CLE - Cyclone Metals

[JMcDog]

Would it be reasonable to conclude that the due diligence is proceeding really well given that they have moved on FIRB approval? My understanding is that this process is expensive (maybe chicken feed to these guys!!!) circa $1M.

Confidence in this is increasing.

Cheers, JM

 

[TheAbyss]

volume is triple what it usually does so the firb application may have convinced a few that have been sitting on the sidelines. Even at 65 cents a unit you stand to gain around 35-40% on your money if the deal goes through which it is looking like doing based on todays announcement.

 

[MR.]

Does anyone know how much tax they will have to pay? Also, does anyone work in FIRB and know whether MCC has applied?

Giday again Lazyfish.
Yes tax needs to be paid. That $0.90 drops down to about $0.76 per share fully diluted when the percentage "CFE calculated last time is used." (Thats what I concluded anyway a month ago) Its hard to know what deductions their using against the sale. Standard company tax (that is 30%) drops that $0.90 down to $0.63 IF that is used?

See the following from "that" meeting 16/7/07. Page 8, (1.5) Tax paid on 250 million AUD was est' $55,000,000 AUD + some other expenses.
http://www.asx.com.au/asxpdf/20070621/pdf/3131vd90v6dt98.pdf

I guess todays ann' answers the FIRB question. And "by the way" one of the times I questioned the FIRB last year, I was told "the application is free" "They don't charge" JMcDOG.

Isn't it funny within days of Ding Liguo (best decade) selling out of Delong Holdings, CFE signs a MOU with MCC. I find it also funny that the transferr of shares for what 10% of the company a few months back off market was at what price? $0.76 and that happened within days of Ding Liguo raising money from Citigroup. Check out the dates on Delongs website and CFE's.

Disappointed CFE sold the mine "to most likely start over in Africa". Not good to see the share price run up (again) before the announcement prior to the sale. I do not own any CFE CFEO shares and have not this year.

Go Nuke, This is such a awful game. Good to see you can get your money back. I own GRR (Grange Resources) and losing like the best of us. At least its cleaner cut. DR Pellets will be in such demand.

 

[Porper]

I think it looks strong, seems like there has been accumulation going on in a weak market.Yesterday being especially strong i.m.o.

There was a big rejection of higher prices around 0.60, so see what happens when it starts heading towards there.

At work so can't post a chart, maybe later.

I hold.

Thought an update appropriate.

Well 0.60 came and went with good buying ploughing straight through the previous resistance.We are now in a wave 5 with projections for the end of this wave around the 0.80 area with a date around the 08th April.

A general guidline with Elliot Wave is if the volume is high heading to the projected wave 5 high, we may well be in an extension of that wave.We are at the point of termination of a usual wave 5 high now, volume is strong as was todays price action, so we should move on up to that 0.80 area, we'll assess it from there if it happens.

 

[lazyfish]

Giday again Lazyfish.
Yes tax needs to be paid. That $0.90 drops down to about $0.76 per share fully diluted when the percentage "CFE calculated last time is used." (Thats what I concluded anyway a month ago) Its hard to know what deductions their using against the sale. Standard company tax (that is 30%) drops that $0.90 down to $0.63 IF that is used?

See the following from "that" meeting 16/7/07. Page 8, (1.5) Tax paid on 250 million AUD was est' $55,000,000 AUD + some other expenses.
http://www.asx.com.au/asxpdf/20070621/pdf/3131vd90v6dt98.pdf

I guess todays ann' answers the FIRB question. And "by the way" one of the times I questioned the FIRB last year, I was told "the application is free" "They don't charge" JMcDOG.

Isn't it funny within days of Ding Liguo (best decade) selling out of Delong Holdings, CFE signs a MOU with MCC. I find it also funny that the transferr of shares for what 10% of the company a few months back off market was at what price? $0.76 and that happened within days of Ding Liguo raising money from Citigroup. Check out the dates on Delongs website and CFE's.

Disappointed CFE sold the mine "to most likely start over in Africa". Not good to see the share price run up (again) before the announcement prior to the sale. I do not own any CFE CFEO shares and have not this year.

Go Nuke, This is such a awful game. Good to see you can get your money back. I own GRR (Grange Resources) and losing like the best of us. At least its cleaner cut. DR Pellets will be in such demand.

Hmm thanks Mr., that was very useful. Ian always says that things are too slow in Australia, and that there is no more 'elephants' here. Oh well...

 

[shaunm]

It looks like today was profit taking day. Actually quite a number of my holdings are down on an "up" day; go figure!?!?

 

[Go Nuke]

Buyers have lost control by the looks as the sell side is pretty heavy today.

I suspected this might be the case when we closed down yesterday after such a good run.

Lets see if 60c holds.

On a side note, as a relative beginner I learnt something new today...

Ages ago i bought a very small parcel of CFE at 75c (glad it was small now) and held then. I also bought more at 50c.

So today I thought about selling out the lot that i bought for 50c and take a small profit...BUT I wasn't able to with Commsec becasue I need to hold more than $500 of the stock after i sell.

Basically I would have probably taken a loss over all if I sold all my shares in CFE today.
The worst part is, i can get Commsec to sell them over the phone for me (just as i could do in front of a computer) but then of course they slug you extra for doing it over the phone. What a RIP off!

Looks like Im in for a longer hall yet till I can at least break even with with 75c lot of CFE shares.

 

[Porper]

Buyers have lost control by the looks as the sell side is pretty heavy today.

The big buyer / buyers have dried up, and if you look at the very low volume, sellers were able to push the price down.I would be much more worried had we had a breakeven day on high volume.

I don't think we have seen a short term high yet, we may consolidate aroud 0.60 before another push up i.m.o.Look for volume increasing for a tell tale sign, but we could get down to 0.50 and still be bullish, rather it didn't of course, but sideways is my bet, then up.

If you are holding a nice profit, nothing wrong with adjusting the stop right up to lock in a nice profit but I am staying in with a relatively wide stop and see what develops.

I hold.

 

[shaunm]

At 1.5 mill volume seems OK and the high 60's is a nice place to be.

I was reading the time line in the report and wanted to ask if anyone can project forward assuming all goes to plan and the sale is passed.
Apart from the share price increase, what would a succesful sale mean for holders? Do we still retain the shares, are they bought by the new owner, do we receive a dividend from the "cashed up" entity, anything else?

 

[Go Nuke]

wow some HUGE orders went through after the close today of the likes $161K and over $100K.

I was really suprised to see it take out 70c again!

Though i'm a bit lost. What is it we can expect to happen to the share price as the date for this deal (end of this month right?) gets closer?

Do people think it will continue to rise? Why?

I'm thinking of selling at around 78c with was about the highest the sp got in June 07.

 

[shaunm]

There's quite a big cue of sellers building up at the moment 39 selling 1.85 mill from 68 thru to 70 cents. Is something going on that is not apparent. Mind you this thread has been quite quiet for a little while....hello out there!

 

[enigmatic]

Very new to the stock market but i assume its just traders cashing in on a profit. the sp is starting to move into what would be its true worth at the current moment if the deal falls through then its going to drop so if your not a risk taker then i guess you would be taking the profit. Good time for those who think it may hit 90c -$1 to get in to make more money.

 

[Porper]

There's quite a big cue of sellers building up at the moment 39 selling 1.85 mill from 68 thru to 70 cents. Is something going on that is not apparent. Mind you this thread has been quite quiet for a little while....hello out there!

It has come to a bit of a halt, 0.70 was under fire a couple of days ago, but sellers swamped the buyers the next day.

I sold out this morning,mainly because my time analysis had a high happening around the 08th April, and we are at a typical wave 5 area although I did think 0.80 was realistic in this move,(an extended wave 5) but not to be. Nothing wrong with taking a nice profit in this environment.

I am still bullish, but short term there is some scope for a return to around 0.60.I will get interested when 0.70 is taken out on strong volume, hopefully with a target of 0.90.

CFE has been a nice tradiing stock, long may it last.

 

[TheAbyss]

Very low volume at the moment so i wouldnt be concerned. If someone had bad news they would be selling at market rates and leaving the table. The sellers list is building as traders attempt to lock in profits as you rightly state however they are not getting the % profit sought hence the low volumes. Doubt very much that it is bad news imo.

Bear in mind that the purchase price of $400 million for the Cape Lambert Project is worth 79 cents per share alone plus they retain tenements (which have a 3km magnetic anomaly) and have $13 million in the bank. This adds to their value another 10 - 15 cents per share depending whose data you read.

Presuming the deal gets done we are looking at a sp of around 90-94 cents (as per broker analysis).

A long way to go yet as per their time line with 30 April the next key date which is when MCC complete due diligence and obtain govt approvals.

 

[TheAbyss]

the purchase price of $400 million for the Cape Lambert Project is worth 79 cents per share alone plus they retain tenements (which have a 3km magnetic anomaly) and have $13 million in the bank.

CFE have confirmed that the sale is progressing well,

● Work is continuing on the Share and Tenement Sale Agreement, which is now expected to be finalised shortly after MCC completes its due diligence,

● On successful completion of the proposed transaction with MCC, the Board intends to follow an investment strategy to acquire assets at either company or project level.

The Company has stepped up the review of new business opportunities whilst
assisting MCC with its due diligence.

CFE have retained exploration tenements. These tenements need a lot more work yet however the below indicates that there is a resource under the ground which should add significazntly to the CFE valuation.

Latest report suggests

Exploration License Application 47/1493

Reverse Circulation (“RC”) Drilling
The RC drilling program ended during the quarter. One RC rig demobilised late in January 2008, while the second RC rig demobilised at the end of February 2008. A total of 25 holes were completed during the quarter for an advance of 6,606m. To the end of this program and since acquiring the Project, the Company has completed 182 holes for a total advance of 55,671m.

The main focus of the RC drilling during the quarter was to continue to extend the resource beyond its known northern limits. Extension drilling within the Northern Extension Area (refer Figure 3) has shown that the mineralisation remains open to the north and northeast.

Tenement EL47/1271
The Mt Dickson Anomaly, which lies on tenement EL47/1271 (refer Figure 3), and corresponds with a distinct Banded Iron Formation (“BIF”) ridge, was drill tested with a single RC hole during the quarter. The drill hole, MA350, targeted the western portion of the anomaly and intersected a 125m thick unit of BIF containing 2 zones of significant magnetite mineralisation (refer Table 1). Mapping of the Mt Dickson Anomaly indicates that the BIF ridge is 1.8km in length and up to 300m in thickness in certain areas.

 

[jman2007]

This could turn into quite an interesting story, at 79c CFE are practically valued at equivalent to their cash-backing, ie the cash value per share as TheAbyss pointed out, that's assuming the deal goes through of course. Although seems to be a fair bit of confidence emmanating from CFE in terms of the progress so far. Haven't been trading this myself, but well done to those who have, as it should have provided some nice returns, some good t/a being shared as well. Good stuff.

jman

 

[Go Nuke]

Can anyone tell me what happened to the Global iron shares we were supposed to get?

I had them for a while then they disappeared

Even though they gave me so few that it wouldn't have even covered the brokerage to sell them.

Thx.
GN

 

[Porper]

I don't think we have seen a short term high yet, we may consolidate aroud 0.60 before another push up i.m.o.Look for volume increasing for a tell tale sign.

Well we got the consolidation, although didn't quite get down to 0.60. also had the high volume (Thursday), 0.70 not broken yet though.

Another possible trade here, or for you long termers it is looking more bullish.

I have ammended the count to being more bullish, we are in an extended wave 3, a break out of the wedge pattern on strong volume and we should head towards the mid 90's. on this move, before the larger degree wave 4 takes us back to where we are now before the wave 5 kicks in to take us to fresh highs.

 

[lazyfish]

I just read this article and think it might be of interest. Sorry guys but it does not look very positive.

http://www.news.com.au/business/story/0,23636,23594751-462,00.html

Highlight

China Metallurgical is also believed to have been forced to stall its $400 million bid for Cape Lambert Iron Ore after lodging an application with FIRB last month.

I have no idea what Rudd had in mind. Anyone got more info on this?

 

[shaunm]

I just read this article and think it might be of interest. Sorry guys but it does not look very positive.

http://www.news.com.au/business/story/0,23636,23594751-462,00.html

Highlight

China Metallurgical is also believed to have been forced to stall its $400 million bid for Cape Lambert Iron Ore after lodging an application with FIRB last month.

I have no idea what Rudd had in mind. Anyone got more info on this?

Thanks for the article. Not positive but not negative either. A stall of the application is not a withdrawl and China Metallurgical would not have entered into this on a whim. I will hold even tho we may get some negativity on Monday.