CLE - Cyclone Metals

[skint]

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.

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?

 

[MR.]

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.

 

[nomore4s]

Some bigger quantites sitting at 42c & 43.5c.

 

[skint]

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.

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.

 

[Ruprect]

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.

 

[mildew79]

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

 

[Glenhaven]

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

 

[chris1983]

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?

 

[Glenhaven]

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]

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.

 

[Glenhaven]

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

 

[mildew79]

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.

 

[Glenhaven]

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

 

[MR.]

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.

 

[chris1983]

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.

 

[MR.]

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.

 

[Glenhaven]

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.

 

[Halba]

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]

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.]

"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.