CLE - Cyclone Metals

[mahmoodf]

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.

 

[ta2693]

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

 

[mahmoodf]

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?

 

[Ruprect]

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.

 

[nomore4s]

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]

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

 

[skint]

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]

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.

 

[moneymajix]

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]

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.

 

[chris1983]

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."

 

[mahmoodf]

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

 

[LetItRide]

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]

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]

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]

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]

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]

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]

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]

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.