ARH - Australasian Resources

[pkj24]

Finally some movement! Announcement is up and all looks good for ARH (see attached). Looks like a landmark deal with the huge potential, with an election to finance 100% of the project (estimated at $2.1 billion) and guarantee the purchase of 100% of the iron ore produced!

Also states it will be back on the market in the coming weeks. Let's hope the market reacts well upon re-instatement!

 

[kenworth69]

Christ, what a relief. The last six months has been a nightmare.


But it is starting to look good now.


Thank phuuuuuuuooooookkkk!!

 

[Rimtalay]

China's steel maker to start constructing new plant next week
Last Updated(Beijing Time):2007-03-10 11:50

Beijing Capital Iron and Steel Group Co - known as Shougang - will start work next Monday on the construction of a new plant in northern Hebei Province, the group has confirmed.
"It is time for us to begin building the infrastructure such as production lines and plants," Shougang's board chairman Zhu Jimin said at the ongoing National People's Congress.

The new company, designed to produce 9.75 million tons of steel every year, will be put into operation by the end of next year, hesaid.

He also said all of the new company's assets would be injected into its listed unit by 2010.

Widely accused of playing a major role in polluting Beijing's air, the group started to relocate the steel plant in 2005 to Caofeidian, an island between Tanggu New Port and Qinhuangdao Port, 225 km southeast of Beijing and 85 km south of Tangshan in Hebei.

According to a plan approved in 2005 by the State Council, China's Cabinet, the steel company is expected to move all its Beijing-based production facilities to Caofeidian by 2010.

Only the headquarters, research and development sections, sales departments and logistical center will remain in the capital.

Shougang is expected to cease production during the Olympic Games period. It has also promised its new facility will use new technologies to reduce environmental damage.

 

[Rimtalay]

China's Shougang to fund studies on Australia's South Balmoral iron ore projec
Wed, Mar 21 2007, 05:48 GMT
http://www.afxnews.com

SYDNEY (XFN-ASIA) - Australasian Resources Ltd said Chinese steelmaker Shougang Corp has agreed to contribute 56 mln aud for feasability studies into the development of its Balmoral South iron ore project in Western Australia's Pilbara region.

It said units of Shougang, including 18 pct owned Hong Kong listed APAC Resources Ltd, will take up placement shares offered by Australasian Resources, raising the 56 mln aud needed to carry out the studies. The placement shares will be priced at 1.00 aud each, and will have options attached, giving Australasian Resources the potential to raise a further 42 mln aud.

Following an initial placement, the Shougang entities will hold 12.8 pct of Australasian Resources.

If Shougang decides to take part in the project at the conclusion of the studies it has agreed to fully finance the development costs, estimated at 2.1 bln usd, and will also guarantee the purchase of 100 pct of the iron ore produced, Australasian Resources said.

Australasian Resources holds the rights to mine one bln metric tons of magnetite iron ore at South Balmoral which is part of the Susan Palmer deposit in the Pilbara region.

 

[pkj24]

Anyone have any ideas where this will head when in relists? One would assume north given the size of the agreement recently signeed, but to what extent remains to be seen.

Has been compared to FMG. If it could get to 1/4 of the FMG shareprice there would be many happy holders!

 

[Rimtalay]

ARH. If shareholders hold tight then ARH will rocket, most large shareholders will not sell, it will only be the small shareholders looking for quick profits.
If shareholders hold tight when it opens, it will be at $2 quickly.
There will be a lot of interest when it reopens, so only a fool would sell.

 

[pkj24]

Back on the market on Monday 16 April... Let's hope it has been worth the wait. Given the deal that has gone through over the past month and the increase in the price of nickel since since it stopped trading in mid December 2006 it should be an interesting ride over the next few months

(I hold)

 

[Rimtalay]

ARH relists today, this story from the Australia for the full story see LINK

Australasian's relisting a test for iron
Kevin Andrusiak
April 16, 2007

AFTER more than five months off the ASX boards, Clive Palmer's Australasian Resources will be a good litmus test of the market's appetite for iron ore stocks when it rejoins the share market today.
It comes back a markedly different company to what it was in December when it had a market capitalisation of $506 million.
Since then, it has signed agreements with China's fourth-biggest steel maker, Shougang, to finance the $US2.1 billion ($2.5 billion) Balmoral project through an interest-free loan and added 201 million tonnes into the probable ore reserve category.

Australasian is majority owned by Mr Palmer, who picked up much of the Balmoral ground in the iron ore-rich Pilbara region of Western Australia in the 1980s.

The company is one of a new breed of iron ore miners developing magnetite projects purely to feed Chinese demand. Others include Andrew Forrest's Fortescue Metals and Tony Sage's Cape Lambert.

Mr Palmer is estimated to hold between 60 billion and 100 billion tonnes of magnetite ore in his tenements, much of which could end up being vended into Australasian.

Last year, he sold off one block of land containing 1 billion tonnes to Citic in a deal worth $5 billion and vended key tenements, which form the basis of the Balmoral Project, into Australasian for a controlling stake in the company.

The project has State Agreement approval and its coastal proximity means it won't need to rely too much on infrastructure, which can lengthen the time to get a mine to the export stage.

 

[Kimosabi]

Would I be correct in assuming that all those who owned these shares before the suspension from trading have just made a killing?

 

[ubid]

Yeah between 70-100% in four months.

 

[stock_man]

Unlukily for me I sold out in November 06 at $0.10. Things were not looking good at that time, and I was very relieved to be out when they went into suspension. I was under the thought they would re-enter at half that amount. But $2.00? Bugger....

I just checked the chart in Comsec, and apparently my shares were worth $1.00 in November 06? What is going on here?

 

[Kimosabi]

Unlukily for me I sold out in November 06 at $0.10. Things were not looking good at that time, and I was very relieved to be out when they went into suspension. I was under the thought they would re-enter at half that amount. But $2.00? Bugger....

I just checked the chart in Comsec, and apparently my shares were worth $1.00 in November 06? What is going on here?

There was a 10:1 share consolidation during the suspension.

I really like the web site, particularily the video on the home page ==> http://www.sbnc.com.au/index.html

Very nicely done...

 

[Kimosabi]

ARH has released a Independant Report (that they commisioned) on the Balmoral South Iron Ore Project by independent consultant Mr James F King.

http://www.asx.com.au/asxpdf/20070418/pdf/311zrmwfxmvcbm.pdf

 

[kenworth69]

The revised King report indicates ARH' S NET SHARE OF EARNINGS in year one at $100 million aussie. With 490 million shares on issue and using his p/e of 12 this equates to a share price of $2.449. On a more realistic p/e of say 10 this equates to a share price of $2.04.

And that is in at least three years time.


This does not look that flash at all.

 

[doogie_goes_off]

8c is a strong rise for annoncement that says nothing other than "we will look for staff who can start this nickel project" - looks like a long lead in time to me. Too slow, the boom will be over by the time they produce their first $.

 

[surfingman]

Too slow, the boom will be over by the time they produce their first $.

Are you 100% positive of that?

 

[ubid]

Kenworth69,

You sound like a frustrated arh shareholder, do you think its time to sell after king report?

Ubid

 

[Kimosabi]

8c is a strong rise for annoncement that says nothing other than "we will look for staff who can start this nickel project" - looks like a long lead in time to me. Too slow, the boom will be over by the time they produce their first $.

Maybe you'll feel better once you see todays announcement

ARH to commence Uranium Exploration

http://www.asx.com.au/asxpdf/20070423/pdf/3121yp85gz9wft.pdf

 

[kenworth69]

Kenworth69,

You sound like a frustrated arh shareholder, do you think its time to sell after king report?

Ubid

ARH were in suspension for just over five months and the opportunity cost was very high. I paid an average of 15 cents for these shares and they are now 16.6 cents (in the old money) and thats after the iron ore deal has been announced as well as the just released nickel and uranium announcemements.

Conversely i bought AGY on or around April 4 2007 at 46 cents and sold at $1.20 on April 19. In only 15 days i picked up a nominal return of around 160%. My nominal return on ARH FOR NINE MONTHS IS ONLY AROUND 16%.

They are just not providing the level of capital appreciation i expected them too .

 

[Spaghetti]

Any comments on this from mining news (unlocked paragraph only)

18th May, 2007

"WITH Australasian Resources receiving the thumbs up from the Foreign Investment Review Board to go ahead with its second $28 million placement, analysts at Foster Stockbroking believe shares in the company will double over the next 12 months."