ARH - Australasian Resources

[Absolutely]

I think the market is getting bored with waiting.

The company hyped up the market with news of the "deal" pending and we have heard very little since.

I think some investors are starting to get impatient or even suspicious regarding the deal.

 

[Freeballinginawetsuit]

Out this morning at 20.5, all the best with your ride Kgee.

 

[Freeballinginawetsuit]

It made a push and a lot of volume swallowed up at 20 but then it got dumped on. I got out, but all I can say is a large volume is in at 20c+ so for all the rest of you it might succeed in the next few days at running. If it dosent I think it will fall to 17.5 for a while before it goes again. Be aware that the word is that they are going to restructure thier shares once it gets past 20c for a stable period. Probably at 10:1, (ie $2.00 per issue).

 

[Freeballinginawetsuit]

Made it through 20 alright but any idea why the big sell-off today?

ARH has had two pushes in three weeks. I got in during the first push at 12.5c and it went up to 20.5c the day before the Israel conflict.It got dumped on at this price(just like today) and fell to 15c. I rekon a lot of crew during the first push took thier profits at this point.Thiers a good chance it might get throuh it this time because most punters are in at significantly higher price than the first push. Todays dump volume was about two days of normal trading volume. My advice is if it gains momentum and does volume tommorrow its a good bet to go. If it dosent do volume it will fall to 17.5c for a while. I think if you watch ARH closely tommorrow, if momentum is up get in early if not post a buy in at 17.5/18.0. I don't reckon it will fall past this point before building up again.

 

[MalteseBull]

NEWS RELEASE

2 August 2006
ABN 46 008 942 809
Level 4, 5 Mill St Phone: (+61 8) 9322 2288
STATE MINISTERS VISIT AUSTRALASIAN RESOURCES BALMORAL PROJECT
Following an invitation from Australasian Resources Ltd (ASX Code: ARH) to visit the Balmoral Project, located 80km along the coast southwest of Dampier, three State Ministers took the opportunity to see the magnitude of this Project ‘first hand’ and to consider what it will mean to the State of Western Australia once development commences.
The Hon John Bowler MLA, The Hon Alannah MacTiernan MLA and The Hon Norm Marlborough MLA along with Australasian’s Managing Director, Darren Hedley, and Chairman, Domenic Martino, viewed the proposed port site at Cape Preston and inspected the site of due diligence drilling recently carried out by Australasian.
Managing Director of Australasian Resources, Mr Darren Hedley, said that “It was an honour to host the Ministers and share our future plans for the project with them. It is important they realise the potential benefits a project of this stature adds to the state of Western Australia, its communities and the greater Australian economy as a whole”
Mr Hedley confirmed that “good progress has been made towards finalising the terms and conditions necessary to consummate a deal with Professor Clive Palmer, over the right to mine one billion tonnes of magnetite iron ore on part of the Southern Block at Balmoral.”
Photo: Pilbara News
From Left to Right: Norm Marlborough, Alannah MacTiernan, John Bowler,
Darren Hedley, Domenic Martino
Any queries can be directed to Darren Hedley on +61 8 9322 2288.
Perth WA 6000 Fax: (+61 8) 9324 2164

 

[pharaoh]

Anyone on ARH?
Seems the word is big things could be coming for them.

On some deal in India being signed.

I can't get my head around in the ann's about the connection between the companies involved.

Any thoughts?
I am just starting to research this one

Cheers...

 

[donjohnson]

Huge volumes on this morning, 8mil in just over an hour.

A lot of interest out there and some fairly hefty buys going through.

 

[Sean K]

I've jumped on this to see where it goes. In at .215. Looks to have some momentum.

 

[doritos123]

Interesting read for ARH followers from July edition of resource stocks mag.

Major Shareholder are:
Lampton Pty Ltd 4.87%
Westpac Custodian Nominees 4.44%
Heal R & H 4.33%
Mineralogy 3.2%
JP Morgan Nominees 2.77%
Resource Stocks Magazine July 2006 edition
Page 67 and 68
What a difference a year can make.
The transformation of Australasian Resources from a seemingly directionless junior to a drivon ironore player is one of the Australian market most compelling stories.
By Michael Vaughan
In early 2005 Australasian Resources, then known as Sherlock Bay Nickel Corporation, was a company in trouble. It had a $15million debt hanging over its head with no way of repaying the money as its flagship Sherlock Bay Nickel project was still years away from production.
Fast forward to today and with new management, a new name, renewed energy and a deal for a new, company-making project on the brink of being finalised(or likely completed by the time you're reading this) the rags to riches story of Australasian Resources is fast materialising.
The tranformation of Australasian Resources started in late 2005 when the new board, led by managing director Darren Hedley and chairman Domenic Martino, made the decision to switch the compan's focus from the nickel sulphide project to the rampant iron ore and uranium sectors.
While the change in direction seems obvious due to the strength of both the uranium and iron ore markets from a producer's perspective, a change in strategy takes more than just an idea, it also needs a couple of quality projects.
The first piece in the puzzle fell into place with the acquisition of the Mount Salt Uranium Project in the Pilbara region of Western Australia from mining entrepreneur Professor Clive Palmers privately owned Mineralogy group.
The move gave AustralasiaResources a solid footing in the red-hot uranium sector via a project with a system of radiomtric anomalies covering a 20 kilometre strike length and spanning 4-5km in width.
Then in the days before Christmas the company was gifted a potentially company-making present from Palmer-an option to purchase the Cane River iron ore deposit plus a guaranteed 400 million tonnes of ore from Mineralogys Balmoral Sourthern Block magnetite deposit.
The news got even better in May this year when the deal was altered as a result of Mineralogy entering into a separate arrangement with Chinese group CITIC Pacific.
Mineralogy is now offering Australasian Resources the opportunity to purchase one billion tonnes of magnetite ore from the Sourthern Block leases.
The revision of the deal effectively doubles the tonnage of ore Australasian Resources can purchase from Mineralogy and means the junior can now source ore from one location, avoiding the time and expense of having to construct its own railway line.
Mineralog's agreement with CITIC allows the Chinese Group to purchase up to six billion tonnes of magnetite ore at a cost of US$215million for the first billion tonnes and a further US$200million for every additional package of one billion tonnes of ore. Inclusive in the agreement is a gross royalty of 6-10% on production
which is estimated to add another A$100mill to Mineralogys coffers for each billion tonnes mined.
Under the terms of the deal Citic will invest US$1.37bill for stage two in developing a mining and processing operation along with a port and related infrastructure at Cape Preston.
Importantly for ARH the deal will provide the company with the port needed to export the products from its proposed development. The company will likely have to contribute to the capital and operating cost of the port on a prorata tonnage basis.
To date, the company has drilled out an initial resource of 618million tonnes grading 31.7% iron at the Balmoral Southern Block that preliminary metallurgical work has indicated is able produce a 71% iron concentrate.
A resource upgrade is expected shortly which will see this figure approach the one billion tonne mark.
The promising metallurgical characteristics of the ore gives the company the option of producing a range of magnetite products including concentrates, blast furnace and DRI (direct reduced iron) pellets and/or HB(hot briquette iron)
ARH plans to kick start a full feasibility study for the project in September 2006 following the conclusion of negotiations with Palmer. Mineralogy have been working this project in earnest for the last ten years.
The Central Block has already had significant feasibility work completed and it appears the Southern Block is a direct extension of the same orebody, giving Australasian Resources a huge head start having full access to this information.
Considering the company's junior status, one would assume it would be difficult to match the $US215mill citic paid Palmer for its first billion tonnes of ore with a cash payment, so the deal with Palmerwill probably see him given a majority stake in the company in exchange for the ore.
This would be a major coup for ARH because Palmer's Mineralogy group has been referred to in the past as potentially having more iron ore in the ground than RIO Tinto and BHP combined and could potentially lead to deals for more ore in the future.
Hedley was enthused by his company's relationship with Mineralogy and clearly impressed by Mineralogys founder and owner Professor Cliver Palmer.
"Professor Palmer is an astute businessman and a man with vision," Hedley said.
"He picked these leases up in 1985, knowing that one day he would be residing over one of Australia's premier iron ore producing regions and that day has come,"
Independant consultant Hellman & Schofield have estimated Mineralogy has an exploration target of between 60 and 100 billion tonnes of ore in its leases.
For a junior such as Australasian Resources, even a small portion of this massive inventory of iron ore could potentially provide the company with enough feed to sustain a significant size iron ore operation for a number of decades at a time when demand for the metal is on the rise and new sources of supply are struggling to come on.
It also provides a massive option value if the compan's major shareholder owns all the iron ore on the lease.
while China's seemingly insatiable demand for iron ore has been well documented, India also looms as the new frontier for iron ore producers. The government of the country has officially stated its goal to increase steel production almost three fold to 110 million tonnes per annum by 2020.
Hedley has already visited India and said he received a very strong endorsement for his company, its strategy and its project. At this stage Australasian Resources keeps an open mind when it comes to future offtake partners but a line is starting to form with production still several years away.
While the Australasian Resources story has clearly grown since the company was solely focused on the SHN nickel project metallurgical heal leach test work on ore from that project continues and will tae another six months to evaluate.
The project carries a low-grade nickel sulphide resource of 24.4Mt grading 0.4% nickel for 101,3000t of nickel, meaning building a conventional flotation circuit may be cost prohibitive and better returns are on offer using bacterial heap leaching technology.
Hedley said ARH could well bring the project into production itself in the nex couple of years, though he would also consider joint venture partnerships and possibly an outright sale on the right terms.
"All options are open for us on this asset" he said. The key is to realise the appropriate value.
Meanwhile the Mount Salt project and the compan's other uranium play, the Copper Bore Well project, remain at the exploration licence application stage though Hedley said the company would expedite the appropriate exploration programs once the tenements are granted.
So while Australasian Resources probably won't make the transition from explorer to producer until 2010 the hard work and astute deal making the company has been involved with in the past eight or nine months has laid the foundation for a profitable future and completely transformed the companys fortunes.
This is by far the most exciting magnetite play in Australia if not the world.
Its size, location, access to gas, access to infrastructure and favourable metallurgical qualities puts us well ahead of the rest Hedly said.
The fact that Citc have chosen to invest heavily in this area is testimony to the quality of the asset.
Our vision for Australasia Resources is the multi billion dollar league found amongst the Top 150 company list and this project underwrites that vision Hedley said.

 

[Sean K]

Directors buying shares this am. Very positive!!!

 

[dubiousinfo]

They were bought on Tuesday $59,000. another director bought $60,000 on Monday

 

[kgee]

Good article Doritos....Word on the street is Palmer will be looking at 80% ownership which will probably equate to a 30 cent sp once the deal is done following that who knows 50 by 12 months??

 

[yogi-in-oz]

Hi folks,

ARH ..... as requested, here's a brief update of
the time cycles, expected to come into play,
over the next couple of months:

August 2006 ..... positive overall:

11082006 ..... minor and positive

21-22082006 ..... 5 cycles (mostly positive) will fall into place here, so
we may see flat trading for a couple of days (???), but
any news around this time should be significant.

28082006 ..... minor and positive ..... finance-related???


September 2006 ... mostly minor cycles, during this month:

06092006 ..... 2 minor cycles - flat trading???

21092006 ..... 2 minor cycles here

25092006 ..... significant and positive news expected now.

29-30092006 ..... 2 minor cycles, but may be the start of a rally.


October 2006 ..... a positive month overall, indicated for ARH

06-09102006 ..... significant time cycle here, but any news
may receive a mixed reception from the marketplace.

12102006 ..... spotlight firmly on ARH, but it may not be all good news(???)

16102006 ..... significant and positive news ..... finance-related???

17102006 ..... minor, but difficult news may see a top for ARH
around this time???

November ..... and ordinary monthly outlook for ARH.

December ..... mostly positive cycles for the run into
the summer solstice.

-----

Attached ARH chart, shows a nice rounding bottom, with
potential for a steep rally, if it can break through
current/previous resistance, around 22-23.5 cents .....

..... any breakout will have us targetting further resistance,
about 33 - 44 and 60 cents .....

happy days

yogi

 

[dubiousinfo]

Announcement out - agreement reached with Palmer to take 76% of company for right to mine ore. Trading currently suspended.

 

[Sean K]

Acquisition costing $3b shares at what price? Am I dreaming here. Won't that be about $600m?

Is this good for the sp or is it going to tank? ??

 

[MalteseBull]

I reckon .30 ps + on open

anyone else find this realistic?

 

[adobee]

AUSTRALASIAN RESOURCES TO BECOME IRON ORE PRODUCER Right off the back of a landmark multi-billion dollar deal with China, Mining Entrepreneur Professor Clive F Palmer has consummated a second deal with Australasian Resources Ltd (ASX Code: ARH). According to Australasian’s Managing Director, Mr Darren Hedley, this deal has the potential, in the fullness of time, to match the recent CITIC Pacific transaction. Australasian’s deal with Professor Palmer see the acquisition of the right to mine 1 billion tonnes of magnetite iron ore from the “Southern Block” of Mineralogy’s Balmoral magnetite deposit in the Pilbara region of Western Australia. The agreement, which will see Professor Palmer become the major shareholder in ARH with 76%, is subject to approval by shareholders. Given the direct comparability of the CITIC Agreement with Australasian’s agreement with Professor Palmer, KPMG Corporate Finance (Aust) Pty Ltd estimated the implied value of the CITIC acquisition of the initial right to a defined resource of 1 billion tonnes of magnetite from the Balmoral deposit. Based on discounted cash flow methodology, KPMG estimated an implied value of A$1.18 billion at today’s prices. Managing Director of ARH, Mr Darren Hedley was understandably delighted that the deal was concluded, which he believes will “position Australasian Resources as a potential new producer of iron ore products to supply the growing demand from Asian steel producers”. NUMEROUS MERITS The merits of the Balmoral “Southern Block” project are numerous according to ARH, including the ability to produce very high quality products, significant capital and operating cost benefits afforded by the Project’s scale, coastal location, proximity to competitively priced natural gas, and the potential to share infrastructure with CITIC Pacific Ltd, who recently acquired the rights to mine up to 6 billion tonnes of magnetite from the “Central Block” of the Balmoral deposit. In addition, ARH confirmed they have the ability to fast track the Project feasibility and development as they will have access to the extensive feasibility work already completed by Mineralogy on the Central Block deposit. Hedley confirmed that “Australasian plans to commence a definitive feasibility study on the Project as soon as shareholder approval is received” and that it will “continue discussions with potential funding and off-take partners” for the Project. DUE DILIGENCE COMPLETED Based on due diligence work by ARH, including an engineering review study by ProMet Engineers Pty Ltd (ProMet), resource drilling and metallurgical test work, the project has an estimated gross operating margin of A$800M per annum for 25 years based on today’s iron ore prices. Perth WA 6000 Fax: (+61 8) 9324 2164
Page 2
The engineering review study completed by Promet was based on a development involving construction of a 12 Mtpa magnetite concentrator, a 7 Mtpa pellet plant and a 1.45 Mtpa standard commercially proven Midrex DRI/HBI plant. ARH confirmed the key parameters from the study were: Total capital costs are estimated at around US$2.1 billion. An approximate 3 year development timeframe; 42 Mtpa of ore would be mined to produce final products for export of 5.2 Mtpa of concentrate, 4.9 Mtpa of pellets and 1.45 Mtpa of HBI briquettes; and Total unit operating costs are estimated at US$24/tonne of concentrate, US$31/tonne of pellets and US$89/tonne of HBI. Mineralogy Pty Ltd will be paid a royalty of A$0.30 per tonne of magnetite iron ore that is mined by ARH. Mr Hedley stated that “With its scale, location and potential to produce high quality products, ARH directors believe the acquisition of the Balmoral South Project provides a base to develop the Company into a significant and profitable new producer of iron ore products”. Further to that, he said “the board’s decision is further supported by the fact that out of all the iron ore projects worldwide, the Chinese government, through its shareholding in CITIC Pacific, selected Mineralogy’s asset to invest in”, and that “this fact alone is testimony to the quality of the assets ARH is purchasing.” Any queries can be directed to Darren Hedley on +61 8 9322 2288.
Level 4, 5 Mill St Phone: (+61 8) 9322 2288
Perth WA 6000 Fax: (+61 8) 9324 2164
www.sbnc.com.au

 

[Sumthinggg]

I reckon .30 ps + on open

anyone else find this realistic?

Depends on the interest once it opens again, if positive I reckon .40 ps +

 

[stockmaster]

before the share acq and consolidation it was $17622122 equity, after it was $635822122, Palmer will take 75%, so the rest of us shall be 25%?

25% of $635822122 is 1525973093 which is 8.65 times the current capital, so price shall be over 8 times the current = $1.6? Can someone explain this.


fanx in advance? any bargain for tomorrow?

 

[youngneil]

hi stockmaster

as indicated on other forums 24ish% is not all ours because the directors and other major holders own most of it...

i don't know what % we can own...but i don't think its much