we should see the sp begin to rise again.


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## Real1ty (16 December 2007)

Next drilling results are due end of January.

I would think in the current environment we are in that there is a fair downside still to come for these type of potential producers.

I will be waiting for some news before i consider entering again.


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## enigmatic (27 December 2007)

Has anyone got any reason for Cape Lambert continue downward trend over the last few weeks. Even though nothing really has changed. 
new to investing and trying to get an understanding, is it got to do with the lack of recent news. 
I was also wondering if anyone has heard any news on the investment front do they have any new interested investors.
final question how positive do you think the drill results would have to be to push the sp back to pre Mr Ding collapse


----------



## jackson8 (27 December 2007)

enigmatic said:


> Has anyone got any reason for Cape Lambert continue downward trend over the last few weeks. Even though nothing really has changed.
> new to investing and trying to get an understanding, is it got to do with the lack of recent news.
> I was also wondering if anyone has heard any news on the investment front do they have any new interested investors.
> final question how positive do you think the drill results would have to be to push the sp back to pre Mr Ding collapse




probably due to a number of factors .... overall market is down....waiting for results from further drilling.... feasabilty study due 2nd or 3rd quarter which is fair way of yet....also with all haematite projects coming into production soon re fmg gbg ect. magnetite projects with their higher establishment and operating costs comeing in second best to large haemitite producers.

there is plenty of haemitite to mine yet so others could be longer way of and investors and traders like to see short term results so sp his heading sth and possibly breaking support levels


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## Real1ty (27 December 2007)

enigmatic said:


> Has anyone got any reason for Cape Lambert continue downward trend over the last few weeks. Even though nothing really has changed.
> new to investing and trying to get an understanding, is it got to do with the lack of recent news.
> I was also wondering if anyone has heard any news on the investment front do they have any new interested investors.
> final question how positive do you think the drill results would have to be to push the sp back to pre Mr Ding collapse




jackson8 answered your first part so i will handle the second part.

Mr Ding was going to put 280Million into CFE.
That is the only reason the share price got to where it did.

The board have stated they want to know what they have before they consider any proposals.
They have also acquired the adjacent tenement and will be drilling there.

They have an independant report confirming 300MT and while good drilling results could help the stock i'm not sure you would see those same prices until a partner, T/O or investor got involved.

Just my opinion though.


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## enigmatic (28 December 2007)

Thanks thats about what i thought, just wanted to get someone else's opinion. 

I assume the sp will hover arround its current mark until the next drill results, I was reading somewere in this thread that it was 900Mt not 300Mt. 
Plus they also recently as in a few months ago found double the resources which was one of the reason why they ended up dropping Mr Ding, as he was getting twice as much resource for 40mil less (due to the value of the $US)


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## Real1ty (28 December 2007)

enigmatic said:


> Thanks thats about what i thought, just wanted to get someone else's opinion.
> 
> I assume the sp will hover arround its current mark until the next drill results, I was reading somewere in this thread that it was 900Mt not 300Mt.
> Plus they also recently as in a few months ago found double the resources which was one of the reason why they ended up dropping Mr Ding, as he was getting twice as much resource for 40mil less (due to the value of the $US)




That's not right.

In simple terms they don't know what they have got there yet.

They have over 900MT but that is at 32.4%fe.

All this info is contained in their reports.
You can find this particular info here

You are new to investing but you need to be able to understand some of this stuff so make sure you read the reports and if you don't understand something, ask.

They dropped Mr Ding because he was stuffing them around and had delayed them for ages until it became clear he wasn't going to come good with his end of the bargain.

All that other stuff came out later and wasn't any brilliant move by CFE.

Mr Ding had a contract and if he had of stuck to his end he would have received the extra.


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## enigmatic (28 December 2007)

Thanks yeah little new to all this stuff. just trying to learn the true value to companies assets. Will be following this one closely though. Have heard it has some good potential.


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## enigmatic (31 December 2007)

I was certain that my numbers werent completely off so i had myself a visit to there website and if you direct yourself to the Cape Lambert Project info it clearly states.

The resource is a JORC Code compliant resource of 2.5 billion tonnes @ 30% Fe (250 m depth & 25% Fe cut off) 1.4Bt Indicated Resource, 1.1Bt Inferred Resource. 

Although i do realise that this does have a cut off of 25% which is quite low. they do indicate several Higher grade targets. 
Think this one will have to be put in the vault atleast until the BFS is completed


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## TheAbyss (21 January 2008)

Announcement out today. Main piece of news for me is a resource upgrade by the end of month.

Resource upgrade imminent at Cape Lambert Iron Ore Project asaggressive drill program continues to yield high grade results Golder Associates on track for completion of resource update at Cape Lambert Iron Ore project by the start of February 2008, Resource update is based on aggressive 2007 drilling program - 65 Reverse Circulation (RC) drill holes out of a total 88 completed in 2007 used in the update. All drill holes could not be used due to slow assay turnaround,Results from 2007 drilling has confirmed that significant magnetite mineralisation exists within the Northern Extension Area and is located in broad, moderately shallow zones,Recent Davis Tube Recovery (DTR) results from drilling at the Northern Extension Area of the project include MA427, 104m (from 76m) at an average DTR recovery of 28% mass to concentrate with a concentrate grade of 69% Fe and 3.8% silica,oMA424, 88m (from 96m) at an average DTR recovery of 27% mass to concentrate with a concentrate grade of 69% Fe and 3.7% silica,oMA423, 96m (from 120m) at an average DTR recovery of 26% mass to
concentrate with a concentrate grade of 67% Fe and 3.5% silica,RC and diamond drill rigs are currently working at the project, with results from this drilling and the remaining holes from the 2007 drilling program to form the basis of a further resource upgrade in June 2008 quarter.Iron ore exploration and development company, Cape Lambert Iron Ore Limited (ASX: CFE, AIM: CLIO) remains on track for a resource upgrade at its 100 per cent owned Cape Lambert iron ore project, located in the Pilbara region of Western Australia (refer Figure 1), by February 2008.


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## Go Nuke (21 January 2008)

Yeah you would think the sp couldn't go backwards from here???

I would have thought .30c rather cheap for what CFE has under their belt in reguards to resources of iron ore.

They seem to be some pretty good grades.

I don't know much about what makes a company "good value" but if anyone can agree or disagree with my thoughts please do so

Good luck holders...this one own me yet


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## TheAbyss (30 January 2008)

Looks like the 59% resource upgrade has been met with some enthusiasm. 18% increase in SP today.

Looking back through the threads i haven't been able to locate an analysis on this stock regarding a SP valuation to resource. Has anyone put anything together that could be posted?


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## jman2007 (30 January 2008)

Yeah lets hope this one goes gangbusters

On the face of it this looks like a great result for CFE, with a 59% increase in the resource, crucially however, 63% of the rsource is now classified as indicated which will allow meaningful economic and other studies to commence. Haven't come across any t/a for this stock yet, probably due to the prior lack of knowledge and geoloical understanding possibly.

Being more of a gold man myself, does anyone know what the grade of 31.4% amounts too?.... I might hazard a guess and say this is average grade, but fully prepared to be corrected on this.

jman


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## moneymajix (30 January 2008)

*Cape Lambert looks to bounce back *

28th January 2008, 8:45 WST


It has been a forgettable year for Cape Lambert shareholders and moves are afoot for a much-improved 2008. 



http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=56146



+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++


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## TheAbyss (14 February 2008)

Market seems to like the latest CFE announcement (highlights below).

Key points for me are

1. 66.4% Fe and 4.8% silica with greater than 91% Fe recovery
2. Incremental capital expenditure to install a reverse flotation circuit is estimated at less than 5% of the Concentrator facility capital cost 
3. 1.56 billion tonnes @ 91% is a decent amount of saleable product


14 February 2008 The Company Announcements Office 
ASX Limited Via E Lodgement METALLURGICAL TESTING CONFIRMS REVERSE FLOTATION SILICA REDUCTION STRATEGY AT CAPE LAMBERT HIGHLIGHTS · Reverse flotation, silica reduction metallurgical test program completed at the Iron Ore Processing Research Institute, Liebenburg Germany, · Very positive test results with worst case, primary concentrate silica levels reduced from 8.3% to 4.8% with greater than 91% iron recovery (i.e. minimal loss of Fe units), · Further reductions in primary concentrate silica levels anticipated with test work optimisation and the use of pneumatic flotation rather than conventional tank flotation, · Incremental capital expenditure to install a reverse flotation circuit is estimated at less than 5% of the Concentrator facility capital cost, with minimal impact on operating costs, · Reverse flotation combined with mine planning to blend lower silica and higher silica ore sources delineated within the Cape Lambert resource provides a high level of confidence that saleable concentrate of less than 5% silica can be routinely achieved. Cape Lambert Iron Ore Limited (the "Company" or "Cape Lambert") (ASX: CFE, AIM: CLIO) has recently received very encouraging metallurgical results from a test program aimed at reducing the silica content in iron ore concentrates to be produced from its 100% owned Cape Lambert iron ore project (the "Project"), located in the Pilbara region, Western Australia (refer Figure 1). 

The Company has recently announced a JORC compliant resource of 1.56 
billion tonnes grading 31.2% Fe, with a further resource upgrade scheduled to be announced in the June 2008 quarter. Reverse flotation testing was undertaken at the Iron Ore Processing Research Institute, Liebenburg, Germany to determine whether a worst case primary concentrate containing 8% silica could be improved by reducing silica levels to below 5% (suitable blast furnace pellet feed). The tests showed that by employing reverse flotation a worst case primary magnetite concentrate produced from the Cape Lambert resource assaying 63.1% Fe and 8.3% silica could be improved to 66.4% Fe and 4.8% silica with greater than 91% Fe recovery (i.e. 
minimal loss of Fe units). Importantly, the tests were conducted on 50kg of concentrate produced from a 150kg composite sample utilising the proposed Cape Lambert flow sheet. Cape Lambert Executive Chairman Ian Burston said "We are was very pleased with the outcome of this test work that has been conducted by two reputable and independent metallurgical testing institutes and has shown that a worst case concentrate containing more 
than 8% silica can be improved to less than 5% silica with reverse flotation." He further added "These results confirm the Company's view that it will be able to produce a saleable final concentrate at less than 5% silica, which is suitable for blast furnace pellet feed."


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## TheAbyss (18 February 2008)

Up 17% today. Not certain as to whether it is the announcement last week, the 65% increase to the ore price or something we dont know about yet.

Either way buyers have lined up. 66 buyers for 3,015,804 units  60 sellers for 1,517,665 units


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## MR. (19 February 2008)

Yesterday afternoon Delong Holdings went into trading halt. (Delong is mostly owned by Best Decade which is mostly owned by Ding Liguo whom failed at the payment to buy 70% of CFE for 192M USD) 

Today Delong on the SINGAPORE stock exchange announced that Best Decade is selling 10% of its holding which totals approx $200M AUD with an option for the purchaser to buy more from Best Decade for a total of approx $600M AUD. (could this 200 be to purchase that 70% of CFE and the 600 to fund the developement of the mine in the future?)   Whatever!...  
Its just pure speculation........

http://info.sgx.com/webcoranncatth....ossibleOfferAnnouncementFINAL.pdf?openelement


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## enigmatic (19 February 2008)

It would be nice though i dont think that CFE are going to sell them 70% for $A200m
if they were going to sell it for $US192m thats a bit of a discount now that they have confirmed twice the ore and are expected to increase this in June/July.


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## dogwithflees1983 (19 February 2008)

Good to see CFE share price on the rise in consecutive days. I bought in a while back now, and saw it rise to its dizzy peaks of 80c before it crashed and burned when Ding failed to payup.

Is is still worth holding?? 

Cheers


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## MR. (19 February 2008)

Depends on what you know that the rest don't.

I told you what I know and if you want me to add "I don't own any CFE shares or options".

So is it worth BUYING, holding, or selling? Itchy Dog.......! 
What can you tell me.


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## TheAbyss (19 February 2008)

My view is that the volumes have been pretty good for the last few days (approx 5 million units a day). If CFE can get a close above 45c on similar volumes i will get a few more. until they close over 45c it could go either way in my view.


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## dogwithflees1983 (19 February 2008)

Cheers for the input

Just sold out at 41c, could jump back on depending on how CFE share price travels over the next few days.

Goodluck


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## Go Nuke (19 February 2008)

I paid about 70+c ages ago, so CFE ows me big yet.

But as ive said previously, the Iron Ore is in the ground and pretty much proven..so guess i'll have to wait

But yes...I'm happy to see the sp creep up too.
Its probably just on the back of the increase iron ore prices and a near conclusion that with CFE's resource they will get dug outa the ground one day.


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## TheAbyss (20 February 2008)

Looking interesting. Sp still on the improve and i am hopeful of a close above .45 cent mark today. 109 buyers for 3,459,621 units  55 sellers for 1,235,991 units


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## enigmatic (20 February 2008)

what I have taken out of that announcement made on the 14th is that they have confirmed they are no longer looking at a 5-7Mta plant they are definitely considering a min of 15Mta.
If it was valued at 80c back at under 15Mta by the market then wonder what its potential is now


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## dogwithflees1983 (21 February 2008)

It has been a great week for CFE...SP just keeps on climbing. Think i sold out too early 

Goodluck to all those holders


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## shaunm (22 February 2008)

Would anyone like to hazzard-a-guess why Cape Lambert is now in a trading halt.....no announcements on the news section??


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## Real1ty (22 February 2008)

shaunm said:


> Would anyone like to hazzard-a-guess why Cape Lambert is now in a trading halt.....no announcements on the news section??




I think it will be the sale of a % of the project.

There were rumours of it last week or so and this is where the sp appreciation of late has come from imo.


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## enigmatic (22 February 2008)

Does seem a bit odd the sp moved up recently with no real expectation of news. guess we will have to wait till tuesday.


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## smoothsatin (24 February 2008)

Real1ty said:


> I think it will be the sale of a % of the project.
> 
> There were rumours of it last week or so and this is where the sp appreciation of late has come from imo.




That's precisely what will be announced. Apparently the buyer is one of the orginals whom they were negotiating with before singing with Ding.


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## Real1ty (25 February 2008)

> Iron ore brings Chinese to Cape Lambert
> 
> CHINESE interests are this week expected to step up their investments in the booming Australian iron ore industry, partnering junior iron ore hopeful Cape Lambert in what is tipped to be a multi-million-dollar deal.
> 
> ...



http://www.theaustralian.news.com.au/story/0,25197,23268160-5005200,00.html
I wonder if the sp will jump up near it's last high or if it a lot has been built in now after the rise over the last week.

Good news for holders


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## chansw (25 February 2008)

http://www.rttnews.com/sp/Quickfactsnew.asp?date=02/25/2008&item=32

*Cape Lambert, China Metallurgical Group Sign MoU For Sale Of Iron Ore Project For A$400 Mln - Quick Facts [CLIO.L]*

2/25/2008 5:27:45 AM Monday, Cape Lambert Iron Ore Ltd. (CLIO.L) said it has signed a memorandum of understanding with Chinese conglomerate, China Metallurgical Group Corporation, or MCC, for the sale of the company's namesake iron ore project in the Pilbara region of Western Australia for a total consideration of A$400 million.

Cape Lambert said that the key terms of the proposed sale have been agreed upon. 

As per the terms of the memorandum of understanding, or MoU, MCC has secured an exclusive right until April 30 to conduct due diligence for the acquisition of the project. The proposed sale is subject to the successful completion of due diligence by MCC, approvals by Cape Lambert shareholders, FIRB and the Chinese government.

Cape Lambert added that MCC has paid a deposit of A$10 million, with A$5 million of this being non-refundable if MCC withdraws from the sale. The entire deposit will be offset from the sale consideration when MCC complete the acquisition of the project.


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## chansw (25 February 2008)

CAPE LAMBERT IRON (LSE:CLIO.L)   

Last Trade: 33.00 p 
Trade Time: 12:22PM  
Change:  10.00 (43.48%) 
Prev Close: 23.00 
Open: 22.50 
Bid: 33.00 
Ask: 35.00

It should be a very strong day tomorrow for CFE


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## enigmatic (26 February 2008)

Good news for CFE although thought it would of responded better especially on a good day. Come April if this does go through
you have a $134mil Mkt cap company with $240million in April with another 160mil to come.


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## Go Nuke (26 February 2008)

Hahaha what a laugh the market is!

The DOW is up nearly 200 points, and CFE gets smashed today!

I guess the announcement must not have been as good as what some people had obviously heard before the rest of the world heard about it

I thought 50c would have been good support..but it wasn't to be.

Lets hope this doesn't turn into another Ding fiasco.


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## Real1ty (26 February 2008)

IMO this is disappointing news.

Sure it is a big cash injection, assuming the deal goes through, but they sold the whole thing now, so they have to start again, almost.

From the way they are talking i have a feeling they see their chances as better off offshore, maybe in Africa.

I haven't researched this properly yet but they still hold a tenement and that may well be a very good proposition, considering it will be next door, so will not need a massive capex.

The following is merely conjecture on my part but i wonder if a CFE/SDL merger/JV would be a possibility.

SDL have the ore and CFE have cash although not enough, but a really good start.

I think there is more than meets the eye here.


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## enigmatic (26 February 2008)

I think it was the ones that believe in the stock that were buying alot, with those that had bought in arround 30c or a little higher just wanting to take a profit and run as there confidence is lacking after experiencing Ding. 
Once April comes and the money is in the bank then there should be less people wanting out on quick profit and more wanting in for the duration until the mine is up and running.

this is my thoughts i suggest DYOR.


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## mayk (26 February 2008)

Does this mean CFE should have a share price of $400M(sold at)/252.22M( shares) =$1.58.

At least it can go up to 1.00 ( conservative ) till april. I am new to stock and bought this one at .65 ( near all time high a while back..). Am I reading this right?


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## BSD (27 February 2008)

No, you need to account for the options and restricted stock. 

About 500m total shares fully diluted from memory.


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## mayk (27 February 2008)

So then a fair value will be 400M/500M = 80 cent? 

A conservative 70 cent will be a good price then?


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## TheAbyss (27 February 2008)

Currently, fuly diluted CFE are worth $210m. They have been offered $400m. This values CFE at 90 cents per share. The reason the sp hasnt gone to that level is in the recent history of CFE, the Ding deal fell over and people are wary. 

There are positives since then in that they have,

1. Banked a $10m deposit of which $5m is non refundable in the event of CMG pulling the plug

2. CFE have dispelled doubts on the projects potential (Silica announcement)

3. They have increased the resource

4. CFE management are a tougher breed today after their learning curve at the hands of Ding and co

This removes most of the apparent reasons for the deal falling over imo.

All we need to eventuate now, as has already been said, is some cash to be put into CFE bank account and 90 cents per share will be the new level. 

Use the recent bid for AGM as a baseline for this. AGM sat at $1 throughout the recent turmoil and is now at $1.10 based on the math of their offer. CFE will do the seem if all the ducks behave and stay in alignmemnt re the deal that is currently on the table.

Plenty of press out there confirming this i am sure.


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## blues (27 February 2008)

http://www.theaustralian.news.com.au/story/0,25197,23281772-5005200,00.html

Chinese bid big money to hold Pilbara

Andrew Trounson | February 27, 2008

CHINA is ramping up its effort to secure Australian mining assets with state-backed conglomerate China Metallurgical Group set to buy all of mining junior Cape Lambert Iron Ore's namesake project in Western Australia's Pilbara for $400 million.

The price, if fully realised, would be a boon for Cape Lambert, which on a fully diluted basis is valued on market at $210 million.

But the iron ore-hungry Chinese have offered to pay a substantial premium for the low-grade project to avoid sparking a possible takeover fight that could potentially complicate foreign investment approval.

The proposed investment will provide an immediate test of the federal Government's new guidelines on approving foreign investment which require state-owned investors to demonstrate that they operate at arm's length from their government.

But the news failed to ignite Cape Lambert shares as investors remained wary of the deal, which remains subject to due diligence and investment approvals in both China and Australia.

Cape Lambert shares gained 1.5c to 49.5c, despite chairman Ian Burston estimating that the deal valued the company at around 90c a share.

But Cape Lambert shareholders have been disappointed before. The company has long been seeking a partner for the $1 billion project, and last October it was left at the altar when Chinese businessman Ding Liguo couldn't deliver on a $US192.5 million deal to take a 70 per cent stake in the project. That disappointment caused the share price to slump from almost to 70c to just 25c in January.

But since then, Cape Lambert has released test work showing that contaminating silica in the beneficiated magnetite iron ore can be reduced sufficiently to produce a saleable product.

It has also increased the current resource to 1.56 billion tonnes trading 31.2 per cent iron as it closes in on its target for a 2 billion tonne resource.

Cape Lambert is seeking to develop a 15 million tonne a year operation with a 20-year life. Production would be piped out to an offshore platform and barged to ships. However, China Metallurgical might seek access to its Cape Preston iron ore port development 80km away -- part of its partner Citic Pacific's Sino Iron Ore development.

Mr Burston believes the market scepticism will dissipate once the first cash payment from China Metallurgical comes in, although that is unlikely to be before June.

"Once the first money goes into the bank account, then there will be a rerating of the company and I would think that (valuation) gap would close and even disappear," Mr Burston told The Australian.

A shareholder vote on the deal is expected in May after necessary approvals, and if China Metallurgical commits it will pay $240 million on settlement and a further $80 million within 60 days. A final $80 million payment is contingent on it being granted a mining lease, and that could be a year off.


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## enigmatic (27 February 2008)

Found this on the Businessspectator.com.au



> By Hsu Chuang Khoo of Reuters
> 
> LONDON -- Australian exploration firm Cape Lambert Iron Plc plans to invest about $170 million ($US158 million) in an African iron ore asset by June, chief executive Tony Sage told Reuters.
> 
> ...




Any thoughts into this and if this will be a good thing for CFE.
just trying to make sense of why the sp has dropped after the more then expected good news.


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## petervan (27 February 2008)

My feeling on this is it,s the big boys holding it on a leash and picking up as much as they can.400 mill cash in a credit squeeze, give me a break they should be heading north


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## Porper (27 February 2008)

petervan said:


> My feeling on this is it,s the big boys holding it on a leash and picking up as much as they can.400 mill cash in a credit squeeze, give me a break they should be heading north




Does seem a bit strange the big rejection of higher prices.

If we hold above 0.39, and consolidate around the low 0.40's for a while it will have great potential. Can't go below 0.39 though.


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## shaunm (27 February 2008)

_By Hsu Chuang Khoo of Reuters 

LONDON -- Australian exploration firm Cape Lambert Iron Plc plans to invest about $170 million ($US158 million) in an African iron ore asset by June, chief executive Tony Sage told Reuters. 

*The London-listed firm also plans to return about $100 million to shareholders *following the sale of its Western Australia-based Cape Lambert iron ore project to Chinese government construction firm China Metallurgical Group Corp, a sale that will raise $400 million. _


Are they talking a dividend here?


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## TheAbyss (29 February 2008)

Volume slowly ticking up on CFE and a good close today. Sellers slowly dwindling and buyers increasing. if it wasn't for the failed Ding deal i think this would have already been rerated for the MCC sale.


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## TheAbyss (10 March 2008)

The CFE Sp continues to remain firm despite market conditions. I have attached a link below which sheds some light on why MCC are prepared to pay almost double the current market cap for CFE. 

CFE will increase in the weeks to come as we draw nearer to the 

Link to todays press story - http://www.theaustralian.news.com.au/story/0,25197,23345892-5005200,00.html

Link to recent announcmeent which includes a summary and time line for the coming few months -  http://capelam.com.au/aurora/assets/user_content/File/ASX0334_Presentation_070308.pdf


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## powerkoala (18 March 2008)

there is an article in herald sun that mention about potential takeover target for cfe. what is other ppl opinion regarding this news ?
holding up nicely when others are down.
now at 52c with buyers looks strong.
good luck all holders.


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## Porper (18 March 2008)

powerkoala said:


> there is an article in herald sun that mention about potential takeover target for cfe. what is other ppl opinion regarding this news ?
> holding up nicely when others are down.
> now at 52c with buyers looks strong.
> good luck all holders.




I think it looks strong, seems like there has been accumulation going on in a weak market.Yesterday being especially strong i.m.o.

There was a big rejection of higher prices around 0.60, so see what happens when it starts heading towards there.

At work so can't post a chart, maybe later.

I hold.


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## Trader52 (22 March 2008)

This one moved up on Thursday against big drops in general market, always a good sign.

There is still some caution as previous deals have fallen over, and this one has to make it through some hoops yet.  But the current SP undervalues the stock *IF* the deal goes through.  I guess I am speculating that the deal will go through and the full value will be reflected in the SP within a few months.

Disclosure - I hold CFE.


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## shaunm (27 March 2008)

Things are looking good in the SP department! 60 cents was a nice peak yesterday.
What are your thoughts on the immediate future for the SP and company generally......anyone?


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## Go Nuke (27 March 2008)

Well im unsure of what announcements are coming up but i wouldn't be suprised to see a bit of a pull back in the share price simply due to the good consecutive rises over the last week.

Possibly back to 52c IF it does pull back.

60c has proven as support and resistance in the past so it will be good if we can get a solid close over 60c imo.


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## TheAbyss (27 March 2008)

CFE will continue onwards and upwards circa 90 cents per share based on the $400 m buy offer of MCC alone. The only reason it isnt there already is the failed attempt to sell to Ding last year (imo).

There is plenty of information regarding timelines etc howver April 30 is the key date for me as that is the end of the due diligence period. Once that is signed off the rest should be plain sailing.

Take a look at the attached analysis for an outline of what is transpiring at the moment and you will see the reason for the sp increase. It shouldnt retrace without some news to precipitate things imo. Anything to do with the buy out failing will see the sp collapse otherwise it will maintain its steady upwards course.

If you are interested in holding longer you can speculate on what they  purchase a stake in for their next play.

PS: The attached analysis is not an independent view and is putting CFE in the best possible light so DYOR.


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## lazyfish (27 March 2008)

Does anyone know how much tax they will have to pay? Also, does anyone work in FIRB and know whether MCC has applied?


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## Go Nuke (27 March 2008)

> If you are interested in holding longer you can speculate on what they purchase a stake in for their next play.




Hmm well I paid 75c for CFE then bought on the way down, so I'll just be happy to start using stops once it gets up past this level

Slowly and painfully im learning this game is all about *protecting Profits!*


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## mayk (28 March 2008)

I got in at 65cents.   I was tempted to sell this stock in Jan but luckily kept it. 


Yeah I am starting to be become a fan of trailing stop losses. now if ADY, SDL and GBG can retain their previous highs  . Worst part for me was entering the market during last bull run in Sep, OCT last year...


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## TheAbyss (28 March 2008)

CFE sp has been sneeking up slowly on approx volume per day of around 2 million units. 

On the strength of their market update buyers are at last ahead of the sellers (101 buyers for 2,108,317 units  82 sellers for 1,895,785 units) with the volume over 4 m today. Up until nopw it has been around 1.5m buyers to 2.5 m sellers.

Market update looked ok and certainly no bad news. Up another 5% on a slow day.


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## JMcDog (28 March 2008)

Would it be reasonable to conclude that the due diligence is proceeding really well given that they have moved on FIRB approval?  My understanding is that this process is expensive (maybe chicken feed to these guys!!!) circa $1M.

Confidence in this is increasing.

Cheers, JM


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## TheAbyss (28 March 2008)

volume is triple what it usually does so the firb application may have convinced a few that have been sitting on the sidelines. Even at 65 cents a unit you stand to gain around 35-40% on your money if the deal goes through which it is looking like doing based on todays announcement.


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## MR. (28 March 2008)

lazyfish said:


> Does anyone know how much tax they will have to pay? Also, does anyone work in FIRB and know whether MCC has applied?




Giday again Lazyfish. 
Yes tax needs to be paid. That $0.90 drops down to about $0.76 per share fully diluted when the percentage  "CFE calculated last time is used." (Thats what I concluded anyway a month ago) Its hard to know what deductions their using against the sale. Standard company tax (that is 30%) drops that $0.90 down to $0.63 IF that is used?

See the following from *"that"* meeting 16/7/07. Page 8, (1.5) *Tax paid on 250 million AUD was est' $55,000,000 AUD + some other expenses.*
http://www.asx.com.au/asxpdf/20070621/pdf/3131vd90v6dt98.pdf

I guess todays ann' answers the FIRB question. And "by the way" one of the times I questioned the FIRB last year, I was told *"the application is free"  * "They don't charge" JMcDOG. 

Isn't it funny within days of Ding Liguo (best decade) selling out of Delong Holdings, CFE signs a MOU with MCC. I find it also funny that the transferr of shares for what 10% of the company a few months back off market was at what price? $0.76 and that happened within days of Ding Liguo raising money from Citigroup. Check out the dates on Delongs website and CFE's. 

Disappointed CFE sold the mine "to most likely start over in Africa". Not good to see the share price run up (again) before the announcement prior to the sale. I do not own any CFE CFEO shares and have not this year.  

Go Nuke,  This is such a awful game. Good to see you can get your money back. I own GRR (Grange Resources) and losing like the best of us. At least its cleaner cut. DR Pellets will be in such demand.


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## Porper (31 March 2008)

Porper said:


> I think it looks strong, seems like there has been accumulation going on in a weak market.Yesterday being especially strong i.m.o.
> 
> There was a big rejection of higher prices around 0.60, so see what happens when it starts heading towards there.
> 
> ...




Thought an update appropriate.

Well 0.60 came and went with good buying ploughing straight through the previous resistance.We are now in a wave 5 with projections for the end of this wave around the 0.80 area with a date around the 08th April.

A general guidline with Elliot Wave is if the volume is high heading to the projected wave 5 high, we may well be in an extension of that wave.We are at the point of termination of a usual wave 5 high now, volume is strong as was todays price action, so we should move on up to that 0.80 area, we'll assess it from there if it happens.


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## lazyfish (1 April 2008)

MR. said:


> Giday again Lazyfish.
> Yes tax needs to be paid. That $0.90 drops down to about $0.76 per share fully diluted when the percentage  "CFE calculated last time is used." (Thats what I concluded anyway a month ago) Its hard to know what deductions their using against the sale. Standard company tax (that is 30%) drops that $0.90 down to $0.63 IF that is used?
> 
> See the following from *"that"* meeting 16/7/07. Page 8, (1.5) *Tax paid on 250 million AUD was est' $55,000,000 AUD + some other expenses.*
> ...




Hmm thanks Mr., that was very useful.  Ian always says that things are too slow in Australia, and that there is no more 'elephants' here. Oh well...


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## shaunm (2 April 2008)

It looks like today was profit taking day. Actually quite a number of my holdings are down on an "up" day; go figure!?!?


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## Go Nuke (2 April 2008)

Buyers have lost control by the looks as the sell side is pretty heavy today.

I suspected this might be the case when we closed down yesterday after such a good run.

Lets see if 60c holds.

On a side note, as a relative beginner I learnt something new today...

Ages ago i bought a very small parcel of CFE at 75c (glad it was small now) and held then. I also bought more at 50c.

So today I thought about selling out the lot that i bought for 50c and take a small profit...BUT I wasn't able to with Commsec becasue I _need to hold more than $500 of the stock after i sell._

Basically I would have probably taken a loss over all if I sold all my shares in CFE today.
The worst part is, i can get Commsec to sell them over the phone for me (just as i could do in front of a computer) but then of course they slug you extra for doing it over the phone. *What a RIP off!*

Looks like Im in for a longer hall yet till I can at least break even with with 75c lot of CFE shares.


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## Porper (2 April 2008)

Go Nuke said:


> Buyers have lost control by the looks as the sell side is pretty heavy today.




The big buyer / buyers have dried up, and if you look at the very low volume, sellers were able to push the price down.I would be much more worried had we had a breakeven day on high volume.

I don't think we have seen a short term high yet, we may consolidate aroud 0.60 before another push up i.m.o.Look for volume increasing for a tell tale sign, but we could get down to 0.50 and still be bullish, rather it didn't of course, but sideways is my bet, then up.

If you are holding a nice profit, nothing wrong with adjusting the stop right up to lock in a nice profit but I am staying in with a relatively wide stop and see what develops.

I hold.


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## shaunm (8 April 2008)

At 1.5 mill volume seems OK and the high 60's is a nice place to be.

I was reading the time line in the report and wanted to ask if anyone can project forward assuming all goes to plan and the sale is passed.
Apart from the share price increase, what would a succesful sale mean for holders? Do we still retain the shares, are they bought by the new owner, do we receive a dividend from the "cashed up" entity, anything else?


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## Go Nuke (9 April 2008)

wow some HUGE orders went through after the close today of the likes $161K and over $100K.

I was really suprised to see it take out 70c again!

Though i'm a bit lost. What is it we can expect to happen to the share price as the date for this deal (end of this month right?) gets closer?

Do people think it will continue to rise? Why?

I'm thinking of selling at around 78c with was about the highest the sp got in June 07.


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## shaunm (11 April 2008)

There's quite a big cue of sellers building up at the moment 39 selling 1.85 mill from 68 thru to 70 cents. Is something going on that is not apparent. Mind you this thread has been quite quiet for a little while....hello out there!


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## enigmatic (11 April 2008)

Very new to the stock market but i assume its just traders cashing in on a profit. the sp is starting to move into what would be its true worth at the current moment if the deal falls through then its going to drop so if your not a risk taker then i guess you would be taking the profit. Good time for those who think it may hit 90c -$1 to get in to make more money.


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## Porper (11 April 2008)

shaunm said:


> There's quite a big cue of sellers building up at the moment 39 selling 1.85 mill from 68 thru to 70 cents. Is something going on that is not apparent. Mind you this thread has been quite quiet for a little while....hello out there!




It has come to a bit of a halt, 0.70 was under fire a couple of days ago, but sellers swamped the buyers the next day.

I sold out this morning,mainly because my time analysis had a high happening around the 08th April, and we are at a typical wave 5 area although I did think 0.80 was realistic in this move,(an extended wave 5) but not to be. Nothing wrong with taking a nice profit in this environment.

I am still bullish, but short term there is some scope for a return to around 0.60.I will get interested when 0.70 is taken out on strong volume, hopefully with a target of 0.90.

CFE has been a nice tradiing stock, long may it last.


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## TheAbyss (11 April 2008)

Very low volume at the moment so i wouldnt be concerned. If someone had bad news they would be selling at market rates and leaving the table. The sellers list is building as traders attempt to lock in profits as you rightly state however they are not getting the % profit sought hence the low volumes. Doubt very much that it is bad news imo.

Bear in mind that the purchase price of $400 million for the Cape Lambert Project is worth 79 cents per share alone plus they retain tenements (which have a 3km magnetic anomaly) and have $13 million in the bank. This adds to their value another 10 - 15 cents per share depending whose data you read. 

Presuming the deal gets done we are looking at a sp of around 90-94 cents (as per broker analysis). 

A long way to go yet as per their time line with 30 April the next key date which is when MCC complete due diligence and obtain govt approvals.


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## TheAbyss (15 April 2008)

TheAbyss said:


> the purchase price of $400 million for the Cape Lambert Project is worth 79 cents per share alone plus they retain tenements (which have a 3km magnetic anomaly) and have $13 million in the bank.




CFE have confirmed that the sale is progressing well,

● Work is continuing on the Share and Tenement Sale Agreement, which is now expected to be finalised shortly after MCC completes its due diligence,

● On successful completion of the proposed transaction with MCC, the Board intends to follow an investment strategy to acquire assets at either company or project level. 

The Company has stepped up the review of new business opportunities whilst
assisting MCC with its due diligence.

CFE have retained exploration tenements. These tenements need a lot more work yet however the below indicates that there is a resource under the ground which should add significazntly to the CFE valuation.

Latest report suggests

*Exploration License Application 47/1493*

Reverse Circulation (“RC”) Drilling
The RC drilling program ended during the quarter. One RC rig demobilised late in January 2008, while the second RC rig demobilised at the end of February 2008. A total of 25 holes were completed during the quarter for an advance of 6,606m. To the end of this program and since acquiring the Project, the Company has completed 182 holes for a total advance of 55,671m.

The main focus of the RC drilling during the quarter was to continue to extend the resource beyond its known northern limits. Extension drilling within the Northern Extension Area (refer Figure 3) has shown that the mineralisation remains open to the north and northeast.

*Tenement EL47/1271*
The Mt Dickson Anomaly, which lies on tenement EL47/1271 (refer Figure 3), and corresponds with a distinct Banded Iron Formation (“BIF”) ridge, was drill tested with a single RC hole during the quarter. The drill hole, MA350, targeted the western portion of the anomaly and *intersected a 125m thick unit of BIF containing 2 zones of significant magnetite mineralisation *(refer Table 1). Mapping of the Mt Dickson Anomaly indicates that the BIF ridge is 1.8km in length and up to 300m in thickness in certain areas.


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## jman2007 (17 April 2008)

This could turn into quite an interesting story, at 79c CFE are practically valued at equivalent to their cash-backing, ie the cash value per share as TheAbyss pointed out, that's assuming the deal goes through of course. Although seems to be a fair bit of confidence emmanating from CFE in terms of the progress so far. Haven't been trading this myself, but well done to those who have, as it should have provided some nice returns, some good t/a being shared as well. Good stuff. 

jman


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## Go Nuke (21 April 2008)

Can anyone tell me what happened to the Global iron shares we were supposed to get?

I had them for a while then they disappeared

Even though they gave me so few that it wouldn't have even covered the brokerage to sell them.

Thx.
GN


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## Porper (25 April 2008)

> I don't think we have seen a short term high yet, we may consolidate aroud 0.60 before another push up i.m.o.Look for volume increasing for a tell tale sign.




Well we got the consolidation, although didn't quite get down to 0.60. also had the high volume (Thursday), 0.70 not broken yet though.  

Another possible trade here, or for you long termers it is looking more bullish.

I have ammended the count to being more bullish, we are in an extended wave 3, a break out of the wedge pattern on strong volume and we should head towards the mid 90's. on this move, before the larger degree wave 4 takes us back to where we are now before the wave 5 kicks in to take us to fresh highs.


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## lazyfish (26 April 2008)

I just read this article and think it might be of interest. Sorry guys but it does not look very positive.

http://www.news.com.au/business/story/0,23636,23594751-462,00.html

Highlight

_China Metallurgical is also believed to have been forced to stall its $400 million bid for Cape Lambert Iron Ore after lodging an application with FIRB last month._

I have no idea what Rudd had in mind. Anyone got more info on this?


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## shaunm (26 April 2008)

lazyfish said:


> I just read this article and think it might be of interest. Sorry guys but it does not look very positive.
> 
> http://www.news.com.au/business/story/0,23636,23594751-462,00.html
> 
> ...




Thanks for the article. Not positive but not negative either. A stall of the application is not a withdrawl and China Metallurgical would not have entered into this on a whim. I will hold even tho we may get some negativity on Monday.


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## chansw (26 April 2008)

lazyfish said:


> I just read this article and think it might be of interest. Sorry guys but it does not look very positive.
> 
> http://www.news.com.au/business/story/0,23636,23594751-462,00.html
> 
> ...




I have read that article as well but it did not quote the source of the information. The following article was published about a week ago. I think CFE will inform the market if there is any update on the project. I guess we just have to wait and see.

*Australia minister welcomes China mining investment*
Fri Apr 18, 2008 5:59am BST
http://uk.reuters.com/article/oilRpt/idUKSHA29691820080418?pageNumber=2&virtualBrandChannel=0&sp=true

SHANGHAI, April 18 (Reuters) - Australian Trade Minister Simon Crean said on Friday that the country welcomed foreign investment into its mining sector and was keen to expand its trade ties with China.

Crean said Australia was open to Chinese investment providing it was in his country's national interest, adding that he was particularly eager to expand mutual service and capital flows.

"Our foreign investment guidelines are non-discriminatory against any country," Crean said in a speech to the Australian Chamber of Commerce in Shanghai.

"It's also about Australian investment in China and improving market access. We have got to push for further liberalisation."

China's miners and steelmakers, which foresee a construction boom lasting decades and want to ease their reliance on resource sector heavyweights BHP Billiton (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research) and Rio Tinto (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research), are looking to buy mining assets in Australia to lock in supplies of raw materials such as coal and iron ore.

Crean's qualified welcome could be good news for Chinese investors such as Shenzhen Zhongjin Lingnan Nonfemet Co Ltd 000060.SZ, which is bidding jointly with Indonesia's PT Antam ANTM.JK for Australian miner Herald Resources Ltd (HER.AX: Quote, Profile, Research), *and state-owned MCC Mining, which has applied to buy a A$400 million ($375 million) iron ore project from Cape Lambert Iron Ore Ltd (CLIO.L: Quote, Profile, Research)*.

Other firms that plan to invest in Australia include top coal miners China Shenhua Group and China Coal Energy (1898.HK: Quote, Profile, Research) (601898.SS: Quote, Profile, Research).

But the government of Prime Minister Kevin Rudd has spelled out that no company judged to be the vehicle of a foreign state can buy Australian shares without approval from Australia's Treasurer, after a review by its Foreign Investment Review Board.

GOVERNMENT CLEARANCE

Earlier this month, China's No.6 steelmaker Shougang Group was rebuked by Australian regulators who judged it was behind two firms that were building up an large stake in Mount Gibson Iron Ore Ltd (MGX.AX: Quote, Profile, Research) without making a formal bid.

China's state-owned aluminium major Aluminum Corp of China teamed up with Alcoa Inc (AA.N: Quote, Profile, Research) to buy a $14 billion stake in Rio Tinto earlier this year, but it bought only London-listed shares, since buying the Sydney shares would need government clearance.

Investment bankers say Australia is likely to welcome Chinese investment if it means accelerating projects by building infrastructure and ramping up production targets, and China is keen to do so because the price of iron ore has jumped five-fold since 2001, while coal prices are more than twice last year's levels, powered largely by strong demand from China.

That has spurred Chinese steelmakers to band together to negotiate term iron ore prices, while Chinese ministries have on occasion intervened to limit spot imports.

"It's a commercial issue. No one likes to pay high prices," Crean told Reuters after his speech.

Crean added that he hoped to increase the frequency of talks with China over a free trade agreement, depending on the outcome of the next scheduled talks in June. The two countries signed an FTA framework in October 2003 and talks began in May 2005.

Australia, a top grains, meat and wool producer, is eager to get access to markets in China, which currently barely meets grains and meat demand for its increasingly affluent population.

But Australia does not want to be simply a resources supplier.

The talks would also focus on better access for Australian goods and services, non-tariff barriers, intellectual property rights and government procurement, Crean said, but added that no timetable had been officially set. ($1=1.067 Australian Dollar) (Reporting by Sophie Taylor; Editing by Tom Miles and Edmund Klamann)


----------



## jason2007 (27 April 2008)

The article "Australia says no block to China resource investment" mentioned CFE, worth having a look.     http://uk.reuters.com/article/oilRpt/idUKA581620080427?pageNumber=1&virtualBrandChannel=0


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## chansw (28 April 2008)

Today's business headlines
28-April-08 by Anna Moreau and AAP
http://www.wabusinessnews.com.au/en-story/1/62545/Today-s-business-headlines

Latest News


Territory abandons bid for Olympia, with 65% of shares - 28 Apr, 06:32am
Today's business headlines - 28 Apr, 06:28am
HBOS may launch rights issue: media - 28 Apr, 06:10am
Wall St: Futures rise as financials seen stabilizing - 28 Apr, 06:07am

*Cape's $400m China deal on track: chief 
WA mining hopeful Cape Lambert Iron Ore has rejected claims its $400 million deal with Government-controlled China Metallurgical Group Corporation (MCC) has been stalled by Australia's Foreign Investment Review Board. The West*


----------



## TheAbyss (28 April 2008)

Labour govt are so used to being a minority govt they ebb and flow with their view on what the publics expectation is. The sooner they make a stance and stick to it the better.

Anyway, if nothing else the chance to pick up some discounted stocks may present themselves from a few sellers who either need to lock in profits or are a little fearful which is understandable.

Latest form Senator Ferguson is below and the entire story is at 

http://business.theage.com.au/no-chinese-investment-barricade-ferguson/20080427-28vo.html

THE Government has not told Chinese investors to withdraw applications to invest in domestic commodity producers, says Resources Minister Martin Ferguson.

"There's been no suggestion that China or any other investor should back off," Mr Ferguson told ABC television.


----------



## Go Nuke (28 April 2008)

Wow..hold the door open for the bears this afternoon!

It was only some big orders after 4pm that helped get the price back up to where it finished.

A bit of panic selling becasue of all this media stuff I think. Though even the announcemnt by the company did't help CFE sp today.

I'm still holding and hopeing I dont regret it


----------



## questionall_42 (28 April 2008)

Saw one buyer moved in just a tad before the close with an order for 1,000,000 @ 0.70 when the sp was at 0.58.  Clearly some interest still to keep to sp from falling further. 

Also still holding in anticipation...


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## shaunm (28 April 2008)

Well let's hope that $700,000 order is "smart money".
That is a confident buy in any persons eyes.
It is funny that the real plunge happened in the afternoon and not at open when you would have thought. 
I picked up a couple of thousand extra at 58 cents based on the companies re-assurance that the deal has not been withdrawn.
Holding in hope.


----------



## chansw (28 April 2008)

chansw said:


> Today's business headlines
> 28-April-08 by Anna Moreau and AAP
> http://www.wabusinessnews.com.au/en-story/1/62545/Today-s-business-headlines
> 
> ...




Here is the full article from The West Australian

*Cape’s $400m China deal on track: chief*

28th April 2008, 9:00 WST
TRACEY COOK

http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=70093


WA mining hopeful Cape Lambert Iron Ore has rejected claims its $400 million deal with Government-controlled China Metallurgical Group Corporation (MCC) has been stalled by Australia’s Foreign Investment Review Board. 

The company said yesterday it had received correspondence from MCC stating that its FIRB application was on track and expected to receive notification of the regulator’s determination by Wednesday. 

It was reported last week that at least 10 Chinese companies had withdrawn foreign investment applications to buy into Australian resources companies after pressure from the Rudd Government. These included MCC’s bid for Cape Lambert’s namesake Pilbara iron ore project. 

But Cape Lambert executive director Tony Sage said MCC had written to the company outlining that “they have not withdrawn and not been contacted by FIRB in relation to the withdrawal or postponement of their FIRB application”. 

Mr Sage said the newspaper report had triggered a deluge of emails from concerned shareholders and sparked rumours that MCC was pulling out from the deal causing a modest fall in Cape Lambert’s London-listed stock on Friday. 

“We have a letter from them (MCC) also stating that they have finished their due diligence and now they are going on to the next stage under the memorandum of understanding, which is completion and finalisation of the sale agreement,” he said. 

Federal Government Resources Minister Martin Ferguson also moved to reassure investors yesterday, explaining that foreign investment applications made by state-owned Chinese companies were not being treated differently. “There’s been no suggestion that China or any other investor should back off,” Mr Ferguson said. 

The Minister said Australia was open to investment and China was entitled to do so in the same way as companies from North America, Europe and elsewhere. 

“But we will rigorously apply the national interest test to make sure that our resources are developed and sold internationally according to normal market principles,” he said. 

MCC already has a 20 per cent stake in Citic Pacific’s $5.2 billion Sino Iron project at Cape Preston, south of Dampier, but its acquisition of Cape Lambert’s 1.6 billion magnetite resource, near Rio Tinto’s existing hematite export port, marks its first direct grab for a WA iron ore asset. 

Last year Cape Lambert failed to sell a 70 per cent stake in its namesake project to a Chinese party, but Mr Sage remains confident the deal with MCC will meet FIRB approval. 

“The only application that FIRB has ever denied is the Shell takeover of Woodside, so we are not even contemplating that,” he said. Cape Lambert shares lifted 2 ¢ to 70 ¢ on Thursday.


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## shaunm (28 April 2008)

Hmmm... so could this rumour be an example of a fund or crafty trader starting a small "fire" in hope of picking up stock from panicking holders??


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## MR. (29 April 2008)

chansw said:


> “We have a letter from them (MCC) also stating that they have finished their due diligence and now they are going on to the next stage under the memorandum of understanding, which is completion and finalisation of the sale agreement,” he said.
> 
> “The only application that FIRB has ever denied is the Shell takeover of Woodside, so we are not even contemplating that,” he said.




So is this CFE's release of the "Finish of MCC's Diligence"?

So "one application has ever been denied" ???????  Why do we have the FIRB  ????????????? 

------------------
From the following article
http://business.smh.com.au/chinese-feel-not-welcome-in-australia/20080428-294f.html

Mr McCubbin has acted for companies such as Sinosteel, China Coal, the steel giant Angang and the company that manages China's sovereign wealth fund, China Investment Corporation.

He said Australia had not told Chinese investors to withdraw their applications. Rather, the FIRB has asked applicants to withdraw applications and immediately reapply to extend the 30-day application period.

Mr McCubbin said none had been resolved recently, and at least one had been rolled over for three successive months.

----------------

I wonder if the company which has waited 3+ months is requesting a 100% ownership? My guess is its not and its just requesting 50%. 

It is not in Australia's best interest to sell 100% of anything! 
Watching with interest.


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## shaunm (29 April 2008)

MR. said:


> I wonder if the company which has waited 3+ months is requesting a 100% ownership? My guess is its not and its just requesting 50%.
> 
> It is not in Australia's best interest to sell 100% of anything!
> Watching with interest.




Hi Mr. Can you elaborate a bit more on your train of thought?
It was little bit cryptic for me (tough day at work)


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## MR. (29 April 2008)

shaunm said:


> Hi Mr. Can you elaborate a bit more on your train of thought?
> It was little bit cryptic for me (tough day at work)




The company I "think" which has waited 3 months effects Gindalbie GBG. Ansteel (Angang) should be seeking FIRB approval for 50%. The time frame is about right. China's President even witnessed the signing. (In no way am I saying CFE is applying for 50%.) It does put a question on 100% don't you think? By the way referring to your earlier post management told me that they were 99.9% sure the deal would go through with Ding Ligue. DYOR.


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## shaunm (29 April 2008)

So far so good

*Cape Lambert and MCC complete due diligence on AUD$400M sale, FIRB application re-lodged*
Key points:
•AUD$400 million sale of Cape Lambert Iron Ore Project to China Metallurgical Group Corporation on track,
•Due Diligence completed,
•MCC has re-lodged Foreign Investment Review Board (“FIRB”) application at request of FIRB,
•New FIRB application to be determined before 28 May 2008, and
•Parties progressing to finalisation of Sale Agreement.
Australian iron ore company Cape Lambert Iron Ore Limited (“Cape Lambert” or the “Company”) (ASX: CFE, AIM: CLIO) is on track with the sale of its namesake iron ore project in Western Australia to China Metallurgical Group Corporation (“MCC”), with MCC confirming it has completed due diligence on the project and wishes to commence finalising all relevant Sale Agreements.
Cape Lambert has also been advised by MCC that it has re-lodged its FIRB application at the request of FIRB, who indicated they were unable to reach a determination on the application prior to the statutory deadline being reached. It is now expected that a decision will be made by FIRB prior to 28 May 2008.
Cape Lambert Chairman, Ian Burston, said “Due diligence has been completed and the outcome of the resubmitted FIRB application will be known within a month, all well within the original time frame for key milestones for the sale to be achieved”.
“MCC has advised that they now wish to finalise the Sale Agreement related to the acquisition of the Cape Lambert Iron Ore Project, which gives us great confidence that this company defining transaction will soon be completed.”
The Board of Cape Lambert remains committed to working with MCC towards the successful sale of the Project, to the benefit of all shareholders and stakeholders in the Company


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## MR. (30 April 2008)

MR. said:


> Ansteel (Angang) should be seeking FIRB approval for 50%. The time frame is about right. China's President even witnessed the signing.




This is incorrect. Confirmed and shall correct that Ansteel already has FIRB approval to buy 50% from Gindalbie they received it last year. 

Hope it works out for you shaunm.
Sinosteel got FIRB approval for the 100% takeover of Midwest. So why not MCC for CFE! Watching with interest.


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## MR. (30 April 2008)

http://www.asx.com.au/asxpdf/20080430/pdf/318v4h51dmv210.pdf

http://www.asx.com.au/asxpdf/20080430/pdf/318v4jm0v00kl4.pdf

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00837004

99.9% sure again?

Make sure you understand these announcements. 
Lucky he didn't sell two days later or the next day on the AIM!


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## shaunm (30 April 2008)

MR. said:


> http://www.asx.com.au/asxpdf/20080430/pdf/318v4h51dmv210.pdf
> 
> http://www.asx.com.au/asxpdf/20080430/pdf/318v4jm0v00kl4.pdf
> 
> ...




I had seen the last announcement but not the first 2.
I don't actually understand the flow of these transactions. WOuld you care to enlighten me and any other holders viewing?


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## TheAbyss (30 April 2008)

tony Sage now owns 6% personally. Opportunity to top up has now been and gone, for now at least. Another 30 days until FIRB now.

Small mention of this at the bottom of the article on the link below.

http://www.theaustralian.news.com.au/story/0,25197,23618049-15023,00.html


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## MR. (30 April 2008)

shaunm said:


> I had seen the last announcement but not the first 2.
> I don't actually understand the flow of these transactions. WOuld you care to enlighten me and any other holders viewing?




The 6% sounds good doesn't it. Maybe.... But not when you sell shares at $0.68 some 3.5 million to fund the excercise of 9 million options. This is not confidence that the share price is going to go up! nor is it confidence that he thinks without a doubt that the sale will go through. And nicely timed too?????????? 

At least with Grange Resources (GRR) when the chairman "buys" the whole market tumbles. But CFE keeps climbing so I must be wrong!

Tonight read these asx announcements and try harder to understand what they mean. Then question why?


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## nioka (30 April 2008)

MR. said:


> The 6% sounds good doesn't it. Maybe.... But not when you sell shares at $0.68 some 3.5 million to fund the excercise of 9 million options. This is not confidence that the share price is going to go up! nor is it confidence that he thinks without a doubt that the sale will go through. And nicely timed too?????????? ?



 I guess he needed the sale to fund the conversion of the oppies. He may have wanted to have a bigger vote. The options had no voting rights, his sale and purchase gives him an extra 5.5 million shares. (To me it is another example of directors with their snouts in the trough.) Basically he got 5.5million FREE shares.


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## MR. (30 April 2008)

nioka said:


> I guess he needed the sale to fund the conversion of the oppies. He may have wanted to have a bigger vote. The options had no voting rights, his sale and purchase gives him an extra 5.5 million shares. (To me it is another example of directors with their snouts in the trough.) Basically he got 5.5million FREE shares.




From chansw news article! dated 28/4/08 9:00am
-------------
Last year Cape Lambert failed to sell a 70 per cent stake in its namesake project to a Chinese party, but Mr Sage remains confident the deal with MCC will meet FIRB approval. 

“The only application that FIRB has ever denied is the Shell takeover of Woodside, so we are not even contemplating that,” 
-------------

Did he forget to mention in the interview that he "just" sold some 3.5 million shares? Oh yeah, Must of forgotten about that.


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## shaunm (5 May 2008)

Anyone happen to notice another article about "chinese being blocked" floating around today??
I am a little perplexed by the high volume sell-down on an otherwise positive day.


----------



## Neutral (7 May 2008)

With the recent changeover in government, it is hard to know what sort of stance Labor has on Foreign takeovers/investment. I would have been more optimistic under the Libs. Not sure on this one. :dunno:


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## nioka (8 May 2008)

Neutral said:


> With the recent changeover in government, it is hard to know what sort of stance Labor has on Foreign takeovers/investment. I would have been more optimistic under the Libs. Not sure on this one. :dunno:



 Why worry. If the sale does not go ahead the iron ore is still there and so is the management. In the long term they may be able to develop it and make it worth a lot more than it is being offered for at this stage. I like the management's ability. They also have more than one string to their bow.


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## TheAbyss (8 May 2008)

Neutral said:


> With the recent changeover in government, it is hard to know what sort of stance Labor has on Foreign takeovers/investment. I would have been more optimistic under the Libs. Not sure on this one. :dunno:




How can anyone be sure when the labor party are be so indecisive? Their inactivity is bordering on incompetence in my opinion. They did approve the Heron deal this week so the log jam may start to move. Either way as Nioka pointed out they have the resource so there value is still there either way, just not the premium the deal provided in the shorter term.


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## Neutral (13 May 2008)

A Change of Director`s Interest notice popped up today. What do you guys make of this in light of the pending FIRB decision? He knows something we don't?

http://www.asx.com.au/asx/statistic...rchByCode&issuerCode=CFE&releasedDuringCode=T


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## jeffTH (14 May 2008)

Neutral said:


> A Change of Director`s Interest notice popped up today. What do you guys make of this in light of the pending FIRB decision? He knows something we don't?
> 
> http://www.asx.com.au/asx/statistic...rchByCode&issuerCode=CFE&releasedDuringCode=T




I don't read much into this transaction as the director sold 511,000 options exercisable @27.7 expiring in Oct 2008.  He still has shares and also another parcel of options.  I also sold the options I held to take some profit as I hold shares purchased at 30.5c.  In addition, I am not sure whether I will be interested in CFE if they choose to go to spend the MCC proceeds in Africa!


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## enigmatic (14 May 2008)

well we have only 2weeks to go to see if this deal goes through. Then we should see some movement north. I myself aint to keen on this african interest we will see how it pans out.


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## Neutral (14 May 2008)

jeffTH said:


> I don't read much into this transaction as the director sold 511,000 options exercisable @27.7 expiring in Oct 2008.  He still has shares and also another parcel of options.  I also sold the options I held to take some profit as I hold shares purchased at 30.5c.  In addition, I am not sure whether I will be interested in CFE if they choose to go to spend the MCC proceeds in Africa!




Didn't MCC offer to buy out most of CFE for 90 cents per share? So that would mean if you held CFE and the FIRB approval went ahead that MCC would buy holders out? Sorry I'm new to this!


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## jeffTH (15 May 2008)

Neutral said:


> Didn't MCC offer to buy out most of CFE for 90 cents per share? So that would mean if you held CFE and the FIRB approval went ahead that MCC would buy holders out? Sorry I'm new to this!




Hi Neutral

My understanding is that CFE have signed a MOU with MCC under which CFE will *sell *the Cape Lambert Project for $400m.  It is the project that they are selling, not the company.  CFE are still to retain one Exploration Licence out of the whole Cape Lambert Project.  CFE will get the money and they can do what they wish with it (like go and buy something in Africa) or return some to shareholders.  No transfer of shares will take place under this arrangement.
We just have to hang in there to see what CFE will do with the money....

Cheers


----------



## TheAbyss (15 May 2008)

Neutral said:


> Didn't MCC offer to buy out most of CFE for 90 cents per share? So that would mean if you held CFE and the FIRB approval went ahead that MCC would buy holders out? Sorry I'm new to this!




The $400m values the Cape lambert project in isolation of all other CFE assets at 78 cents per share on a fully diluted basis. As per jeffTH this leaves CFE with their other tenements plus their cash in the bank which was circa $8m a few weeks back.

When you add it all up you get to around the 90 cents per share valuation, so  the FIRB plus the due diligence by MCC is important and why the sp is on a holding pattern at the moment on low volumes as we all await the govt decision. Either way the value is still there it will take longer to realise if the FIRB is not given.


----------



## Go Nuke (15 May 2008)

Personaly Im getting quite nervous at how the share price is slowly going down.
Ive seen this happen too many times for my liking. There are also alot of sellers lined up and the big sell orders have slowly filtered down to 65c from 70c.


If the share price gets to 78c , I'll be out of CFE. And i'm sure I wont be the only one.
Had a sell order in but its since expired because we didnt get to 78c


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## jeffTH (16 May 2008)

Further to previous posts on Change of Director's Interest, I see that Director Mr Brian Maher has been responsible for another notice yesterday.  Previously on May 1 and May 2 he sold 511000 options for $205,301, this time he exercised 735,000 options at 27.7 cents costing him $203,595.  In other words, he sold enough on market first time to provide the funds for those he exercised as per notice yesterday.

Rather than see this as a worrying sign, I take the view that Mr Maher sees better value in the shares than the options.

Cheers...


----------



## MR. (18 May 2008)

jeffTH said:


> Further to previous posts on Change of Director's Interest, I see that Director Mr Brian Maher has been responsible for another notice yesterday.  Previously on May 1 and May 2 he sold 511000 options for $205,301, this time he exercised 735,000 options at 27.7 cents costing him $203,595.  In other words, he sold enough on market first time to provide the funds for those he exercised as per notice yesterday.
> 
> Rather than see this as a worrying sign, I take the view that Mr Maher sees better value in the shares than the options.




Pigs ****.... I'll fill in the gaps

Notice 13/5 he sold 511,000 options for $205,301.00 brought nil.
leaving him with 839,000 options left from 1,250,000
Why is this notice late? The notice came out 11 - 12 days after he sold????

Notice 15/5 he sold a further 735,000 options for "$ he didn't declare" leaving him now 104,000 options out of the original 1,250,000
He exercised 735,000 options for $203,595.00 ($0.277 x 735,000-) 
He has money left in his pocket! over $250,000- is my estimate.

Perhaps with this money left over he will buy more (Full shares) when the share price falls!  

Go Nuke, 
money is money even if you only have a little and its at a loss. 
Who's going to tell you when to sell?  Even if it was allowed on ASF. I helped ramp CFE last year and you brought near its top. I had brought at $0.45 (last year)  I didn't know the deal was going to fall over at the time. But I worked it out before it was announced that "Ding / Delong" deal had fallen over. Read the history of this thread.

But perhaps you already know "all" this.


----------



## MR. (18 May 2008)

MR. said:


> Notice 15/5 he sold a further 735,000 options for "$ he didn't declare" leaving him now 104,000 options out of the original 1,250,000
> He exercised 735,000 options for $203,595.00 ($0.277 x 735,000-)
> He has money left in his pocket! over $250,000- is my estimate.
> 
> Perhaps with this money left over he will buy more (Full shares) when the share price falls!




Sorry guys, I am a bit wrong above. Brian sold 511,000 options and as it appears it was to exercise the 735,000 options. (He didn't sell the 735,000 options at an undeclared amount and there is no $250,000- in his pocket) Jeffth has read the announcements correctly. 
I am in no position to give anyone advise...........

Are they exercising options so full shares can receive a cash return "DIVIDEND"?
Have a look at this post from ASF SKINT 27/7/07 at 02:30pm
https://www.aussiestockforums.com/forums/showthread.php?t=5107&page=18


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## TheAbyss (21 May 2008)

Good news in the release today. The holding pattern will be broken by the 28th May.

If they are finalising the sale agreement then there must be something burning beneath the smoke.

In addition the tenements CFE are retaining will start drilling end of August.

MCC SALE UPDATE
The Foreign Investment Review Board is scheduled to complete its determination on or before 28 May 2008. Further, the Company, officers from MCC and their respective legal advisors are currently working on finalising the Sale Agreement.


----------



## schnowzer (24 May 2008)

So wrote to FIRB last week and got:



> Thank you for your enquiry.
> 
> Due to privacy requirements, it is the Foreign Investment Review Board's standard practice to neither confirm nor deny the receipt of any foreign investment proposal. For further information please refer to Chapter 1 of the Foreign Investment Review Board's annual report 2006/07.




Very helpful!  FIRB has a week to decide, from other people's experience do they usually wait until the target date to release their decision or do they do it early.  Is it a good/bad/no sign that nothing has been said?

S


----------



## MR. (25 May 2008)

schnowzer said:


> So wrote to FIRB last week and got:
> 
> Very helpful!  FIRB has a week to decide, from other people's experience do they usually wait until the target date to release their decision or do they do it early.  Is it a good/bad/no sign that nothing has been said?
> 
> S




I believe if the FIRB has a problem granting the approval they will respond to the applicant during the 30 days. Otherwise if there is no responce! So granted. 

At this stage there is no sign. (to answer your question)  
You will not know until CFE's release or MCC's.

Watching with interest.


----------



## Go Nuke (27 May 2008)

Oooh closed under 60c today from memory?

Not good I imagine. Tomorrow will be a very interesting day.


----------



## shaunm (27 May 2008)

Ditto Nuke.
Remember when we were hitting 70 cents. WTF is going on. The volume was fairly low today. Is this an attempt to shake out the weak holders before the announcement? 
I heard the directors are currently o/s, perhaps looking at new opportunities, so this may be re-assuring.
I am a little shaken, but not stirred.


----------



## TheAbyss (28 May 2008)

CFE due to release results of FIRB decision today. Will it be positive or will they tell us that they have been informed that they have to resubmit again?

Tricky question in that there is a lot of acqusition going on and the govt must be a tad anxious as deals are coming in from everywhere for every commodity so it could go either way

Given the above, i placed a call to CFE and was greeted with the news that most are out of the country till next week. Not to be deterred i persisted and eventually got onto someone who is in a position to know what is going on and he assured me that there would definitley be a release today as promised however he was bound to non disclosure rules so no hints.

However.... I changed course and asked him how everything else at CFE was going and he did say that they are very busy with the MCC deal and things are going very well (i could hear the smile on his face). My opinion of that is that you do not proceed with something that isnt approved or at the very least is yet to be ticked off. 

Either way it couldn't be a no by FIRB or he would have not been as jolly imo.

Make of that what you will or better yet call them yourselves

Ian Burtson 08 9481 4040 - away till Monday
Tony Sage - 08 9380 9555 - Away till Monday (on his personal company business not CFE. Planet something or other was the co name)
Tim Turner - 08 9362 5855 Responsibl;e for the release and at his desk. A very happy camper. Call him


----------



## Neutral (28 May 2008)

SP was up but so much for the expected announcement.  Guess we will have to wait till tomorrow?


----------



## enigmatic (29 May 2008)

"MCC RECIEVES NO ONBJECTION FROM FOREIGN INVESTMENT REVIEW BOARD FOR PROPOSED ACQUISITION OF CAP LAMBERT PROJECT"

this speaks for it self i would say.
Im holding and watching the sp rise


----------



## shaunm (29 May 2008)

Sorry to sound dumb, but did the stock coming out of the trading halt today?
I haven't been watching as I thought Monday would be the opening day.


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## Go Nuke (29 May 2008)

Ha. Share price did bugger all really.

I still dont see the buyers coming in. Not yet anyway.

Perhaps as the deal gets even closer to finalising.

(Still holding)


----------



## nioka (29 May 2008)

Go Nuke said:


> Ha. Share price did bugger all really.
> 
> I still dont see the buyers coming in. Not yet anyway.
> 
> ...




Well it did move up 6c on the news but I suspect traders cashed in and the price fell back. There would have been a few anxious to sell on the news. With them out of the way in the next few days I think there will be an increase as investors realise the potential. The sale is well above the current market cap and the company has management that will make good use of the funds that will become available.


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## nioka (2 June 2008)

CFE shows some improvement today however this must be one of the most underrated stocks available today without much risk.

The market hasn't valued the areas retained by CFE and has not fully valued the sale of those sold. With a market cap, according to my calculations, of around $205M and a sale of only part of it's assets for $400M that alone is a premium on the current SP.

Bear in mind that CFE have announced that additional geophysical modeling has been completed on a 3km long magnetic anomaly situated on ELA47/1493which is located south of the 1.56 billion tonne resource AND IS EXCLUDED FROM THE TENEMENT PACKAGE BEING SOLD. The native title advertising period will end on 18th August and the tenement is expected to be granted soon after enabling drilling to commence.

 Add to that the fact that CFE have management with a great track record in the iron ore business.

I'm not in a position to value CFE for any one else but I intend to hold this one for a while yet.


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## shaunm (2 June 2008)

Hey Nioka are you of the opinion that it won't be until August that we will see major improvement in the SP?


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## nioka (2 June 2008)

shaunm said:


> Hey Nioka are you of the opinion that it won't be until August that we will see major improvement in the SP?



 Definitely not. I believe the stock is very much undervalued right now and I expect that to steadily correct itself as the value is accepted as fact by a lot of investors. By August the stock will have another run if good drilling results are announced. Just look at the history of some of the smaller iron ore hopefulls and they haven't, in most cases, been able to sell anything yet whereas CFE have actually made a $400M sale before any mining. How long will it be before companies like BRM earn $400M and what will they have to spend to earn it.
 CFE's chairman knows what he is doing. He knows that he could spend a long time developing the mine as he did with Aztec only to have it "gobbled" up before production for only a fraction of it's real worth. Take the cash offered now and find another looks to be CFE's strategy and I like that.


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## floppy (4 June 2008)

obviously some pumping of the sp today

with allthe options being converted something is up  or maybe just the 30 june expiry is reason enough to convert well before the  deadline and sell into the pump 


lets hope that agreement  comes out before the 30 june as there are another 3.3 mil options that need to be converted at 90c ....good possibility of the sp going above this amount prior to 30 june to get thes options in the money

hahahha cynical arent I ?


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## nioka (5 June 2008)

Some pretty hefty trades in CFE last thing on the London SE yesterday. 

         3,166,998 @ 32.19 p

         1,000,000 @ 32.34 p

         2,166,998 @ 32.11 p

With those trades up on the rest of the days trading.. Obviously someone overseas likes them.


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## Nesa (7 June 2008)

nioka said:


> Some pretty hefty trades in CFE last thing on the London SE yesterday.
> 
> 3,166,998 @ 32.19 p
> 
> ...




Chelsea tycoon to grab WA iron stake
7th June 2008, 11:00 WST

Roman Abramovich: The Chelsea owner is set to exercise Cape Lambert options

Roman Abramovich, the Londonbased Russian billionaire who owns the Chelsea Football Club, is set to emerge with a 13 per cent stake in Tony Sage’s mining hopeful Cape Lambert Iron Ore.

It is understood the Abramovichcontrolled steel group Delong Holdings told Cape Lambert yesterday it was poised to spend $10.6 million exercising 28 million options to boost its stake in the Perth junior from 4.4 per cent to about 13 per cent.

The options have a strike price of 37.7 ¢, compared to Cape Lambert’s 67.5 ¢ close yesterday.

Once the options are exercised, which is tipped to be as early as next week, Delong would become Cape Lambert’s biggest shareholder.

The options exercise would be the first sign of Mr Abramovich’s interest in Cape Lambert since he struck a $US1.5 billion ($1.6 billion) deal in February to buy control of the Singapore-based Delong.

Delong was controlled by Chinese billionaire Liguo Ding, who acquired the Cape Lambert options as part of his ill-fated plan last year to help develop the Perth junior’s Pilbara iron ore project.

Crucially, Mr Abramovich’s interest in Cape Lambert comes as China Metallurgical Group Corporation (MCC) tries to seal a $400 million deal to buy Cape Lambert’s namesake 1.6 billion tonne magnetite project.

It is likely the Delong options conversion will put pressure on Cape Lambert and MCC as they finalise a deal that would hand the Chinese state-owned group full ownership of the iron ore project and leave Mr Sage’s company cashed up with plans to buy into other iron ore projects.

Mr Abramovich is one of the world’s 20 richest people with an estimated fortune of $24 billion, based on his ownership of key Russian oil and gas assets. Now based in London, where he has gained a high profile through his ownership and extensive investment in Chelsea FC, Mr Abramovich is increasingly focusing on steel.

Mr Abramovich’s steel interests ”” he controls one of Russia’s biggest steel producers, Evraz, which in turn has struck the deal to take a 51 per cent stake in Delong ”” suggest he may want to scupper the MCC deal and instead get Cape Lambert to develop the project itself.

MCC has completed due diligence of the project and been granted Foreign Investment Review Board approval. It and the Perth junior are now trying to conclude a sales agreement, which will need to be put to a Cape Lambert shareholder vote.

The prospect of Mr Abramovich entering the WA iron ore scene brings with it the intriguing prospect of the owner of one of the world’s best, and most expensive, football clubs going head-to-head with Mr Sage, a coowner of the Perth Glory.

PETER KLINGER

Source: http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=77475


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## TheAbyss (12 June 2008)

Positive news out of CFE today. Sale agreement signed and $230 million in the bank in 49 days or less and another $80 m in a further 45 days time.

Probably not the best of days for the announcement however CFE isnt a quick mover. Sooner or later the doubters will move towards the positive maths on this deal. Bottom line is that if the deal goes ahead then the SP is seriously undervalued at the moment and will move.

Announcement excerpt below

The consideration is payable in three cash tranches; AUD$240 million (inclusive of the AUD$10 million deposit) or 60% at Settlement (to take place fifty (50) days after the date of the formal Sale Agreement), AUD$80 million or 20% forty five (45) days after Settlement and AUD$80 million or 20% on the grant of a mining lease and related construction approvals.


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## shaunm (13 June 2008)

Alright, finally some movement in the right direction and a convincing move at that.
Hopefully the US market can shake off the wobbles for a few more consecutive days and we can hopefully see the end of the 60's.


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## Go Nuke (15 June 2008)

I agree Shaunm.

I really didn't think it was going to get through 70c with the amount of sellers lined up, but I was excited to see that it did!

DOW up 165 points, so lest see what that can do for CFE's share price.

Will the up coming price increase in iron ore reflect on CFE at all?

I know they are selling the Cape lambert prospect but they do have that other project that they didn't sell.

I think the increase of Iron ore might make all of the Fe players (including the juniors) rocket upwards in price.

Could i be wrong in saying this?


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## enigmatic (16 June 2008)

Glad I accumulated after the first major dip. now just ridding till i find out what there going to do with this 400mil, earlier on it was mentioned something about dividend.

Once august comes the focus will be there other tenement, which CFE valued at $350million. quiet a tidy sum aswell. With Iron ore prices on the rise the other tenement is only going to be more valueable. It will also be in MCC best interest to aquire this tenement, At cost.


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## ta2693 (26 June 2008)

ridiculous 67c 
If the annoucement were M&A 400m for all CFE shares at 90c per share. the price would not be just 67c. 
MMC will pay 400m just for a project, the price is only 67c. 
I do not understand who is the seller.


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## evas34 (26 June 2008)

Do you guys have any idea of when the share holder decision will be made? In the announcement, it said in July, but did not specify the date. BTW, why I didn't receive a notice of meeting, because I am just a small investor?

Once the share holder approved the deal, the Chinese government will never say no to this deal, because the MCC is a state owned company as compared to Delong, which is a private one, and the Chinese government's strategy is to buy cheap resources around the world, especially in the time of increasing price of iron ore.

Let's keep our figure crossed to wait the 90c


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## Go Nuke (27 June 2008)

Ive got a question for someone.

Weren't we given shares in GFE (Global iron) through CFE??

What happened to those?
I know nothing really about Escrowed...but is that whats happened to them?


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## TheAbyss (27 June 2008)

Meeting 28th July 9.30 am. several resolutions howveer the eye grabber for me is

RESOLUTION 2 – EQUAL REDUCTION OF CAPITAL
To consider and, if thought fit, to pass, with or without amendment, the following
Resolution as an ordinary resolution:
“That, subject to the passing of Resolution 1 and settlement of the
Transaction contemplated in the Sale Agreement, for the purposes of
Sections 256B and 256C of the Corporations Act 2001 and for all other
purposes, approval is given for:
(a) the paid up share capital of the Company to be reduced by
up to approximately $37,700,000; and

(b) such reduction to be effected and satisfied by the Company paying Shareholders who are registered as Shareholders of the Company on the Record Date, an amount per Share to be determined, on the terms and conditions set out in the Explanatory Statement accompanying this Notice of Meeting”.

1.5 Use of funds

It is intended to apply funds raised from the Transaction (being $400,000,000) as follows:
Use Funds
In-specie distribution to Shareholders (Resolution 2) Up to
approximately $37,700,000
Possible unfranked dividend Up to approximately $62,300,0001
Commission for introduction of Transaction $38,000,0002 
Taxation costs as a result of Transaction $87,000,000
Proposed exploration expenditure on existing projects $3,355,000
Working capital and new projects $171,145,000 3,4 Expenses of Transaction $500,000 

Total $400,000,000


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## MR. (28 June 2008)

TheAbyss said:


> 1.5 Use of funds
> 
> It is intended to apply funds raised from the Transaction (being $400,000,000) as follows:
> Use Funds
> ...




Shaunm, The Abyss, Go Nuke, and others...  Back in March I wrote the sale is worth 76c or perhaps 63c ... I was a little out.

$400,000,000 - $87,000,000 (taxation) - $38,000,000 (commission) = $275,000,000 + excercise of the following options $78,000,000 = *$353,000,000 in total.*

320,000,000 shares on issue + 184,000,000 options excercisable October (0.277) on issue + 98,000,000 options excercisable October (0.277) = *602,000,000 shares*.

I now get 59c (not 76c or 63c) and thats without any more options issued! 

How can you guys possibly continue to get 90c?


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## nioka (28 June 2008)

MR. said:


> How can you guys possibly continue to get 90c?




Easy.         It's your 59c 

        PLUS all that they haven't sold.

        Which includes a company up and running with proven management, some cash on hand and another iron ore prospect.


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## shaunm (29 June 2008)

Thanks for the figures Mr.

Have you also factored in the payback of nearly $100m to shareholders by way of special payment and franked dividend (potential)? I'm roughly valueing that as around $3 per share


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## nioka (29 June 2008)

shaunm said:


> Thanks for the figures Mr.
> 
> Have you also factored in the payback of nearly $100m to shareholders by way of special payment and franked dividend (potential)? I'm roughly valueing that as around $3 per share




In my valuation I hadn't mentioned the possible dividend but your $3 is a bit out, a lot out really, more like 3c than $3, but still 3c.


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## evas34 (29 June 2008)

> MR.
> I now get 59c (not 76c or 63c) and thats without any more options issued!
> 
> How can you guys possibly continue to get 90c?




Hi, Mr,

My calculation is different with your figures, please correct me if I was wrong:

*Step 1, calculate the net proceed from the project*

Total Consideration: 240m + 80m + 60.5m (which is discount value of 80m in two years as according to the pro forma balance sheet) = 380.5m

Minus: 0.5m transaction expense, 87m taxes, 38m commission

equals: net proceed from the sale of project: 255m


*Step 2, calculate the book value of the company after the sale*

Net proceed from sale: 255m

Plus: Cash on hand as at 31/03/08: 8.8m (which didn't include the 10m deposit according to the pro forma balance sheet)

Plus: Receivable: 1.1m

Plus non-current asset excluding the project being sold: 8.0m

Minus: payable 1.5m

Net book value of CFE after the sale: 271.4m

Another easy way to get the the net book value of CFE is add 37.7m, which is the return of capital to shareholder from the net equity of 233.6m in the pro forma balance sheet, equals 271.3m
*
Step 3, calculate the value of options before new issues in July,*

98427956 * 0.277 = 27.3m
50000000 * 0.327 = 16.4m
28000000 * 0.377 = 10.6m
500000 * 0.427 = 0.2m
500000 * 0.367 = 0.2m
350000 * 0.49 = 0.2m
Options with strike price over 0.9c will be disregarded

Total options: 177777956 
Total value of options: 54.9m

*Step 4, calculate share price base on the book value:*

Net book value of CFE: 271.4m

Plus: total value of options: 54.9m

Equals: 326.3m

Divided by total fully paid shares 320512270 + Total options 177777956 = 498290226

*Book value share price: 65.5c*

It will be diluted to 65.1c if all the new issues to employee and director in the July meeting are approved, which I am going to vote against. 

Although it is not 90c as I expected, but remember it is just the book value, any future incoming benefit has not been accounted for, and the mining sector have got the average P/B ratio of 1.9 (according the Etrade company profile), which means the CFE would likely be 65.5c * 1.9 = $1.25

I'm a holder for CFE:


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## MR. (29 June 2008)

evas34 said:


> Equals: 326.3m
> 
> Divided by total fully paid shares 320512270 + Total options 177777956 = 498290226
> 
> ...




Some good Sunday morning detail there. Neatly put forward too. I included some options twice, Oops, not intended.  I thought my 600 million appeared a bit high, it used to be about 500 million. The 184 million I thought was CFEO as per page 12 of the "Notice of General Meeting" but is the total of all the options listed below that includng CFEO.  
(65c is a good guide) + anything else they might have up their sleeves........ 

I think the vote for further options will be granted though. 

Shaunm, $3- per share?  You're not serious. How would you get that? Also any dividends / special payments have not been taken out of that 65c.


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## shaunm (29 June 2008)

Oh shoot, I really ballsed that one up. I meant 30c per share. You can't stop a man from dreaming tho.
sorry


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## nioka (9 July 2008)

Yesterday I made a blunder. I wanted to sell some CFE and use the funds to buy another share. I ticked buy instead of sell and bought at the top of the market only to watch the SP fall heavily. Today I looked to see if I would take a loss. On checking I see that at todays price it equals a market cap of only $270m. Compare that with EVAS34's $326.3m nett value for the sale of ONLY PART of the companies assets. I have decided to hold the ones I bought as well as the ones I would have sold. These shares have a value far in excess of today's price in my estimation.


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## ta2693 (9 July 2008)

nioka said:


> Yesterday I made a blunder. I wanted to sell some CFE and use the funds to buy another share. I ticked buy instead of sell and bought at the top of the market only to watch the SP fall heavily. Today I looked to see if I would take a loss. On checking I see that at todays price it equals a market cap of only $270m. Compare that with EVAS34's $326.3m nett value for the sale of ONLY PART of the companies assets. I have decided to hold the ones I bought as well as the ones I would have sold. These shares have a value far in excess of today's price in my estimation.




Hi Mate. if it is a mistake, it is a mistake. I feel you are trying to justify your mistake.I feel you are not doing the right thing As a sophisticated investor.


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## nioka (9 July 2008)

ta2693 said:


> Hi Mate. if it is a mistake, it is a mistake. I feel you are trying to justify your mistake.I feel you are not doing the right thing As a sophisticated investor.




 Can't agree. Examined the situation on a fundamental basis and that is the cold calculated decision I came to. I'll agree it was a mistake, and a stupid one at that, but look at the figures, the first mistake I did make was trying to sell  in the first instance.


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## YOUNG_TRADER (11 July 2008)

Hey guys,

was just crunching some numbers of Magnetite project values and value per tonne etc etc

Anyway it looks like *$1 - $2 is the level per tonne Magnetite *that some international projects are selling at,

Having said that I was somewhat surpised to discover via calcualtions that CFE is only recieving 82c per Tonne Magnetite given its proximity to infrastructure, ports rail etc etc, perhaps its the lack of a nearby benefication plant or steel mill that reduces its potential somewhat compared to these International sales but I would have thought they could have got at least $1/t?

Here are the Calcs

*Deposit = 1.56Billion t's @ 31.2% Fe = 487M tonne Magnetite

Sale price = $400m AUD

= 82c per tonne of contained Magnetite*


Could have done better CFE managment, especially if they had waited till after this recent 95% price rise, but thats hindsigth I guess 

p.s. I'm not a holder, just passing on some observations


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## nioka (11 July 2008)

YT you make a good point. However it does not change the fact that the company will have cash on hand well in excess of the market cap. Maybe it is a discount price for an immediate cash sale. The company has other fish to fry. The SP must have the company undervalued.


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## doogie_goes_off (15 July 2008)

Good analysis YT, still there's always a price for purity and with that many tonnes, who gives a toss if you don't get premium price. It could be high in phophorus for example, which they would be penalised for by the steel mills, I haven't followed them enough to be sure.


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## TheAbyss (16 July 2008)

looks like MCC will not get over the finish line unchallenged after all. Can only be positive for shareholders with some healthy competition from the russians.

Quote from The Australian this afternooon

"A MYSTERY buyer has taken a 14 per cent stake in Cape Lambert Iron Ore, worth $15.5 million.

After an enquiry, Cape Lambert (ASX: CFE: quote) is unsure of the buyer but is aware that the holder of the new shares is Merrill Lynch (Australia) nominees. 

Merrill Lynch now holds on behalf of itself or clients, 56,050,143 shares in Cape Lambert representing approximately 14 per cent of the issued capital in the company. 

Cape Lambert is currently in the final stages of completing a sale agreement with a wholly owned subsidiary of Chinese conglomerate, China Metallurgical Group Corporation. 

This sale agreement will see the subsidiary of MCC acquire Cape Lambert’s namesake iron ore project in Western Australia for $400 million. 

All conditions of the agreement have been agreed, apart from a vote by CFE shareholders, which is due to occur on 28 July 2008 in Perth. "


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## Gekko (17 July 2008)

Article in AFR re speculation regarding Roman Abramovich

Australian Financial Review's Street Talk column notes speculation Russian billionaire Roman Abramovich is considering making an offer for Cape Lambert Iron Ore (CFE.AU). Newspaper says talk gathered pace yesterday that Abramovich,
who is part-owner of Russia's biggest steel maker Evraz Group (EVR.LN), is behind a Merrill Lynch nominee company that exercised 56 million options, gaining a 14% stake in the company. All eyes likely today on whether Evraz pops up on CFE's register. CFE not immediately available for comment.


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## nioka (17 July 2008)

Gekko said:


> Article in AFR re speculation regarding Roman Abramovich
> 
> Australian Financial Review's Street Talk column notes speculation Russian billionaire Roman Abramovich is considering making an offer for Cape Lambert Iron Ore (CFE.AU). Newspaper says talk gathered pace yesterday that Abramovich,
> who is part-owner of Russia's biggest steel maker Evraz Group (EVR.LN), is behind a Merrill Lynch nominee company that exercised 56 million options, gaining a 14% stake in the company. All eyes likely today on whether Evraz pops up on CFE's register. CFE not immediately available for comment.



 According to my calculations an offer would have to be $1.15 share to equal the proposition that is offered now. And that value is only based on the nett value of the current sale to china. It places no value on the other assets.


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## TheAbyss (17 July 2008)

An older article at the link below which explains in more detail what the russians and Delong might be up to.

Best part of this is that Delong will need to ante up before the shareholder meeting on the 28th July or it will be too late. 

Will we will see a bid from Delong followed by a counter bid from MCC or will Delong settle for profits ion their strike price of 37 cents for the options? 

Either way it can only be good for share holders imo.

http://www.thewest.com.au/default.aspx?MenuId=32&ContentID=77475


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## TheAbyss (17 July 2008)

Well we should hear something tomorrow i suspect as CFE are in talks today in Singapore with Merril Lynch who are representing the "buyer". Tony Sage MD Prefaced the meeting with some groundwork via the media saying he wants an offer of $1.20 a share minimum.

Quote below and link to full article further down. Getting interesting and very hopeful of some good returns on this one.

Nearly 10m units moved again today so this is getting some attention at the moment.

"Cape Lambert rose as much as 4.5 cents, or 6.2%, to 77.5 cents and traded at 77 cents in afternoon trading in Sydney time on the Australian srock exchange, valuing the company at $249 million. The board will not accept an offer of less than $1.20 a share for the company, Sage said today."

http://business.theage.com.au/business/cape-lambert-facing-takeover-move-20080717-3gr7.html

Also this at Bloomberg

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aE5tckcOoijY


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## chansw (17 July 2008)

*Abramovich's Evraz Buys 16% Stake in Cape Lambert (Update1) *

By Jesse Riseborough and Yuriy Humber

http://www.bloomberg.com/apps/news?pid=20601081&sid=ahRZJtHaJVxE&refer=australia

July 17 (Bloomberg) -- Evraz Group SA, the steelmaker partly owned by Russian billionaire Roman Abramovich, bought a 16 percent stake in Australian iron-ore company Cape Lambert Iron Ore Ltd., potentially derailing a bid to sell the company's mine to China. 

``It is Evraz'' that bought the holding, Tony Sage, a director in Perth-based Cape Lambert, said today by phone from Singapore. ``At this stage, there has been no discussion of a bid or the price of a bid.'' 

Global steelmakers are seeking to secure raw-material supplies including coal and iron to help cut costs as prices surge. Cape Lambert agreed in February to sell its iron-ore project to China Metallurgical Group Corp. for A$400 million ($391 million). 

``Evraz is building a global business, and their strategic objective is to'' meet all their own iron-ore needs, said Michael Kavanagh, an analyst with UralSib Financial Corp. in Moscow. ``One would imagine they'd go for a full takeover. It's a first step into Australia.'' 

Cape Lambert, which had disclosed the stake purchase yesterday without identifying the buyer, jumped 6.5 Australian cents, or 8.9 percent, to close at a record 79.5 cents on the Australian stock exchange. The company's London-listed shares gained as much as 12 percent to 38 pence. 

Cape Lambert's board met today with representatives of Evraz and Merrill Lynch & Co. in Singapore, and the talks may lead to a takeover offer, Sage said earlier by phone. The board will not accept an offer less than A$1.20 a share, he said. 

Second-Richest Man 

Abramovich is Russia's second-richest man with a fortune valued by Forbes at $24.3 billion and is also the owner of the Chelsea soccer club. John Mann, a Moscow-based spokesman for Millhouse LLC, the company that manages Abramovich's assets, declined to comment. Tatyana Drachuk, a spokeswoman for Moscow- based Evraz, was not immediately available to comment. 

Evraz ``wanted to know, if they had the company, how much it would cost to develop the project, that is obviously their biggest concern,'' Sage said of today's meeting. ``They are considering numerous options.'' 

Cape Lambert's proposed mine sale to China Metallurgical has received all necessary approvals from Australian regulators and China's government, with Cape Lambert's shareholders set to vote on the sale on July 28. The project may produce about 7 million metric tons of ore a year from late 2009. 

Prices for steelmaking raw materials such as iron ore and coking coal have leapt to records this year on rising demand for steel to fuel building booms in emerging economies such as China. Iron ore has gained almost fourfold since 2001 and contract prices for some ore rose as much as 97 percent this year. 

Lock In 

``The world is short of high-quality iron ore,'' John Veldhuizen, a resources analyst at BBY Ltd., said by phone from Sydney. ``There's going to be more and more of these steel companies going to be trying to lock in that supply.'' 

An earlier sale of the Cape Lambert project to Chinese investor Ding Liguo, chairman of Singapore-based steelmaker Delong Holdings Ltd., collapsed last October. Ding had agreed to buy a 70 percent stake for about A$240 million. 

Evraz said Feb. 19 that it will buy 10 percent of Delong and may raise that in time to 51 percent. Delong makes hot-rolled coils with plants in China's northern province of Hebei. 

To contact the reporters on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net; Yuriy Humber in Moscow at yhumber@bloomberg.net 

Last Updated: July 17, 2008 05:30 EDT


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## nioka (17 July 2008)

ta2693 said:


> Hi Mate. if it is a mistake, it is a mistake. I feel you are trying to justify your mistake.I feel you are not doing the right thing As a sophisticated investor.



 I hope you are watching as this one unfolds. As I said before the judgement was made on the fundamentals and not to justify a mistake. It looks as though it was a lucky mistake. I had not expected to profit so soon but I'm sure the value is at least on the top side of the dollar. That is based on only the existing deal and with a new suitor emerging any thing could happen in the very near future.


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## nioka (18 July 2008)

Another nice rise for CFE today. Probably on the speculation regarding the Russian interest. If another offer is to eventuate it will have to be soon as the meeting date for approval of the sale to china draws near. Regardless of which offer succeeds the SP has still room to move. CFE is showing me a nice profit at today's price, even the half that was bought by mistake.


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## MR. (18 July 2008)

nioka said:


> Another nice rise for CFE today. Probably on the speculation regarding the Russian interest. If another offer is to eventuate it will have to be soon as the meeting date for approval of the sale to china draws near. Regardless of which offer succeeds the SP has still room to move. CFE is showing me a nice profit at today's price, even the half that was bought by mistake.



Good on ya there Nioka. I'm sure there are many watching. 

No lower than $1.20 per share TS will accept?  Then why did he settle with $400 million then in the first place?  I think this Russian is tring to get enough votes to stop the sale to MCC and with good reason...  

Takeover, we will just have to wait and see!  The price is $0.85 do you want to sell your share to this Russian or take the risk he "might" offer more? 
I think $0.85 per share is a good price, could you please explain your valuation of $1.15?


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## nioka (18 July 2008)

MR. said:


> Good on ya there Nioka. I'm sure there are many watching.
> 
> No lower than $1.20 per share TS will accept?  Then why did he settle with $400 million then in the first place?  I think this Russian is tring to get enough votes to stop the sale to MCC and with good reason...
> 
> ...




 I've sold half (to lock in profit) today. The balance that I owned before the "mistake" I will hold for an outcome of the proceedings unfolding.
 To get to $1.15 as a value is easy. Even the CFE management suggest that. Take the number of shares on issue and divide that into the nett proceeds of the possible sale to China and give some value to the area CFE will still hold and you get a figure in excess of $1.15.


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## YOUNG_TRADER (18 July 2008)

YOUNG_TRADER said:


> Hey guys,
> 
> was just crunching some numbers of Magnetite project values and value per tonne etc etc
> 
> ...





lol looks like someone heard what I had to say, how funny guess  Russian billionaire Roman Abramovich reads ASF and thought, hey that YT is right, 82c per tonne Magnetite is just too cheap 

So if the offer is $1.20 

Well theres 325m shares + 185m avg 35c options

Fully diluted = 510m shares with $15m cash + $65m from the options

So a * $1.20 bid = $610m (510m x $1.20) less $80m company cash 

So net cost of $1.20 bid = $530m *



*Deposit = 1.56Billion t's @ 31.2% Fe = 487M tonne Magnetite

Sale price = $530m AUD

= $1.09c per tonne of contained Magnetite*


This is in line with International EV's for Magnetite project sales 

Will be interesting to see how the company and the Chinese respond if its all true


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## enigmatic (18 July 2008)

I must be a little confused I thought that the russian offer was for CFE. 
Not for the single project of $400million
I would be looking for a minimum of 750mil if they sold to the russians.
Unless I'm misstaken and this russian news is only for the one project


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## enigmatic (18 July 2008)

If anyone is confused with my values. 400mil for current project and 350mil for the second tenement which CFE estimate was worth 350million.
like i said bare minimum 750million


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## MR. (18 July 2008)

enigmatic said:


> If anyone is confused with my values. 400mil for current project and 350mil for the second tenement which CFE estimate was worth 350million.
> like i said bare minimum 750million




Enigmatic the 350 million for the second tenement could you please post where this value is written.  Is / was it in an announcement?


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## enigmatic (18 July 2008)

Sorry MR. I have yet to been able to find were that information was from. I have been following this from August last year and I'm sure it has been mentioned in this thread on a few times. I will try to find it as soon as I have the available time.


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## nioka (18 July 2008)

enigmatic said:


> I must be a little confused I thought that the russian offer was for CFE.
> Not for the single project of $400million
> I would be looking for a minimum of 750mil if they sold to the russians.
> Unless I'm misstaken and this russian news is only for the one project



 The Russian deal is that they are buying shares and are now a major shareholder. There is no "russian offer" as such at this stage, only SPECULATION that they will continue to want a bigger slice or all of CFE.

 That's how I see it. I may be wrong.


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## YOUNG_TRADER (19 July 2008)

YOUNG_TRADER said:


> lol looks like someone heard what I had to say, how funny guess  Russian billionaire Roman Abramovich reads ASF and thought, hey that YT is right, 82c per tonne Magnetite is just too cheap
> 
> So if the offer is $1.20
> 
> ...




Guys my figures and calculations were based on a Russian offer at $1.20 a share,

At this stage its all speculation, but what I was trying to show is that if the offer was made at $1.20 what the Russians were paying for the main magnetite deposit per tonne magnetite, now if there are other deposits this changes things

Anyway I don't hold just crunching numbers for fun

Good luck


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## TheAbyss (22 July 2008)

A few things of note with CFE yesterday. 

1. Director (Tim Turner) who is a not a full time employee of CFE, offloads 500,000 shares on market - Take the money and run son.

2. CEO Tony Sage announces that a hostile take over bid by Evraz is imminent however CFE are continuing with the sale to MCC as they should.

Looks to be all upside for shareholders short term as the 28th July shareholder meeting is the deadline for any other offer so we will either see an offer for the entire company or the sale of the Cape Lambert project will progress and the money will go into the bank.

Perhaps i am being to simplistic however i cant see a lose factor on this one at the moment (depending on what entry price you have of course).

http://www.theaustralian.news.com.au/story/0,25197,24050518-5005200,00.html


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## Family_Guy (28 July 2008)

OK, so what happened here? This is one i have had my eye on, but dropped off it when the price rocketed away last week. I cant see an announcement, but the price dropped heavily. What is the expectation of the meeting today? Some insider knowledge or just plain profit taking before the announcement?


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## TheAbyss (28 July 2008)

Either 1 of 2 things are going to happen today.

1. The meeting proceeds and the sale more than likely goes through
2. There is a counter offer put on the table prior to the meeting which looks very unlikely.

The SP spike was due to speculation that an offer would come through for the entire company as opposed to the single project which todays meeting is to decide whether to accept or not.

A good result for CFE either way.

Ineterst now will be news on the other ptenements adjacent to the Cape Lambert project plus what do they invest the money ionto, will it be a smart and prudent investment or highly speculative?

Thats up to you to decide in due course.


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## Go Nuke (28 July 2008)

WOW
CFE is getting ABSOLUTELY PUMMELED right now!
Down to 58.5c!

From what ive been reading on here from people who sit and do the maths, this is below its fair value based on the $400+ Mil they are about to recieve??

Ive copped a smashing today on the market...and I don't even hold bank stocks!


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## nioka (28 July 2008)

Shareholders meeting approved the sale so that removes the possible takeover offer. I suggest that the speculators buying in the hope of a higher take over offer are selling. That selling would trigger stop loss arrangements and start a mini lemming rush. The value is still in the company as the sale proceeds will exceed today's market cap and the company still has other irons in the fire. I'm holding for now.


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## nioka (28 July 2008)

News just out says that the Russian deal may not be off after all. The areas not sold are likely to contain 900m tonnes of iron ore and with the company well cashed up after completing the sale to chinese interests of the first lease hold area it still makes an attractive investment proposition for the Russians to continue to expand their holding in CFE. Those selling today may have made a costly decision. The next few days could be interesting. If the price stays down I will have a buy order placed to take advantage.


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## chansw (28 July 2008)

nioka said:


> News just out says that the Russian deal may not be off after all. The areas not sold are likely to contain 900m tonnes of iron ore and with the company well cashed up after completing the sale to chinese interests of the first lease hold area it still makes an attractive investment proposition for the Russians to continue to expand their holding in CFE. Those selling today may have made a costly decision. The next few days could be interesting. If the price stays down I will have a buy order placed to take advantage.



I am interested to read the news you mentioned. Do you have the URL for that news?  Thanks a lot.


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## nioka (28 July 2008)

chansw said:


> I am interested to read the news you mentioned. Do you have the URL for that news?  Thanks a lot.




It is a news item on ASF business news. The best place to get up to date and reliable info. (while the promo is sincere I had to include it to get the 100 digits) 

And I just noticed that this is my 2000-th post.


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## Family_Guy (28 July 2008)

My apologies for the silly question, Nioka. ASF business news.........Where exactly? is this a subscriber thing you speak of??
Interested in reading this as i did dive in late this arvo.


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## nioka (28 July 2008)

Family_Guy said:


> My apologies for the silly question, Nioka. ASF business news.........Where exactly? is this a subscriber thing you speak of??
> Interested in reading this as i did dive in late this arvo.



 Down the left side of the home page. (Now I need 100 digits for that to be accepted0. It is the column I always read first when I log in. Titled "News Headlines."


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## blues (29 July 2008)

Australian Business and Finance News

--------------------------------------------------------------------------------


Cape Lambert expects Russian bid soon
28/07/2008 05:13:49 PM


Cape Lambert Iron Ore says it expects a takeover bid in coming months by its largest shareholder, Russian steel making giant Evraz Group SA.

The junior iron ore explorer says it may become a takeover target now that it is cashed up after selling its namesake project and has another promising project on its books.

Cape Lambert shareholders on Monday voted in favour of the sale of the Cape Lambert North project in Western Australia's Pilbara region to China Metallurgical Group Corporation (MCC) for $400 million.

Cape Lambert shares closed down 26 cents, or 32.3 per cent, to 54.5 cents.

Cape Lambert director Tony Sage told AAP that he expected Evraz would be "very busy looking at ways to control the board", lifting its stake beyond 19 per cent because Cape Lambert was cashed up with a "fantastic deposit", the Cape Lambert South project, remaining in its portfolio.

Mr Sage said Evraz would soon raise its stake through its likely-to-succeed takeover bid for Singaporean steel group Delong, which has a 4.4 per cent stake in Cape Lambert and holds 28 million options that it can exercise to increase the stake to 13 per cent.

Evraz currently holds more than 10 per cent of Delong.

"They (Evraz) are not going to go away, put it that way," he said.

"They've made a $50 million investment in us and are not going to sit there without board representation, which I don't think the board would approve.

"However, if they spend another $120 million to gain control of the company and our $400 million in cash, they will more importantly gain control of Cape Lambert South."

Mr Sage said the Cape Lambert South project should hold at least 900 million tonnes of iron ore.

He said it would cost $30 million over the next six months to prove up a $300 million resource that was compliant with Australia's mineral reporting code.

"We fought tooth and nail with MCC to keep this deposit in our grasp.

"We expect that to be a huge resource. We would not have to develop it."

Cape Lambert has a deal to sell its ore to MCC, sending it to the Chinese conglomerate's processing plant and a port that it is currently developing at Cape Preston, which is situated within a few kilometres of Cape Lambert's Pilbara projects.

"We'll be able to sell that immediately knowing there is a port and a concentrator being built by MCC," Mr Sage said.

He said between $30 million and $100 million of the proceeds from the Cape Lambert North project sale would go to shareholders.

The final figure was dependent on the company's evolving growth plans, which included partnerships with other Pilbara iron ore miners, and potential projects in west Africa and Brazil.

Cape Lambert has applied for tenements in the Pilbara which have not yet been granted.

Mr Sage said Cape Lambert, - which was cash-strapped at the end of March with only $2 million in the bank, had been approached recently by several iron ore hopefuls that had found it hard to raise funds and sought a cashed-up joint venture partner.

"There's heaps of opportunities with the remaining cash," Mr Sage said.

About $87 million from the sale proceeds would be taxed but would not have to be paid until June 2010, he said.

MCC's first tranche of $240 million is to be paid on July 31 followed by a second tranche payment of $80 million on September 15.


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## nioka (29 July 2008)

The market hasn't accepted the news as good news and the mini lemming rush continues. Expecting a rise for the SP this morning I entered the preopen bidding and bought at 56.5c which I thought was a steal ?????. Paid a little too much.
I'll put them back on at 76.5c and hope to reach that within a week or two. I'll still hold my original purchase as, in my estimation the value is around $1. That is based on the companies potential cash position and it's remaining assets.


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## evas34 (29 July 2008)

Consider the fact that the 87m tax will not be paid until June 2010, the 65.5c share price per book value I have calculated previously is undervalued. 

Ignore other factors, just account for the money MCC paid for the project, 240m + 80m +60.5m - 0.5m - 38m - 70m (which is the discounted value of 87m tax in 2010) = 272m, plus 54.9m (value of options), then divided by 500m shares and options, equal to 65.4c, it is the value not even include all the other stuff CFE currently hold such as cash, equipment, and more important, the south project.

In my eyes, CFE is absolutely cheap at the moment, as soon as the Chinese deposit the 240m into the bank, we won't see the 50's again. I'm lucky to pick some at 52c, I still cant figure out who is the seller for the huge amount earlier today.

Happy trading,

Eva


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## jman2007 (29 July 2008)

I am a little bemused by the selling tbh,

And I'm also a little confused by Evraz's motives, despite the fact that they openly opposed the deal and launched a surprise raid on the share register last week, my understanding is that they abstained from voting. 

In terms of the selling perhaps we'll see some change in substansial holding notices put out over the coming week, even at current levels I think the current sp is about 10c lower than Evraz's conservative estimate of what the deal was worth per share.

Not overly concerned at this stage however.

jman


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## TheAbyss (1 August 2008)

Always a twist with CFE.

Evraz now doing a deal direct with MCC even though MCC do not own CFE as yet. Plus the $240 mill didnt get paid yesterday.

The article at the below link states that CFE did not know that MCC and Evraz were cutting them out but you have to wonder about the director share sale that occured after the Russian talks with Tony sage.

I am not machiavellian enough to understand the alternatives that could present with this latest turn. Thankfully free carried on this one now so happy to wait for a while longer

Any suggestions on where this might end up?

http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=88384


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## ans25 (3 August 2008)

Good news I believe...

Sage says $240m in the mail

2nd August 2008, 9:45 WST

Cape Lambert Iron Ore expects to receive a $240 million down payment from China Metallurgical Group Corp (MCC) to end speculation the $400 million sale of its flagship magnetite project to the Chinese buyer might have collapsed.

Settlement of the deal was to have occurred on Thursday afternoon but the deadline passed without any news from MCC. Instead, Cape Lambert was stunned to hear that MCC and Russian steelmaker Evraz had signed a development deal over the magnetite project.

Cape Lambert director Tony Sage said it had received a letter of assurance from MCC yesterday morning declaring that the Bank of China had arranged for the $240 million down payment to be transferred to the WA miner’s accounts.

Mr Sage said he expected the money to arrive on Monday.

“We are very, very, very confident that we are going to settle otherwise that whole deal they (MCC) have done with Evraz will be put to shame,” he said.

Investors have expressed concern given that a similar project sales deal signed between Cape Lambert and Singapore-listed steel group Delong Holdings collapsed suddenly last year, triggering a sharp slide in Cape Lambert’s share price.

Cape Lambert shares closed steady at 59 ¢ yesterday. The MCC deal values Cape Lambert between 67 ¢ and 90 ¢, depending on which analysis is used, and confirmation the down payment has been received is expected to rerate the WA miner’s stock.

Neither Evraz nor MCC would comment.

Under the deal struck between the two, Evraz would take a 75 per cent stake in the magnetite project with MCC owning the remaining 25 per cent. All the ore from the yet-to-be developed project would be sold into the Chinese market, with MCC able to negotiate an off-take for up to 60 per cent of the project’s likely production of 15-20 million tonnes a year.

Evraz is also Cape Lambert’s biggest shareholder with a 19 per cent stake and had toyed with launching a takeover bid for the WA miner. The speculation drove Cape Lambert’s shares as high as 92 ¢ last week.

However, given Cape Lambert’s board’s opposition to a low-ball bid of around 75 ¢ a share, Evraz instead pursued the project joint venture with MCC.

Evraz needs the Cape Lambert magnetite to feed the steel mills of Delong, which it is in the process of taking over.


Personally I think CFE is now ready for possibly a rerating of some kind hopefully.


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## ans25 (3 August 2008)

^^^
No one with any comments?

I for one am going shopping monday morning to pick up mroe CFE by the bucket loads.


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## nioka (3 August 2008)

ans25 said:


> ^^^
> No one with any comments?
> 
> I for one am going shopping monday morning to pick up mroe CFE by the bucket loads.




There was no more to say. your post was sufficient. I've been shopping, didn't see a reason not to shop last week. You should have followed my suggestion then about getting in on the lemming rush.


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## ans25 (4 August 2008)

Yep good comments b4 and I got in at 57.5 last week and today at 60c.

A good increase to 62c but I thought it might of got higher than that.
Anyways maybe Im beeing greedy but nevertheless this will go back to 90c easily within 1 month I think.

Happy times ahead


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## evas34 (4 August 2008)

Even the Chinese news website has announced the joint venture between the Russian and MCC. I just do not understand why CFE have not put an announcement yet, since they should notify the ASX as soon as they receive the money. Did something go wrong there?

I felt the danger and sold my shares, I may regret in the near future.


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## ans25 (4 August 2008)

Time for a bit of patience perhaps.

.... hopefully the money has gone in.... gulp

Did I buy in too quickly?


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## Family_Guy (6 August 2008)

Oh dear me. Trading Halt on CFE for an announcement of the settlement. Is this a bad sign? 

Anyone got more news?


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## MR. (6 August 2008)

Family_Guy said:


> Oh dear me. Trading Halt on CFE for an announcement of the settlement. Is this a bad sign?
> 
> Anyone got more news?




No I'd think TS etc. would want the world to know. 

EVAS34... But you still made a profit. Did better than me this time.


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## MR. (6 August 2008)

http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=89402

Some info here Family-guy..........................................


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## ans25 (6 August 2008)

From the sounds of it, everything is okay.

Maybe they didnt want it to run down thats why the TH??

I dont know but I think this will run again to previous high's.


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## ans25 (6 August 2008)

The money is in ppl!!!!!!!!!!!!!!!

Congrats to all holders,

I must admit I sold out b4 at abt 70c but couldnt resist getting back in at such discounted prices around 57c.

Anyways I wonder what the share price will be tomm, Im not expecting too much in this market, maybe a nice 5-10% gain hopefully.

Would rather see this increase steadily back to $1 or so.


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## MR. (6 August 2008)

Show me the money!  
There it finally is.
$20m + options in 2005 to $400m in 2008 (3 years).  
Good Job......... which ever way you look at it........ 

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1921675&source=RNS


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## ans25 (6 August 2008)

Yeah MR I heard at one point in London it was up %15 straight away!

Im not sure the impact in oz here, some people are thinking even it might get up to 80-90c by end of friday.

Hmmm Im not sure abt that that quick esp in this market. But one thing for sure I aint selling @ 70c this time!

Good Luck all.

If the market situation here improves this can sky rocket indeed by end of year. Just my opinion but perhaps we can even see $1.50 perhaps along with a couple of good ann's coming.

But that's a long way away at this stage..... one day at a time


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## MR. (6 August 2008)

http://www.advfn.com/quote_Cape-Lambert_LSE_CLIO.html

http://www.londonstockexchange.com/...ices.htm?sym=AU000000CFE0GBGBXAIM B13V404CLIO

Above are a couple of links to the AIM. Better to get your info' first hand. Anyway after 121 posts on this stock more than double anyone else it is good to see this announcement.  

TS was looking for $1.20 for the CFE takeover, Ha, he once told me it was worth $6- a share. 

I wonder if some of my questions will ever be answered.  Bye.......


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## Family_Guy (7 August 2008)

Did anyone watch the buying and selling of this today?? Didn't seem to do much. Might slowly slowly head north and an announcement of divvies fire this one up??


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## Family_Guy (13 August 2008)

I guess not, huh? Just broke 50c this morning. What is the support level for this now, please. And which chart do we use to work out that support level?
Cheers


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## YOUNG_TRADER (14 August 2008)

Well it was interesting to watch as an observer how that whole Chinese deal/Russian buying thing played out, very strange if you ask me

Anyhoo just ran some number for fun and here's what I got

380M shares + 120M (ish) opies avg conversion price 33c

So total capital = 500M

Cash current = $270m
Sale proceeds to be recieved = $160m
Option exercise = $33m
Total = $463M

* NTA Share = $463m/500m = 92.5c *

There are 2 further factors worth considering,

1. The company has kept the Cape Lambert South Project which is IMMEDIATELY South and touching the main Cape Lambert Deposit and magnetic surveys have found a 3km long anomoly which looks similar to the much larger anomoly the discovered at the main Cape Lambert deposit which after much work was found to host 1.5Bt's and eventually sold for $400m 

I would imagine any ore discovered here would also be naturally sold to the Chinese, so in a way CFE already have a buyer lined up IF thats IF they can drill out another deposit



2. The company is propsing to give back $100m in 2 parts, in specie distribution and dividend, using the 380M shares currently on issue = 26c a share


*Key points
NTA should be 90c vs SP 50c
Company has the Cape Lambert South Porject which does look promissing*

DYOR


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## Go Nuke (14 August 2008)

Hate to sound like a broken record but....*does anyone know what has happend to the GFE (Global iron) shares that we were supposed to be given?*

I dont see them in my Commsec account and haven't done so for a long time!


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## Mumbank (15 August 2008)

I'm not sure but I my Holding Statement says they were 4 month escrow shares from listing and they were initially noted with my CHESS ID, but I note that later taken off my CHESS statement and issued with a SIN as Issuer Sponsored with a different HIN, so that may explain why they don't show on your account.


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## nioka (15 August 2008)

CFE is an odd stock. MCC have paid, or are paying, more for part of the companies assets than the present market cap. They could take over the company, get their cash back and still own all the assets. With a wiley Russian partner they must be aware of this.They could buy the company with the companies own cash. Why isn't there more action in the market place for the CFE shares? With cash on hand and another potential iron ore deposit these shares must be underpriced. Am I missing something here?


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## YOUNG_TRADER (15 August 2008)

YOUNG_TRADER said:


> Well it was interesting to watch as an observer how that whole Chinese deal/Russian buying thing played out, very strange if you ask me
> 
> Anyhoo just ran some number for fun and here's what I got
> 
> ...





Hey Nioka,

As I have said above the company is trading at about 60% of its cash backing and it also has a promissing looking project to the South of the main deposit

My guess is its a combination of these disgusting mkts and some back alley dealings that have resulted in the current mis-match between the company's NTA and the value the mkt is putting on the company

This article was an interesting read
http://www.theaustralian.news.com.au/story/0,25197,24182242-30538,00.html

Regulator should check Cape Lambert and its players

Bryan Frith | August 15, 2008 
CORPORATE regulator ASIC should take a look at recent events concerning Cape Lambert Iron Ore to satisfy itself as to whether or not there might have been a breach of the takeover and substantial shareholding provisions of the Corporations Act.

The Foreign Investment Review Board and federal Treasurer Wayne Swan should also have a look to see whether there might have been a contravention of the Foreign Takeovers and Acquisitions Act (FATA). 

Any enquiries should focus on the behaviour of Russian steelmaker Evraz -- part-owned by Russian billionaire Roman Abramovich and the state-owned China Metallurgical Corp. 

Evraz created a stir last month when it popped up with a 19 per cent shareholding in Cape Lambert, only days before shareholders were scheduled to vote on approval of the sale of the company's 1.56 billion tonne Cape Lambert magnetite project to CMC for $400 million. 

The bulk of the holding -- 15 per cent -- came through the purchase of listed options, which began back in April, and which were exercised immediately before disclosure was made. 

The buying created speculation the Russian group had its own designs on the iron ore project and that it might seek to block the sale to CMC by voting against it, or make a bid for Cape Lambert as the shareholding might not be sufficient to prevent the sale going through. Cape Lambert's share price ran from 70c to 92c. 

Alternatively, it was thought Evraz might use the stake as leverage to try to expedite Chinese regulatory approval of the Russian group acquiring majority ownership of Delong Holdings, which is listed in Singapore and owns a steel mill in China's Hebei province. Delong is controlled by Chinese businessman Ding Liguo. 

In February, a complicated arrangement was announced in which Evraz would acquire at least 51 per cent of Delong, in a deal that valued the Chinese company at $US1.5 billion, but as yet regulatory approval has not come through. 

Evraz gave credence to the bid speculation. The Russian group invited Cape Lambert's directors to a meeting in Singapore after its stake was disclosed where they were given the impression that Evraz didn't believe the sale to CMC would be good for the Australian company. The Cape Lambert board allowed Evraz to conduct due diligence and believed that a bid was in the wings. 

Cape Lambert originally proposed to sell 70 per cent of the magnetite project to Delong for $250 million but that fell through. Delong acquired 40 million Cape Lambert options and exercised 12 million of them, giving it a 4.4 per cent shareholding in Cape Lambert. It proposed to exercise the remaining 28 million options, which would have lifted its holding to 13.25 per cent, but as yet that has not happened. 

The Cape Lambert shareholder meeting was held on July 27. Representatives of Evraz and Delong attended and made it clear they wouldn't oppose the sale to CMC or a proposed $37.7 million capital return to shareholders, but would oppose the issue of 8.5 million options to employees and 11 million options to directors, all exercisable at 52c a share. 

As a result, Cape Lambert withdrew the resolutions relating to the options and the sale to CMC was approved. 

ASIC might well be interested in the like-mindedness of the voting intentions of Evraz and Delong in relation to the various resolutions. 

It's possible for parties to have an understanding as to voting intentions without triggering a relevant interest in the other's holdings, but if they act in concert in relation to the company's affairs then they are associates, and that would trigger a relevant interest. If Evraz and Delong were associates, they would have a relevant interest in 24 per cent of Cape Lambert, without either making a takeover offer and that would be a contravention of the Corporations Act. It would also mean the substantial shareholding provisions were contravened. 

Whatever, it's now clear that Evraz did have designs on the Cape Lambert iron ore project but it was not in conflict with CMC; in fact, it's difficult to avoid the conclusion they were working towards the same purpose. 

Only three days after shareholder approval for the sale to CMC, Evraz announced that it had signed a co-operation agreement to establish a joint venture to develop the $1 billion project, with a projected annual output of 15 million tonnes of magnetite concentrate. Evraz would have a 75 per cent economic interest in the project and CMC the remaining 25 per cent. The deal was announced before the project had transferred to CMC. 

It was anticipated that all of the output would be shipped to China, with CMC entitled to sign an off-take agreement for up to 60 per cent of the output. 

There's no way that was all agreed to in the three days after approval of the sale. It's clear the negotiations would have taken some time and have been under way while Evraz was accumulating its stake. It appears Evraz had no intention of making a bid and that its buying was aimed at supporting the sale to CMC. 

That raises the question as to whether Evraz and CMC are associates under FATA. If that were the case then it would have a relevant interest in Evraz's 19 per cent shareholding in Cape Lambert. And if, as is likely, CMC only received FIRB approval to acquire the iron ore project, then it would be in breach of FATA. 

It must be wondered what the Treasurer thinks of all this. Swan presumably thought he was approving a Chinese acquisition of the iron ore project, but it now transpires that a Russian group has majority ownership, while the Chinese get all the iron ore. Evraz still needs FIRB approval to participate in the joint venture. 

If Evraz now gets Chinese regulatory approval to consummate the Delong deal, it will need to exercise care to ensure it doesn't fall foul of Australia's takeover rules. 

Under the substantial shareholding provisions, if a party holds more than 20 per cent of a company it is deemed to have the same relevant interest as the company has in any shares. Evraz has already bought 10 per cent of Delong from Best Decade, a company controlled by Ding and which owns 78 per cent of Delong. Evraz has also entered into put and call options over another 32 per cent, and on exercise Best Decade would sell another 9 per cent to Evraz, giving it 51 per cent. 

Evraz would then be required to make a mandatory bid for the remainder of Delong, but Best Decade would retain 26 per cent. 

Once the put and call options were exercised, Evraz would own more than 20 per cent of Delong and would have a relevant interest in Delong's 4 per cent of Cape Lambert. As Evraz already owns 19 per cent, that would take it above the bid threshold. One way to avoid any problems would be for Delong to sell the 4 per cent stake before Evraz goes above 20 per cent of the Chinese company. 

Meanwhile, Cape Lambert raised some eyebrows by issuing the 8.35 million options to employees despite not putting the matter to shareholders for approval. For added measure they are exercisable at a lower price of 50c a share. 

Cape Lambert wanted shareholder approval so it would not have to include the options in the 15 per cent of the capital that ASX allows companies to issue on a non-pro-rata basis in 12-month period without seeking shareholder approval. It apparently has now issued them on the basis that they are included in the 15 per cent and don't need shareholder approval. It might be legal but it's questionable behaviour. 

bfrith@acenet.com.au


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## Buddy (15 August 2008)

nioka said:


> CFE is an odd stock. MCC have paid, or are paying, more for part of the companies assets than the present market cap. They could take over the company, get their cash back and still own all the assets. With a wiley Russian partner they must be aware of this.They could buy the company with the companies own cash. Why isn't there more action in the market place for the CFE shares? With cash on hand and another potential iron ore deposit these shares must be underpriced. Am I missing something here?




Yes I think you are right nioka. I think it has been also pretty obvious that there has been manipulation of this stock to sell it down.  However, if its evraz they better be careful as they could finish up doing porridge on this one.  Could be their mates though, if they have inside knowledge of a potential takeover bid.  Or it could be someone else trying to buy the company at rock bottom prices. In any case, if the commies want to takeover CFE as you suggest, my understanding is that they would have to bid at least 75 cents, which was where they did their smelly accumulation.

I do reckon there is some rather shifty work going on with this stock. Maybe ASIC should have a look at this (per the post from Y_T) as I doubt if normal market forces are at play here.  But whatever, dont trust the commie mafia, or the chinese mafia if it comes to that! And whilst ASIC are at it, maybe they should have a look at BRM. I reckon there has been manipulation going on there as well. 

And whilst I am on about the mafia (and let's put the hedge funds into that category as well) ................I was chatting with some mates last night and we all came to the conclusion that it is about time short selling was made illegal.  If short selling persists, then the stock market is lttle better than betting on the inside horse in the 5th at "wherever" - too open to manipulation, to the detriment of "normal" investors (and by that I mean people who do not have access to the same knowledge). Maybe we should start another thread on this topic.


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## TheAbyss (15 August 2008)

Buddy said:


> And whilst I am on about the mafia (and let's put the hedge funds into that category as well) ................I was chatting with some mates last night and we all came to the conclusion that it is about time short selling was made illegal.  If short selling persists, then the stock market is lttle better than betting on the inside horse in the 5th at "wherever" - too open to manipulation, to the detriment of "normal" investors (and by that I mean people who do not have access to the same knowledge). Maybe we should start another thread on this topic.




IMO, short selling is betting on a company to fail. To incentivise people to want a business to fail just doesnt seem right to me. That's like a bookie taking bets on a horse to finish last. Not only will trainers and jockeys drug their horses to go fast and win the prizemoney, they will also decide to drug their nags to finish last.

That isnt to say i blame short sellers for the market conditions at the moment asthere are various other issues at hand however short selling is something we can surely live without.


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## Family_Guy (15 August 2008)

Just out of interest, if ASIC were to investigate improper dealings, would CFE go into a trading halt for the duration?


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## nioka (15 August 2008)

Family_Guy said:


> Just out of interest, if ASIC were to investigate improper dealings, would CFE go into a trading halt for the duration?




I doubt that would happen. CFE are not to blame. It would be other parties in the trading that would be investigated unless there was evidence that CFE were involved as well.


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## YOUNG_TRADER (15 August 2008)

Guys try and ignore the noise and focus on the fundamentals

1. 90c NTA in cash alone (to be recieved) vs 50c Share price

2. Prospective grounds South of the Main Cape Lambert Mag body with a 3km mag target

If a takeover were to come it would have to be at a premium to the cash AT LEAST, given there is 90c cash a 75c is just out of the question

If I were them I'd put in an offer at 95c, 90c cash and the extra 5c = $25m would get them the South Project, a bargain when you consider it could host a large Mag body like its big brother a few kms North

Also 95c is a very nice premium to current levels and while I doubt it will go through/be accepted in these mkts who knows it just might


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## points (18 August 2008)

CFE is listed at AIM as well, and issued 240 million shares in AIM. The valuation could be about 60 cents. 

Cheers


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## YOUNG_TRADER (18 August 2008)

points see this link to the company's web page, pretty sure shares on issue are what I thought them to be ie 500M fully diluted

http://www.capelam.com.au/corporate_summary.21.html



Also looks like someone else see's what I see 
http://www.theaustralian.news.com.au/story/0,25197,24182025-23634,00.html

Cape Lambert Iron Ore (CFE) 51.5c 

FROM Criterion's bargain-basement file we highlight the odd lowly market valuation ascribed to this Pilbara junior, which is bulging with cash after selling its eponymous magnetite project to China Metallurgical Construction Group (CMC) for $400 million. One reader is puzzled why Cape Lambert is trading on a market cap of $230 million (including in-the-money options) when it's sitting on cash (including $160 million yet to be received from CMC) of $430 million. 

A likely reason for the valuation gap is the intent of Evraz, the Russian group which has a 19 per cent holding in Cape Lambert. Instead of blocking the sale and making a takeover tilt as expected, Evraz shocked everyone -- Cape Lambert management included -- by doing a deal with CMC to take a 75 per cent stake in the project. 

With the share price tanking from around 80c after news of the back-room deal, Cape Lambert now feels vulnerable to a low-ball offer from Evraz. But such an outcome is not inevitable. 

The other uncertainty is what Cape Lambert does with the dough. The company has proposed a capital return of 26c a share to distribute $100 million or so, but that still sees plenty left over. 

Cape Lambert is not officially a cash box in that it retained tenements at the prospective southern end of the project and expects to spend $5-8 million on drilling a few holes. If proven up, any resource would have enhanced value given its proximity to the 1.5 billion tonne main resource. 

As for the rest of the stash, management has been entertaining all manner of proposals from other WA juniors; and has looked as far afield as West Africa. Such a foray might not exactly thrill Pilbara-centric investors, but iron ore explorers have to go where the iron ore is. 

Cynics might argue there's nothing more dangerous than a cashed-up miner searching for a reason for being. Unless we've missed an extenuating factor -- which is always possible -- we agree that Cape Lambert rates as a speculative buy.


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## evas34 (19 August 2008)

I am lucky for holding cash at hand recently wondering between a few stocks to jump in again, such as GBG, SDL or BMN, finally, I voted for CFE, at least it is a safe play, brought some parcel today, it is just a matter of time CFE will go back to 60's.


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## nioka (5 September 2008)

It is hard to work out why the SP of CFE continues to hover around the 50c mark. This values the company at less than the actual cash in the bank. There is another $80m to come from the sale of the iron ore deposit this month and another $80m still in the pipe line. There is the probability that $100m will be returned to shareholders as a capital repayment and special dividend in the very near future. That alone could be worth close to 25c share. The company has other assets.

One confusing factor is the notice that Power United Limited, with a Hong Kong address, is now a holder of 11.49% of the company by aquiring 49 million shares at a price of 32.7c share. Where did they come from? Another problem is the resignation of Ian Burston. Why?

 Regardless of the problems, the company must be worth more that today's price. I have increased my holding today based on that assumption.


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## nioka (13 September 2008)

From todays AFR.

  Cape Lambert readies for Pilbra drilling.

Cape Lambert Iron Ore says drilling will start on its Cape Lambert South project in Western Australia's Pilbara after it was granted an exploration licence.


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## jman2007 (14 September 2008)

YOUNG_TRADER said:


> As for the rest of the stash, management has been entertaining all manner of proposals from other WA juniors; and has looked as far afield as West Africa. Such a foray might not exactly thrill Pilbara-centric investors, but iron ore explorers have to go where the iron ore is.
> 
> Cynics might argue there's nothing more dangerous than a cashed-up miner searching for a reason for being. Unless we've missed an extenuating factor -- which is always possible -- we agree that Cape Lambert rates as a speculative buy.




I think YT's article raises a few very interesting points, and I generally agree with the sentiment. Essentially imo, they're still a bit of an unknown quantity, for a junior to have access to this much capital is totally unprecedented, especially under the current market conditions. Perhaps there really such a thing as "having more money than you know what to do with?"..

On the other hand, they could just put the money in the bank, earn squillions off the interest and pay out a dividend until until I'm old and grey.:

jman


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## jman2007 (15 September 2008)

So what the blue blazes is going on here now?!...

Did anyone else recieve a notice in the mail today from 'Power United Limited' re the upcoming shareholder meeting? I've never heard of them before, but apparently they've "recently become a substansial shareholder in Cape lambert Iron Ore Ltd and currently has a shareholding of 11.49% in the Company".

Essentially they want to get rid of about half the Board, and seem rather concerned about CFE's proposal to become involved with the Marampa Project in Sierra Leone, which I have to admit I currently know very little about. They basically seem to be saying that the business plan is nothing but a shame designed to pass control of the company to mysterious (and as yet unidentified?) parties associated with the current owners of the project... 

One thing which strikes me, if true, is that the CFE Board issued 8,350,000 options to employess and consultants on the 8th of Aug, yet Power United claim that the resolution was withdrawn on the 28th of July by the Board at the GM!! Surely this cannot be ethical?

I have absolutely no idea where this is going to end up, and feel that this is further damaging the CFE sp and investors confidence in them. I also have no idea whether to vote or not. I think this will ultimately be fought out by the big players, rendering my somewhat tiny holding largely irrelevant.. so what chance do the little guys have? 

Any feedback/comments from you regular CFE posters welcome.

Something doesn't feel right to me... 

jman


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## Family_Guy (17 September 2008)

OK, so now Mick Gatto is in on the action and some other crook as well. Fantastic. And while the rest of us sit hear and wonder what the hell is going on, the disclosure has been poor, allegedly. 

I'm not sure if i should dump and run but i just cant see why the company SP is so low considering its bank balance.

Story==> http://business.theage.com.au/busin...amberts-big-cashbox-20080916-4hyg.html?page=1


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## Buddy (17 September 2008)

Family_Guy said:


> OK, so now Mick Gatto is in on the action and some other crook as well. Fantastic. And while the rest of us sit hear and wonder what the hell is going on, the disclosure has been poor, allegedly.
> 
> I'm not sure if i should dump and run but i just cant see why the company SP is so low considering its bank balance.
> 
> Story==> http://business.theage.com.au/busin...amberts-big-cashbox-20080916-4hyg.html?page=1




It does sound a bit like the thugs are moving in on CFE and the cash box. I mean, just look at who's who now. We got Ruskies, Commies, "business people" of dubious character, and Melbourne mafia on the register.
I must admit that I am a bit cautious about the proposed investment in Afreeeca. Not sure this is a good plan. Maybe CFE should be wound up and the cash distributed to shareholders.  After all, it does seem to be lacking a raison d'etre.


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## prawn_86 (17 September 2008)

Buddy said:


> Maybe CFE should be wound up and the cash distributed to shareholders.




Why would the management do this, when they can stuff around for at least 5 - 10 more years with that cash, while earning their six figure salaries...


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## Buddy (17 September 2008)

prawn_86 said:


> Why would the management do this, when they can stuff around for at least 5 - 10 more years with that cash, while earning their six figure salaries...




Yes, that's true.  Seems like the mug punters are going to be the loosers on this one. Yet again!
Barstards!


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## evas34 (18 September 2008)

I am not going to vote for those guys,  just look at the fact of the recent share price dropping, we as small shareholders are getting hurt. 

First, I don't think them have gave us enough substantial reasons why the investment in the African is bad. Even African is a somewhat remote areas, but it is a rich land of natural resources, what's more, the labour will be much cheaper than in Australia.

Second, what them suggest is to pay fully franked dividend than the unfranked dividend, that means, the company should have at least 30m franking account credit balance on the tax return, to put it another way, the company should have already paid 30m to the ATO. I cant see that from the reports, so, there is no way CFE can pay franking credits to us. 

I admit I didn't like the employee options as well, but considering the board have managed to sell the assets to MCC at a higher price than the sale to Delong before the price rise of the iron ore, they did a reasonably good job there, so, it will not hurt so much to give some options away. 

I have been accumulating CFE through every possible sources of fund, hope I will laugh instead of cry in a few month later


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## nioka (18 September 2008)

I can't see the reason for CFE SP to be as low as it is. The best thing the present management can do to keep the shareholders on side would be to pay the promised cash return to holders which was expected to be around 25c per share. The cash is there to do this.

The cash available, related to the market cap makes CFE a target. In the "old" days Alan Bond would have snapped it up by now.

The present board need a kick up the proverbial but the proposed one would be worse for the general shareholders as I see things.

Message to the board; Pay out the 25c a share pronto. That's the reason I'm still holding.

As for Africa, I haven't made up my mind yet on that one.


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## Family_Guy (18 September 2008)

Was just reading a statement from CFE regarding a few issues and it got me thinking. So i was wondering if anyone knows if an ex div date on the 25c unfranked return for shareholders has been announced? What i'm getting at here is simply this.......i would like to buy more at these current prices. Have we gone past an ex div date on the 25c divvie and perhaps this is why the SP is floundering, or will the ex div date be released at the end of the month as per tonights statement from the board.

Cheers


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## nioka (18 September 2008)

Family_Guy said:


> Was just reading a statement from CFE regarding a few issues and it got me thinking. So i was wondering if anyone knows if an ex div date on the 25c unfranked return for shareholders has been announced? What i'm getting at here is simply this.......i would like to buy more at these current prices. Have we gone past an ex div date on the 25c divvie and perhaps this is why the SP is floundering, or will the ex div date be released at the end of the month as per tonights statement from the board.
> 
> Cheers



I doubt that we have gone past the ex div date. a call to the company would answer that.
 The present menagement were smart enough to get CFE into the great cash position that the company enjoys, I doubt if they would be dumb enough to blow it in a bad investment in Africa. 
 I can see no reason why the SP is as it is. That is a worry to me but not enough of a worry to sell out. Maybe a good time to buy more when cash is king and CFE have the cash and more to come.


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## YOUNG_TRADER (19 September 2008)

Hey guys,

On holidays, only checking mkts sporadically, 

I bought a few more of these, cash is cash and 90c Cash Backing vs 36c share price is a no brainer for me

Buy the gloom sell them boom

Just look at MQG today up 50% at one point, crazy! 

I wonder what will happen when the mkt wakes up to the fact that CFE has a current NTA of 75c-80c and will end up with 90c

Be safe guys, I'll be lurking



YOUNG_TRADER said:


> Well it was interesting to watch as an observer how that whole Chinese deal/Russian buying thing played out, very strange if you ask me
> 
> Anyhoo just ran some number for fun and here's what I got
> 
> ...


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## Ashsaege (22 September 2008)

Family_Guy said:


> Was just reading a statement from CFE regarding a few issues and it got me thinking. So i was wondering if anyone knows if an ex div date on the 25c unfranked return for shareholders has been announced? What i'm getting at here is simply this.......i would like to buy more at these current prices. Have we gone past an ex div date on the 25c divvie and perhaps this is why the SP is floundering, or will the ex div date be released at the end of the month as per tonights statement from the board.
> 
> Cheers




25c divies??? could someone explain this to me... as the share price is currently under 40cents.
I know the company has cash.


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## Family_Guy (22 September 2008)

Ashsaege said:


> 25c divies??? could someone explain this to me... as the share price is currently under 40cents.
> I know the company has cash.



They have 400+mil shares out there and they say they want to give $100mil cash back to share holders.......so somewhere between 20-25cents...... at least i think that is how it is worked out.
And if that is the case then holding CFE is a win for me. It does not make sense to me that if my maths is correct and the share price is this low.


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## Ashsaege (22 September 2008)

Family_Guy said:


> They have 400+mil shares out there and they say they want to give $100mil cash back to share holders.......so somewhere between 20-25cents...... at least i think that is how it is worked out.
> And if that is the case then holding CFE is a win for me. It does not make sense to me that if my maths is correct and the share price is this low.




That sounds too good to be true with the current share price. Surely market efficiency would have picked up on this.
I've only been holding CFE for a week, i wonder is there is an ex div date or something that's already past. I'll go through previous posts and company announcements and do some research.


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## Justthinkin (22 September 2008)

This is a curious stock and I suspect will prove not to be for the faint hearted. Yound trader is correct ... it is basically a cash cow with a sideshow of mining play aside the field it has just diligently sold to the Chinese et.al. So it can't be all bad.

Where this stock is going to get very ugly is the apparent corporate plays ahead.

The directors seems to have assumed the position of King Midas... in their minds everything they touch ineveitably turns to gold...they seem ready if not dangerously eager to spray shareholders cash all about.

Last Friday's meeting request and court action is I think about Power United saying that the directors should not spray his share of cash about.

Things to watch are:
(a) My calculations say that CFE has about $200M of shareholder cash that in the abscence of something very interesting, they could return to shareholders. In my view, the directors have not shown sufficient cause or capability to retinn large sums of other peoples money;
(b) the Russians on the register are interesting in as much I suspect they may be awfully close to 19.9%, subject to what happens next;
(c) Power United have put onthe table 50,000,000 times 32.7 cents to exercise thier options, late August, and that decsion was clearly not underwritten by the African opportunity;
(d) Watch how the balance of unlisted options are managed. There is a parcel of 28M on the register and I'd be curious to know who owns them

The directors I think have to date been a little foolhardy... I think they are indeeed sitting on a huge pile of cash and are loathe to give it back to shareholders at large and even less enthusiatic about winding up CFE and finding another job. At a distance, the African deal does have a nasty stench especially given the London source writ... why bother with the agro??? You would have to question why they would bother... surely.

Yet the market is always right... despite the mountain of cash, nobody's bidding it up... hmmmmm

Lastly, I do have a position with CFE but you really really do need to do your own research. What's above is the ranting of an optimist who truly thinks the market is a great place to be.... good luck


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## mrgroundwork (22 September 2008)

Ashsaege said:


> That sounds too good to be true with the current share price. Surely market efficiency would have picked up on this.
> I've only been holding CFE for a week, i wonder is there is an ex div date or something that's already past. I'll go through previous posts and company announcements and do some research.




market has already priced in around a 20c special div... so it is realistically only valuing the company at around 15-20c... 

the market seems to be placing a huge discount on the company for the risk associated in management stuffing up a number of issues it is tackling at the moment... 

the market can be pretty good at pricing this risk (in mining companies as opposed to financials) so I dunno whether i would be buying in and taking a contrarian view to the whole market just to try and get this div...


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## SimpleMan (23 September 2008)

I think no one would disagree that the market is clearly confused or concerned and probably both. However it is hard to escape that the management got the company to such a position, and I can't help thinking that they are only doing what they say they were going to do i.e. find some more iron ore. 

Why are the Russians and these other players so interested ? With a wealth of other Companies failing or with cash problems this has at least got to be on the right side of the odds curve. I have put my money where my mouth is, and I guess time will tell.


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## nioka (24 September 2008)

SimpleMan said:


> I think no one would disagree that the market is clearly confused or concerned and probably both. However it is hard to escape that the management got the company to such a position, and I can't help thinking that they are only doing what they say they were going to do i.e. find some more iron ore.
> 
> Why are the Russians and these other players so interested ? With a wealth of other Companies failing or with cash problems this has at least got to be on the right side of the odds curve. I have put my money where my mouth is, and I guess time will tell.




CFE is hard to work out at the moment. With a market cap showing at $169m and a return of $100m to shareholders promised there is a balance of around $300m in cash seemingly valued at $69m.

Considering that position why is a HongKong based company with about 19% share holding trying to replace the whole board, getting injunctions against the actions of the present directors and trying to prevent the African purchase. Is it just to get their hands on all the cash and stop our promised divvy? They certainly won't get my proxy even if I'm not completely happy with the present board.


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## rub92me (24 September 2008)

I have been looking at this too for a while and can't find anything wrong with the valuations that have been provided by various posters. However, if things sound too good to be true, they usually aren't, which is the only thing holding me back. I have no clue as to what it may be, but there could be a black swan hiding in the shadows somewhere.


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## nioka (24 September 2008)

rub92me said:


> there could be a black swan hiding in the shadows somewhere.





This is what is lurking in the background.

Recent recored share transactions resulted in the following ownership.

15th July.    Merril Lynch 16%
16th july.     Evaraz Group 19%
30th August. Power United 11.49%
30th August. Michael Shemesian 16%

 Plus plenty of trading since.

Note that Power United is the one that is trying to take over the board. If the others mentioned are on their side then it is all over for the say of the small shareholders.


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## rub92me (24 September 2008)

Nioka, nope, that's not the black swan, that's black clouds. A black swan is something that can not be readily gained from the information at hand, but easily explained in hindsight. I guess time will tell and I hope for holders it's just black clouds.


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## Justthinkin (24 September 2008)

15th July. Merril Lynch 16%
16th july. Evaraz Group 19%
30th August. Power United 11.49%
30th August. Michael Shemesian 16%

Just to clear thing sup... my take is that the Evraz 19% includes that disclosed by Merryl. The Shemensian 16% includes the Power United holding. Please correct me if I am wrong.

My take is that Shemesian who [based on some google research] is a player whi is happy to put others in an awkward position and financially lever accordingly. Possibly this is another instance. I don't think he has any long term aspirations re CFE...

The names to watch are Evraz, Power and Delong (ex Singapore). Evraz is amidst a takeover of Delong who as I understand it the proud owner of 28M unlisted CFE options, exercisable at 37.7 cents. 

The uneventful meeting between Meril and the company not so long ago is intriguing. 

If you really wanted to annoy someone then what you might do is call an EGM and force the premature exercise of these option. But would that cause downstrem complexities... maybe.

Also the African play is bewildering. If they have a fettish for remote area diggings, I'm sure there is a mountain of projects going for cents in the $ with compliant reserves  defined. Moroever, the directors keep telling me about the progress of injunctions (almost a blow by blow description) yet I can only surmmise what actual cash position is and might be 3 months hence. This transaction does smell, the directors sense of urgency causes me to feel uncomfortable and I think an EGM (if not the injunction process) could reveal some interesting facts.

Again... do you own research...


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## Family_Guy (2 October 2008)

And there you have it.
22.7 cents a share with an ex-div date of 14 Oct.
SP currently at 35c.
So i wonder if the SP will hold or go up. Can't see it falling with out being snapped up.

edit......only took a few minutes to drive up 8c


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## Family_Guy (2 October 2008)

I just got a ph call from a so called research company from Power United asking me a few questions about what i thought the board were doing...........half expected an 'invite' to meet Mick Gato.


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## hsv2001 (2 October 2008)

Am i reading right, that this is approx. a 50% return on the shares I wish i had some spare cash


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## Ashsaege (2 October 2008)

Im glad i sold my OZL shares to purchase these puppies!

Might have to scrounge up some spare cash and purchase more. currently up 33%


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## nioka (2 October 2008)

hsv2001 said:


> Am i reading right, that this is approx. a 50% return on the shares I wish i had some spare cash



 We have been telling you this was going to happen for weeks now. It's not exactly new news. It has only just been confirmed......


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## Mumbank (2 October 2008)

Yippee, I'm glad I topped up with more of these the other day at 34c - nice little return. Up 11c this afternoon. :

Such a nice change in this revolting environment where everything seems to be bad news.


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## Ashsaege (2 October 2008)

Mumbank said:


> Yippee, I'm glad I topped up with more of these the other day at 34c - nice little return. Up 11c this afternoon. :
> 
> Such a nice change in this revolting environment where everything seems to be bad news.




Yeh Im not use to this feeling.... finally kicked a goal in this dreadful season!
Hopefully there will be some decent buying pressure over the next couple weeks.


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## Go Nuke (3 October 2008)

Yes but don't you all think this is going to go down faster than a two dollar hooker after the 14th of October?

I reckon it will get smashed after people pocket the divi and jump out again


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## nioka (3 October 2008)

Go Nuke said:


> Yes but don't you all think this is going to go down faster than a two dollar hooker after the 14th of October?
> 
> I reckon it will get smashed after people pocket the divi and jump out again




One of these days this stock will get valued for it's cash balance. Even after the cash handout the market cap at todays price will not be anywhere near the cash balance and there are still the other assets to consider. This stock is a chicken. ( it goes cheep, cheep). I'll use my divvy to buy more CFE.


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## billabooloo (6 October 2008)

Hi all, 

Does any one have any idea about the taxes that will need to be paid on the sale of the project.  

My val goes like this... let me know what you think ...... 

Cash                     16m @ jun08 
from sale Sale        320m  

tax to be paid (400-30)*.3=111m **
cash from option expercise =12m (assuming the $1.4's dont get exercised) 
cash used for upcoming projects = 25m african project +5m other.  

Total cash available currently =  (16+320-111+12-30)=  207m  

Then 100m isdistributed to current FPO's (440million shares)= 100m/440=0.227c

107m cash available distributed amongst diluted Shares =   107m/523m=0.206c

Total Value = 0.227+0.206c=  *0.426c*

This however leaves no value for any of the projects(consistent with the pricing of other explorers)   

Also no value is given to the 80m to be received if cape lambert gets mining approval

If we give a 50% probability of that happening (must happen in 2 yrs)  =0.5*80m/523m = 0.08c

Total value =  0.08+0.426= ~50c


** I assume they can deduct something from the taxable income, however I'm wondering if the 50% CGT deduction applies.  If it does it would increase the value by around 10c.  

Of course all this is just my speculation ....any thoughts ??


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## shaunm (7 October 2008)

Hi fellow cfe'ers.
how late or how close to 14th october can you buy additional shares to be in for the dividend?
Thanks


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## jackson8 (7 October 2008)

In accordance with the ASX Listing Rules, the timetable applicable for the return of capital
and dividend is outlined below:

Event Date
Announcement of Dividend and Return of Capital 2 October 2008

Effective Date 14 October 2008

Trading in Shares starts on an “ex return of capital
basis” and “ex dividend basis” 14 October 2008

Record Date 20 October 2008

Payment Date and Dispatch Date 24 October 2008

As outlined above, the record date for these payments will be 20 October 2008, which the
Board believes will provide Option holders wishing to take part in the return of capital and
receive the unfranked dividend sufficient time to convert their options.


hope this answers your question , i dont quite make sense of it my self so if you do you may like to post


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## nioka (7 October 2008)

shaunm said:


> Hi fellow cfe'ers.
> how late or how close to 14th october can you buy additional shares to be in for the dividend?
> Thanks




As far as I know 3 clear days. Tomorrow is close. I can't see the catch with CFE. When something seems too good to be true it usually is. ????????????


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## Goldmann (8 October 2008)

nioka said:


> As far as I know 3 clear days. Tomorrow is close. I can't see the catch with CFE. When something seems too good to be true it usually is. ????????????





would this deadline apply for people who dont hold CFE but wish to get in today to be eligible for Divi???


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## nioka (8 October 2008)

Goldmann said:


> would this deadline apply for people who dont hold CFE but wish to get in today to be eligible for Divi???



 No guarantees but as I see it you can buy today and get the divvy.It is easy to read these things differently, maybe check with a broker.


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## deadset (8 October 2008)

I thought it looked good the other day.
So much going on though, I missed it.
The coal companies have taken a severe beating lately.

Selling OZL at $1.80 or so the other day and swapping to these would definitely have been the way to go.

I'm ready in the box seat if the Nickel price skyrockets anytime soon.


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## Ashsaege (9 October 2008)

it's nice to see the board all getting along well now. A decent amount of experience behind the board too!
There was a bit of talk about capitalising on other opportunities in the current market... everything being so cheap and them having oodles of cash.


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## bas (9 October 2008)

If the "ex" date is the 14th then you can buy anytime up to and including the 13th to be entitled to the returns. You can then sell on the 14th if you want to and will still receive the capital return/ dividend. Naturally you'd also expect the share price to come down by the cash return amounts though.


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## Shrewd Crude (11 October 2008)

Hey dudes...
Ise at a sharetraders function during the week and there was some considerable talk about this company... 330million in bank... 170million market cap... distribution through dividends coming...Monday last day to get in (to be safe)... 22.7c while trading at 39cents... I reckon this could fall 15c on dividend (which would still make the stock a ridiculous steal) given its cash levels...
Yeah it does sound too good to be true huh....
you will have to do your own research on this one...
Huummmmm.... 

.^sc


----------



## Wysiwyg (11 October 2008)

Good spotting SC.The divies are unfranked and the capital return will be taxed too.Still a good payout to all share holders at 22.7c.



> The return of capital and unfranked dividend will comprise 31.25% and 68.75% respectively of the AUD$100 million.
> The ex return of capital and ex dividend date has been set at 14 October 2008 .


----------



## Family_Guy (12 October 2008)

ooouu ooouu......pick me, i have a silly question.

OK, lets say the SP does drop 15 odd cents which i can see happening. So now it's 25c at the end of the day which values the company at roughly at little over $100mil. Could someone, any old pleb, just one single person walk in and buy the company out, take the $300mil cash and close the thing down and make a cool $150mil odd profit? 
Because it would smell of TO material to me. Or is that a hard thing to do?


Anyway, that makes sense to me.


----------



## nioka (12 October 2008)

Family_Guy said:


> ooouu ooouu......pick me, i have a silly question.
> 
> OK, lets say the SP does drop 15 odd cents which i can see happening. So now it's 25c at the end of the day which values the company at roughly at little over $100mil. Could someone, any old pleb, just one single person walk in and buy the company out, take the $300mil cash and close the thing down and make a cool $150mil odd profit?
> Because it would smell of TO material to me. Or is that a hard thing to do?
> ...



 They could start buying shares, that would make the price rise. Unless they end up with 90% they have to make a take over offer, would you accept less than the company is worth?. 

It could happen but not at 25c. At 25c I'll be buying not selling. I'll be reinvesting my divvy at least in the first week.


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## Ashsaege (13 October 2008)

Well tomorrow is the 14th, so im expecting strong buying pressure today. Hopefully we will see a good rise in the SP today


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## Ashsaege (14 October 2008)

Go Nuke said:


> Yes but don't you all think this is going to go down faster than a two dollar hooker after the 14th of October?
> 
> I reckon it will get smashed after people pocket the divi and jump out again




Im kinda expecting it to be oversold today, though i wont be selling.
The aussie market should do very well today, after wall street's record bounce last night... hopefully this will soften the blow for CFE today.


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## herbert (20 October 2008)

YOUNG_TRADER said:


> Hey guys,
> 
> On holidays, only checking mkts sporadically,
> 
> ...




Hi Youngtrader,

you still around?  Bought into CFE about 2 months ago because their cash: market cap ratio is outstanding in my opinion.

Can't see the SP drop below 20c since their cash backup is around 46C/share netto and they are about to drill Cape Lambert South which could add a potential 300 M$ to CFE, once Jorced and sold.

Anyway, bargain buying at current prices.

Cheers


----------



## Ashsaege (21 October 2008)

herbert said:


> Hi Youngtrader,
> 
> you still around?  Bought into CFE about 2 months ago because their cash: market cap ratio is outstanding in my opinion.
> 
> ...




There isn't much daily volume for CFE, which means that price can swing quite easily... and it wouldn't take too much selling for it to drop below 20c.


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## Go Nuke (23 October 2008)

herbert said:


> Hi Youngtrader,
> 
> you still around?  Bought into CFE about 2 months ago because their cash: market cap ratio is outstanding in my opinion.
> 
> ...




Well its below 20c right now!

As I suspected got smashed after the divi was paid.

Ah well, I'll just add it to the the paperlosses with the rest of my portfolio


----------



## herbert (23 October 2008)

Go Nuke said:


> Well its below 20c right now!
> 
> As I suspected got smashed after the divi was paid.
> 
> Ah well, I'll just add it to the the paperlosses with the rest of my portfolio




go nuke,

the divi is not the reason why CFE got smashed. It's the overall market, just look at  AGO, BRM , FMG, BHP ,Rio etc.

In another environment CFE would be trading at around 40c+ right now. It's a long term hold, with 240 M$ cash they'll be able to survive this crisis and emerge victorious afterwards. Just be patient and hold.

Cheers


----------



## Ashsaege (23 October 2008)

herbert said:


> go nuke,
> 
> the divi is not the reason why CFE got smashed. It's the overall market, just look at  AGO, BRM , FMG, BHP ,Rio etc.
> 
> ...




I think the divie was the reason why it got smashed. The SP basically dropped by the same amount the divie was. And now the company is worth $100mill less.

Since then the SP has gradually fallen and that would be from the overall market.

I am too optimistic for the future.. tho it may be a while


----------



## mrgroundwork (26 October 2008)

i was thinking of trying to strip the special div on this, but i decided against it as generally that method doesnt work in a falling market... 

good call in the end, the SP dropped by the same amount of the div pretty much... 

personally i dont like the direction they are taking the company... would have been better to look at assets closer to home with all that cash thank look offshore...


----------



## gav (26 October 2008)

I posted this on the FMG thread, but thought it was appropriate here too.

% fall of Iron Ore stocks:
BCI - Down 85%
AGO - Down 84%
*CFE - Down 56%*
MGX - Down 89%
FMG - Down 78%


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## Sunburnt (28 October 2008)

Hello CFE watchers,

I think the price closed at 27c on ex-dividend day. Given it was sitting at 45c the day before, and paid a dividend of 21.7c that should have seen it drop to roughly 23c - so sellers were ahead by 4c really. It seems the drop was a combination of both factors....


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## Sean K (18 November 2008)

Cripes,

Is the cash backing 2 or 3 x it's current MC?

Market is factoring no production in the next xx years for the likes of this and BRM.

Surely the world will break out of recession and even depression and Chindia will need IO.


----------



## Go Nuke (15 December 2008)

Noone commenting on the action around CFE at the moment?

Ive noticed a bit of a pick up lately with way more buyers than sellers.
Some initial drilling results maybe??


----------



## Justthinkin (17 December 2008)

I'm keenly following CFE and constantly finding myself tracking down who's who in the share registry. A recent 36M parcel looks to have Russian associations (UniCreditaton International Limited) which could mean absolutely anything. 

Sage is messing about... looks like the child who has discovered the hole in the bottom of the piggy bank or maybe Gollum ex Lord of the Rings "... my Precious, my Precious....". 

A share price less than net cash holdings... forget any non cash nebulous asset (rights re south Cape Lambert etc etc) and assume every liability known to mankind settled and you still have cash signifacntly greater than market capitalisation!!!!!!!!!!!

Someone needs to to stomp on this dribble and soon. About now!!!!


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## Sunburnt (18 December 2008)

Main reason for not increasing my exposure is in trying to keep the ol' portfolio balanced .... and a certain dose of suspician/fear. It seems easy for blue chip banks to lose 1 billion dollars these days, so 200 million going missing with a mining company - seems reasonable.....and why aren't the rich and famous not buying this stock?


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## Justthinkin (19 December 2008)

I do hold CFE but am equally nervous about jumping in deeper. Fundamentally there is no logical reason why a company would trade at such a significant discount to its net cash asset position.

I spoke to Sage. His simple comment was Evraz. If you've done any reseacrh you'll find the CFE share registry a real piece of work and Evraz quite an interesting company.

Key Evraz issues:
(a) recently given a bailout ex Russian State bank sufficient to allow it to pay its tax bills;
(b) Government concerned (aka terribly annoyed) that Evraz has leveraged stalling Russian mills to fund acquisition of foreign assets...
(c) Evraz has a put and call options re Singaporean Delong Holdings acquisition. Evraz has acquired (and holder of it keeps shoving them through) nigh 20% of Delong Holdings at the handsome sum of S$3.9459 (compared to prevailing mrkt price of S$0.75)
(d) In the event that Peoples Repulic of China this side of next February authorise a further 32% investment, the proud owner of the Delong shares will inevitably exercise his put option and deliver to Evraz that 32% (same pricing diparity)
(e) Note that Delong has a parcel of options and shares in CFE (12,000 and 28,000 respectively)
(f) Evraz continues to trade extremely close to the magic 20% ownership of CFE... very close indeed.​Short version...a major CFE shareholder with no cash , little political support, a few vulnerabilities to the Chinese government but in an enviable position of being front runner to a cash box. No-one knows his next move.

For me the decision was buying circa 40 cents net cash for about 20 cents shouldn't require extensive financial analysis. But my heart stays comfortably in my mouth because CFE is not beyond a good dumping. Not for the faint hearted.

For those still interested, I had contemplated a marriage between SDL (impressive JORC resource in West Africa, some cash) and CFE (a less impressive project in West Africa and a mountain of cash)... but I doubt  it will happen because CFE is about proving up resources and flogging of development whereas SDL seems content traversing the entire value chain.

Good luck today...might be a shocker on thin volumes.

DYOR... the above is just the rantings of the little yellow man wearing a lollipop pink tutu running around in my head.


----------



## d_crome (19 December 2008)

CFE looks to have taken a position with DMM - SDL's little brother...

Might want to definitely check that out.


----------



## Sunburnt (19 December 2008)

All of the above is very interesting (thanks for the info) ....I shall keenly watch this stock in 2009.


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## Go Nuke (22 December 2008)

haha D crome I thought you were going to suggest that SDL had hooked up with DMM.
Being relatively close to one another I thought that would make more scense


----------



## d_crome (22 December 2008)

Nuke - mate, if only that were the case I think we'd all be smiling.

Looks like CFE has somebody on DMM's board now, so it'll be interesting to see how it all works out.


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## Justthinkin (5 January 2009)

An interesting article ex WA papers this morning. 

http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=116008

CFE MD Sage supposedly calling a directors meeting to authorise "low ball" offers on assets presently up for sale inclduing those proudly owned by OZL and CopperCo. Also Sage banter re supposed Chinese interest in African assets... 

Life must be tough with a balance sheet oozing with cash in an environment when peers are drowning in a sea of debt.

DYOR. I'm long CFE... not sure where else you can buy cash for less than 100 cents in the dollar!!!


----------



## resourceboom (6 January 2009)

the sp is starting to see some increases lately,
still well under cash backing tho.

still struggling to understand why people wont pay 50c for $1, esp when that just for cash.  What about the other prospects which mean you could be paying 33c for $1 or even less, with quite low risk,  or should you buy govt bonds yielding 0.5 or 0% ??


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## resourceboom (6 January 2009)

As a disclosure I hold this stock, and tipped in the full year asf comp. Think I'll be a good chance if is not already taken out (rumors of russian interest)


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## Family_Guy (6 January 2009)

Yes RB, seems crazy to me too. I wish there were more stocks like this. Been holding since well before the special divvie and every week or so i just keep checking the cash value to make sure i aint got a dud but i just cant make fault with it.

Any other stocks like this?


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## resourceboom (7 January 2009)

Hi FG,
I'm a bit busy at work at the moment,
but I will start a new thread tonight.... (if theres not one already)
stocks with large cash backing (and little or no debt)


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## Family_Guy (7 January 2009)

well, there are 2 that i know about.
http://aussiestockforums.com.au/forums/showthread.php?t=8211&page=2
http://aussiestockforums.com.au/forums/showthread.php?t=13442


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## resourceboom (7 January 2009)

Thanks mate, I've revived one.

http://aussiestockforums.com.au/forums/showthread.php?p=382086&posted=1#post382086

I am more interested in the safer stocks, rather then just cash backing, ie making profits too, or like CFE the intention of selling assets.


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## Aka (12 January 2009)

It is up again. Best cash backing. Will soon hear of big ticket item purchase, board is considering. A.Sage holds  to his share why would not we?! I am buying more..


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## Go Nuke (9 February 2009)

Ok can someone please break this down for me?

How does CFE gain exposure to CUO's assets?

Have they paid off or taken over CUO's debt (or part of)

Im not sure if this is good,bad or indifferent news

The market didnt react too much so I guess that tells me something.

Thx


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## enigmatic (9 February 2009)

yeah i was trying to figure out exactly to what benifit this has to CFE, without some shares pasing hand I cant see it.

Can someone please point us in the right direction


----------



## resourceboom (10 February 2009)

Apparently this is from mining news...

Monday, 9 February 2009
Charlotte Dudley

CAPE Lambert Iron Ore says its decision to acquire the secured debt of failed copper miner CopperCo will reap benefits for its shareholders.
Perth-based Cape Lambert paid around $72.7 million to take on the outstanding secured debt CopperCo owed to the Macquarie Bank and LinQ Capital.

A $15 million deferred payment is due in late July.

CopperCo slid into administration in November after failing to resolve its financial problems. 

Its assets include the Lady Annie copper mine in Queensland.

Cape Lambert executive chairman Tony Sage said the decision to take on the debt was motivated by the opportunity for low-risk investment, rather than by a desire to acquire CopperCo’s assets.

“We think the asset base is well in excess of our secured debt so instead of earning three-and-a-half per cent in a bank, we can earn 12 per cent doing this deal,” he told MiningNews.net.

“That’s the number one priority for us, for our shareholders. We know we’re going to recover it all and the recovery is only going to be within two or three months.”

Sage said it was unlikely that Cape Lambert would look to acquire CopperCo’s assets, however if anything of interest was identified, the company would have to place a bid with the liquidator.

He added it was unfortunate that CopperCo was unable to secure funding to remain afloat, and predicted the global market would witness more debt-driven asset sales.

News of the deal pushed Cape Lambert stocks up nearly 6% to 27c in Monday morning trade. Shares have since cooled slightly to 26.5c.

Following the transaction, Gary Doran and David Lombe of Deloitte Touche Tohmatsu Australia have been appointed new joint receivers and managers of CopperCo.


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## jman2007 (10 February 2009)

Go Nuke said:


> Ok can someone please break this down for me?
> 
> How does CFE gain exposure to CUO's assets?
> 
> ...




It's not very obvious is it?

My understanding is that CFE are now the creditors and _were_ temporary receivers for CUO, although it now sounds as though Deloitte have replaced the other mob.

They may however, put in a bid for their assets at a latter date as well. Quite how the current arrangement equates to a good return for CFE is beyond me however. Somehow they must be able to earn 12% interest from the CUO secured debt despite being seemingly liable for it at the same time?

Happy to be corrected by someone here.

jman


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## enigmatic (10 February 2009)

I can obviously see the benifits if they are able to achieve 12% interest rather then the terrible 3% we obtain now, however to call it a low risk is a bit of an understatement.

if CUO go under then the debt would be in CFE name and that aint low risk to me.  However it may open a few doors to acquiring assets off them if they present themselves.

still do not see the immediate benifit more a medium term 3 years down the track kind of benifit.


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## resourceboom (10 February 2009)

Think from the article I posted it boils down to them expecting in around 3 months to get their money back plus a hefty interest amount, or ownership of the assets. Hence their low risk call ?  As they would be happy to get the assets for the price they've paid, if CUO cant pay back the loan.


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## Go Nuke (13 February 2009)

Hey how's CFE's sp vs cash backing look these days?

the chart is trending up nicely at the moment..on low volume though:/


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## MR. (7 May 2009)

Some things never change...... 

The day before a trading halt, CFE just happens to trade easily at the highest volume for 6 months.  More than 500% or 3,400,000 above average....... etc. etc. etc.

Also, cash backing at CFE is higher than their market cap......
Wonder why people don’t like CFE?   Ummmmmmm..............


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## Gerkin (7 May 2009)

MR. said:


> Some things never change......
> 
> The day before a trading halt, CFE just happens to trade easily at the highest volume for 6 months.  More than 500% or 3,400,000 above average....... etc. etc. etc.
> 
> ...




Looks like they are going to purchase assets in a distressed Australian producer.
The insiders have* always *traded before announcements on this stock in the past 2.5years.


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## jman2007 (7 May 2009)

Gerkin said:


> Looks like they are going to purchase assets in a distressed Australian producer.
> The insiders have* always *traded before announcements on this stock in the past 2.5years.




My guess is they have made a bid for CUO's assets. They have already aquired the debt, so I suppose the next logical step would be to take over the mothballed Lady Annie operation, and getting it producing again. I know the site was flooded 3 months ago during the QLD floods, so a fai bit of remedial work would be required I would say.


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## Gerkin (7 May 2009)

jman2007 said:


> My guess is they have made a bid for CUO's assets. They have already aquired the debt, so I suppose the next logical step would be to take over the mothballed Lady Annie operation, and getting it producing again. I know the site was flooded 3 months ago during the QLD floods, so a fai bit of remedial work would be required I would say.




My thoughts as well with CUO. Should be interesting when it comes out of a tarding halt. Cash backing is good. DYOR i dont hold this but have in the past.


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## jman2007 (8 May 2009)

Yep, no surprise really...

"Cape Lambert picks up CopperCo's assets"

http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=140456

As a former CopperCo holder, I don't quite know how I feel about the deal tbh, I will need to look into it some more. I think CFE have always stuggled for credibility since selling the off the Cape Lambert Iron Ore project. It's almost as if investors haven't really considered them a true mining company, but more of a shell company with substansial investments. So it will be interesting to see how they handle the Lady Annie hot potatoe. 

Surely the deal came with substansial environmntal liability attached to it though? Mine cleanup and remediation can potentially be a company breaker. That's an immediate risk that I can see.


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## Go Nuke (15 June 2009)

With Power Untied selling their shares......is it possible he sold then to that Russian guy who was interested in CFE?

How do we find out who bought those 50Mil in that XTOS last week?

Actually if someone bought those 50Mil, can we expect a substanial notice of the new holder??


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## enigmatic (15 June 2009)

Been plenty of new things going on with CFE not to sure though about cape lambert but then Ill keep it on my watch list again


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## gagaga (5 July 2009)

Finally after 3 weeks of research, I 've discovered CFE. Healthy balacnce sheet, stable income stream and expansive business, none could cruise more safely in this down turn in the same sector than CFE. Recent rumor about its acquisition proved the point that there will be more interests focusing on this company. I currently hold CFE and aiming for long term uptrend


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## Kremmen (7 July 2009)

As part of having acquired CopperCo, CFE has received 19.99% of Corvette (COV) and have stated they will make an all-scrip takeover offer. There are no details yet on the offer.


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## enigmatic (25 August 2009)

Looks like this is another one of those unloved species which has been running up the last few days up nearly 8cents.. haven't watched this for a bit but looks like there was a spike in volume arround the time this thing started shooting up


----------



## murpit (22 October 2009)

Have been following this thread for quite sometime along with being a holder for sometime.  Volumes up considerably today.  Anyone got any thoughts?


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## Kremmen (22 October 2009)

murpit said:


> Volumes up considerably today.  Anyone got any thoughts?




I was just looking here in case anyone else had commented. 24.6M shares through so far today. CFE hasn't seen daily volumes like that in over 2 months.


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## enigmatic (24 October 2009)

Is it just me or does it look like people are starting to realise the underlying value of CFE. The main issue i think people have with CFE is that it will likely never have its own mine, it just builds them up and sells them. 

There current market cap is still far less then the value of there assets, and with recent talks of another dividend, could be the reason for some interest.

I have also noticed CFE has been buying into alot of small Companies with good projects, which could be good down the line, I just hope they try to maintain part interest in there projects rather then selling the entire thing. 

DYOR, current long term holder.


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## jman2007 (25 October 2009)

enigmatic said:


> Is it just me or does it look like people are starting to realise the underlying value of CFE. The main issue i think people have with CFE is that it will likely never have its own mine, it just builds them up and sells them.
> 
> There current market cap is still far less then the value of there assets, and with recent talks of another dividend, could be the reason for some interest.
> 
> ...




Definitely undergoing a re-rating. They picked up some good assets at fire sale prices, the sale of the Lady Annie Project alone (excluding the 25% interest in Lady Loretta, and 100% owned Sappes Gold project) should be worth A$155M alone. Remember they also have another $80M coming in during late 2010 from MCC as the final installment from the sale of the namesake Cape Lambert project.

CFE aren't interested in running an operation themselves, but I actually think their strategy is completely workable. They already returned $100M to us shareholders, and there is a distinct possibility of another 10c divvy next March too. See page 24 of the Notice of AGM information booklet.


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## MOSSuMS (27 October 2009)

I joined you CFE holders today - what an amazing run, just hope I haven't picked the top! I've had good results from the iron ore juniors, so i hope it translates to copper and the value there looks to be in CFEs holdings.

I focus on fundamentals + trend, but do any technical analysts here have a view on their chart? Despite the value in CFE, I'm a little nervous that I should have seen this chart a few weeks back rather than now...


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## Kremmen (3 November 2009)

COV, which CFE bought almost half of recently, is rocketing upwards, contributing even more to CFE's value. Meanwhile, CFE is falling.


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## MOSSuMS (3 November 2009)

Kremmen said:


> COV, which CFE bought almost half of recently, is rocketing upwards, contributing even more to CFE's value. Meanwhile, CFE is falling.




Probably due to my arival on the register!!! 

I really need to short everything I want to go long in. Or the other way around.

I'm holding the faith for now, but other stocks are catching my short little attention span...


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## zippy69 (17 November 2009)

“Once the IPO has been completed and funds received, Cape Lambert proposes to make a return to
shareholders of approximately $0.10 per share, details of which will be provided to the market in due
course. This capital return follows the $100 million paid to shareholders last year from the sale of our
namesake iron ore asset in Western Australia”, Mr Sage said.

So to get the 10cent divvy do you need to be holding shares in CFE or the new Qcopper.  This quote is taken from the asx announcement dated 16th Nov


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## MOSSuMS (6 January 2010)

MOSSuMS said:


> Probably due to my arival on the register!!!
> 
> I really need to short everything I want to go long in. Or the other way around.
> 
> I'm holding the faith for now, but other stocks are catching my short little attention span...




Head back above water - so happy again. Should probably have stopped out, but kept the faith this time.


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## enigmatic (14 January 2010)

more strong movement by CFE today, with the amount of assets that they have an shares in other companies i wouldn't be surprised to see more growth for this undervalued... Value adding Company.
Looking forward to the 10cents a share dividend they mentions coming soon.

Holding long term DYOR


----------



## mole_man99 (22 January 2010)

I am a shareholder in the UK. Any idea why I am not aloud to take part in the Q copper IPO. Will I be able to buy into it after the IPO?

Cape Lambert has disappeared off the radar here since delisting from AIM. Very glad I kept my shares.


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## enigmatic (24 March 2010)

To be honest it is starting to get very difficult to put an actual estimated SP on CFE now they seem to own bits and pieces of numerous ASX listed and non listed resource companies. There list of Projects in the development pipeline from their estimates equated to $500million+ prior to lady anne sale..
which got 15mil less then expected.

They just offered Take-over offer for DMC Mining which they already owned 25mil shares at 10cents plus another 11mil+ at some other value below the 40cent offer price.

today announcement of OKU to Acquiring 70% of the Highly Prospective Namibian Uranium Project for 17million dollars in shares and 3million in cash

Is anyone else watching this one, and scratching there head at why the SP stays were it is.

Please note there should be a 8-10cent dividend come May. 16.8%-21% dividend at current prices assuming this is already factored in Sub 40cents seems a little low for this asset bloated Company.

DYOR


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## JTLP (24 March 2010)

enigmatic said:


> To be honest it is starting to get very difficult to put an actual estimated SP on CFE now they seem to own bits and pieces of numerous ASX listed and non listed resource companies. There list of Projects in the development pipeline from their estimates equated to $500million+ prior to lady anne sale..
> which got 15mil less then expected.
> 
> They just offered Take-over offer for DMC Mining which they already owned 25mil shares at 10cents plus another 11mil+ at some other value below the 40cent offer price.
> ...




My view on CFE (which may be totally wrong but again...just my view).

Mr Market does not really value projects that a company owns bits and pieces in very well...perhaps due to developmental risks? Funding risks? I don't know. See the MLM thread for an example of having fingers in many pies and the parent co's MC being significantly lower then the value of all their investments.

Anyway a second point I'd add about CFE is that perhaps selling some of their assets isn't as easy as they thought? The sale of the Lady Anne mine for $15M less then what they were hoping for could be an indication that they expect too much? Linc (LNC) are currently trying to sell some of their coal tenaments...not as easy for them getting the price they want or the sale in a timely manner.

How stable is the divvie anyway?


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## enigmatic (25 March 2010)

well obviously they overvalued the asset however they were still able to extract value from COV already with I'm certain some remaining assets from that takeover.

about the dividend i guess it isn't very stable at all..
been holding CFE now for 3years and only got 1 dividend amounting to 40% of my invested capital if and when this one is issued it will be another 20% so i guess i can't complain even if it isnt regular its added up in the end.

If i get the time will do a bit more analyst later concerning who they own and how much each is currently worth. Have always wanted to put more capital in however the rest of my portfolio limits my available exposure to CFE 

DYOR


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## Miner (25 March 2010)

enigmatic said:


> well obviously they overvalued the asset however they were still able to extract value from COV already with I'm certain some remaining assets from that takeover.
> 
> about the dividend i guess it isn't very stable at all..
> 
> ...




Do you think the dividend will be maintained or even paid this year considering the equity base is very large after couple of acquisitions.

Dunno. Just guessing it is too good to be true. CFE hardly increased its SP whereas OKU rose leaps and bound with the acquisition story.

Though I also bought CFE recently with a high hope (greed!)  but looking back track record of Tony Sage I think he is another media saavy person with acquisition mode than making or creating values for shareholders.

The shareholdes  have to wait until probably end of Sept / early Oct to see if  any dividend be possible this year. 

Please DYOR as statistically I have been 90% wrong  on my financial speculations.


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## enigmatic (25 March 2010)

well it specifically mentions in the announcement concerning the sale of the lady anne project that there intentions is to pay the dividend just after the completion of the sale, which is no later then May 31st



> "It is our intention to return between A$0.08 and A$0.10 per share to Shareholders once the sale completes and the A$130million in cash is received," said Cape Lambert Executive Chairman, Mr Tony Sage.  "This will be the second cash return to our shareholders in 18months, with A$100million paid in October 2008" he added




further in the announcement it mentioned there cash receivables would be approximately $300million one can only speculate if this is prior to dividend or after and they also mention this doesn't include approximately $70million value of listed securities.

Kind of makes you question there market cap of $263million.
Considering there projects that they are also developing eg Cape Lambert south


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## boronia (29 March 2010)

A recent fat Prophets Broker report says that after the sale of Lady Annie, CFE will have A$300 million in cash + A$70 million in M2M value of listed secuities. After the distribution (assume 10cps) then it should have A$313 million left in cash and shares. 

http://www.capelam.com.au/irm/content/announcements_analystreports.html

The current Mkt Cap is A$263 million


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## boronia (3 April 2010)

Another broker report has the following stats on this stock

ASX Code CFE
Price $0.47
12 month price target $0.66
12 month dividend yield 17%
Implied return 58%


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## lemontree (22 June 2010)

Okay firstly, there are currently 2 bidders for CFE. Both are priced at 53c per share. However one is conditional and the other is unconditional. Current market prices are at 44.5c. What i don't understand is why people don't buy at this price and sell to the bidders (its an off market bid). There is a clear profit to be made, or am i missing something? One last question, how does one accept an off market bid?

Thanks for whoever can enlighten me


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## papatee (22 June 2010)

Hi lemontree - think you'll find it's that CFE is one of two bidders for DMM, rather than being the subject of a takeover offer itself. This is of course the reason for the share price being ain the mid-40s rather than the mid-50s being offered for DMM. CFE is also about to pay a special dividend of 7c per share fully franked following sale of Laddie Annie project - ex-date is 24/6.


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## lemontree (22 June 2010)

That makes more sense, pardon my confusion haha. I still could ask the same question with DMM though, the sp still lingers under 54c. Perhaps the margin is too small, and after stamp duty and what not, there isn't much profit to be had, say if you bought some at.. 51.5c?


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## No Gain (28 July 2010)

Following on from yesterdays market announcement does anyone know how long it will be before CFE start shipping out Iron Ore. By the sounds of it alot of the infrastructure is already there or close by but needs some upgrading.


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## nioka (28 July 2010)

No Gain said:


> Following on from yesterdays market announcement does anyone know how long it will be before CFE start shipping out Iron Ore. By the sounds of it alot of the infrastructure is already there or close by but needs some upgrading.




I doubt that CFE will ever ship any iron ore. That is not the nature of the business of CFE. CFE will prove a resource and sell that project to a miner. CFE dont appear to be interested in mining at all. Their past record has shown that they have done well by buying "stressed" assets or assets that are not "proven". We have done well with the proving of the Cape Lambert resource and the sale of it to China. From that deal we had a capital return and a dividend. We have also just received a fully franked dividend from the sale or Lady Annie copper mine.

All we need at Marampa is a proving of the resource and necessary access to the rail and port. This appears to be well under way at this stage and a sale of the asset appears to be being negotiated now.


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## No Gain (29 July 2010)

nioka said:


> I doubt that CFE will ever ship any iron ore. That is not the nature of the business of CFE. CFE will prove a resource and sell that project to a miner. CFE dont appear to be interested in mining at all. Their past record has shown that they have done well by buying "stressed" assets or assets that are not "proven". We have done well with the proving of the Cape Lambert resource and the sale of it to China. From that deal we had a capital return and a dividend. We have also just received a fully franked dividend from the sale or Lady Annie copper mine.
> 
> All we need at Marampa is a proving of the resource and necessary access to the rail and port. This appears to be well under way at this stage and a sale of the asset appears to be being negotiated now.




Well I hope they negotiate well and get us a good price and return. I won't be saying no to another good dividend


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## nioka (29 July 2010)

No Gain said:


> Well I hope they negotiate well and get us a good price and return. I won't be saying no to another good dividend



If Tony sage has half the success in the future that he has had in the past then I'll be happy. The value of the cash on hand and the assets held on todays valuations far exceeds the market cap. Sage has been buying shares on market in substantial quantities recently. That is as good an indication of share value that I can think of. CFE has a broad range of interests. The ones with the most potential at the moment are Marampa, Pinnacle and the holding in DMC, details below:

Article Date: Jul 21 2010

Former AIM counter Cape Lambert Resources envisages an ?800 million float this year for its key African iron and coal assets.

Tony Sage, entrepreneurial executive chaiman of Aussie-listed Cape Lambert, says Kukuna in Sierra Leone and Sandenia in Guinea, with claimed combined potential for 6.5 billion tonnes of iron ore, could combine with brown coal interests in Sierra Leone to form a marketable company, in which Cape Lambert would have a significant stake through its 26.2 per cent ownership and management role in project backer PInnacle.

Sage argues China's appetite for African raw materials makes Hong Kong an appropriate market for these ventures, though he has not finally ruled out London. He is also preparing Cape Lambert's Marampa iron ore project in Sierra Leone for a trade sale and hopes to increase estimated resources there from 600 million to a billion tonnes for a possible sale value of around ?400 million.

Cape Lambert has agreed to invest ?30 million for 33 per cent of Marampa Infrastructure, set up to establish crucial rail and port facilities to take its iron ore to market. The agreement is with fellow iron ore play, controversial tycoon Frank Timis's AIM-quoted African Minerals, which has a 20 per cent stake in Cape Lambert and, suggests Sage, the infrastucture venture could eventually yield as much as ?6 million a year for moving third parties' products.

He maintains China's wish to source as much iron ore as possible from outside the giant Rio Tinto-BHP cartel bodes well for independent projects such as these and for Cape Lambert's recently acquired DMC exploration projects in the same region. Sage, who has recently spent nearly ?1.5 million buying more shares in the company, also points to gold projects in Australia and Greece and uranium in Argentina.

Cape Lambert shares trade at the equivalent of 20p Down Under, while AIM has African Minerals at 412p. Though in speculative markets, both look well placed.


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## No Gain (29 July 2010)

Interesting article Nioka thanks for that. It all sounds good for a longer term hold especially with the Chairman buying shares and China looking for other suppliers for Iron Ore. An earlier post has a 12 month target of $0.66 that would be a 100% gain for me, so I'm holding and if there is a little slide in price I might just accumulate a little more.


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## No Gain (30 July 2010)

nioka said:


> If Tony sage has half the success in the future that he has had in the past then I'll be happy. The value of the cash on hand and the assets held on todays valuations far exceeds the market cap. Sage has been buying shares on market in substantial quantities recently. That is as good an indication of share value that I can think of. CFE has a broad range of interests. The ones with the most potential at the moment are Marampa, Pinnacle and the holding in DMC, details below:
> 
> Article Date: Jul 21 2010
> 
> ...




As you said above Nioka Tony Sage is buying, another notice coming out today, so I've just accumulated some more today. Something good must be in the wind - I hope.


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## nioka (31 July 2010)

More news regarding CFE: 

PERTH (miningweekly.com) Metals explorer Cape Lambert on Friday reported that it would finalise the acquisition of the Leinchard copper project, in the Mount Isa region, in the September quarter.

The completion of the deal has been delayed owing to the project administrator not meeting a number of the conditions precedent.

Cape Lambert made a successful A$8,5-million bid for the Leinchardt project in November. The project was acquired from the administrators of Matrix Metals, which went into voluntary administration during 2008.

While the project was currently on care-and-maintenance, Cape Lambert has previously reported that it planned to start a systematic evaluation of the exploration dataset, with the objective of defining drill targets to start a drill programme in order to define additional oxide copper inventory.

Meanwhile, in its quarterly report for the period ending June, Cape Lambert said that baseline studies for the Marampa iron-ore project, in Sierra Leone, would also start this year.

The Marampa project was at its exploration stage, however, a scoping study was undertaken earlier this year to investigate the viability of establishing a standalone openpit operation and concentrator to produce between two-million and five-million tons a year of concentrate, ramping up to ten-million tons a year.

During the period under review, Cape Lambert signed a binding term sheet with Aim-listed African Minerals for rail and port infrastructure for the Marampa project.

Cape Lambert would gain a 33% stake in the Marampa rail and Pepel port, jointly known as the Marampa infrastructure, for a $45-million investment in the refurbishment of the infrastructure.

African Minerals would retain a 57% holding in the Marampa infrastructure, while the Sierra Leone government would hold a 10% stake.

African Minerals, through a special purpose vehicle, would oversee the refurbishment and daily operation of the infrastructure, which would be completed by March.

Once the refurbishment of the Marampa infrastructure is completed, Cape Lambert would have the rights to a minimum throughput of two-million tons a year.

The Marampa project comprises 305 km² of granted exploration licence, an inventory of hematite tailings and a brownfield exploration tenement representing the extension of hematite mineralisation to the north and west of the former Marampa mining operations, as well as a number of regional exploration targets.

Cape Lambert was aiming to conclude a prefeasibility study by mid-2011.


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## nioka (31 July 2010)

And still more news;
http://www.capelam.com.au/irm/Company/ShowPage.aspx

"Value Drivers are Mounting Up Initiating Coverage

CFE is an ASX listed, Perth based resources investment company with a geographically diverse portfolio of exploration and development projects spanning a number of commodities, but mainly concentrated in iron ore, gold, copper and uranium. The investment strategy is to acquire and invest in undervalued or distressed resource assets.
CFE have demonstrated a proven strategy of generating shareholder value through the distribution of special dividends, in-specie distributions in new companies to existing shareholders and asset sales that have resulted significant cash assets. We expect this to continue over the next 12-18 months and initiate coverage with a Buy recommendation on the basis that the sum of parts valuation is greater than the current market value.

The current share price equals CFE s cash and cash receivables and therefore CFE s considerable project portfolio is not given any value in the market. We believe this situation will be redressed and a re-rating will occur when asset sales begin to realise significant increases in cash.

We value CFE with a 12 month price target of $0.80 per share. We assume that within the next 12-18 months, the value proposition presented by the Marampa and Mayoko deposits will become clear once cash has been realised for these project through asset sales. We also envisage that value for the Sappes Gold Project in Greece would have realised and other potential corporate transactions involving other assets in the CFE portfolio would have been advanced."


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## prawn_86 (31 July 2010)

I do like CFE's approach, much the same as GIR. IE - explore, develop a resource then palm off to someone else to worry about the mining.

I havn't looked into their recent projects however, but thier SP does not seem to have done a lot in the term of long term value over the last couple years.


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## nioka (31 July 2010)

prawn_86 said:


> I havn't looked into their recent projects however, but thier SP does not seem to have done a lot in the term of long term value over the last couple years.




In the last 2 years I have received in dividend (fully franked) and capital returns the full amount of my initial outlay. That would be a long time coming from any blue chip stock. I expect that senario to be repeated many times in the next few years. Who really cares what the SP has done in that time. Actually I care because it does give me an opportunity to increase my exposure at a very cheap rate, something that I have done in the last week.


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## prawn_86 (31 July 2010)

nioka said:


> In the last 2 years I have received in dividend (fully franked) and capital returns the full amount of my initial outlay. That would be a long time coming from any blue chip stock. I expect that senario to be repeated many times in the next few years. Who really cares what the SP has done in that time. Actually I care because it does give me an opportunity to increase my exposure at a very cheap rate, something that I have done in the last week.




Fair point.

As i said i have kept an eye on them but not in great details (obviously). Are there any upcoming special dividends/distributions?


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## pixel (31 July 2010)

prawn_86 said:


> As i said i have kept an eye on them but not in great details (obviously). Are there any upcoming special dividends/distributions?




Nothing has been announced yet;
We've just banked a fully-franked 7c dividend cheque; Tony has apparently re-invested his proceeds from that divi and bought a few Million CFE on market. Like nioka, I'm happy to keep a few for longer and add as dips permit.
The chart seems to present an ascending triangle; the alternative, a symmetrical triangle, appears to be on the brink of being broken. Both patterns suggest a strong Bullish bias.


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## nioka (31 July 2010)

prawn_86 said:


> Fair point.
> 
> As i said i have kept an eye on them but not in great details (obviously). Are there any upcoming special dividends/distributions?




As some of the deals are completed then we can expect that a percentage of the profit will be distributed. There is still $80million to come in from the original Cape Lambert sale. There is the big one, Marampa with figures as high as $800million mentioned but I believe the target is around,$500million. Details below;( note the mention of September)

By Devon Maylie 
Of DOW JONES NEWSWIRES 
LONDON (Dow Jones)--Mineral investment company Cape Lambert Resources Ltd. (CFE.AU) is conducting final resource tests for its Marampa iron ore project in Sierra Leone in preparation for putting it up for tender at the end of September, the company's executive chairman said Wednesday.

Cape Lambert finalized its purchase of Marampa from African Minerals Ltd. (AMI.LN) in 2009 and has already drawn interest from several Chinese companies including China Railway Materials Commercial Corp. and China Metallurgical Group Corp., as well as one Swiss firm, Tony Sage told Dow Jones Newswires.

African Minerals Ltd. is a major shareholder in the company with 19%.

"Our business model is different," Sage said. "I don't want to sit there and mine. We are more like a fund management."

During the past few years, junior miners have struggled to raise money for projects. Sage said Cape Lambert is one route to funding.

For Marampa, he is preparing the asset for sale later in the year.

Earlier this month, he concluded a deal with African Minerals over rail rights. For the first two years of production, which he forecasts to begin in 2012, the owner of Marampa can transport up to 2 million tons of iron ore to the nearby port by rail. That can increase to 10 million tons, he said.

Under the deal, Cape Lambert gets a 33% stake in the railway that connects the mine with the port of Pepel. African Minerals owns 57% and the Sierra Leone government 10% of the railway, Sage said.
-By Devon Maylie, Dow Jones Newswires; +44 (0)20 7842 9483; devon.maylie@dowjones.comhigh ....................................

And there are quite a few other projects that CFE have under way. A read of the latest report is worthwhile.


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## nioka (1 August 2010)

No Gain said:


> As you said above Nioka Tony Sage is buying, another notice coming out today, so I've just accumulated some more today. Something good must be in the wind - I hope.




Nothing as good as a director buying. Here is Sage's latest purchases as announced;
30th july 500,000
13th july 1,000,000
7th july 1,000,000
29th june 1,000,000
6th May 1,000,000
28th April 1,000,000

Is that ever a confidence vote.


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## No Gain (1 August 2010)

nioka said:


> And still more news;
> http://www.capelam.com.au/irm/Company/ShowPage.aspx
> 
> "Value Drivers are Mounting Up Initiating Coverage
> ...




I don't know where the above was printed but in Todays Sunday Times in Perth it repeats it with the following:

The Sunday Times, August 1, 2010, Page 53.

Hot Stocks Section;

Paul Adams D.J. Carmichael.

*BUY
Cape Lambert (CFE)*

“CFE is an ASX listed. Perth-based resources investment company, with a geographically diverse portfolio of exploration and development projects spanning a number of commodities, but mainly concentrating on iron ore, gold, copper and uranium. CFE has a proven strategy of generating shareholder value. We expect this to continue in the next 12–18 months.”


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## ParleVouFrancois (3 August 2010)

Bought in 10k at 0.35, and another 10k at 0.375 after thinking further about it. After reading the report several times I can't see why this share isn't trading higher, only for the fact that the business model itself isn't a traditional miner, i.e. CFE doesn't actually mine resources, but it just proves up the reserves etc and sells it off. This is offset by the market cap of 200 million and the cash and cash equivalents of approx 200 million. So fundamentally you get all the projects (Marampa, Leichardt Copper, Australis etc) as the bonus.

Target of 72 cents by the end of the year as the Marampa project gets off the ground and a more solid figure can be put on it, even at a low of 200 million, it doubles the current NTA? 

Maybe I'm just a bit too in love with this stock atm, can anyone mention anything negative about it? Like I'm trying to find bad aspects to this stock but I'm coming up blank.

Idk, this is just my opinion, holding on for the double in price.


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## nioka (3 August 2010)

I cant speak french so I'm glad you post in english. (failed french at school called the teacher "cochon de lait" and we didnt get on after that). To answer your question, I'm still trying to work out why others haven't worked out how good CFE actually is. I'm glad you asked the question, maybe someone out there has an answer.


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## thebaldfacts (7 August 2010)

ParleVouFrancois said:


> Maybe I'm just a bit too in love with this stock atm, can anyone mention anything negative about it? Like I'm trying to find bad aspects to this stock but I'm coming up blank.
> 
> Idk, this is just my opinion, holding on for the double in price.




I used my divvie to top up @ 33 cents, as I think this has limited downside risk and enormous upside potential.

The only negatives I can see is that some people doubt that the balance of $80M for the Cape Lambert sale will be received (something TS has strongly denied) and that due to the business model, the market is never going to attribute full value to the sum of the parts as it relies on the monetising of the parts by sale before any value is ascribed to it.

It is interesting that prior to the IPO of lady Annie, the price got to 63.5 cents in February (at a time when the all ord's was at 5000 admittedly) but fell away when the IPO fell over. After the trade sale was announced it bounced to 54 cents but never recovered that price.


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## nioka (7 August 2010)

thebaldfacts said:


> The only negatives I can see is that some people doubt that the balance of $80M for the Cape Lambert sale will be received (something TS has strongly denied) and that due to the business model, the market is never going to attribute full value to the sum of the parts as it relies on the monetising of the parts by sale before any value is ascribed to it.
> .




Even that may not a negative as CFE will get back Cape Lambert if conditions are satisfied and the money is not paid. That is why the deal is not likely to fall over.


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## No Gain (10 August 2010)

Can someone explain todays announcement between CFE and CHM to me, I'm a bit lost on it.
Is it saying that CFE will provide a credit facility to CHM of $6,500,000 and in addition purchase $2,000,000 worth of placement shares and placement options at.1.5cents from CHM.
On top of that Tony Sage is buying $400,000 of shares/options and Jason Bontempo is buying another $100,000 worth.
So in total is that $9,000,000 of funding but with no shares or options for the $6,500,000. Or if there are shares and options for CFE from the 6.5 mil the question is how much. That is how much of CHM do CFE shareholders now hold.

If there are no shares or options for the 6.5 mil what are the terms?


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## nioka (10 August 2010)

No Gain said:


> Can someone explain todays announcement between CFE and CHM to me, I'm a bit lost on it.
> Is it saying that CFE will provide a credit facility to CHM of $6,500,000 and in addition purchase $2,000,000 worth of placement shares and placement options at.1.5cents from CHM.
> On top of that Tony Sage is buying $400,000 of shares/options and Jason Bontempo is buying another $100,000 worth.
> So in total is that $9,000,000 of funding but with no shares or options for the $6,500,000. Or if there are shares and options for CFE from the 6.5 mil the question is how much. That is how much of CHM do CFE shareholders now hold.
> ...




I understand the shares and options are around 15% of the company. CFE appoints half the board and you can be sure that the terms of the loan favour CFE. Seems as though Tony Sage dealt himself a piece of cake as well.


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## nioka (11 August 2010)

PERTH (miningweekly.com) ASX-listed resources group Cape Lambert has signed a strategic alliance agreement with fellow-listed resources company Chameleon Mining.

Cape Lambert said in a statement that the agreement would not only see it become a significant shareholder of Chameleon, but would also ensure it had exposure to one of the largest iron-ore prospective landholdings in the emerging mid-west region of Western Australia.

Cape Lambert has agreed to provide Chameleon with a credit facility of up to A$6,5-million, which would enable it to more actively pursue further mining opportunities as well as develop its existing exploration interests. 

In turn, Cape Lambert would appoint Tony Sage, Jason Bontempo and Paul Kelly to the Chameleon board as its three representatives. 

Cape Lambert would also assume responsibility for all technical activities associated with the evaluation and exploration of the assets owned by Chameleon.

Sage believes the agreement with Chameleon represented a unique low-cost opportunity to further increase its exposure to the emerging mid-west iron-ore province.

"I have at all times stated that our aim is to be one of the largest landholders of iron-ore prospective tenements in the emerging mid-west region of Western Australia", Sage said.

"In a short amount of time, both Cape Lambert and our associated company Fe Limited has amassed a significant land position in the mid-west, something we will continue to do as I believe this area of Australia has the capacity to rival the Pilbara in terms of its world standing as an iron-ore province", he added.

Cape Lambert holds 17% of Fe Limited, which has access to over 3 000 km² of iron-ore prospective land in the mid-west region.

In addition to the provision of a credit facility, Cape Lambert has also agreed to subscribe for shares through a placement Chameleon has recently completed. In total, Chameleon has placed more than 166,6-million shares at A$0,015 a share with a three-for-five attaching option exercisable at 1,5c on or before December 31, 2012, to raise A$2,5-million.

Of the total, Cape Lambert has subscribed for A$2-million worth, representing more than 133,3-million shares at A$0,015 a share.

Chameleon has tenement holdings in the mid-west of Western Australia, prospective for iron-ore and gold, which are in proximity to tenements held by Cape Lambert or its associated companies.

http://www.miningweekly.com/article...ncrease-mid-west-iron-ore-exposure-2010-08-10


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## vincent191 (11 August 2010)

Do your research on CHM very thoroughly. Look at who are on the board of Directors and research their background. Also look at some of the postings on the CHM tread. If you conclude that they are seriously into fe mining then make up your own mind.


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## prawn_86 (11 August 2010)

vincent191 said:


> Do your research on CHM very thoroughly. Look at who are on the board of Directors and research their background. Also look at some of the postings on the CHM tread. If you conclude that they are seriously into fe mining then make up your own mind.




I agree with your sentiment, but if CFE load the board up, its possible they could take CHM in a new direction


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## nioka (11 August 2010)

prawn_86 said:


> I agree with your sentiment, but if CFE load the board up, its possible they could take CHM in a new direction




Because CHM has been such a dog in the past it was a cheap proposition for CFE to take up a significant holding for a pittance. Sage has demonstrated his ability to turn losers into winners and I doubt if he would have entered into the arrangement without there being a chance of doing something profitable with an investment there. He will have control via the board so I expect that I will profit via my shareholding in CFE.

I have also bought 100,000 CHM, on the strength of the above information, for my daughter.


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## vincent191 (11 August 2010)

CHM has been put into a voluntary suspension pending clarification of the appointment of a receiver by International Litigations.

I smell something rotten. Their legal expenses are funded by some international litigation funder who will get 60% of any payment from their court case against MMX. Obviously somebody doesn't like the latest development with CFE.

Let us assume CHM wins against MMX and 60% goes to the un-named litigation funder, whats in it for the CHM/CFE venture? I assume itt is the litigation funder who has control over Jack Hills.


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## nioka (11 August 2010)

vincent191 said:


> CHM has been put into a voluntary suspension pending clarification of the appointment of a receiver by International Litigations.
> 
> I smell something rotten. Their legal expenses are funded by some international litigation funder who will get 60% of any payment from their court case against MMX. Obviously somebody doesn't like the latest development with CFE.
> 
> Let us assume CHM wins against MMX and 60% goes to the un-named litigation funder, whats in it for the CHM/CFE venture? I assume itt is the litigation funder who has control over Jack Hills.




I wouldn't get too worried about the situation with CHM. If there wasn't something odd happening then it wouldn't have attracted Tony Sage.That is also why it is there as a bargain for CFE to grab. Sage has put a lot of his own cash in as well as money from CFE. I'll go along with the thought that he will win on this one as he usually does and holders of CFE will win along with him. The litigation funder can only have a claim for a debt to be paid. If the debt is paid then that ends any claim. CFE money has the debt covered I assume.


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## vincent191 (11 August 2010)

I think the litigation funder put in the $1.5 million court costs deposit (from memory) for CHM. The funder is not going to let CHM just walk away especially if there is any chance of CHM winning some sort of payout from MMX. If the Singaporean funder is who we think he is (CHM will not disclose his name) litigation is his profession and he had won some major cases in Europe, he is not going to be that easy to shake off.

Anyway no point in me speculating I think the whole mess will be sorted out shortly and I hope CFE gets the CHM carcass and kick Benny and his porno mate out the backdoor.

People have long since forgotten that the judge insist that CHM lodge this big deposit for legal costs before he will even hear the case. Such a deposit is common when the judge doubts the party's ability to pay should the verdict go against them. Further, if the judge doesn't like your chances of winning he may ask for a large deposit or ask you to top up the deposit after preliminary hearings. Such had been the case with CHM.

For more info google Rebecca Urban a WA journalist who did a lot of investigation into this case.


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## nioka (14 August 2010)

Chameleon expects to emerge from receivershipThe West Australian 
August 13, 2010, 12:42 pm 
Chameleon Mining says it expects its receivership, brought about by its litigation funder, will be lifted next week in a Supreme Court decision.

The Singapore-based International Litigation Partners moved to appoint an insolvency firm as external receiver to Chameleon.

A Chameleon spokesman said ILP had alleged the mineral explorer had breached the terms of a $20 million fixed and floating charge secured by ILP over Chameleon last year, which prevented the Sydney-based Chameleon from granting security over its assets to a third party.

Chameleon had allegedly committed the breach on Tuesday when it entered into a deal with Cape Lambert Resources.

The strategic alliance between Chameleon and Cape Lambert would see Chameleon issue shares to Cape Lambert, which would arrange a credit facility of up to $6.5 million for Chameleon.

Chameleon later on Wednesday obtained from the Supreme Court of NSW an injunction to restrain the receiver from acting, the Chameleon spokesman said.

The spokesman said the receiver yesterday submitted an application to dissolve Chameleon's injunction, "which failed on all counts".

"The judge (Justice Clifford Einstein) said that these matters are urgent and must be dealt with on a final basis as soon as possible," the spokesman told AAP on Friday.

"We're in court again next week, hopefully as early as next Tuesday to commence a final hearing, a determination of whether the receiver should be removed.

"We're confident that we've got them covered."

International Litigation Partners could not be immediately contacted for comment.

Chameleon on Tuesday said in a statement that Cape Lambert's investment was an endorsement of Chameleon's decision to take a dispute with iron ore miner Murchison Metals over the Jack Hills iron ore assets in the State's Mid-West to the Federal Court of Australia.

That action is ongoing.

Chameleon shares were suspended from trading on Wednesday pending an announcement and last traded at 2.3 cents.


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## No Gain (21 August 2010)

Hi Nioka, you seem to be following and know a bit about CFE. This DMC purchase - has there been any talk from CFE of their intentions and any comment around on the price paid and future prospects. That is was it a good move by CFE in the view of market researchers or a bad move, or is it a wait and see.


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## nioka (21 August 2010)

Nogain,
This is an odd one for CFE and it is hard to work out what is going on here. To date Tony Sage has made few mistakes and has pulled off some big ones. He keeps buying CFE and he has put a lot of his own money into DMC as well as CFE's money. He seems to be playing it close to his chest and not many other people, if any, know what is really going on. I doubt that he has gone this far withought giving the business a lot of thought. I'm happy to go along with him until I see something that alarms me, especially while he has his own money in play.


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## nioka (14 September 2010)

This is from todays announcement. 
" Key Findings
The supergene hematite results from the 2010 drilling generally confirm the iron grades from
the 1975 shallow surface drilling by earlier explorers, which forms the basis for the current
2008 Inferred Mineral Resource of 33.1 million tonnes at 55.5% Fe. Drill holes MKDD001
and MKDD002, however demonstrate that additional transported, supergene material exists
outside of the 1975 drilling and 2008 resource thereby enabling the resource size to be
increased.
The hematite iron mineralisation is associated with low phosphorous and sulphur.
The primary magnetite banded iron formation (BIF) Fe grades are typically higher at 32 -
36% than other magnetite projects.
The primary magnetite BIF lenses vary from 50 to 200m thick and extend to more than 300m
below surface over the full 7km strike length of the two prospects.

Cape Lambert Executive Chairman, Mr Tony Sage said these initial drill results indicate that the hematite cap DSO potential was of better iron grade and larger than initially thought, which improves the prospects of early cashflow from an initial DSO development.

Mr Sage further added the grade of the underlying magnetite was typically higher than other magnetite projects at 34-36% Fe. For example the 10 billion tonne JORC resource Tonkolili project in Sierra Leone, West Africa has a magnetite grade of approximately 30% Fe, and 25% of that project is in the process of being sold to major Chinese steel group, Shandong Iron & Steel for US$1.5 billion, valuing the project at US$6.0 billion." 

While CFE has many irons in the fire this is its largest project at this stage and one that should pay off well for holders of CFE. DYOR.


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## No Gain (28 September 2010)

I had a look at the Buys and Sells for CFE today and was wondering why there are so many trades of 1 to 10 shares (.37 cents to $3.70) at 37 cents. There are some meaningful trades at .37cents but most of the quantity is going through at .375. What's going on? If someone only trades one share are they still up for the usual trading fees? The only reason I can think of why someone is trading in this fashion is to make it look like CFE are down 1 cent for the day. Any other ideas?


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## ParleVouFrancois (28 September 2010)

On "the other site" there has been much discussion of a capper in place, keeping the share price down in order to buy time for a company to organise finance to buy out CFE. I don't really subscribe to this theory (well, it'll be true if we have a T/O offer in the next few months but other than that it sounds a bit dodgey), I read that Delong Holdings have been selling down, imo this has been causing the depressed share price recently. However I'm rather hopeful that with the sale of Marampa (for 500 million as TS has said it's worth in the past) we'll see a big rerating of CFE, towards the 50-60 cent mark. However this will only occur once it is actually happening, the market recently doesn't seem to want to price much potential in the smaller caps. Especially ones with exposure to South Africa (GDO + CCC are two other examples).


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## No Gain (28 September 2010)

I thought that there may be some sort of intention to keep the price down. A take over offer usually starts at a premium to the average share price so it would make sense to keep the sp down prior to making an offer. However there may be other resons to keep the SP down as well. What they are I don't know. If there is a rerating to 50 -60 cents that would be nice for me as I've held for a while now.


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## noie (8 October 2010)

Announced yesterday.

The Board of Cape Lambert Resources Limited (Cape Lambert or Company)
(ASX:CFE) is pleased to announce that, as part of a capital management program, it intends to implement an on market share buy-back (On Market Buy-Back).
The Board has determined to introduce the On Market Buy-Back for up to 10% of the Company’s fully paid ordinary shares (Shares).
The On Market Buy-Back will comply with the provisions set out in the Corporations Act and the ASX Listing Rules and does not require shareholder approval.
Patersons Securities Limited has been appointed by Cape Lambert to act as broker to the On Market Buy-Back. The earliest that the Company will be permitted to buy-back any Shares on market will be 22 October 2010.


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## ParleVouFrancois (8 October 2010)

Also if you read the actual announcement further to the "capital management" of a buyback management is issuing 8,000,000 options at 45 to "management and valued consultants". Now normally I'm the one who's outraged at the incredible paychecks of executive management, but CFE's management (that's the entire lot, including "essential staff") was paid 4.4 million this year after all bonuses, in comparison with my pet peeve of Transurban's CEO, who gets paid 6 million along with other benefits, for what I can tell is just being a glorified toll man. All in all, for once I'm not mad at management, this is a pat on the back for the men and women who delivered us the goods of a 72 million profit issued in options as opposed to free shares.


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## JAMESLEE2042 (13 October 2010)

The current share price $0.40 (TOTAL SHARES 625, 759,256, MC$ 250M @0.40PS) means it only equals CFE’s cash and cash receivables and therefore CFE’s considerable project portfolio is not given any value in the market. This situation will be changed when asset value begins to realise significant increases by market.
Within the next 12-18 months, the value proposition presented by the Marampa project and Mayoko deposits will become clear once cash has been realised for these project through asset sales or Maiden JORC resource or deal with Several Chinese companies including China Minmetals. Value for the Sappes Gold Project in Greece would have been realised and other potential corporate transactions involving other assets in the CFE portfolio would have been advanced.

The Marampa Iron Ore Project and the recently acquired Mayoko Iron Ore Project in Sierra Leone and Republic of Congo respectively differ from some large +1 billion tonne peer projects in West Africa due to their proximity to infrastructure, which can be readily upgraded or refurbished, without the large CAPEX requirements. CFE are progressing activities that will add significant value to these projects.

CFE is looking to find a buyer for the Sappes Gold Project in Greece, which should be aided by the completion of an update to the Feasibility Study and approvals from the Greek authorities on the EIS. Once this issue is resolved that a potential purchaser would see the project as significantly de-risked.

Brief CFE main projects:
Marampa Iron Ore Project
(100% ownership) Hard rock target size  ± 700M-1Billion tonnes, Maiden JORC resource targeted for year end 2010; Several Chinese companies including China Minmetals, have shown an interest in Marampa project;
Pinnacle Group Assets (37.2% ownership and Manager)
Iron ore prospects in Sierra Leone & Guinea and coal in Sierra Leone, adjacent to Bellzone’s 2.4 billion tonne Kalia magnetite project,
DMC Mining Limited (100% Ownership)- Mayoko project
6 targets with exploration target size  ± 0.9
- 1.3 billion tonnes of itabirite iron ore,
Sappes Gold Project (100% Ownership)- 0.83M OZs high grade Gold
High-grade, underground Viper resource (total
Mineral Resource – 1Mt at 21.4 g/t Au),
Small, open pit on St Demetrios mineralisation (total Mineral Resource – 0.8 Mt at 3.4 g/t Au).
Corvette Resources – Gold (Hold 32.3% - ASX: CVX)
Province hosts the 5 million oz Tropicana- Havana deposit (70km north along strike),

Asset A$ Value
Cash $135M
Outgoings (dividend & DMC acquisition) $(76)M
Cash Receivables / Con notes $92M
Equities (mark-to-market) $47M
Marampa (100%) $500M
Mayoko (80%) $100M
Sappes (100%) $50M
Plus Iron ore prospects in Sierra Leone & Guinea and coal in Sierra Leone, adjacent to Bellzone’s 2.4 billion tonne Kalia magnetite project
Total PRESENT VALUE ++800M
CFE TOTAL SHARES 625, 759,256, MC$ 250M @0.40PS; LOOKING at the longer term CFE remains in a very strong up trend with plenty of potential growth in the coming months; Valuation CFE with a 18 month price target of $1.02 per share.


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## oztrades (1 November 2010)

Now mopping up unmarketables:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01113378

Doing a share buyback:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01105882

And on the road:

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01110286


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## ParleVouFrancois (1 November 2010)

Should be an interesting next couple of months coming into an early christmas imo, news is due out soonish on the Sappes project, hopefully sold at the 60 million that TS was quoting earlier this year. The long awaited rerating is inching ever closer .


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## pixel (25 November 2010)

great channel break today.
Check out the volume - and it's only lunch time 
I hold and have moved my trailing stop to a Close Below 44c.


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## laurie (21 January 2011)

Very quite here,much has been happening with their buyback seeing the chart with a forward trend up even at .58c  sp which could be the next resistance level for a further push towards $1 good enough for me to jump on at this point  

laurie


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## pixel (21 January 2011)

laurie said:


> Very quite here,much has been happening with their buyback seeing the chart with a forward trend up even at .58c  sp which could be the next resistance level for a further push towards $1 good enough for me to jump on at this point
> 
> laurie



 Hi Laurie,
When I see rising channels with increasing gradients, I expect a "blow-off" top.
Therefore, when today's candle failed to hold yesterday's Close, turning the pattern into a Harami, I sold the lot. If I'm wrong, I'll buy back next week, but usually, this kind of pattern drops back quite briskly to one of the lower channel bottoms.


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## howmanyru (22 January 2011)

I jumped into this stock at 57c. Strange, thought it would level off at 55 as it has been incrementing steadily at 5c intervals. Think it will hold above 55 anyway, so prepared to sit on a small loss if required and wait for it to move up from there. They seem to have a nice suite of projects underway, and the chart is nice and steady, also buying volume seems consistently much higher than selling.


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## laurie (24 January 2011)

lol exactly as soon as I buy it does the very same thing FALLS bet you it would have kept going up if I did not buy in, but like you, I think I'm rather have a seat on the train than miss it as it speeds pass the station my main reason I jumped on is the possible future dividend payouts 

laurie


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## oztrades (25 January 2011)

laurie said:


> lol exactly as soon as I buy it does the very same thing FALLS bet you it would have kept going up if I did not buy in, but like you, I think I'm rather have a seat on the train than miss it as it speeds pass the station my main reason I jumped on is the possible future dividend payouts
> 
> laurie




Lots going on folks...
http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=cfe&timeframe=D&period=M3

Cheers


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## surfingman (3 February 2011)

*Cape Lambert puts Sierra Leone project up for sale
*

MINING: Cape Lambert Resources has started a $500 million sale process for its Marampa iron ore project in Sierra Leone.

"We start the (sale) process now and we have two groups going on site in February," Tony Sage, executive chairman of the Australian miner, said yesterday.

"We expect the sale to be complete by June 30," Mr Sage told reporters at a briefing.

He said he believed the project had a "minimum" value of $500m.

Although unwilling to identify the two prospective buyers about to visit Marampa, Mr Sage described them as a Korean steel making group and a "consortium of steel mills out of China".

He said earlier visitors to the project had included two Chinese entities -- the Shandong group and MCC.

Mr Sage said Cape Lambert was considering a 100 per cent "trade sale" of the Sierra Leone venture.

However, the executive chairman said he was leaning more towards an initial public offering which would leave room for Cape Lambert to retain an interest in the project.

The IPO would potentially raise between $US400m and $US500m, he said.

"We'd probably list it in London or Hong Kong," he said.

On top of the sale price, the buyer would need to spend roughly $600m to bring Marampa into production at a rate of 5 million tonnes a year, he said.

Cape Lambert recently concluded a deal with African Minerals to gain access on commercial terms to a nearby railway and port.

Under the deal, Cape Lambert's Marampa project secured 5 million tonnes a year of transport capacity.

Sierra Leone is one of several countries emerging as potential iron ore exporters in West Africa. The region has recently attracted investments from China as well as from diversified mining majors Rio Tinto, BHP Billiton and Vale of Brazil.

Link to Story here


With a market cap around $320 million this project alone without the cash position of 0.10 cents a share and many other projects in the pipeline there is a big 6 months in line for CFE.


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## surfingman (14 February 2011)

Cape Lambert's share price is in blue skies at $0.715 close, good volume and a share buy back pushing the price.

Why no interest in ASF?

Market cap around of around $400m

Marampa Sale in the pipeline looking for $500million by 30 June and over $0.11 cents backing per share ($100m +) in Cash and Receivables.

Other projects including copper mine which will more than likely be an IPO. Gold Mine in greece progressing through Government Approvals and a mountain of Iron Ore tenement in West Africa.

Pattersons has a $1.03 price target, Click here to read the Pattersons Research.

Is anyone holding this? 

I have been accumulating in the past weeks.


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## surfingman (14 February 2011)

Also per the latest Quarterly Report the Marampa Scoping study will be released any day now with a production rate of 5 mtpa of Iron Ore with all infrastructure currently be refurnished.


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## howmanyru (14 February 2011)

surfingman said:


> Cape Lambert's share price is in blue skies at $0.715 close, good volume and a share buy back pushing the price.
> 
> Why no interest in ASF?
> 
> ...




Surfingman, thanks for the post, I don't know why there is not a lot of interest here. I have been holding this stock since 57c and VERY happy with its performance. I like that they are doing something different and doing it very well. Thought it would retreat or be held up at 70c or below for a while, smashed through 70c barrier today no probs. This stock is holding my portfolio up at the moment.


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## laurie (14 February 2011)

I maybe wrong but people must have been been bitten with this stock before 

laurie


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## ChaoSI (15 February 2011)

bought in a miniscule amount...

see how it goes =)

hahah one day i say one day i'll be dropping 10's of thousands on a stock... one day...


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## enigmatic (17 February 2011)

Can anyone explain the massive offloading of this share today arround 1:45-1:50 the share price dropped to 55cents.

would really be interested in what happened.


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## surfingman (18 February 2011)

There will have to be some sort explanation today I would think, the cross trade after close got my interest.

I can only see it a trader playing games on the low level of support or an algorithmic bot doing the damage.


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## enigmatic (18 February 2011)

Oh well i guess CFE are getting to buy back a larger chunk of shares then they would of been able too. 

They just managed to squeeze even more out of CopperCo up to 70million profit over 1.5years on a 135million dollar investment 50% growth over 1.5years isn't to bad glad to have my money in tony Sage hands seems to find great investment opportunity at the right time.


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## enigmatic (22 February 2011)

Well looks like Cape Lambert Iron Ore shares continue to fall 
It also seems that CFE has finished there Share Buy back of 54,059,653 Shares with a total consideration paid $31,924,485.16 giving an average price of 59.05cents per share 
current SP is 59cents so just trading under the price CFE paid for it

I'm interested how often a company can buy-back shares and if anyone has reason for the sudden drop in price.


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## laurie (22 February 2011)

Looks like short traders were selling into the buy back now thats over back down to .59c lets see if the buy back pays dividends when its time to distribute income 

laurie


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## kingkev (7 June 2011)

And the SP continues to head south.  This bunch has some good fundamentals so should the sp not be heading North ? or are they like everything else and caught up in the south going tide.


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## nioka (8 July 2011)

Appears that Tony Sage is trying to bring forward an acceptable offer for its Marampa Iron ore project. The alternative is to go ahead with the listing as a way of making the sale. 

With a market cap under $300M and a valuation placed on the Marampa project alone of $500M it should mean that CFE is priced well below value at this stage. Even without Marampa the $300M market cap is probably justified on the value of the other assets held by Cape Lambert. There has to be an upside here.

"Cape Lambert Resources plans to list its Marampa iron ore asset in Sierra Leone on the London Stock Exchange.

The company says the initial public offer is expected to raise about $500 million.

The listing plans were put into train after Cape Lambert confirmed a 680 million tonne (Mt) resource at Marampa, a much higher amount than the 500 Mt minimum required by the company for a float.

Chairman Tony Sage says a trade sale is still a possibility but the London listing is the preferred option.

Mr Sage is travelling to London next week to meet brokers, with a view to selecting two to run the listing, one of which will be North American to provide exposure to that investment market.

"The London market has only got two west African iron ore players whereas the Australian market probably has got four or five, so we think it would work better in that (London) market," Mr Sage told AAP.

A name for the spin-off company would be decided after consultation with the Sierra Leone mines minister, who would make his first visit to Perth soon to meet Cape Lambert, Mr Sage said."

http://www.businessspectator.com.au...on-bourse-spin-off-JJD4Z?OpenDocument&src=hp6


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## pixel (29 February 2012)

renewed speculation about Marampa is bringing CFE back into focus.


> [Dow Jones] Foster Stockbroking sticks with a Buy on Cape Lambert Resources  (CFE.AU) and its price target of A$0.95/share with the divestment of its stake  in African Iron (AKI.AU) now all but done and A$72 million in cash to be  received. It says it understands the prospectus for the IPO of the company's  Marampa project is well progressed for release in April, with a goal of listing  before June 20. It estimates the IPO could realize a valuation of up to A$500  million. Cape Lambert shares are up 1 cent at A$0.535.  (robb.stewart@dowjones.com)



I'm buying again


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## Miner (24 September 2012)

pixel said:


> renewed speculation about Marampa is bringing CFE back into focus.
> 
> I'm buying again




Dear Pixel
Randomly searching Iron Ore sites, this one came to my notice. Since Feb there was no posting.
When the price was 53 cents or so probably Tony Sage sold off part of his holding only to re-enter.
With very low iron price how is CFE doing or expected to do compared to BHPB/FMG situation .
I am hoping you have done some research and appreciate to get your views

Many thanks


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## surfingman (18 December 2012)

CFE Has just announce another 10% Share Buy Back to start in Jan 13.

Judging by the last Buy Back where the SP moved over 100% this should bring some upside, its been a downhill slide for the past 6 months.


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## laurie (5 August 2014)

Hopefully Tony Sarge will announce dividend to shareholders after the ATO settlement and MCC paid their money. Hopefully we may see anywhere from 4c to .10c [anyone guess really] but sp hit a high of .15c today


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## laurie (9 August 2014)

4c it is,2c now and 2c Feb next year happy chappy fully franked making a total of 5.71c


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## pixel (15 August 2014)

laurie said:


> 4c it is,2c now and 2c Feb next year happy chappy fully franked making a total of 5.71c




Those thoughts had crossed  my mind, Laurie 
When I checked my Ex-Div spreadsheet, where I also calculate current yield (including Franking), CFE's going ex-div on September 25th stood out with almost 20% yield. That may well have occurred to other market players too, and explain the recent re-rating of CFE. As a friend commented today, "I love companies that have too much money."





Technically, I like it when a pullback bounces off one of the higher Fibonacci levels. 
All ducks lining up, I started to buy.
First resistance = 16.5c; stop on break below 14c.

btw, we also like the shape of the Weekly chart:


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## pixel (15 August 2014)

Sorry, it took me too long to produce this picture. Instead of uploading the entire file (over 1MB), here are the highest-yielding upcoming dividends as a mere snapshot:


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## laurie (16 August 2014)

Thanks for that Pixel great effort


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## Miner (17 August 2014)

pixel said:


> Sorry, it took me too long to produce this picture. Instead of uploading the entire file (over 1MB), here are the highest-yielding upcoming dividends as a mere snapshot:
> 
> View attachment 59037




Good work Pixel .


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## pixel (7 January 2015)

CFE held up - most likely in anticipation of the next 2cFF dividend.
And then comes today's announcement: http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01589829




Looking at yesterday's trading volume, it appears someone "guessed" this might happen ...


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## greggles (16 October 2017)

CFE on the move this morning after announcing "that representatives of the Company have been invited to China this week to advance strategic investment discussions, cobalt and copper offtake agreements and commodity linked debt funding for its interest in the Kipushi Cobalt Tailing Projects in the Democratic Republic of Congo."

Currently up 42.10% to 2.7c on good volume.


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## greggles (4 December 2017)

CFE on the move again. Share price has about doubled in the last few days on increasing volume. No announcements out except for a Company Presentation on 27 November.

I'm assuming the share price increase is connected to CFE's interest in EUR. Anyone else have any thoughts?


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## pixel (4 December 2017)

Tony has his fingers in so many pies, it's difficult to work out where the best prospects lie.





EUR is quite likely playing a role, but IMHO, the long-running dispute with the ATO has been weighing on people's minds too. If that came to a benign solution, as foreshadowed in the recent presentation, one heavy millstone would be removed.


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## greggles (5 December 2017)

CFE continues its trek north today. It's currently up 26.83% to 5.2c on volume of almost 42 million shares.

This morning they announced that Mr Stefan Müller has been appointed as a Non-Executive Director of the Company with effect from 1 January 2018.



> Mr. Müller has extensive financial markets and investment banking knowledge and experience built over his 25 - year career. Mr. Müller is CEO and founder of DGWA Deuts che Gesellschaft für Wertpapieranalyse GmbH, a boutique European investment and financial markets consulting firm for national and international SMEs based in Frankfurt, Germany.
> 
> Mr. Müller graduated a banker and began his career at Dresdner Bank AG as sen ior vice president of global equity trading. He held senior positions with Equinet AG, Bankhaus Sal Oppenheim (largest European private bank at that time) as head of global proprietary trading and managing partner at Proprietary Partners AG, a Swiss based hedge fund advisory company.
> 
> Mr. Müller holds a supervisory board position with Agrarius AG an agriculture based business listed on the Frankfurt Stock Exchange and also consults for various companies, institutions and federal organisations regarding their investment strategy.




Mr. Müller appears to be quite experienced but I don't think that's what's driving the share price but it could be a sign of things to come. Anyway, CFE has made it onto my watchlist and I will be keeping an eye on it in the short term.


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## System (14 October 2020)

On October 13th, 2020, Cape Lambert Resources Limited (CFE) changed its name and ASX code to Cyclone Metals Limited (CLE).


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## Dona Ferentes (14 October 2020)

System said:


> On October 13th, 2020, Cape Lambert Resources Limited (CFE) changed its name and ASX code to Cyclone Metals Limited (CLE).



The _Company holds a significant shareholding in ASX listed Cauldron Energy Limited (ASX: CXU) and FE Limited (ASX: FEL).  The share price in both these entities has increased over the last few weeks hence increasing the value of Cape Lambert’s investments._

and a month ago:
NEW EXPLORATION LICENCE APPLICATIONS OVER COINCIDENT GEOCHEMICAL REE AND GEOPHYSICAL GRAVITY ANOMALIES IN NW WA
*Highlights*
_▪ Applications for two tenements covering 297 graticules in the Carnarvon Basin 33km from the North West Highway east of Shark Bay_
_▪ Coincident geochemical *rare earth *element (REE) and geophysical gravity/TMI anomalies identified with deep gravity low interpreted as a buried diatreme structure._
_▪ Interpreted structure similar in size to the Mt Weld REE deposit_.



> The Company is aiming to conduct initial reconnaissance exploration upon grant of tenure consisting of additional geophysics combined with more detailed geochemistry in the first instance as well as ground reconnaissance and desktop studies.
> Tony Sage, Cape Lambert’s Executive Director, said “This is a great chance to get into the rare earths space at very little cost to the Company with no acquisition costs applicable. With China banning all exports, rare earths are sought after commodities. Cape Lambert has a long track record of investments in the resources sector, and will continue to look out for other opportunities that may arise”.







..... iron ore is old hat; let's restructure (So long; stale holders)


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## Dona Ferentes (18 October 2020)

and the cop is awake


> CLE will be suspended from quotation immediately in accordance with Listing Rule 17.3, as ASX has determined that CLE’s operations are not adequate to warrant the continued quotation of its securities...



... tbc


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## Dona Ferentes (3 August 2021)

Dona Ferentes said:


> and the cop is awake



back from the bench  ;  in fact, sat out the entire season


 .... and down down.. a drop of 55% at open


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## Sean K (3 August 2021)

Dona Ferentes said:


> back from the bench  ;  in fact, sat out the entire season
> 
> 
> .... and down down.. a drop of 55% at open




This is a weird one. Buy distressed assets, try to improve them, and then do something else. Obviously the 'improve them' bit is falling a bit short. 

I like how their administration costs are a fraction of what they're putting into exploration. LOL 

Staff costs $51K? Is that below the minimum wage? Obviously doesn't include the directors who are giving themselves around $350K.


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## Dona Ferentes (24 February 2022)

_And the money-go-round continues_

ACQUISITION OF HIGHLY PROSPECTIVE GOLD, COPPER, NICKEL AND
PGE PROJECTS IN NEW ZEALAND

*Highlights*
• Cyclone to acquire 100% of Grand Port Resources Pty Ltd, which holds 6 highly prospective gold, copper, nickel and PGE projects in New Zealand, with a further 2 lithium and REE project applications being submitted shortly;
• Grand Port’s projects covering 1,140km2, are all either near operating mines and facilities, or other resources companies;
• The projects are Macraes South, Muirs, Mareburn, Longwood Range, Waikerikeri and Drybread,and all are considered underexplored by modern exploration methods


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## greggles (11 April 2022)

Cyclone Metals has recovered 76 grams of gold nuggets from test pits at the Nickol River Gold Project. Management is currently planning a maiden drill program based on results to date.

Well, they know they have gold at the Nickol River Project. The important question is, how much?


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## basilio (5 January 2023)

*Will Cyclone metals become another FMG ?  Or perhaps an EDE...*
Yep sitting at .002c per share with a company value of  $12 dollars (almost.. just add a "m") CLE is going to move mountains.





Magnetite iron ore is rapidly becoming favoured not only for its higher iron content, but also due to its superior magnetic properties. Pic: via Getty Images.

Cyclone Metals acquires world’s largest proven undeveloped magnetite iron ore project​ 
Mining

*Cyclone Metals has acquired the Block 103 project in Canada,  is the largest undeveloped magnetite iron ore project in the world with an initial NI 43-101 compliant mineral resource of over 7.2 billion tonnes grading 29.2% iron *
Block 103 covers 7,275 hectares in the Labrador Trough, one of the largest iron ore belts in the world accounting for 99% of Canada’s iron ore.
Over $35m has been spent on the project thus far, including extensive drilling campaigns, metallurgical test work and engineering studies which outline two zones of high potential mineralisation on the property;  the Northwest Zone and the Greenbush Zone
It’s a great pick up for *Cyclone Metals (ASX:CLE)*, especially considering growth in global magnetite iron ore demand.
In 2021, the market was valued at US$23 billion and is expected to expand at a CAGR of 5.43% from 2022 to 2027, reaching US$31.6 billion.

(make sure you get to the bottom line.)









						Cyclone Metals acquires world’s largest proven undeveloped magnetite iron ore project - Stockhead
					

Cyclone Metals has acquired the Block 103 project in Canada, is the largest undeveloped magnetite iron ore project in the world.




					stockhead.com.au
				








CLE acquires 100% largest undeveloped magnetite iron ore dep                                (PDF 1,247.9 KB)


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