AQA - Aquila Resources

[grace]

Hi Grace you mean there are rumours that ZFX/OXR may takeover AQA?

Any links?

Thanks

MS

I did read it MS. It was either the Daily Reckoning, Eureka Report or FNArena. I will try and search back in my deleted items and see who the analyst was who mentioned it. The analyst said that Oxiana has always wanted iron ore + coal, and that aquila would probably suit the merged entity. Pure speculation by the analyst of course. I will try and chase this up and get back to you in this thread. Thanks.
I do not hold aquila (although have been following with interest).

 

[bryan_palmer]

been watching this one for a while now. do any tech analysts out that are following this too think is it too late to get in since it has broke through the $9 resistence mark?

 

[grace]

I did read it MS. It was either the Daily Reckoning, Eureka Report or FNArena. I will try and search back in my deleted items and see who the analyst was who mentioned it. The analyst said that Oxiana has always wanted iron ore + coal, and that aquila would probably suit the merged entity. Pure speculation by the analyst of course. I will try and chase this up and get back to you in this thread. Thanks.
I do not hold aquila (although have been following with interest).

Well, I have searched today, and I cannot find the information that I said I read. I don't think I was daydreaming at the time. Must not have been from the above sources as I have checked all of these since announcement of 3/3/08.
Quite happy for mods to remove my posts. Hope I'm not going to get into trouble!

Okay, I have found where the Ox wants exposure to coal and iron ore here (but aquila not mentioned).

http://www.businessspectator.com.au...yeing-OxianaZinifex-merger-CEF56?OpenDocument

I will keep looking for the analyst who mentioned aquila as the above mentions Mt Gibson, Felix and McCarthur Coal

 

[Gekko]

Like many, i really do see AQA as the best big cap takeover target in Australia. ACMI should lean from BHP and RIO's reluctance to take over FMG and take them out at $15-$20. A $5 range given is large, but it may take up to $20 to take out good old aquila.

Comment still stands. I think its only a matter of time before Aquila is taken out. ACMI the logical acquirer. Vale another possibility, even if they are sucessful at taking over Xstrata. Brazilian government have deep pockets and are commodity bulls. Plus, like the Russians, they recognise the political leverage that their commodity exposure gives. So its a duel edged sword: A) Commodity exposure B) Political Leverage

 

[imajica]

12 March 2008
Company Announcements Office
Australian Stock Exchange
4th floor, 20 Bridge Street
SYDNEY NSW 2000

Dear Sir

RED HILL IRON LIMITED (“RHI”) –Announcement of significant iron ore resource increase, 7 March 2008

For the information of shareholders of Giralia Resources NL (ASX-“GIR”), attached is a copy of an announcement to ASX made by Red Hill Iron Limited (ASX-“RHI”) on 7 March 2008, regarding a significant increase in iron ore resources at the Red Hill Joint Venture in the Pilbara region of Western Australia.
Giralia advises that it is the largest individual shareholder in RHI, holding 6,643,333 RHI shares or a 16.7% stake in RHI.
The attached release details an increase in channel iron resources to 350.2 million tonnes @ 57.2% Fe (up from 135 million tonnes) at the Red Hill Joint Venture. All funding for the Red Hill Iron Joint Venture is provided by API management Pty Ltd ("API"), a company owned equally by Aquila Resources Limited and AMCI Holdings Inc., which has earned a 60% interest in the Red Hill Joint Venture and elected to earn a further 20% interest by lending Red Hill Iron all its exploration costs and any future development capital costs. Red Hill Iron retains an option to convert its ultimate 20% project interest, at any time up to first delivery of product, to a 2% FOB royalty.
A recent presentation by Aquila released to ASX on 26 February 2008, indicated that Aquila anticipates completion in March 2008 of a pre-feasibility study into iron production at a rate of up to 30 million tonnes per annum from the West Pilbara iron project (Red Hill’s tenements hold 81.5% of current channel iron resources).



Aquila holders will be very pleased with this news - a large resource with the option to take a huge stake

 

[grace]

12 March 2008
Company Announcements Office
Australian Stock Exchange
4th floor, 20 Bridge Street
SYDNEY NSW 2000

Dear Sir

RED HILL IRON LIMITED (“RHI”) –Announcement of significant iron ore resource increase, 7 March 2008

For the information of shareholders of Giralia Resources NL (ASX-“GIR”), attached is a copy of an announcement to ASX made by Red Hill Iron Limited (ASX-“RHI”) on 7 March 2008, regarding a significant increase in iron ore resources at the Red Hill Joint Venture in the Pilbara region of Western Australia.
Giralia advises that it is the largest individual shareholder in RHI, holding 6,643,333 RHI shares or a 16.7% stake in RHI.
The attached release details an increase in channel iron resources to 350.2 million tonnes @ 57.2% Fe (up from 135 million tonnes) at the Red Hill Joint Venture. All funding for the Red Hill Iron Joint Venture is provided by API management Pty Ltd ("API"), a company owned equally by Aquila Resources Limited and AMCI Holdings Inc., which has earned a 60% interest in the Red Hill Joint Venture and elected to earn a further 20% interest by lending Red Hill Iron all its exploration costs and any future development capital costs. Red Hill Iron retains an option to convert its ultimate 20% project interest, at any time up to first delivery of product, to a 2% FOB royalty.
A recent presentation by Aquila released to ASX on 26 February 2008, indicated that Aquila anticipates completion in March 2008 of a pre-feasibility study into iron production at a rate of up to 30 million tonnes per annum from the West Pilbara iron project (Red Hill’s tenements hold 81.5% of current channel iron resources).



Aquila holders will be very pleased with this news - a large resource with the option to take a huge stake

I've been doing a bit of looking at MC of RHI (given 20% of project but with loan for their portion from aquila until they are mining) vs MC of aquila.

MC of RHI $206 mill with 20% of 350 tonne DSO
MC of AQA $2.12bill with 80% of 350 tonne DSO + other JV's

Plus AQA holdings in other near iron ore exploration, plus their coal.
Holders have RHI valued at $3 tonne for their 70mill tonne. I think there will be more for aqa to find on RHI though.
Using that $3 tonne on aqa's share (although they have to come up with the finance for project) of 280mill tonne, is $840 million (for JV with RHI). What about other iron ore?

Anyone have some thoughts on valuation for aqa? I'm not good at coal!

 

[imajica]

Significant Increase in Coking Coal Resource to 780Mt


Aquila Resources Limited (“Aquila” or “the Company”) is pleased to announce a significant
increase in the coal resource of its Eagle Downs Coal Project (formally known as Peak Downs
East), in which the Company and Vale Australia Pty Ltd, a wholly owned Vale subsidiary, each
have a 50% joint venture interest.
The Eagle Downs Coal Project (“Eagle Downs”) is located approximately 25km south-east of the
township of Moranbah in the northern part of the Bowen Basin. The project area is immediately
down dip of BHP Billiton Limited and Mitsubishi Alliance’s Peak Downs Coal Mine as shown on the
attached Figure 1.
Coal resources occur in the Q seam, Harrow Creek Upper seam, Harrow Creek Lower seam and
the Dysart seam within the Permian Moranbah Coal Measures.
The exploration programmes carried out have consisted of three phases of work to date;
• Stage 1 drilling and coal quality programme was completed in order to provide data for the
initial resource estimate and raw coal quality information for the northern zone. This work
was reported to the ASX on June 20, 2007;
• The Stage 2 exploration and quality programme has provided data for the purposes of
further resource definition and determination of potential product qualities. This work also
included the completion of a 2-D seismic programme in early 2008. The current resource
update and mining studies being carried out under the prefeasibility study programme are
based on this Stage 2 work. Stage 2 coal quality results confirm that the majority of the
resources is of coking coal quality;
• Stage 3 exploration programme is in progress.
JB Mining Services Pty Ltd was commissioned in conjunction with joint venture staff to complete
the resource statement. The Indicated and Inferred resource for the Eagle Downs Coal Project
northern resource area is 780 Mt of in-situ coal resources. The variation in the reported resource is
the result of an overall increase in Indicated and Inferred tonnage by 84Mt resulting from an
increase in Indicated tonnage by 94Mt and a decrease in Inferred tonnage by 10Mt.

 

[imajica]

aquila resources surging today

up nearly 10% or $1 to $11.60

people starting to wake up to the possibility of this one methinks

 

[michael_selway]

aquila resources surging today

up nearly 10% or $1 to $11.60

people starting to wake up to the possibility of this one methinks

Hi imajica, sure did, btw do u own any other coal stocks?

thx

MS

http://www.aquilaresources.com.au/

 

[imajica]

I used to own WHC but sold out of them a while ago.

this news is golden for all coal producers (especially AQA with its massive reserves)

Andrew Trounson | April 07, 2008

AUSTRALIAN producers of coal, the nation's largest export commodity, have secured a stunning price rise because of supply shortages.

European and Asian steel mills have agreeing a trebling in premium hard coking coal prices to around $US305 a tonne.

The reported settlements come on the back of soaring spot prices after millions of tonnes of production were lost because of severe flooding in Queensland in January and February.

According to ANZ commodity analyst Mark Pervan, the flooding has likely cut the world supply of seaborne coking coal - also known as metallurgical coal - by 4-6 per cent.

There are also reports that Japanese utilities have agreed to a more than doubling in Australian thermal coal prices to $US125 a tonne, up from $US56 a tonne.

Coal is Australia's biggest commodity export earner, with ABARE Economics predicting sales of 252 million tonnes 116 million tonnes worth $35.5 billion in the 2008 financial year, prior to the latest price hike.

ABARE predicts coking coal producers will sell 136 million tonnes worth $27. 4 billion onto the global market in the 2008 financial year.

According to industry newsletter the McCloskey's Coal Report, BHP Billiton has secured a $305 a tonne contract price from Indian/European steel giant Arcelor Mittal. Separately, South Korean steel producer Posco has confirmed it has agreed a 205-210 per cent rise in Australian coking coal prices from last year price of $US98 a tonne.

BHP Billiton declined to comment, and traditionally doesn't confirm price settlements until most of its contracts are agreed.

Swiss-based Xstrata, the world's biggest thermal coal exporter with significant operations in NSW and Queensland, has reportedly secured a $US125/tonne price from Japanese utility Chubu.

The coking coal price increase is above analyst expectations that back in March were for a coking coal price of $US225-$US250 a tonne.

 

[imajica]

Aquila Discovers High Grade Manganese on Two Project
Areas in South Africa


Highlights of intersected manganese mineralisation include:

6.69m at 46.13% Manganese
6.09m at 48.60% Manganese
3.70m at 40.81% Manganese


Carbon steel resources producer and developer, Aquila Resources Limited (ASX:AQA
Aquila or the Company) is pleased to announce promising manganese assay results from
its Avontuur Projects located 75km north west of Kuruman, in the Northern Cape Province
of South Africa.
The results are from the first three holes assayed from the 74% owned Avontuur Projects,
which comprise a permit area of 370sq km. The manganese discoveries were identified
on two mineralised prospects some 20km apart and adjoining the northern-most farms of
the main Kalahari Manganese Field.
The permit was taken up initially for iron ore, but modelling of aeromagnetic data and
assessment of previous exploration identified two targets for manganese mineralisation.
Southern Project
Drilling on the southern part of the permit has discovered manganese mineralization in the
Hotazel Formation, which could represent an extension of the Kalahari Manganese Field.
The permit boundary is only eight km north of the Wessels underground mining
operations, where ore is mined over a depth range of 300 to 500m.

 

[56gsa]

Coal, iron and manganese - next they'll be building a steel mill?!

Can't help but be impressed by this group - the lack of broker exposure kind of adds to their intrigue - but at well over $2bn mkt cap, chasing a record high close tomorrow, and with the takeover spec always present there's no secrets here now.

 

[imajica]

closing on its high today of $12.07

here is a chart for those who are interested - nice appreciation of share price since the overall market downturn a few months ago - was $6.99 at the end of January

 

[imajica]

just closed for the week at $12.82 - it just keeps on going and making new highs - a few percent a day at a time - nothing too aggressive and unsustainable. Glad I bought a lot of these at $8.28 - will be great long term as their coal interests are expanded and more iron ore is defined both in the Pilbara and in Sth Africa - lets not forget the manganese - AQA is truly a diversified miner!

 

[bazollie]

G'day Imajica , I agree with your optimism & confidence. I remember back when AQA were in the low $2 mark, I nearly bought then as they were about to embark on 3 new coal mines , Carborough Downs, Isaac Plains & Broadlea , all in the Moranbah district. I then watched them progress up to the $5-6 mark. ( I know , shoulda would coulda but I didn't!!)
Luckily I jumped in when the sh&t hit the fan last year when AQA dropped back to the mid $4 mark along with the majority of other stocks as well.

I am holding & will continue to hold as I believe that AQA can only benefit from the bullish coal prices that we are seeing now. Not to mention their Iron Ore prospects.

AQA have a share in the Belvedere project near Moura. CVRD is the other major holder in this project. This project has huge potential & will be able to support 2 longwall operations, which could produce up to 8MT of coal per year.

All good news from here IMHO

Regards

Bazza

 

[imajica]

Aquila hits record high of $14 today, up nearly 10 percent!
It's funny how the Aquila thread is quiet even though its put on nearly 100% in 4 months! and yet people keep banging on about the penny dreadfuls which haven't a hope in hell of producing anything!

 

[reece55]

Aquila hits record high of $14 today, up nearly 10 percent!
It's funny how the Aquila thread is quiet even though its put on nearly 100% in 4 months! and yet people keep banging on about the penny dreadfuls which haven't a hope in hell of producing anything!

MCC's approach will most likely have a positive impact on any coal producer today....

I've been with you a few times here mate, AQA still a top stock in my mind and shows no signs of slowing now on an all time high! Technically,fantastic uptrend that remains strongly in place.

Cheers

 

[Go Nuke]

Aquila hits record high of $14 today, up nearly 10 percent!
It's funny how the Aquila thread is quiet even though its put on nearly 100% in 4 months! and yet people keep banging on about the penny dreadfuls which haven't a hope in hell of producing anything!

I'm still dirty i sold out at $8...so thats why I have nothing to add

Otherwise, yeah imajica I can see why you are in love with this stock.

Wish i still held

 

[michael_selway]

Aquila hits record high of $14 today, up nearly 10 percent!
It's funny how the Aquila thread is quiet even though its put on nearly 100% in 4 months! and yet people keep banging on about the penny dreadfuls which haven't a hope in hell of producing anything!

Yep AQA has done well, but AQA is not the only one

thx
MS

Date: 8/4/2008
Author: Stephen Wisenthal
Source: The Australian Financial Review --- Page: 1/18
Aquila Resources' shares recorded a fiftyfold increase in value between2000 and 2008, as coal prices reached record levels. The willingness ofAquila's management to take a risk in difficult times made the substantialgains possible, although many mining executives believe the rising cost of entryinto the Australian coal mining sector has made similar success stories lesslikely. Macarthur Coal's Ken Talbot said the Bowen Basin's best coalhas already been mined and the cost of exploration would rise substantiallyalongside access to deeper deposits

 

[imajica]

again Aquila hits a fresh high today of $14.20

an incredibly strong uptrend that is likely to continue based on a number of factors:

- fundamentals
- coal and iron ore are hot right now
- its a sound diversified business model