CBH - CBH Resources

[Miner]

HOPEfully some good change will be done at CBH with management change which has been overdue for more than 6 months

 

[muddy]

Up on higher vol today, may be on the move up next week. Got in at 11.5, although i still hold a few at much higher. Anybody else thinking this is looking very good to hold for a couple of years. Pretty much a bet the zinc price isnt it.

 

[JPC_ASX]

any thoughts from anybody on the share purchase plan?
is it worthwhile taking this up?
i am a bit iffy...

 

[UMike]

any thoughts from anybody on the share purchase plan?
is it worthwhile taking this up?
i am a bit iffy...

I've traded this more than any other sock ever.

Used to be my favorite. Then it became my heaviest loss. Now since i bought a shyteload at around the 4-6c mark and offloaded them all between 13.5c and 15.5c to end up down a bit overall.

I've bought some at the 12, 11 and 10c mark.
However these latest purchases have been for just over $3,000 lots each.

I am likely to get some professional advice and even then be extremely cautious when considering investing $15,000 more in them.



btw what happened with the spinoff of Kimberly ???????????????

 

[ZERO TO TRILLION]

It seems like an interesting stock. I am considering to take up the offer, but with uncertainty. The stock seems to be holding firm at current level. It may be a different story when The financial data is released (08/09). Although maybe that is already factored in the price.

It seems potential for rises may be restricted by the option of institutional investors to buy at anytime (at price equal to current SPP).

Anyone have any thoughts on future performance of CBH?

 

[ricee007]

If only I could buy some cheap CBH Notes.... If I was after a "risky" share I would strongly consider CBH... (Even with how blunt and unprofessional (IMHO) their ASX releases / website is)...but, I'm not after a risky share... I would LOVE some CBHGA (Is it GA, or am I mixing up another companies bond?) at $300 or so... I can't believe they traded at $4.6 earlier this year.

Hmmm.

Now, if only I could place an order for $300

 

[skc]

One of the last zinc stock to run and what a run it was today. Up 26%.

Speeding ticket response actually mentioned that other peers have run hard already. KZL also did a nice pop, while PEM and TZN popped long ago.

I was lucky to pick up some at 11c using a "differential popping" strategy. Sold have today at the close, and will hold the rest looking for 20c... still need to think of a re-entry strategy if there was any pull back from today's action.

CBH was mentioned as a possible takeover target of PEM by some analyst (on Business Spectator). So let's see if there is any fire to this smoke.

 

[GREENS]

SKC, there are two trains of thought this morning on CBH. One is a complete takeover is pending (possibly by a Chinese company?) and secondly, CBH and Perilya are about to announce some sort of JV for mining and/or processing of ore at Broken Hill. I’m going with the second option as it seems to be the more logical one. The savings of bringing the company’s activities together in Broken Hill make perfect sense given the synergies on offer to both CBH and PEM. TZN and CBH have definitely lagged significantly and regardless of any positive news were due for strong rises to catch up to their peers and in turn the steep price rises in zinc and lead. Technically there was a strong break of resistance on huge volume of just over 20m which makes me think there are still further gains to be had. Next point of resistance is 16c, if it can get through this then I think it could run pretty hard and 20c should be achievable.

 

[UMike]

SKC, there are two trains of thought this morning on CBH. One is a complete takeover is pending (possibly by a Chinese company?) and secondly, CBH and Perilya are about to announce some sort of JV for mining and/or processing of ore at Broken Hill. I’m going with the second option as it seems to be the more logical one. The savings of bringing the company’s activities together in Broken Hill make perfect sense given the synergies on offer to both CBH and PEM. TZN and CBH have definitely lagged significantly and regardless of any positive news were due for strong rises to catch up to their peers and in turn the steep price rises in zinc and lead. Technically there was a strong break of resistance on huge volume of just over 20m which makes me think there are still further gains to be had. Next point of resistance is 16c, if it can get through this then I think it could run pretty hard and 20c should be achievable.

Haven't they burnt this bridge a few times over the last few years.

I too sold a third at 14.5c
Will sel the rest at 19.5c
or pick some up if it retraces.

 

[skc]

SKC, there are two trains of thought this morning on CBH. One is a complete takeover is pending (possibly by a Chinese company?) and secondly, CBH and Perilya are about to announce some sort of JV for mining and/or processing of ore at Broken Hill. I’m going with the second option as it seems to be the more logical one. The savings of bringing the company’s activities together in Broken Hill make perfect sense given the synergies on offer to both CBH and PEM.

Agree with CBH / PEM purely from the article below. Are those trains of thought just your own thoughts or where did you see the Chinese rumour?

Mining extra capital: Perilya (PEM) 51.5c, CBH Resources (CBH) 10c

* CRITERION: Tim Boreham
* From: The Australian
* November 17, 2009 12:27PM

WHAT does a lead and zinc miner do when global prices for these metals have risen 134 per cent and 90 per cent, respectively, since the start of the year? It raises more dough, of course.

Broken Hill stalwart Perilya this morning said it would pass the hat for $55 million via an underwritten, one-for-three rights issue.

But at least the 33 per cent expansion of the share base is being done at a modest 16 per cent premium to the share price (the 42c offer price is a 16 per cent less than the five-day average ahead of last night's close).

In February, Chinese miner Zhongjin Lingnan paid 23c a share ($45.5m) for a 50.1 per cent Perilya stake.

But back then you didn't quibble about price when the alternative was financial oblivion.

Zhongjin will average up its entry price by participating in the raising and thus maintaining its controlling stake.

Start of sidebar. Skip to end of sidebar.

End of sidebar. Return to start of sidebar.

Perilya is vague about how the funds will be used, but there's a number of development opportunities in its existing portfolio. These include the satellite bodies close to Perilya's main Broken Hill ops (including Potosi and Flying Doctor), the Flinders Project near Leigh Creek in South Australia and Mt Oxide (a 220,000 tonne copper project near Mt Isa).

Perilya has a far more presentable case to investors these days, having done the usual slashing to get its cash costs down to US38c a pound in the September quarter. This compares with the current zinc price of $US1.02 lb.

A year ago Perilya was citing cash costs of $US1.36 against a net averaged received price of US87c lb, the result being: misery.

Perilya's revival compares with the fortunes of Broken Hill bed-fellow CBH Resources, whose share price continues to lag the overall market.

Perilya and CBH took turns at trying to take each other over, the objective being to reap cost benefits from a continuous seven-kilometre lode (CBH's deposit lies between Perilya's Broken Hill operations).

Perilya CEO Paul Arndt also refers to ``additional projects which complement existing production from Broken Hill and Flinders''.

Perhaps it's time to for Perilya to use its scrip firepower to put CBH out of its misery, although CBH's 28 per cent Japanese owner Toho Zinc probably is thinking along those famous 30-year time lines and has other ideas.

How about a joint venture then?

Criterion had Perilya as a spec buy at 38.5c and CBH as a hold at 9.3c in early September.

There's perhaps more upside now in CBH than Perilya so we'll call CBH a speculative buy and Perilya a hold.

http://www.theaustralian.com.au/bus...esources-cbh-10c/story-e6frg9lo-1225798554286

Haven't they burnt this bridge a few times over the last few years.

I too sold a third at 14.5c
Will sel the rest at 19.5c
or pick some up if it retraces.

Like all good marriages and other epic love stories. There will always be drama before the happy ending.

 

[UMike]

Agree with CBH / PEM purely from the article below. Are those trains of thought just your own thoughts or where did you see the Chinese rumour?
........
http://www.theaustralian.com.au/bus...esources-cbh-10c/story-e6frg9lo-1225798554286
.......
Like all good marriages and other epic love stories. There will always be drama before the happy ending.

Tim Boreham is not often wrong although with PEM doubling since,maybe he could of also rated it a "Spec buy". Although I agreed with him at the time.

CBH - trading halt. With the recent sharp rise It might be some good news for a change,.

 

[GREENS]

SKC my last post was based on two rumours currently floating around the market in regards to CBH, with my own thoughts attached. Given the amount of Chinese investment in the zinc sector I thought it could have been a Chinese company. However once I finally got around to reading my Fin Rev this morning there was a small article suggesting that “CBH Resources is expected to reveal this morning that it has received an incomplete, conditional proposal (by Nyrstar) that would change control of the company”. Hence chucking my out my speculation of a Chinese buyer.

Also there has been long held talks between CBH and Perilya in regards to bringing together their Broken Hill operations as you already know. Hence any significant price rise in CBH shares will always bring with it speculation that they will be combining their Broken Hill operations because it makes perfect sense to do so.

However the more I think about it, the more it seems that a takeover is likely, because you’d have thought if they were going to merge their Broken Hill operations then the positive news should have flowed into trading in Perilya yesterday, which it didn’t. Put another way you would have at least expected much stronger volume in Perilya shares if this was the case. Nevertheless we should know what’s happening by at the latest Tuesday next week when the trading halt is due to be lifted.

Here is a few articles supporting both theories:
http://www.bloomberg.com/apps/news?pid=20601081&sid=azW4QJCNlZaU
http://news.smh.com.au/breaking-new...rge-on-perilya-deal-rumour-20100107-lwk3.html
http://www.businessspectator.com.au...ng-halt-pd20100108-ZGVA3?OpenDocument&src=hp7

 

[skc]

SKC my last post was based on two rumours currently floating around the market in regards to CBH, with my own thoughts attached. Given the amount of Chinese investment in the zinc sector I thought it could have been a Chinese company. However once I finally got around to reading my Fin Rev this morning there was a small article suggesting that “CBH Resources is expected to reveal this morning that it has received an incomplete, conditional proposal (by Nyrstar) that would change control of the company”. Hence chucking my out my speculation of a Chinese buyer.

Also there has been long held talks between CBH and Perilya in regards to bringing together their Broken Hill operations as you already know. Hence any significant price rise in CBH shares will always bring with it speculation that they will be combining their Broken Hill operations because it makes perfect sense to do so.

However the more I think about it, the more it seems that a takeover is likely, because you’d have thought if they were going to merge their Broken Hill operations then the positive news should have flowed into trading in Perilya yesterday, which it didn’t. Put another way you would have at least expected much stronger volume in Perilya shares if this was the case. Nevertheless we should know what’s happening by at the latest Tuesday next week when the trading halt is due to be lifted.

Here is a few articles supporting both theories:
http://www.bloomberg.com/apps/news?pid=20601081&sid=azW4QJCNlZaU
http://news.smh.com.au/breaking-new...rge-on-perilya-deal-rumour-20100107-lwk3.html
http://www.businessspectator.com.au...ng-halt-pd20100108-ZGVA3?OpenDocument&src=hp7

Thanks Greens. PEM not halted prob means they have nothing to do with the CBH news.

If a takeover is launched then I wonder what impact would that have on PEM? May be they get some takeover aura to them as well... assuming the same buyer will play the consolidation game as CBH/PEM can't strike anything themselves.

 

[GREENS]

SKC I don’t think this implies anything for Perilya. They have a 50% holder in ZHONGJIN Mining, and unless they looked to lodge a takeover proposal it would seem very unlikely. However the key reason behind the CBH bid was the fact that it has been largely trading at a significant discount over the past 6 months. If your start them at a common base on a yearly chart, based on yesterday’s closing prices Perilya has risen just over 300% however CBH even after its gains of the past few days is trading well below is rival up only 140%. Over the prevailing few years the company’s SP’s were very closely correlated and in turn has created the opportunity for someone to takeover the company on the cheap given zinc prices are back to well over the $1 mark. Therefore my point is that I don’t think a bid for CBH makes Perilya a takeover target, because it does not offer the value that CBH does at this current point in time. However one could also argue Perilya deserves to be trading at some sort of premium given the major turnaround in its Broken Hill zinc operations and the potential of its Mt Oxide copper project.

Also in the Australian article below Perilya has put to bed rumours of a potential corporate transaction between the two. Hence it looks likely that Nyrstar is set to make some sort of takeover proposal however the article also suggests the bid is not close to being finalised.

http://www.theaustralian.com.au/bus...-takeover-target/story-e6frg8zx-1225817484908

 

[UMike]

Nyrstar have proposed to acquisre CBH "through a
scheme of arrangement of all the ordinary shares in CBH for cash, or alternatively Nyrstar shares. The proposed acquisition price for each CBH share is 13.5 cents."

Hopefully this can be increased.
SP ~14c atm moment so heres hoping.

 

[countryboy]

CBH close to starting up all over the place. Certainly hiring a few people so thats a good sign. Rumours galore around town prior to Nystar bid. If metal prices can hold and analysts are predicting they will , it will be good to see this company making some money.

I was impressed how quickly they closed up shop when things turned sour unlike another crew who went on producing as if it was 2007. I like the CBH management, proactive and have set the company on a good direction.

 

[UMike]

CBH trading again. up 4c to 18c

Improved proposal by Nyrstar NV to acquire all of the ordinary shares and
convertible notes in CBH Resources Limited

Nyrstar's Revised Proposal would include
an improved cash payment of A$0.195 per CBH share or, at CBH’s shareholders’
election, scrip consideration comprising Nyrstar shares at an exchange ratio which
would be set prior to announcement of the transaction at a level that would deliver
value equivalent to A$0.195 per CBH share.

So what will be the next chapter to this story????

 

[countryboy]

toho still in the box seat and able to expand what they offer without taking over the company. I think Nystar will need to be around the 22c mark plus.( I recall 22c or there abouts being what Toho were given a placement of share for capital)

A response next week will probably be negative from the CBH board which means Nystart will need fto orget it or get the final offer up before the AGM-31 st March ?

How much ore in RASP are we giving to Toho at what price? It would be great to see what Toho think they will get the ore for.

Nystar want to keep Pt Pirie up and going so there is some real benefits to them chasing this.

What ever the outcome CBH SP will stay around its current levels whilst this is played out - 18c plus (not sure i can say this... im sure a moderator will help)

 

[UMike]

well now it seems the Toho 24c bid will be successful.

Also Deutsche Bank has now aquired a 10.14% stake in CBH.

Toho now can-not get the 90% it needs to buyout all the shares without Deutsche Bank aproval.

Why do you think Deutsche Bank is doing this?????