AQA - Aquila Resources

[Go Nuke]

wow I bet some of you guys are spewing for selling last week after todays action!

AQA going from strength to strength at the moment.

 

[Kylastar]

Finished yesterday at $16.90 on the back of a few Announcements. Specifically announcement of Bonus Shares 1 per 5. Record Date 14th May.

 

[chewy]

And don't forget the confirmation of the feasibility study of a 25-30 mtpa iron ore operation in the Pilbara site at costs of just $20/tonne. that is going to generate a lot of money for a very long time! Even though I bought in late last year before the market 'crash' AQA is still up over 60% for me

 

[imajica]

I couldn't believe the early weakness in the share price so decided to buy back in at $16.50 - currently $17.20 nice!

originally bought my first lot at $8.28 and sold a few weeks ago at $15.20

will be holding onto these tightly from now on - I do not want to miss the FMG-esque kind of rise that will happen at some stage as milestones are confirmed!


Aquila to issue Bonus Shares as West Pilbara Iron Ore
Project delivers positive Pre-Feasibility Study


Aquila Resources Limited (“Aquila” or “the Company”) is pleased to announce a bonus “one for
five” issue of the Company’s shares as a result of the positive Pre-Feasibility Study for the West
Pilbara Iron Ore Project.
The bonus issue recognises the significant progress that the Company has made with the
development of its iron ore initiative, which began in early 2004 when Aquila decided to expand its
raw steel materials interests to include a strategy in iron ore.
In addition, the free entitlement is intended to encourage greater liquidity in the Company’s shares,
which in turn should improve the likelihood of the Company being included in the ASX200 or 300
Index.
The entitlement is to be issued for nil consideration and will be distributed on the pro-rata basis of
“one for every five” ordinary shares held by existing shareholders at 5 pm (WST) at the record
date of [14 May] 2008. The shares will trade on an “ex” entitlement basis from [8 May] 2008.
The principal terms and conditions of the bonus issue are as follows:

• Class of security to be issued - Ordinary shares
• Number of securities to be issued – up to a maximum of 41,179,374
• Issue price of bonus shares - nil consideration
• Date on which securities will trade on an “ex” basis – 9 May 2008
• Record date to determine entitlement – 15 May 2008
• Despatch Date – 29 May 2008

 

[imajica]

West Pilbara Iron Ore Project Pre-Feasibility Study
delivers positive results


Highlights:

• PFS confirms technical and financial viability of a 25 million tonne per annum iron
ore project in the West Pilbara
• Capital expenditure is estimated at US$3.9 billion for dedicated Project facilities,
including provisions for EPCM, contingency and Owners’ costs
• Operating costs of under US$20 per tonne FOB, including royalties, at 25Mtpa
• Sensitivity analyses indicate that the Project is capable of producing 30Mtpa in
Stage 1 with a marginal increase in capital expenditure
• Annual EBITDA of US$1.3 billion at 30Mtpa using expected 2008 iron ore prices
• PFS recommends construction of 160km of new rail and a new deep water port
facility at Cape Preston, subject to commercial agreement with other parties with
interests in this port
• Subject to approvals, construction could commence Q1 2010 with first shipments
in 2012

 

[imajica]

Roll with Poli

May 06, 2008


IF the investment community has learnt anything from Fortescue's rise, from Forrest plaything to somewhere near the top of the resources tree, then it has been this - it's a good time to fall in love with Tony Poli's Aquila Resources.

Most of the market missed being a part of Fortescue's near 30,000 per cent rise on the sharemarket because they either refused to get involved with a company run by Andrew Forrest, or didn't understand/believe in an iron ore boom.

Or maybe it was a combination of both.

Anyway, once bitten, twice shy, market punters have been looking around for the next Fortescue, and the next iron ore explorer to make them mega rich so they never have to work again.

This is where Aquila comes in.

Aquila is getting more and more affection these days from the people that matter, but there is one key ingredient missing.

That would be liquidity. Given that Poli owns about 30 per cent of the company - and its joint venture partner AMCI has about 7 per cent - Aquila, or more importantly, the punters, have had issues with available stock, which has kept the carbon steels miner out of the top-200 index.

But that could all change now that Aquila has promised to provide all shareholders with a free bonus share based on a one-for-five ratio.

The bonus kicks in now that Aquila has completed the Pre-Feasibility Study for the West Pilbara Iron Ore Project, which has confirmed the viability of a 25 million tonne per year operation.

At that rate, Aquila expects margins of something like 80 per cent, based on current iron ore prices.

Given that first shipments aren't expected until 2012, there is a strong chance that this will change, but the estimated Freight On Board (FOB) per tonne of ore will remain about $US20.

The study also suggested that Aquila build a 160km railway and new deepwater port at Cape Preston, and that is why the estimated capital expenditure for the project is a cool $3.9 billion. So, infrastructure will remain an issue, but Aquila is at least talking to the big players on the Balmoral leases, like Australasian Resources and Citic, to see what can be done.

But back to the share bonus - Poli wants to reward shareholders for their faith in the company and the fact it has achieved an important milestone.

It is no coincidence that it will also improve stock liquidity.

“Given Aquila's market capitalisation, increased liquidity in the stock should improve the likelihood of the company being included in the ASX 200 or 300 index, which will lead to an increase in our market exposure,” Poli said.

So the news is all good for Aquila shareholders. The news is also all good for Red Hill, the other player in the West Pilbara project.

Red Hill falls under what is called the API joint venture vehicle, which is a partnership between AMCI and Aquila.

API can earn up to 80 per cent in the West Pilbara project from Red Hill, but astute market watchers should note that 85 per cent of the resources to be mined in stage 1 of the West Pilbara project comes from Red Hill's joint venture leases with API.

Also, AMCI has recently moved to a 19.9 per cent stake in Red Hill, and industry sources suggest that punters should “watch this space” for more goings-on in the not to distant future.

Shares in Red Hill closed up more than 5 per cent today. Shares in Aquila jumped nearly 15 per cent.

 

[Jimminy]

I couldn't believe the early weakness in the share price so decided to buy back in at $16.50 - currently $17.20 nice!

originally bought my first lot at $8.28 and sold a few weeks ago at $15.20

Glad to hear. I must say I had to comment last week about you selling as this stock is a rare diamond that I have been in for quite while and you sold prior to the main announcement we have been waiting on....

But you're back in that is all that matters. Stay in. lol.

 

[imajica]

Thanks for the encouraging words Jimminy! I will be holding onto these for a long time, that's for sure! After such a steep rise it can be tempting sometimes to lock some profits in. Just glad I was able to get in on the unexpected dip this morning! Tomorrow should be a strong day, being so close to the cut off date for the free shares!

 

[michael_selway]

Thanks for the encouraging words Jimminy! I will be holding onto these for a long time, that's for sure! After such a steep rise it can be tempting sometimes to lock some profits in. Just glad I was able to get in on the unexpected dip this morning! Tomorrow should be a strong day, being so close to the cut off date for the free shares!

Yeah dont forget the coal as well

Date: 7/5/2008
Author:
Source: The Australian --- Page: 36
Aquila Resources has announced that in 2012 its $A4.12 billion Pilbara projectwill produce 25 million tonnes of iron ore per year. However, some say the boomwill be over by then. Fortescue Metals Group is beginning exports in May 2008 ofore delivered from its own $A4 billion Pilbara project. Some $A1.79 billion ofAquila's expenditure is likely to go towards its key areas ofinfrastructure concern including the railway, ore wharf and deep-water channel

thx

MS

 

[osmosis]

Anyone in the know regarding the AQA share price drop today? It seems quite steep given recent rises

 

[imajica]

the shares are trading ex-bonus - yesterday was the last day to get the free shares (1 for 5) - the drop today is in line with the free issue - it is expected

 

[moolah]

Am I correct in thinking that the announcement of bonus shares was on May the 6th and no one knew prior to this date? If this is so could someone reply?

Also I can I ask if there has been any Chinese interest in AQA?

Thanks in advance. I just cannot wade through all the info today as I've already had my quota of research.

 

[chewy]

Q1) that is right
Q2) dunno - but no chance of a take over IMO most the shares are tied up with the big wigs so they would have no chance of getting a majority to sell. Way too much growth potential imo.


And yeah 1 for 5 bonus was essentially a 20% gain - as that offer closed yesterday you would have to expect a 20%'ish drop today. But it has also risen substantially since the ann - so over all still up quite a bit.

 

[moolah]

Thanks Chewy. I appreciate your help.

Very generous this bonus. Have you ever seen a target on this from a broker?

 

[action_jackson]

So what are the CGT implications for bonus shares? Is the Capital gain the full amount of the price the shares were sold at?

cheers

 

[Jimminy]

"So what are the CGT implications for bonus shares? Is the Capital gain the full amount of the price the shares were sold at?"

No CGT payable on bonus stock.

 

[56gsa]

Very generous this bonus. Have you ever seen a target on this from a broker?

Brokers have been reluctant to cover this.. I see on comsec now that they have estimated EPS from 7 days ago with one broker/research? Austock Ltd placing a 'hold' recommendation

I haven't found any broker research on the company website but it does have a number of press articles - you'd be interested in the 1 may AFR article ...http://www.aquilaresources.com.au/go/investor-relations/press

cheers

 

[ChomChom]

There was a bullish article about Aquila this morning in the AFR, saying that Southern Cross Equities had just initiated coverage of Aquila with a "BUY" call and target price of $20.... not sure if the bonus was taken into account... if yes, ex-target price would be $16.6666?

 

[Gekko]

Chom Chom, if you find the article or if anyone else comes across it, please post it. Charlie Aitken has my respect. He's the only one who picked FMG early

 

[ChomChom]

Here is the article mate

Does anyone know how they'll give the bonus shares? Will it be automatically added or will there be some kind of paperwork to fill (stupid question just to make this post long enough)?