CLE - Cyclone Metals

[nomore4s]

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.

 

[Santoro]

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......

 

[TheAbyss]

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.

 

[MR.]

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...

 

[Sean K]

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

 

[GOSAFAS]

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]

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]

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.

 

[Hot in Tropics]

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 .....

 

[nberardis]

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

 

[jman2007]

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."

 

[enigmatic]

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.

 

[jman2007]

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.

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

 

[MR.]

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]

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.

 

[GOSAFAS]

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.]

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.

 

[resourcesman]

hahaha, not an uncommon way for some chinese to do business (i am chinese)

[word limit should be changed to 50!!!]

 

[GOSAFAS]

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.]

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.............................