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ACS - Accent Resources

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Its also worth remembering that the last time a group built a position in ACS it was another Chinese Steel Group Golden Bell and the share price ran up to 55c from 15c can history repeat itself twice?

RichMark are only at 11.84% another 8% or if they exercise those 12c options they will have around 18% but then Golden Bell will be slightly diluted so they may perhaps buy more to go back up to 19.9%




 
nice magnetite intersection down hole ann'd today 225m, from 61m, true width approx 150m

pity the tenement doesn't extend a little further down strike

assays will be interesting

cheers

another quality post brought to you by happytown inc
 
and now it all becomes clear why the Chinese were buying


When you look at it with hindsight no wonder Rich Mark wanted so many so quick


"6/7 Accelerated drilling and resource development program at Mt Gibson
Rich Mark acquires 1M shares off mkt at 20c note share price at the time is 15c so 30% premium Rich Mark also acquires 10M 31s July 2010 12c options for 13c each, this implies a price of 25c per share

Whats happening here? well it looks to me like RichMark see's alot of value in ACS and is prepared to apy 17c - 20c and even 25c for the shares

The purchasing of the 10M options for 13c is the biggest vote of confidence as far as I'm concerned"


And why do they see so much value? Well in 2006 when the Iron ore price was about what it is now so well before the hype, MGX sold Extension Hill which had 250Mt's of Magnetite for $50m ACS are targetting between 300Mt's-500Mt's

If we use the MGX sales as comparative value then at the lower end Mt Gibson is worth $50m and at the high end $100M to ACS = 45c - 90c

Not hard to see why Richmark are so interested in buying all the stock they can"


and its that last bit that gave it away, buying 10M 12c options for 13c when the share price was 15c, speaks volumes doesn't it
 
many are quick to criticize Magnetite deposits and they are right with most as the cap ex requirements are enormous but ACS are not a play on a developing Magnetite Producer but rather a Chinese take over play, always have been

The 3 key things that separate ACS from most other magnetite minnows is

Reasons 1 and 2 are 2 separate Chinese Steel Groups have bought and taken substantial positions on ACS's registry, one bought last year from 20c-55c I cant remember what the avg price was, the other who I have no doubt is linked to the same 1st group has been buying like crazy as per my post above


Reason 3 is that Magnetite range is next door to ie adjacent to Extension hill which Mt Gibson sold to the Chinese for $50m back in 2006 and it was only 230Mts

The Chinese need critical Mass ie 1Bt's to get that project off the ground thus will require more ore form next door ie ACS's Magnetite range


So this is why ACS doesnt need to firm up 1Bt's or 2Bt's Like CXM CFE or ARH


Low Case: 230Mt's is worth $50m = 45c-50c ACS

Medium Case: 500Mt's worth $100m = 95c-$1 ACS

High Case: 750Mts worth $150M = $1.40 - $1.50 ACS


Now these are just my thoughts and nothing is guaranteed but does make for an interesting story to unfold, been waiting awhile though
 
Guys just realized my figures are all wrong so apologies


Sinom bought Extension Hill from Mt Gibson for $52.5m but MGX only owned 73%

This changes everything as that means 100% of the 230Mt resource was worth $72m

So Sinom paid $72M for 230Mts Mag at Extension Hill in 2006 prior to the iron ore boom

http://www.asx.com.au/asxpdf/20061018/pdf/3z1dvg32bjdqn.pdf



ACS look to be targeting 450Mts - 750Mts

based on Sinom transaction

450Mts worth $140m = $1.30 ACS

750Mts worth $234m = $2.15 ACS




As before please note that these figures are only indicative of what Sinom may pay if ACS can prove up a resource at Magnetite range, there's no guarantee that Sinom will pay this much but even $50m, $70m or $100m would be nice dollars for ACS
 
YT, MGX case was 2 years ago. The market has changed a lot after that. I guess we could use CXM case. That's the bottom of the market. Wu Steel paid $0.18c/tonne.

450mt=81m$=75c
750mt=135m$=$1.25

But this is a takeover game. 2 years ago, Golden Bell would like to pay 50c and now I guess 35c around.


 
yeah agree that it was then and this is now

but there are 3 note worthy points

1. The MGX deal was pre the big IO boom as it was done ealry 2006

2. Sinom need ore to reach critical mass = maybe desperate

3. CXM project is first for the area = alot of infrastructure requirements etc etc
so reckon it was done on the cheap side

But still using CXM deal you got


450mt=81m$=75c
750mt=135m$=$1.25


Honestly Id be happy with 50c-60c
 
Hi YT,
What will happen if Richmark get over 20% stock?I remembered there were only 4 million shares to break 20% since Juky 15.

 
acs have been undertaking a 12,500m drilling program (7,000 RC/5,500 diamond core), with assay results pending (thickest intersection reported to date approx 150m [true]), all building up for a maiden jorc resource estimate (originally expected sep/dec qtr)

once the jorc is released, YT's t/o scenario?

cheers

another quality post brought to you by happytown inc
 
Lets see what they have in their resource drilling.

I feel we maybe pleasantly suprised with the results and could easily have a substantial project on their own basis.
 
Have been watching this one a little bit and it seems to be the most illiquid and tightly held stock I have ever witnessed...

Can anyone explain why?
Someone must be lurking on it...
 
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