CLE - Cyclone Metals

skint · 1 June 2007

MR. said:
Midday (cfe $0.50 no change) (cfeo 25.5 +4.1%)

"There are times when great investment opportunities are as plain as they appear.
We tend to except complexity, so we find it hard to accept that the market sometimes throws up extraordinary bargains." (platinum asset management)

Were platinum asset management refering to CFE or is this a generic quote? Well done on finding the money. It does appear to be too much of a coincidence (amount of money and the date) to not apply to Cape Lambert.

arkady · 1 June 2007

Going by a press release late March, Mr Ding is pretty keen to make his mark in Australia.

The business connections of new Perth Glory owner Tony Sage already look to be paying dividends, with the club announcing a new CEO and a sponsorship deal with a Chinese steel company claimed to be one of the most lucrative in Australian football.

Former West Coast Eagles sponsorship manager Scott Gooch was on Tuesday unveiled as the Glory's new chief executive - while Delong Holdings becomes the club's joint major sponsor, with a one-year deal worth $750,000.

And it could also lead to games with Chinese Premier League side Zhejiang Lucheng, which is owned by Chinese tycoon and chairman of Delong, Liguo Ding.

"Delong Holdings want to introduce their brand in Australia and believe Perth Glory is an ideal vehicle to drive that program", Sage said.

Ruprect · 1 June 2007

Well, Mr., I am impressed! Great find. Amazing what you can pick up with some research isnt it? Much thanks.

I think if we look at the recent upward movement in the sp, it occurred around the 22nd of May, the day that Delong announced their fundraising.

I note from the Delong release that "The net proceeds from the issue of the Bonds will be applied by the Company for core business
expansion and for funding possible strategic investments, joint ventures, acquisitions and/or for our
general corporate and working capital purposes."

Given the amount raised, it seems awfully coincidental doesnt it? Almost too coincidental. We shall see.

Delong and Best Decade are basicly one and the same, Mr Ding is the chairman of Delong, and Best Decade hold over 70% of the shares in the company.

chris1983 · 1 June 2007

MR. said:
Thanks ruprect.

Re: "show me the money" as i posted earlier referring to mr. Ding's 192us million. I have some news ***not known to most.*** What do you know about a share that no one else does?

I don't think Ding is going to buy the mine.
I don't think Best Decade is going to buy the mine either....
I think and judge for yourselves, the buyer will be Delong Holdings the actual steel manufacturer.

Delong Holdings has issued bonds taken up by Citigroup in two parcels of 175 and 50 million usd. Totalling $200,000 usd. Closing date if 8/6/07 or friday next week. Too close not to be linked!

I have found the money. Now will Delong use it for the mine? I bet they do.

This puts the money worry to rest for me.

information for your judgement. see may 22 and may 26 ann'

http://info.sgx.com/webcorannc.nsf/...w&RestrictToCategory=DDELONG HOLDINGS LIMITED

A question if Delong is expected to make 3 million tonnes of steel next year how much would the iron ore cost? At 3 million tonnes of iron ore (which I am sure is light on) if purchased for $40-usd (which I think is light on as well) Delong will spend $120 million on ore next year minimum.

Regards a happy holder. MR. Sherlock Holmes

Now "Show me 300 mt."

Excellent research Mr. This is what the forums are all about. Im impressed by your research. Happy to be holding and waiting.

MR. · 1 June 2007

MR.; said:
Midday (cfe $0.50 no change) (cfeo 25.5 +4.1%)

"There are times when great investment opportunities are as plain as they appear.
We tend to except complexity, so we find it hard to accept that the market sometimes throws up extraordinary bargains." (platinum asset management)

SKINT, just a quote from a booklet I have from Platinum. Platinum did not referr to CFE. It just appeared to match CFE. My opinion only. sorry.

MR. · 2 June 2007

Re: CFE - Cape Lambert Iron Ore & (Global Iron)

re: "CFE to create new subsidiary"

If these under valued extra iron ore assets are transferred to Global Iron, CFE management has valued them at $625,000- (cfe share holders only own 20% + the $2.5m to be raised.) At first I thought fine, try and use these assets to their full protential. But is (20%) too low ? I can't say, perhaps it is too high. I hope they have valued these extra assets correctly.

We will know once we see who the share holders are who take up the shares to raise the $2.5m in Global Iron. I would like to see a maximum share holding from CFE management put on Global Iron. ??

"Global Iron" sounds awfully international, I wonder if any of those other projects which they were putting their ruler over will end up here. Whatever, I didn't want to see CFE buy some other project anyway.

Info anyone?

chris1983 · 4 June 2007

CFE and CFEO is beginning to move. Ive been waiting some time for this deal to be confirmed with Best Decade. I personally think 1 months wait was an easy wait..it should bring out a nice profit. Of course anything could go wrong but I feel very confident. Confirmation is due this week some time..

Ruprect · 4 June 2007

chris1983 said:
CFE and CFEO is beginning to move. Ive been waiting some time for this deal to be confirmed with Best Decade. I personally think 1 months wait was an easy wait..it should bring out a nice profit. Of course anything could go wrong but I feel very confident. Confirmation is due this week some time..

Yes Chris, this one made a very good move today, as far as i can see, finished close to a 12 month high on close, 54.5c on its highest turnover since the announcement of chinese aquisition in late March.

I think the increased turnover and upward price movement is a very positive sign. Just prior to the agreement being announced, the sp surged ahead on decent turnover. It may be following a similar pattern now.

Seeing some resistance at 55c, but some very large single buys went through today, so wouldnt take long to remove that if the sentiment is there. Or if something or somebody is indicating an imminent announcement.

Watching very closely tomorrow.

nomore4s · 4 June 2007

Broke out of ascending triangle today, smashing through the resistance at around 51c/51.5c. Hopefully it will test 55c tomorrow.
It will be interesting to watch the volume tomorrow, with 4mil traded today, if increased vol tomorrow could be a good sign regarding an ann about the confimation of the 300mt, seeing as it looks like there was a leak of info back on the 27th of March with over 35mil traded before the trading halt to ann the deal (green circle).

Ruprect · 5 June 2007

Another very strong day for CFE/CFEO. Over 7 million traded, share price pushing up to 58c on close. Its a good sign for something approaching.

One nice little buy at close, the order came in at 4.09pm, for close to $260,000 worth. One buyer, thats big.

billhill · 5 June 2007

Ruprect said:
Another very strong day for CFE/CFEO. Over 7 million traded, share price pushing up to 58c on close. Its a good sign for something approaching.

Agree very good sign. If CFE announces a confirmation of the deal with best decade in the next couple of days i think today is a good sign that someone is leaking information.

MR. · 5 June 2007

"Initial Director's Interest Notice" as released ASX this afternoon.

Peter Neil Landau joined the company as CFE released on the 18th May on the ASX.
"Initial Director's Interest Notice" released this afternoon indicates that shares can be taken up by Peter at anytime now. Current holding nil. Perhaps as soon as 300mt confirmed or granted from board?

mahmoodf · 6 June 2007

From today's West Australian, dated Wednesday 6th June, page 57:

Chinese tycoon ready to invest
John Phaceas

Chinese steel tycoon Liguo Ding is expected to make his initial $75 million investment in the Cape Lambert Iron's namesake magnetite project within days after visiting the Pilbara site yesterday.

Mr. Ding agreed in March to pay $250 million for a 70 per cent stake in the project and last week secured an $US175 million ($209 million) convertible note facility with Citigroup Global Markets.

Mr. Ding must pay an initial $75 million when Cape Lambert confirms an indicated resource of at least 300 million tonnes, from its existing 2.5 billion tonne inferred resource.

Mr. Ding visited the site yesterday and Cape Lambert is now expected to formally confirm its initial indicated resource target within the next fortnight. Once Mr. Ding has made his initial investment, the next $137 million is due three months later with the outstanding $37 million due once feasability studies are complete.

MR. · 6 June 2007

mahmoodf; said:
From today's West Australian, dated Wednesday 6th June, page 57:

Chinese tycoon ready to invest
John Phaceas

Chinese steel tycoon Liguo Ding is expected to make his initial $75 million investment in the Cape Lambert Iron's namesake magnetite project within days after visiting the Pilbara site yesterday.

Mr. Ding agreed in March to pay $250 million for a 70 per cent stake in the project and last week secured an $US175 million ($209 million) convertible note facility with Citigroup Global Markets.

Mr. Ding must pay an initial $75 million when Cape Lambert confirms an indicated resource of at least 300 million tonnes, from its existing 2.5 billion tonne inferred resource.

Mr. Ding visited the site yesterday and Cape Lambert is now expected to formally confirm its initial indicated resource target within the next fortnight. Once Mr. Ding has made his initial investment, the next $137 million is due three months later with the outstanding $37 million due once feasability studies are complete.

Thanks Mahmoodf, appreciate your posting.
If anyone else picks up press articles could they also post them to this site.

Ruprect · 6 June 2007

good work mahmoodf.

powering along at the moment, after falling to 56cents just after open, its now getting seriously ready to test the 60cent mark. Just traded at 59.5.

If it passes 60c, its anyones guess where it could go.

skint · 6 June 2007

MR. said:
Thanks Mahmoodf, appreciate your posting.
If anyone else picks up press articles could they also post them to this site.

Not a press article but Collins Stewart has valued the company currently at
.96c

Collins Stewart Valuation
Discounted Cashflow
"We value Cape Lambert on the basis of the cashflows generated by the
project using a standard discount rate of 8%. We would expect a company
that was in the early stage of completing a feasibility study to trade at 25%
of the project’s NPV, this would rise to 50% once the full BFS is completed.
On this basis we set a fully diluted short-term fair value of A$508m,
A$0.96/share, 40p/share, which is 100% above the current price."

By extension they value CFE at $1.92 once the BFS is completed.

MR. · 6 June 2007

skint; said:
Not a press article but Collins Stewart has valued the company currently at
.96c

Collins Stewart Valuation
Discounted Cashflow
"We value Cape Lambert on the basis of the cashflows generated by the
project using a standard discount rate of 8%. We would expect a company
that was in the early stage of completing a feasibility study to trade at 25%
of the project’s NPV, this would rise to 50% once the full BFS is completed.
On this basis we set a fully diluted short-term fair value of A$508m,
A$0.96/share, 40p/share, which is 100% above the current price."

By extension they value CFE at $1.92 once the BFS is completed.

I noticed the above written in another chat room this morning. I can see how you could have taken this as current and transferred it here straight away. (skint no offence) However this was current when it was written on the 12th April 2006. I'm sure I'm not the only one who picked up on this straight away. To those, thanks for setting this site straight. Is it really needed?
http://www.capelam.com.au/aurora/assets/user_content/File/ResearchReportCollinsStewart120042006.pdf

I'm not about to sell. Sorry to the short term traders.

Where did the West Australian News article come from?

chris1983 · 6 June 2007

Definately looking very good. This investment is paying off. The calculations made earlier as to the value of the deal are starting to come through. Happy to be holding a decent parcel in the oppies. I think this one will continue to run untill the announcement. Remember we worked out a value of around 70 cents purely from the cash they would receive from the deal.

chris1983 said:
Now if you work out the monetary value the company will receive it will be worth.

$250 million (deal with Best Decade)

$38 million once options are converted.

Additional $15 million

In total this is $303 million in cash value to the company.

But out of this 303 million only 115 million will be left for the company to aquire further projects because the rest of it will be used to fund their 30% interest in the project that Best Decade aquired 70% of.

As stated in the West Australian..

“It would also leave Cape Lambert with around $100 million to invest in other projects, once outstanding options are exercised next year”

This is how I know 115 million in cash will be left for the company because you have to add the additional 15 million from Mr Dings options once converted on top of the $100 million left over from the deal with Best Decade. This would leave the company with 115 million cash in total and the 30% interest in the project is fully funded.

When you put a valuation on the company I believe the value should be the total value of the company divided by the shares

$303 million divided by the fully diluted share holding of 424, 087 862

= .714

So once the deal is confirmed I am expect atleast around a 70 cents valuation on the company.

MR. · 6 June 2007

skint; said:
Total shares on issue = 500,486,336

CFEO - Total options Issue: 136,511,800 = $37,813,769
Share options not on ASX : 114,050,000 = $45,998,350
Mr Ding = $250,000,000
Total cash = $333812119

$333,812,119 divided by 500,486,336 = $0.667 (I suppose the short answer would have been yes, your final figure appears correct)

If you include Mr Ding's valuation of CFE's stake in the mine (ie. 30% of $350m = $105m or $0.21 per share), you get $.877 per share. "Cheap at twice the price" appears as though it may apply to CFE in a very literal sense. Any further increase in the resource base from the new tenements or the addition of the possible acquisitions Tony Sage has referred to (South Africa & Aust.)and who knows how much higher the SP should or would be?

Above worked out on the 20th of april 2007. Similar to Chris1983. Just thought it might be of help to repost as well.

mahmoodf · 6 June 2007

MR. said:
Where did the West Australian News article come from?

From today's West Australian newspaper.

I only subscribe to the hard copy version of the paper, not the electronic copy.

You can call them and ask them to confirm what I have posted:

http://www.thewest.com.au/default.aspx?ContentID=3

The story is on page 57 of todays West Australian (Wednesday, June 6th).

CLE - Cyclone Metals

skint

arkady

Ruprect

chris1983

MR.

MR.

chris1983

Ruprect

nomore4s

Commonsense isn't that common

Attachments

Ruprect

billhill

MR.

mahmoodf

MR.

Ruprect

skint

MR.

chris1983

MR.

mahmoodf

Similar threads

CLE - Cyclone Metals

Commonsense isn't that common

Attachments

Similar threads

Privacy & Transparency

Privacy & Transparency