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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)
CLE - Cyclone Metals
- Thread starter chansw
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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?
Any other stocks like this?
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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)
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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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
http://aussiestockforums.com.au/forums/showthread.php?t=8211&page=2
http://aussiestockforums.com.au/forums/showthread.php?t=13442
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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.
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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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
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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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.
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.
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
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
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.
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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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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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:/
the chart is trending up nicely at the moment..on low volume though:/
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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..............
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..............
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.
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.
"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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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??
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??
