CAZ - Cazaly Resources

[diliff]

Well, some might say a 15% drop is pretty bad, but under the circumstances, to be expected. Better than collapsing completely. But I suppose that remains to be seen. At least they're still trading.

 

[LeeTV]

On the news of Cazaly Resources(CAZ) and Fortescue Metals Group(FMG) reaching an agreement in relation to the proposed Rhodes Ridge Iron Ore Project their sp has subsequently jumped 80% in morning trade.

The Rhodes Ridge Project is situated in the Pilbara region of Western Australia, approximately 40km northwest of the Newman township, on the south-eastern edge of the Hamersley Iron Province. The Great Northern Highway passes through the Rhodes Ridge Project. The land the subject of the Rhodes Ridge Project is recognised as containing one of the largest undeveloped iron ore resources in Western Australia.

 

[nq6]

Does Cazaly own the lease a this point in time? OR do they hope to own it in the future.??

Happy Investing , NQ6

 

[sleeper88]

Does Cazaly own the lease a this point in time? OR do they hope to own it in the future.??

Happy Investing , NQ6

reading the announcment, they dont own it, the RIO JV does, with RIO holding a 50% stake, they're simply "hoping" the rights given to the RIO JV are invalid and therefore allowing them to make an application for the tenaments

 

[nq6]

I have been lead to beleive for Cazaly to secure ownership , decision will need to be made in court.................? There fore owner ship of tenement MAY be very speculative but not impossible. : cheers NQ6

 

[sleeper88]

I have been lead to beleive for Cazaly to secure ownership , decision will need to be made in court.................? There fore owner ship of tenement MAY be very speculative but not impossible. : cheers NQ6

http://www.theaustralian.news.com.au/story/0,24897,23882540-643,00.html

from what i can tell, ownership of tenementi is:
Rio: 50%
Hancock: 25%
Wright: 25%
(ownership of Hancock and Wright has always been disputed, but i believe they settled it with a 50:50 split on their 50% stake)

going by the article, seems like CAZ is trying to take Rio's 50% of Rhodes Ridge..this is imo highly highly speculative, and if i were to hedge my bets, i'd go with FMG as opposed to CAZ since FMG is less materially affect by any adverse decisions made by the courts...i personally dont have much confidence they would succeed.. just my 2c worth, always DYOR

 

[Datsun Disguise]

Cazaly are making a habit of trying to pinch the roast from under the noses of those at the dining table - this from the Australian;

Cazaly is best remembered for pegging the lucrative Shovelanna deposit after Rio Tinto missed the deadline to renew its exploration licence for the deposit in September 2005.

Despite it having legitimate claims for ownership to the tenement, the West Australian Government stripped Cazaly of Shovelanna about eight months later, when then resources minister John Bowler ruled that it was in the public's interest that the ground be held by Rio Tinto.

Rio Tinto had paid the fees associated with the licence renewal and blamed a tardy courier for failing to deliver the required documents to an outlying regional office of the WA Department of Industry and Resources on time.

Second paragraph is interesting and I wonder if it will play out the same way this time. ie even though CAZ (&FMG) have a legitimate claim the WA gov will side with te big boys...

 

[LeeTV]

It looks like the Cazaly's(CAZ) trading halt on Friday is in regards to its East Kalgoorlie project, a joint venture with Northern Mining Limited(NMI). The fact that NMI is also in a trading halt is surely a sign. The release to the ASX states they have significant drilling results. The companies commenced a drilling project on the site on Monday.

Here's hoping they have struck the motherload as I took a punt on CAZ this week :

http://mine4jobs.com.au/default.aspx?MenuID=32&ContentID=80034

 

[LeeTV]

REQUEST FOR TRADING HALT
Cazaly Resources Limited (ASX Code: CAZ) requests a trading halt over the Companies securities. The trading halt is requested until an announcement is made regarding the Warden’s decision on the hearing conducted in January 2009 on the Rhodes Ridge Iron Ore Project applications.

The Directors are not aware of any reason why a trading halt should not be granted.

Yours faithfully

CAZALY RESOURCES LIMITED

The details of the case can be found here:

Decision Number Date Delivered Court & Warden
[2009] WAMW 9 Friday, 25 September 2009 GN Calder M - Perth
Tenement Numbers Section Reg No. Parties
EXPLORATION LICENCES 47/1791 TO 47/1794 CAZALY IRON PTY LTD and HAMERSLEY RESOURCES LIMITED,HAMERSLEY EXPLORATION PTY LIMITED, HAMERSLEY WA PTY LTD, HOPE DOWNS IRON ORE PTY LTD, WRIGHT PROSPECTING PTY LTD

http://www.dmp.wa.gov.au/wardens_court/2009_WAMW9.doc

 

[LeeTV]

Cazaly, The 'Forgotten' Iron Ore Junior
15/01/2010 3:15:02 PM
By Chris Shaw
http://money.ninemsn.com.au/article.aspx?id=1000191

Much of the media attention junior iron ore play Cazaly Resources has received over the past year or so has been in relation to attempts to gain control of large iron ore deposits from the likes of Rio Tinto ((RIO)), but as broker DJ Carmichael points out, this has meant little attention overall has been paid to the company's Parker Range project in southern Western Australia.

Parker Range is at Marvel Loch, near the Southern Cross project and 100% owned by Cazaly. The company has just released details of a feasibility study into the project that DJ Carmichael suggests stacks up quite well. The expected net present value of the project is $216 million, which DJC notes represents a pre-tax internal rate of return of 78% based on independent price forecasts rather than current spot prices.

Cazaly has indicated upfront capital expenditure costs of around $78 million based on a contractor operated basis, while there would also be a deferred capex payment of $26 million in the third year. Such expenditure would see the project producing four million tonnes per year of ultra-low phosphorous content ore at a projected operating cost of $45 per tonne of shipped product, with an initial mine life of 5.5 years and first shipments expected in the third quarter of 2011.

Payback is estimated at nine months and the upside comes from better than expected prices, DJ Carmichael anticipating a fines price this year of around US116c/dmtu, which is 41% higher than the long-term price Cazaly has assumed in its model. Other positives for the project in the stockbroker's view is there is access to water, grid power and a rail head are relatively close by, there is a road through the project and port facilities at Kwinana are already in place.

This means Cazaly doesn't have to worry about third party access talks or give away part of the project to gain access to port and rail handling facilities, giving the company a major advantage over other small projects. Value is also apparent as on DJ Carmichael's numbers the current market capitaliisation of around $29 million represents an enterprice value to resource tonne of $0.63, which is at the lower end of the range for smaller iron ore plays in Australia.

As DJ Carmicahel points out, this doesn't include any value for any of Cazaly's other projects. The stockbroker is thus comfortable setting its price target at $0.63 per share. It attaches a Speculative Buy rating to reflect this, suggesting this is justified given upside potential from further drilling of the project and from the potential of a joint venture partner being found to assist in funding the project.

Given Cazaly's modest market capitalisation, the stock receives little coverage in the broader market, the FNArena database showing none of the major brokers research the company. The stock has traded in a range of 13.5c to 41.5c over the past year and today as at 12.40pm is up 1c at 37c.

 

[LeeTV]

Perth junior Cazaly back in fight for Rio deposit
Matt Chambers From: The Australian February 10, 2010 12:00AM

ANDREW Forrest's Fortescue Metals Group and Perth junior Cazaly Resources are renewing an audacious attempt to wrest control of one of the country's biggest iron ore deposits from owners Rio Tinto and Gina Rinehart.
In September last year, the Perth mining warden's court ruled Cazaly did not have the right to peg Rhodes Ridge, a deposit that could contain about three billion tonnes of iron ore.

Yesterday, Cazaly said it would continue to try to wrest control of the deposit from the iron ore giant. "The Supreme Court today held that Cazaly has an arguable case and that the matter should proceed to a substantive hearing before the Court of Appeal," Cazaly said.

Under a 2008 agreement with Fortescue, Cazaly's legal costs will be covered by the iron ore miner. In return, Cazaly has agreed to hand the land to Fortescue for between $20 million and $120m if it can grab control. Cazaly will also receive a $1 royalty for every tonne of iron ore produced.

Yesterday, Cazaly managing director Nathan McMahon would not go into details of the appeal. "We're just contending the ground is open for us to peg," he said.

He said there was no indication of when a date for the appeal would be set.

Cazaly has previously argued that Rio and its joint venture partners, Mrs Rinehart's Hancock Prospecting and Wright Prospecting, had not done enough work on the land to keep it under the state's "use it or lose it" mining laws. A Rio spokesman said the company had not been surprised at the court's decision, but would not comment further.

Rhodes Ridge is not the first deposit Mr McMahon has tried to take off Rio. In 2006, then West Australian mining minister John Bowler knocked back Cazaly's right to peg the Shovelanna deposit after a mix-up with a courier had delayed Rio's renewal.

Cazaly shares did not move much on the announcement yesterday, ending up 1c at 39c.

Rhodes Ridge was discovered in the 1950s by Mrs Rinehart's father, Lang Hancock, and his business partner, Peter Wright.

Rio owns 50 per cent, while Hancock Prospecting and Wright Prospecting own 25 per cent. Cazaly is not the first group to contest claims over Rhodes Ridge. Hancock Prospecting and Wright Prospecting have also butted heads in court over ownership.

 

[LeeTV]

Rio terminates Kwinana HIsmelt plant

"The WA resources sector's dismal record of value-adding has claimed another victim after Rio Tinto yesterday axed its HIsmelt pig iron ore venture at Kwinana, waving off a $1 billion investment."

...
...
...

"HIsmelt's failure could prove a boon for some of the Yilgarn's smaller iron ore mining hopefuls, including Nathan McMahon's Cazaly Resources and Chris Ellison's Mineral Resources, which are eyeing space at the Kwinana bulk handling port dedicated to HIsmelt but now no longer required."

A boon indeed

 

[Nicks]

Just picked up some of these this morning after reading that there has been some swings in the SP lately. Tbh I haven't even done much research (other than the a quick look through news and the MTH update), just noticed there is a very thin sell side so looking for sudden movement.

 

[greggles]

Cazaly Resources up 26.19% today to 5.3c after announcing that high cobalt grades have been confirmed from first pass reconnaissance mapping and rock chip sampling on its Bungonia Cobalt project in New South Wales.

Here's the details:

• High grade Cobalt in rock chip samples to 1.40% Co, 8 of 34 samples above 1.0% Co with an overall average of 0.62% Co
• Sampling undertaken over several prospects over a 15km strike extent
• Project covers 242 sq km including historic Cobalt workings
• Limited modern exploration to date
• High potential for extensions to known mineralised bodies and the discovery of new Cobalt sources
• Primary basement Cobalt mineralisation targets yet to be tested
• Cazaly Resources has a 100% interest in the project

 

[greggles]

Cazaly Resources has sold its Parker Range Iron Ore Project to Mineral Resources Limited for $20 million cash plus a royalty of 50c for every dry metric tonne of iron ore extracted and removed from the area of the Project after the first 10,000,000 dry metric tonnes.

CAZ have around 290,000,000 shares on issue so this $20 million sale price should equate to around 7c per share. It is up 84% to 4.6c today, which means it is still trading at a significant discount to what will be its cash backing once the sale formally goes through. Presuming it goes through of course.

Not to mention that $20 million is a nice chunk of change with which to go shopping for undervalued projects or acquisitions.

 

[barney]

Cazaly Resources has sold its Parker Range Iron Ore Project to Mineral Resources Limited for $20 million cash plus a royalty of 50c for every dry metric tonne of iron ore extracted and removed from the area of the Project after the first 10,000,000 dry metric tonnes.
CAZ have around 290,000,000 shares on issue so this $20 million sale price should equate to around 7c per share. It is up 84% to 4.6c today, which means it is still trading at a significant discount to what will be its cash backing once the sale formally goes through. Presuming it goes through of course.

Wow … that's a nice earner for a minnow!!

Their market cap was??? 11-12 mill I think, so even with todays 80% spike, they will be 1:1 cash/market cap …. enviable position for a Spec

 

[greggles]

CAZ still cashed up with $10.7 million in cash and investments at end of the March quarter.

Some recent developments

• A field crew has been mobilised to initially conduct geochemical soil surveys over several target areas at the Halls Creek Copper Project
• CAZ has been successful in two EIS applications for co-funding with State Government for drilling at Halls Creek for up to a total of $300,000 subject to programme approvals and clearances
• Geophysical re-processing identifies several previously unknown deep-seated structures within the Ashburton Project
• Tara French appointed as Chief Executive Officer/Managing Director commencing Q3 2021
• Drilling to commence in early May at the Mount Venn Gold JV project

On the chart, support found at 4c and an uptrend forming. Market cap only $17 million. One to watch in 2021.

 

[greggles]

CAZ up 10% this morning to 5.5c. This is the fourth time in the last nine months that it has tried to push through this zone, and a successful move through to 6c on good volume would be very bullish.

Watching closely.

 

[greggles]

CAZ up 10% this morning to 5.5c. This is the fourth time in the last nine months that it has tried to push through this zone, and a successful move through to 6c on good volume would be very bullish.

Watching closely.

CAZ has broken through 6c this morning on good volume and is being accumulated. No news, but this could be the start of a breakout. Currently at highs not seen since 2018.

 

[barney]

Shaping up well @greggles

And still only $20 million Market Cap according to CommSec ? Strong Cash to Market Cap ratio