AGM - Allegiance Mining

[rustaman]

Nothing new there, imho.

Confirmation of Lion news.

Thanks anyway.

Hold the line longterm AGMers.

Lulu..

 

[d_crome]

Just to clarify this thread - AGM HAVE NOT ACCEPTED ZFX's OFFER.

Thats blatantly misleading.

The statement was AGM's largest Insto HOLDER had accepted.

Now - I've always liked AGM for it's potential - I certainly believe they are sitting on a HUGE resource. I however have, since the departure of the CEO, felt that the remaining AGM board have been ill-suited to the task of running this operation.

The mine was behind schedule - though the holders were never told until the ASX announcement - the constantly poor finish to their ASX announcements to this day still have me baffled. The cherry on top for me was the boards rather poor handling of last weeks finalization of the initial ZFX offer - that friday just wreaked of a board who really didn't have control of their financial future.

The AGM board - consisting of arguably some of the finest Engineers and Geologist are just that - Engineers and Geologists. They are seriously lacking a smart, business oriented member to take the helm here and keep the scientists away from the ASX announcements - this end of the business should be left to ruthless and slick business folk only. I couldn't care in the slightest if these people don't understand a mine from a mochachino - the point is AGM needs a mouth piece to fend off predators and to keep AGM in the investors public eye.

To this day - AGM have failed to do this - they continue to flounder and today's statements to the AFR in regards to loss of funds by market investments just goes to show my point.

AGM still to me presents an awesome investment - however I have a horrible feeling that if the AGM board continue as is, ZFX won't have to do much more to prove to the general investing public that they have the financial credentials (note NOT GEOLOGIC/ENGINEERING credentials) to manage AGM better than the current board.

Regardless of the bungles of the AGM board - the value for me in AGM is IN THE GROUND - no amount of bungling can change that. AGM - if allowed to maintain control, I'm sure they'll make the province a great mine - however WHEN and HOW MUCH it'll cost to do so are the questions that still remain.

That said - and the way it looks - AGM will lose to the ZFX challenge - I want to post an idea and hear some responses.

How much upside potential will AGM add to ZFX?? In say 6 months, given stable market conditions, how would a ZFX with AGM as theirs be worth?? Would the Zinc interest of ZFX negate the Ni upside presented from AGM?

The idea running through my head is that AGM will most likely make me cash out - so what would I do with these funds?? Would ZFX be a good place to go next?

Please keep the responses positive from both sides of this take over - I've already abandoned HC due to the high level of BS there - ASF has always been a high level discussion forum and I hope that it remains.

Cheers in advance.

 

[nioka]

OOps my apologies. It was released today 11/2 it inidcates Lion Selection accepted the offer, and goes on to say Offer was extended by two weeks to Allegiance.,,,Won't do that again till i read it three times..

Sorry just read the headline and took it that it had been done. Misread it.

SG

Apology accepted. All you did was what ZFX intended you to do by placing their announcement on the AGM announcements, to lead you into thinking there had been a massive acceptance of their below value offer.

 

[nioka]

That said - and the way it looks - AGM will lose to the ZFX challenge - I want to post an idea and hear some responses.

How much upside potential will AGM add to ZFX?? In say 6 months, given stable market conditions, how would a ZFX with AGM as theirs be worth?? Would the Zinc interest of ZFX negate the Ni upside presented from AGM?

The idea running through my head is that AGM will most likely make me cash out - so what would I do with these funds?? Would ZFX be a good place to go next?

I won't accept that AGM have lost the challenge. There is a lot more water to flow under the bridge yet.
With regards to the value it will add to ZFX, that will be considerable and that is why I suggest the offer is undervalued. I keep referring to the value of SMY as a comparison and using that I place a value of at least $2 on AGM right now. There is room to add to that as ore reserves are proven. ZFX have mines running out in the near future and they need more producing mines and don't have the time or the patience to develop new ones. It takes years to get to the stage reached by AGM right now. Unless ZFX get a producing project up they are in trouble in my opinion as most of their other projects I can find have long lead up times to production. Sure they will benefit from AGM if they are successful but it will be at a cost to the AGM faithfulls. It is hard for me to put a value on ZFX and obviously the market has the same problem. A takeover of AGM will make it worth more but if it is priced too high now it may not be enough to make up the gap. DYOR and stay tuned for the fat lady to sing. I'll hold AGM rather than ZFX.

 

[Warren Buffet II]

Probably AGM is trying to make more money from share trading than from mining, I wonder who was the smarty in there that lost all that money.

http://www.afr.com/home/viewer.aspx...ce=/_xmlfeeds/industry/metals_mining/feed.xml

WBII

 

[Warren Buffet II]

http://www.individual.com/story.php?story=77535544

Allegiance stung in $8m market punt
By James Chessell and Michael Vaughan
Feb 10, 2008 (The Australian Financial Review - ABIX via COMTEX) --

Amid a takeover battle between Zinifex and Allegiance Mining, some questions have arisen about the board. Besides its nickel operations, the takeover target has been involved in loss-making share trades. The so-called "Black Tuesday" on the Australian sharemarket in January 2008 led to a $A7.9 million loss being posted, and dismissal of the employee. Brokerages such as Findlay & Company, Shaw Stockbroking and Patersons helped Benjamin Amzalak to trade in small stocks such as Eastern Star Gas, Hillgrove Resources and Icash Payment Services. In the quarterly report to 31 December 2007, the executive director, David Deitz, pointed to the transparent disclosure of investment losses.

 

[Ashsaege]

That said - and the way it looks - AGM will lose to the ZFX challenge - I want to post an idea and hear some responses.

How much upside potential will AGM add to ZFX?? In say 6 months, given stable market conditions, how would a ZFX with AGM as theirs be worth?? Would the Zinc interest of ZFX negate the Ni upside presented from AGM?

The idea running through my head is that AGM will most likely make me cash out - so what would I do with these funds?? Would ZFX be a good place to go next?

Please keep the responses positive from both sides of this take over - I've already abandoned HC due to the high level of BS there - ASF has always been a high level discussion forum and I hope that it remains.

Cheers in advance.

Zfx has had a successful past record, and has a couple billion in cash. So I believe if they do take over AGM they will have enough resources to fully reach the potential of the Ni mine. Tho I couldnt say how much more ZFX would be worth say in 6 months time.

 

[d_crome]

Bottom line - would, or better yet, should AGM holders just dive their AGM sale into ZFX shares?

Or would there be better alternatives??

BHP sure looks cheap given they'll most likely not acquire RIO - that could be an easy 30% right there.

 

[nioka]

Bottom line - would, or better yet, should AGM holders just dive their AGM sale into ZFX shares?.

No I have considered that and don't think I would get value. If ZFX valued AGM at $2 and offered a share exchange then it would probably be a fair proposition but I would not sell AGM at $1 and buy ZFX.

 

[3MT]

Seems like AGM office has nothing to do, just twiddling their thumbs waiting for ZFX to increase their offer, while workers watch their comsec screens all day. thats what happens when you watch your comsec screen all day.

Zinifex is waiting for the day of the pending production delay announcement I think. That or the day some internal rogue trader blows the company's credit limite and cash reserves.

 

[cuttlefish]

http://www.individual.com/story.php?story=77535544

Allegiance stung in $8m market punt
By James Chessell and Michael Vaughan
Feb 10, 2008 (The Australian Financial Review - ABIX via COMTEX) --

Amid a takeover battle between Zinifex and Allegiance Mining, some questions have arisen about the board. Besides its nickel operations, the takeover target has been involved in loss-making share trades. The so-called "Black Tuesday" on the Australian sharemarket in January 2008 led to a $A7.9 million loss being posted, and dismissal of the employee. Brokerages such as Findlay & Company, Shaw Stockbroking and Patersons helped Benjamin Amzalak to trade in small stocks such as Eastern Star Gas, Hillgrove Resources and Icash Payment Services. In the quarterly report to 31 December 2007, the executive director, David Deitz, pointed to the transparent disclosure of investment losses.

Well ZFX is playing on this today. It absolutely astounds me that this sort of stupidity goes on today. Was this person an officer/director of the company? If not how the f*k could he have been trading stocks using the companies money without awareness by senior management/directors. Its scary and ridiculous that after the Enrons and HIH's that this sort of absolute stupidity can go on even today and it does raise question marks unfortunately about the capacity of this board to maintain control over the company - internal audit processes should have visibility of trading levels that can create a $7 million exposure.

The guy that did this shouldn't have just been sacked, he should have been charged - unless of course the board approved this stupidity in which case big question marks should be raised over the board imo.


The company should release a lot more information about whats gone on here and what they've done to prevent something like this happening again.

(I don't hold AGM did for a while a year ago, don't hold ZFX either, but have had an idle curiousity in the ZFX takeover).

 

[DionM]

If ZFXs $1 offer wasn't on the table, news of that $8m gambling loss would have sent the price plummeting, wouldn't you say? Doesn't take much to spook the horses these days.

I continue to sit and wait. Bugger that ZFX extended their offer, I coulda got back into AGM really cheaply this week I'm sure!

 

[cuttlefish]

Yeah I reckon you're right, it would have caused a nice slump in the price of a quality asset. However before buying into a company that announced such a situation I would want a lot more detail as to the mechanics of how the situation occurred, just like ZFX is asking for. I'm sure there's a lot of grandstanding in relation to this by ZFX, but you have to question the mentality of a board that would allow this sort of thing to go on (assuming they were aware of it, which, given it was mentioned in the quarterly, it can only be assumed that they were aware of it).

 

[JTLP]

LOL...AGM is the biggest joke.

Any other company that got caught floundering around 8 mil would have been punished severely.

You seriously have to wonder who is keeping the SP about the $1.00 mark.

PURELY SPECULATING but perhaps directors are getting "friends" to place bids to keep it above?

NB...I don't hold

 

[nioka]

UBS have taken a major shareholding in AGM by buying over 5% of AGM shares. This is either a blocking stake or are they buying for Zinifex and paying over the $1 that ZFX are supposed to be paying. Wheels within wheels????? I guess all will be revealed in the fullness of time. At least we are getting closer to the date for production to commence.

 

[roland]

Very nice presentation from AGM, makes me feel like I want to be part of the action..... I'll wait until the Zinifex stalemate disappears. Good luck to AGM holders

 

[nioka]

The Zinifex offer for AGM looks more like failing after MQG announced a majority shareholding. They appear to have been accumulating shares for some time and before the ZFX offer. Add to that the other major shareholders including the 10% for Jinchuan and there would appear to be a healthy blocking vote. I think now we can look forward to being shareholders when the production commences and will reap the reward for our patience.

 

[rustyheela]

Zinifex bid for Allegiance stumbles
February 22, 2008 - 7:43PM


The Takeovers Panel has made a declaration of unacceptable circumstances and final orders regarding Zinifex Ltd's $745 million hostile takeover bid for nickel miner Allegiance Mining NL.

Last week, the Takeovers Panel ordered Zinifex to halt the processing of acceptances, amid claims shareholders were misled.

Zinifex's original offer was scheduled to close at 1900 AEDT on February 8 but half an hour later, Zinifex's announcement that it had extended the $1 per share bid by a fortnight hit the Australian stock exchange website.

The Takeover Panels said Zinifex's letter advising shareholders that the offer had been extended was collected by Australia Post at about 1700 AEDT on February 8.

Allegiance had claimed that some of its shareholders - including five per cent shareholder Lion Selection Group Ltd - had accepted the offer, wrongly believing it was about to close or had already closed.

"The panel has made orders to the effect that Allegiance shareholders who accepted the offer after 5.00pm (Melbourne time) but before 7.30pm on 8 February 2008 have a right to apply to Zinifex to cancel their acceptance of the offer," the panel said in a statement.

"The panel considered that any acquisition of control over voting shares in Allegiance should take, and in this case should have taken, place in an informed market and shareholders should have enough information to consider the merits of the extension of the offer and reasonable time to consider it.

"At 5.00pm on February 8, 2008, Zinifex should have informed Allegiance so that Allegiance could notify its shareholders."

On Wednesday, Zinifex again extended the offer, this time until 1900 AEDT on March 7.

As of Wednesday, Zinifex had a 5.44 per cent stake in its target, including the share acceptances that Zinifex may wind up cancelling.

Zinifex releases its half year results on Monday.

Shares in Allegiance closed steady at $1.07, while shares in Zinifex finished 69 cents higher, or 7.29 per cent, at $10.15.

© 2008 AAP

 

[nioka]

We have been robbed. Looks like it is $1.10. Now to plan B for me. Definitely there is a better bet than ZFX.

 

[Warren Buffet II]

The Zinifex offer for AGM looks more like failing after MQG announced a majority shareholding. They appear to have been accumulating shares for some time and before the ZFX offer. Add to that the other major shareholders including the 10% for Jinchuan and there would appear to be a healthy blocking vote. I think now we can look forward to being shareholders when the production commences and will reap the reward for our patience.

Just reading and quoting from one of the many previous entries from Nokia. Nokia can you please explain this in more detail ?

WBII