ACS - Accent Resources

[Sean K]

Smurfette,

Members here provide general information, not buy or sell recommendations.

You are just as capable as doing research as everyone else, as all of the info is publicly available.

I would suggest it is not wise to buy on the back of somones elses comments, without your own research, no matter who that person is.

Yep, agree with prawn, and you should seriously consider the ramifications for requesting advice and then running with it from ANYONE, even a Financial Advisor. Worst thing you could ever do is actually take advice from a family member. The problem is that when your advice is a 'winner' then it's all beer and skittles. If the 'advice' is a loser, then you want to put a hit out on the person. YT has had problems in the past when the rare loser has popped up, or he's sold out for a profit when newbies have jumped in at the top and ended up losing money, on stocks he has posted on. Please take note of YTs signature block! Anyway, enough of the disclaimers, good luck with your investment strategy.

 

[smurfette]

Smurfette,

Members here provide general information, not buy or sell recommendations.

You are just as capable as doing research as everyone else, as all of the info is publicly available.

I would suggest it is not wise to buy on the back of somones elses comments, without your own research, no matter who that person is.

Prawn you certainly are correct.

However I have and always will do my own research and make my own decisions. I will always accept the full consequences of any adverse investment that I make and I would never solely make a decision based upon the opinion of someone on an internet forums.

Nonetheless there are thousands of companies listed on the ASX, too many for one person to cover all of, and it was of my understanding that investment forums such as Aussie Stock Forums were established in order for shareholders and prospective shareholders to share information and make a better informed decision.

Smurfette

 

[YOUNG_TRADER]

I would like to second and third exactly what Prawn and Kennas have said and Smurfette this is not just for you but for everyone really, the decision to buy and sell stocks must be made by those investors/traders themselves,

I am no guru, I simply put forth arguments where I think a stock should get re-rated for a certain reason,

Sometimes my thoughts are shown to be correct and the stocks re-rate and hold those gains properly ie CUL, YML(BRM), sometimes the stocks re-rate and then fall back due to some new factors RMI (absolute sh#t management, poor capital raising choice etc etc)

As for ACS, it was ridiculously cheap at 10c-15c and still cheap I thought at 20c-25c given the potential its projects held, as highlighted by my thoughts on Mt Gibson, I also was happy to buy options at 10c as I thought they offered alot of upside

Smurfette you said you held AXO, so did I early days and if your interested in understanding ACS's Katanning you need to look at AXO's Balla Balla as its is a FerroVanadium Titanium deposit, similar to what ACS hopes to find at Katanning

However unlike Mt Gibson, I am not aware of any historic drilling that has taken place at Katanning, rather the company has conducted rock chip smaples, ground surveys, magnetics etc etc

See the below extracts for what the company believes it has at Katanning, as for size I have no idea yet as it is too early stage, remember those aren't deposit grades just rock chips, so keep that in mind

 

[YOUNG_TRADER]

Looks like some group called Golden Bell has purchased 5.3m shares at 19c-20c

Whats interesting is that this group is based in Hong Kong, I am curious as to how a Hong Kong group came to learn about ACS? My only thoughts are that perhaps they are a proxy for some Chinese group? But this is just pure speculation on my part, for all we know they randomly picked ACS while drunk :

Nevertheless I am very intrigued by this

 

[smurfette]

Damn I was really hoping to have the chance to buy in cheaper today. I thought that with this mini-crash today I would be able to pick up some bargains. But if just didn't fall, does anyone think it is because of this news.

Smurfette

 

[stu_lee44]

Hi,YT.Thanks for your remind.
I check the company-----Golden Bell,it's very interesting!
This company is controlled by PIONEER IRON & STEEL GROUP,which is a large Chinese Group.
In 2006,ZHUHAI YMP YUEYUFENG IRON & STEEL CO. LTD was built by Pioneer and Rio together.They looks very interesting in Australian iron ore.....
Just guess what they want to do on acs......

 

[YOUNG_TRADER]

Hi,YT.Thanks for your remind.
I check the company-----Golden Bell,it's very interesting!
This company is controlled by PIONEER IRON & STEEL GROUP,which is a large Chinese Group.
In 2006,ZHUHAI YMP YUEYUFENG IRON & STEEL CO. LTD was built by Pioneer and Rio together.They looks very interesting in Australian iron ore.....
Just guess what they want to do on acs......

Hi stu,

I was curios how you found out that info? via company database search?

Also how did you know who Pioneer Iron and Steel are?

I am going to try and dig into to this too as that would be very positive news IMO

 

[stu_lee44]

Hi,YT.I happened to have a internal material mentioning Golden was 100%controlled by Pioneer.There are few related to Pioneer.I just found one in English below:

A Sino/Brazilian joint venture, operating under the name of ZHUHAI YPM, was recently established in view of building a new pellet plant in China. The partners in the planned undertaking and their respective shareholdings include the local ZHUHAI YUEYUFENG IRON & STEEL CO. LTD. (40%) and PIONEER IRON & STEEL GROUP CO. LTD. (35%) in conjunction with Brazil-based CIA VALE DO RIO DOCE (CVRD -25%)

 

[wipz]

The chinese really do love mt gibson don't they? Suprised to see it get hammered after open considering the chinese interest in ACS implied through the notice announced today. I hold, its just starting to get exciting.

 

[YOUNG_TRADER]

Hi,YT.Thanks for your remind.
I check the company-----Golden Bell,it's very interesting!
This company is controlled by PIONEER IRON & STEEL GROUP,which is a large Chinese Group.
In 2006,ZHUHAI YMP YUEYUFENG IRON & STEEL CO. LTD was built by Pioneer and Rio together.They looks very interesting in Australian iron ore.....
Just guess what they want to do on acs......

At first I wasn't sure of the link between the two,

But then I checked Pioneer Iron & Steel Groups web page
http://www.pioneer-metals.com/en/contact_en.asp

See the Contact us details given for Hong Kong?


Room 3508, Tower Two, Lippo Centre,
No. 89 Queensway, Hong Kong
Tel: +852 2366 2782
Fax: +852 2369 9811
Email: webmaster@pioneer-metals.com

Now see the address details given for Golden Bell in todays substanital shareholder notice?

Room 3405 Lippo Centre Two
89 Queensway, Hong Kong

So the two groups are in the same building, in the same tower (ie no 2) and are but a few offices away from each other,

Its safe to say that your right Stu, Golden Bell appears to be a subsidiary of Pioneer Metals,

Whats interesting is the fact that they have made the investment under a subsidiaries name, perhaps to conceal their identity for now and keep things quiet?

Either way this Pioneer Metals group looks quite large in China,

and I quote have "established itself as one of the key players in the Chinese iron and steel industry"
ie they seem to have many many deals with RIO, Vale, Sino etc etc

Now you can add little old ACS to the list and this shows that I was right, or at least this major Chinese Steel group thought I was right

I bet there will be further buying by this substantial holder, after all there is a long way to go until they hit 19.9%

 

[stu_lee44]

Yes,YT.Your right.Mt Gibson means sth.Pioneer's strategy maybe expain why:"Equity investment in the resources forms part of our strategic expansion in the resources area. A new professional team is constantly reviewing a range of opportunities and is engaged in detailed negotiations on several prospective iron ore and coking coal mining projects."
Patience will be rewarded.

 

[YOUNG_TRADER]

Although I'm a little noob at charting, my basic technical skills tell me that ACS has broken out above 28c, while it may need to prove it can hold this level with a few more days above it, it must be remembered that these past days have been very bearish and trying at best

 

[Sean K]

Although I'm a little noob

Quote of the year so far, going into the ASF Hall of Fame... lol

I agree with you, Little Noob.

 

[YOUNG_TRADER]

Well well,

THe Chinese group Pioneer Metals Group via their subsidiary Golden Bell purchased another 1,137,000 shares at 29c

This take their Total Holdings to 6.43m which only = 6.57%

This means that they can effectively buy another 12.5m shares before they hit the 19.9% limit (if they wish to)

 

[YOUNG_TRADER]

ACS now have 2 projects being drilled,

Their Ferrovanadium project at Katanning (wild card)

And their Magnetite Mt Gibson project (to be sold to Asian Steel group)

COMMENCEMENT OF DRILLING AT THE MAGNETITE RANGE
PROSPECT AT MT GIBSON, (ACS 80%, MWE 20%).
A reverse circulation drilling programme commenced on the Magnetite Range prospect recently to test the
potential for magnetite deposits along a 14km strike length of banded iron formation. This formation is the strike
extension of the same unit that hosts the 250Mt magnetite deposit at Extension Hill (Asia Iron Holdings Ltd).


Now whats interesting is that now all of a sudden this Asian Steel group has decided to take a stake in ACS, what do they know that we don't?

Or perhaps they jsut timed their buying really well to coincide with the begining of both drill campaigns

 

[YOUNG_TRADER]

An updated fundamental view

ACS​

Mkt Structure

Shares
100m + 30m 20c Opies 30/9/09

Mkt Cap @ 20c = $26m Previous
Mkt Cap @ 30c = $39m Target 1 Reached!
Mkt Cap @ 50c = $65m Target 2


Cash
$6m + $6m when opies exercised therefore = $12m



Projects


Mount Gibson Iron Ore, 80% maybe more, Mid West W.A. 5km's from MGX's operations
Although there is no JORC yet, drilling so far has shown 20m -80m thick 30% - 40% Fe Magnetite Ore from 16m - 30m down

From these drilling results, the potential strike length of 8km's and talking to the company, its clear that ACS have a very good chance of firming up minimum 100Mt@35% Fe and maybe as much as 437.5Mt's@35%Fe

Now adjacent to ACS's Mount Gibson project is Extension Hill, which was MGX's early Magnetite discovery of 240Mt's (unsure of grade) The Chinese (Sincom Investments Ltd) bought this off MGX. The problem is Extension Hill is only 240Mt's and minimum a stand alone operation of Magnetite needs 400Mt's, thus you can see why ACS's Mount Gibson project is vital to Sincom.

It is clear the companies intention is to firm up as much ore as they canand sell it to the Chinese (Sincom Investments Ltd).

Depending on the end result, I would expet that ACS would recieve more than the 57c / t of Fe that MGX recieved, recently A Chinese group agreed to purchase Cape Lamberts 1.5B/t @30% Fe deposit for $400m = about 90c/t Fe, given Sinom need this ore to make thier whole project viable I am happy to use a $1/t figure (also taking into account further strong Fe factors) so a

100Mt@35%Fe deposit should fetch close to $35m = 35c (26c) ACS
200Mt@35%Fe deposit should fetch close to $70m = 70c (54c) ACS
300Mt@35%Fe deposit should fetch close to $105m= $1.05 (80c) ACS
400Mt@35%Fe deposit should fetch close to $140m= $1.40 ($1.08)

These are some very interesting numbers when you consider the current market cap of $30m ($40m dilluted)

Drilling to define a JORC is underway


Katanning Ferro Vanadium, Up to 90%, W.A.
This project is an early stage AXO Aurox Balla Balla, its Ferro Vanadium and covers an Area of 500km² so could b very very large,

Grab samples have yielded some significant results so far though
Moreover they have been doing alot of mapping and testing, I wonder if they have some target sizes already?

So far they have mapped multiple 1.5km to 3km targets grading 50% Fe + and 1.5%V2O5

The project looks very promissing and I eagerly await drill results



Noresman Gold, 100%, W.A.
JORC 65k oz's Gold (grades 1.5 g/t - 2g/t Au) This deposit is too small to justify any sort of stand alone operation, however Toll Treatment of the Ore could net $5m+



Summary

- 200Mt Resource at Mt Gibson should be worth 70c (54c) to ACS
- Chinese interest in Mt Gibson as they desperatley need to get more Ore to make Extension Hill a viable project and now a large Chinese Steel Group Pioneer Metals, actively buying ACS shares on mkt!
- Katananning looks promissing
- Drilling commenced on both projects

 

[smurfette]

This is really interesting guys.

Does anyone have any ideas on what Pioneer/Golden Bell's intentions are?
How many shares do they want? Is this a full takeover?

Also what does anyone make of the timing? Is it just a coincidence that drilling has just begun on both projects?

Any thoughts are much appreciated,
Smurfette

 

[Sean K]

Does anyone have any ideas on what Pioneer/Golden Bell's intentions are?

How many shares do they want? Is this a full takeover?

LOL

Yes, I am the MD of this company and I intend to take them over.

I want all the shares.

All of them I tell you!!

The full monty!!!


What do you think Smurf?

Just take a pluck from what's been said, and your research of the company....

 

[Sean K]

Hey Little Noob, Looks like that 28 cents has held OK, and if you think that's a pennant then a break up could go somewhere around the blue line. Or not.

Been a good run since the original breakout at 17 cents ish.

 

[YOUNG_TRADER]

Hey Little Noob, Looks like that 28 cents has held OK, and if you think that's a pennant then a break up could go somewhere around the blue line. Or not.

Been a good run since the original breakout at 17 cents ish.

Hey Mr Tiger, lol,

So you think 45c is the upside target if the formation is correct?

Hmm interesting, I personally think that the Chinese are stilll buying and will continue to keep buying, however I'll wait for the change in substantial notice today to confirm this,

If they continue to buy I think they're gonna have to pay up soon cause the sellers seem to be drying up