CLE - Cyclone Metals

[Santoro]

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

 

[prawn_86]

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

 

[nomore4s]

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.

 

[stoxclimber]

I doubt a court would have ordered performance of the contract, CFE would just get damages..in fact, they still can sue

 

[ausepicure]

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.

 

[FUTUREFUND]

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

 

[Ruprect]

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]

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??

 

[ta2693]

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.

 

[enigmatic]

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.

 

[FUTUREFUND]

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

 

[Go Nuke]

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]

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]

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]

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

 

[MR.]

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]

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]

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]

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

 

[chrism0014]

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.