AZC - Australian Zircon
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prawn_86
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Any idea why this stock has a trading halt atm? The value of this stock looks to be undervalued. Good news I'm hoping for on this
I would say either an acquisition of some sort, or a capital raising, if the plant is not up to scratch.
They have been pretty sketchy on details and have not provided actual tonnage figures, so it could be that the plant is not performing as expected. Although im just theorising here. Hopefully not for holders
http://imagesignal.comsec.com.au/asxdata/20080624/pdf/00853696.pdf
Australian Zircon requests its securities to be placed in pre-opne until the commencement of normal trading on Thursday 26 June 2008 pending the release of an announcement in relation to capital raising.
Hopefully this mean good news. Whats people's opinions?
Australian Zircon requests its securities to be placed in pre-opne until the commencement of normal trading on Thursday 26 June 2008 pending the release of an announcement in relation to capital raising.
Hopefully this mean good news. Whats people's opinions?
Well I've just been absolutely hammered by SBM's capital raising, so recent experience clouds my judgement.
In principle, I guess in a bull market a capital raising might bode well, with expanded capacity or new projects a positive. But in this market it might be a negative because it potentially dilutes my holding in favour of hoped for future revenues when the current revenues are yet to really roll.
In principle, I guess in a bull market a capital raising might bode well, with expanded capacity or new projects a positive. But in this market it might be a negative because it potentially dilutes my holding in favour of hoped for future revenues when the current revenues are yet to really roll.
prawn_86
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Hmmm, now suspended from quotation as they went past their trading halt deadline. They say it will be resolved by tomorrow morning, but to me it indicates that someone (external or internal) was unhappy with the situation.
Perhaps they were going to extend their overdraft but could not do as much as they hoped. (pure speculation)
EDIT - Could another possibility be the bank calling in the loan?? (more speculation)
Perhaps they were going to extend their overdraft but could not do as much as they hoped. (pure speculation)
EDIT - Could another possibility be the bank calling in the loan?? (more speculation)
prawn_86
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Its obvious by the placement that they are not cashflow positive yet, which is a shame for holders (my old man included).
There must be something going wrong with the plant, perhaps the sands are too fine, and they are not extracting as much as they thought. Who knows? Its been 9 months and they cant get it profitable yet, thats a worry. How are they going to go at WIM150 where the sands are even finer...
There must be something going wrong with the plant, perhaps the sands are too fine, and they are not extracting as much as they thought. Who knows? Its been 9 months and they cant get it profitable yet, thats a worry. How are they going to go at WIM150 where the sands are even finer...
AZC was positive today and that does bode well, even if there isn't much market depth. I'm back in again and perhaps they genuinely are looking to expand the current operation now that it is going full steam ahead. Afterall there was a recent announcement about the first full train pulling out from the factory!
One has to be very brave (or stupid) to have money in this market at the moment.
One has to be very brave (or stupid) to have money in this market at the moment.
Market depth has dried up, as well as trading in recent days, but the price hasn't collapsed.
There also hasn't been much information forthcoming about the operational situation, or how the funds raised are to be used.
All in all AZC remains a mystery.
There also hasn't been much information forthcoming about the operational situation, or how the funds raised are to be used.
All in all AZC remains a mystery.
Market depth has dried up, as well as trading in recent days, but the price hasn't collapsed.
There also hasn't been much information forthcoming about the operational situation, or how the funds raised are to be used.
All in all AZC remains a mystery.
Yeh it does remain a mystery, they had a release I noticed that said the funding was to get the operation up to 750 tonnes per hour.
"Proceeds of the capital raising will be used to increase the capacity of the mine from 500 tonnes per hour to 750 tonnes per hour throughout and for working capital"
If it can get operational and make profits anytime soon the price should go up. Seeing they are now at 12.5c up 0.5c today.
Interesting their broker reports reckon it should grow to over 30c, but being in a bear market with lots of sellers and people trying to make quick profits I think it's going to be a fair while before we see movement, unless some positive news comes out soon after they have capital raised. How long it will take for capital to be raised is anyone's guess.
Oh well glad I don't have alot invested in this. I'll continue to wait and see.
Good news for those who have these shares up 26% today. Postive news on the recent expansion.
Operations at Australian Zircon’s wholly-owned Mindarie Mine are now cashpositive
and the rate of export of Mindarie products has progressed from one
trainload weekly to two trainloads weekly.
Exports will further increase to three trainloads weekly by year’s end. At this rate
of production Mindarie operations are expected to deliver annualised EBITDA
earnings of approximately A$21 million.
The Company plans further expansion of production during 2009.
Project earnings
Operations at Australian Zircon’s wholly-owned Mindarie Mine are now cashpositive
and the rate of export of Mindarie products has progressed from one
trainload weekly to two trainloads weekly.
Exports will further increase to three trainloads weekly by year’s end. At this rate
of production Mindarie operations are expected to deliver annualised EBITDA
earnings of approximately A$21 million.
The Company plans further expansion of production during 2009.
Project earnings
prawn_86
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Took them nearly a year to get cashflow positive in the end. Im not sure about the geology of Zircon and how difficult processing and commisioning normally is, but good to see it is up and running cash flow positive now. Shame they had to do a cap raising and dilution only about 6 weeks ago.
Also good to see that earnings forecast are still the same, so it will be intersting to see if the SP can slowly recover to its old highs. Not expecting a miracle as a lot of people would be wary now...
Also good to see that earnings forecast are still the same, so it will be intersting to see if the SP can slowly recover to its old highs. Not expecting a miracle as a lot of people would be wary now...
I've been holding on all this time and just today am at break even. I'm hoping for better days ahead, but I suspect that it may take another quarterly report before there is too much action. People may want to see some consistent runs on the board.
Re: AZC - Australian Zircon - trading halt?
Has anyone heard anything regarding the AZC trading halt? The last time they went into a trading halt it was for the capital raising which was bad for the share price. It must be something need some time to work on because they have asked for a halt through to Tuesday morning, anyone ... ?
Has anyone heard anything regarding the AZC trading halt? The last time they went into a trading halt it was for the capital raising which was bad for the share price. It must be something need some time to work on because they have asked for a halt through to Tuesday morning, anyone ... ?
prawn_86
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Re: AZC - Australian Zircon - trading halt?
It says it is "in relation to a working capital facility with Crescent Gold Ltd".
Crescent are a small cap producer/explorer with exploration in SA (not near AZC though), Laverton gold project (950k oz indicated resource)in WA and Uranium exploration in the NT.
So i dont really see what they have in common with AZC...
It says it is "in relation to a working capital facility with Crescent Gold Ltd".
Crescent are a small cap producer/explorer with exploration in SA (not near AZC though), Laverton gold project (950k oz indicated resource)in WA and Uranium exploration in the NT.
So i dont really see what they have in common with AZC...
Found some news on Crescent Golds website. What do we think will this bump price up or down I suspect?
Working Capital Facility/AZC/Crescent Gold Negotiations
Crescent Gold Limited is pleased to announce that today it has agreed to provide a $4 million
working capital finance facility to Australian Zircon NL. As part of that facility, Crescent Gold
is granted the right at any time during the 3 year term of the facility:
(a) to convert up to 50% of the amount of the loan plus accrued interest thereon less 50%
of any cash repayments made to AZC shares (subject to any necessary shareholder
approval) at a conversion price equal to a 15% discount to VWAP in the 14 days prior
to the date of first drawdown under the facility;
(b) to elect to convert $2 million of the balance outstanding under the facility to a 2%
gross smelter royalty interest (capped at $20 million) in AZC’s interest in the WIM150
project;
The facility must be redeemed in full in the event of a “change of control” of AZC occurring (a
person acquiring 40% or more voting power in AZC).
Crescent Gold will also be granted, on first drawdown under the facility, 39 million AZC
options exercisable at a 15% discount to VWAP in the 14 days prior to the date of first
drawdown under the facility, expiring 5 years after the date of grant. If a “change of control”
of AZC occurs Crescent may require that these options be redeemed for a cash consideration
as determined by an independent expert.
Further, Crescent Gold is pleased to advise that the two Companies (AZC and Crescent Gold)
have also agreed to enter into negotiations and due diligence processes regarding possible
corporate opportunities involving the two Companies, including a potential merger.
Further details of progress with these negotiations will be provided as and when appropriate.
Crescent looks forward to these negotiations as it considers the strategic assets of the two
entities could provide a unique opportunity to create long term benefits for both shareholder
groups.
Working Capital Facility/AZC/Crescent Gold Negotiations
Crescent Gold Limited is pleased to announce that today it has agreed to provide a $4 million
working capital finance facility to Australian Zircon NL. As part of that facility, Crescent Gold
is granted the right at any time during the 3 year term of the facility:
(a) to convert up to 50% of the amount of the loan plus accrued interest thereon less 50%
of any cash repayments made to AZC shares (subject to any necessary shareholder
approval) at a conversion price equal to a 15% discount to VWAP in the 14 days prior
to the date of first drawdown under the facility;
(b) to elect to convert $2 million of the balance outstanding under the facility to a 2%
gross smelter royalty interest (capped at $20 million) in AZC’s interest in the WIM150
project;
The facility must be redeemed in full in the event of a “change of control” of AZC occurring (a
person acquiring 40% or more voting power in AZC).
Crescent Gold will also be granted, on first drawdown under the facility, 39 million AZC
options exercisable at a 15% discount to VWAP in the 14 days prior to the date of first
drawdown under the facility, expiring 5 years after the date of grant. If a “change of control”
of AZC occurs Crescent may require that these options be redeemed for a cash consideration
as determined by an independent expert.
Further, Crescent Gold is pleased to advise that the two Companies (AZC and Crescent Gold)
have also agreed to enter into negotiations and due diligence processes regarding possible
corporate opportunities involving the two Companies, including a potential merger.
Further details of progress with these negotiations will be provided as and when appropriate.
Crescent looks forward to these negotiations as it considers the strategic assets of the two
entities could provide a unique opportunity to create long term benefits for both shareholder
groups.
