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SP was up but so much for the expected announcement. 
Guess we will have to wait till tomorrow? 
Guess we will have to wait till tomorrow? 
CLE - Cyclone Metals
- Thread starter chansw
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Sorry to sound dumb, but did the stock coming out of the trading halt today?
I haven't been watching as I thought Monday would be the opening day.
I haven't been watching as I thought Monday would be the opening day.
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Ha. Share price did bugger all really.
I still dont see the buyers coming in. Not yet anyway.
Perhaps as the deal gets even closer to finalising.
(Still holding)
I still dont see the buyers coming in. Not yet anyway.
Perhaps as the deal gets even closer to finalising.
(Still holding)
Well it did move up 6c on the news but I suspect traders cashed in and the price fell back. There would have been a few anxious to sell on the news. With them out of the way in the next few days I think there will be an increase as investors realise the potential. The sale is well above the current market cap and the company has management that will make good use of the funds that will become available.
CFE shows some improvement today however this must be one of the most underrated stocks available today without much risk.
The market hasn't valued the areas retained by CFE and has not fully valued the sale of those sold. With a market cap, according to my calculations, of around $205M and a sale of only part of it's assets for $400M that alone is a premium on the current SP.
Bear in mind that CFE have announced that additional geophysical modeling has been completed on a 3km long magnetic anomaly situated on ELA47/1493which is located south of the 1.56 billion tonne resource AND IS EXCLUDED FROM THE TENEMENT PACKAGE BEING SOLD. The native title advertising period will end on 18th August and the tenement is expected to be granted soon after enabling drilling to commence.
Add to that the fact that CFE have management with a great track record in the iron ore business.
I'm not in a position to value CFE for any one else but I intend to hold this one for a while yet.
The market hasn't valued the areas retained by CFE and has not fully valued the sale of those sold. With a market cap, according to my calculations, of around $205M and a sale of only part of it's assets for $400M that alone is a premium on the current SP.
Bear in mind that CFE have announced that additional geophysical modeling has been completed on a 3km long magnetic anomaly situated on ELA47/1493which is located south of the 1.56 billion tonne resource AND IS EXCLUDED FROM THE TENEMENT PACKAGE BEING SOLD. The native title advertising period will end on 18th August and the tenement is expected to be granted soon after enabling drilling to commence.
Add to that the fact that CFE have management with a great track record in the iron ore business.
I'm not in a position to value CFE for any one else but I intend to hold this one for a while yet.
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Hey Nioka are you of the opinion that it won't be until August that we will see major improvement in the SP?
Definitely not. I believe the stock is very much undervalued right now and I expect that to steadily correct itself as the value is accepted as fact by a lot of investors. By August the stock will have another run if good drilling results are announced. Just look at the history of some of the smaller iron ore hopefulls and they haven't, in most cases, been able to sell anything yet whereas CFE have actually made a $400M sale before any mining. How long will it be before companies like BRM earn $400M and what will they have to spend to earn it.Hey Nioka are you of the opinion that it won't be until August that we will see major improvement in the SP?
CFE's chairman knows what he is doing. He knows that he could spend a long time developing the mine as he did with Aztec only to have it "gobbled" up before production for only a fraction of it's real worth. Take the cash offered now and find another looks to be CFE's strategy and I like that.
obviously some pumping of the sp today
with allthe options being converted something is up or maybe just the 30 june expiry is reason enough to convert well before the deadline and sell into the pump
lets hope that agreement comes out before the 30 june as there are another 3.3 mil options that need to be converted at 90c ....good possibility of the sp going above this amount prior to 30 june to get thes options in the money
hahahha cynical arent I ?
with allthe options being converted something is up or maybe just the 30 june expiry is reason enough to convert well before the deadline and sell into the pump
lets hope that agreement comes out before the 30 june as there are another 3.3 mil options that need to be converted at 90c ....good possibility of the sp going above this amount prior to 30 june to get thes options in the money
hahahha cynical arent I ?
Chelsea tycoon to grab WA iron stake
7th June 2008, 11:00 WST
Roman Abramovich: The Chelsea owner is set to exercise Cape Lambert options
Roman Abramovich, the Londonbased Russian billionaire who owns the Chelsea Football Club, is set to emerge with a 13 per cent stake in Tony Sage’s mining hopeful Cape Lambert Iron Ore.
It is understood the Abramovichcontrolled steel group Delong Holdings told Cape Lambert yesterday it was poised to spend $10.6 million exercising 28 million options to boost its stake in the Perth junior from 4.4 per cent to about 13 per cent.
The options have a strike price of 37.7 ¢, compared to Cape Lambert’s 67.5 ¢ close yesterday.
Once the options are exercised, which is tipped to be as early as next week, Delong would become Cape Lambert’s biggest shareholder.
The options exercise would be the first sign of Mr Abramovich’s interest in Cape Lambert since he struck a $US1.5 billion ($1.6 billion) deal in February to buy control of the Singapore-based Delong.
Delong was controlled by Chinese billionaire Liguo Ding, who acquired the Cape Lambert options as part of his ill-fated plan last year to help develop the Perth junior’s Pilbara iron ore project.
Crucially, Mr Abramovich’s interest in Cape Lambert comes as China Metallurgical Group Corporation (MCC) tries to seal a $400 million deal to buy Cape Lambert’s namesake 1.6 billion tonne magnetite project.
It is likely the Delong options conversion will put pressure on Cape Lambert and MCC as they finalise a deal that would hand the Chinese state-owned group full ownership of the iron ore project and leave Mr Sage’s company cashed up with plans to buy into other iron ore projects.
Mr Abramovich is one of the world’s 20 richest people with an estimated fortune of $24 billion, based on his ownership of key Russian oil and gas assets. Now based in London, where he has gained a high profile through his ownership and extensive investment in Chelsea FC, Mr Abramovich is increasingly focusing on steel.
Mr Abramovich’s steel interests ”” he controls one of Russia’s biggest steel producers, Evraz, which in turn has struck the deal to take a 51 per cent stake in Delong ”” suggest he may want to scupper the MCC deal and instead get Cape Lambert to develop the project itself.
MCC has completed due diligence of the project and been granted Foreign Investment Review Board approval. It and the Perth junior are now trying to conclude a sales agreement, which will need to be put to a Cape Lambert shareholder vote.
The prospect of Mr Abramovich entering the WA iron ore scene brings with it the intriguing prospect of the owner of one of the world’s best, and most expensive, football clubs going head-to-head with Mr Sage, a coowner of the Perth Glory.
PETER KLINGER
Source: http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=77475
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Positive news out of CFE today. Sale agreement signed and $230 million in the bank in 49 days or less and another $80 m in a further 45 days time.
Probably not the best of days for the announcement however CFE isnt a quick mover. Sooner or later the doubters will move towards the positive maths on this deal. Bottom line is that if the deal goes ahead then the SP is seriously undervalued at the moment and will move.
Announcement excerpt below
The consideration is payable in three cash tranches; AUD$240 million (inclusive of the AUD$10 million deposit) or 60% at Settlement (to take place fifty (50) days after the date of the formal Sale Agreement), AUD$80 million or 20% forty five (45) days after Settlement and AUD$80 million or 20% on the grant of a mining lease and related construction approvals.
Probably not the best of days for the announcement however CFE isnt a quick mover. Sooner or later the doubters will move towards the positive maths on this deal. Bottom line is that if the deal goes ahead then the SP is seriously undervalued at the moment and will move.
Announcement excerpt below
The consideration is payable in three cash tranches; AUD$240 million (inclusive of the AUD$10 million deposit) or 60% at Settlement (to take place fifty (50) days after the date of the formal Sale Agreement), AUD$80 million or 20% forty five (45) days after Settlement and AUD$80 million or 20% on the grant of a mining lease and related construction approvals.
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Alright, finally some movement in the right direction and a convincing move at that.
Hopefully the US market can shake off the wobbles for a few more consecutive days and we can hopefully see the end of the 60's.
Hopefully the US market can shake off the wobbles for a few more consecutive days and we can hopefully see the end of the 60's.
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I agree Shaunm.
I really didn't think it was going to get through 70c with the amount of sellers lined up, but I was excited to see that it did!
DOW up 165 points, so lest see what that can do for CFE's share price.
Will the up coming price increase in iron ore reflect on CFE at all?
I know they are selling the Cape lambert prospect but they do have that other project that they didn't sell.
I think the increase of Iron ore might make all of the Fe players (including the juniors) rocket upwards in price.
Could i be wrong in saying this?
I really didn't think it was going to get through 70c with the amount of sellers lined up, but I was excited to see that it did!
DOW up 165 points, so lest see what that can do for CFE's share price.
Will the up coming price increase in iron ore reflect on CFE at all?
I know they are selling the Cape lambert prospect but they do have that other project that they didn't sell.
I think the increase of Iron ore might make all of the Fe players (including the juniors) rocket upwards in price.
Could i be wrong in saying this?
Glad I accumulated after the first major dip. now just ridding till i find out what there going to do with this 400mil, earlier on it was mentioned something about dividend.
Once august comes the focus will be there other tenement, which CFE valued at $350million. quiet a tidy sum aswell. With Iron ore prices on the rise the other tenement is only going to be more valueable. It will also be in MCC best interest to aquire this tenement, At cost.
Once august comes the focus will be there other tenement, which CFE valued at $350million. quiet a tidy sum aswell. With Iron ore prices on the rise the other tenement is only going to be more valueable. It will also be in MCC best interest to aquire this tenement, At cost.
Do you guys have any idea of when the share holder decision will be made? In the announcement, it said in July, but did not specify the date. BTW, why I didn't receive a notice of meeting, because I am just a small investor?
Once the share holder approved the deal, the Chinese government will never say no to this deal, because the MCC is a state owned company as compared to Delong, which is a private one, and the Chinese government's strategy is to buy cheap resources around the world, especially in the time of increasing price of iron ore.
Let's keep our figure crossed to wait the 90c
Once the share holder approved the deal, the Chinese government will never say no to this deal, because the MCC is a state owned company as compared to Delong, which is a private one, and the Chinese government's strategy is to buy cheap resources around the world, especially in the time of increasing price of iron ore.
Let's keep our figure crossed to wait the 90c
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Ive got a question for someone.
Weren't we given shares in GFE (Global iron) through CFE??
What happened to those?
I know nothing really about Escrowed...but is that whats happened to them?
Weren't we given shares in GFE (Global iron) through CFE??
What happened to those?
I know nothing really about Escrowed...but is that whats happened to them?
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Meeting 28th July 9.30 am. several resolutions howveer the eye grabber for me is
RESOLUTION 2 – EQUAL REDUCTION OF CAPITAL
To consider and, if thought fit, to pass, with or without amendment, the following
Resolution as an ordinary resolution:
“That, subject to the passing of Resolution 1 and settlement of the
Transaction contemplated in the Sale Agreement, for the purposes of
Sections 256B and 256C of the Corporations Act 2001 and for all other
purposes, approval is given for:
(a) the paid up share capital of the Company to be reduced by
up to approximately $37,700,000; and
(b) such reduction to be effected and satisfied by the Company paying Shareholders who are registered as Shareholders of the Company on the Record Date, an amount per Share to be determined, on the terms and conditions set out in the Explanatory Statement accompanying this Notice of Meeting”.
1.5 Use of funds
It is intended to apply funds raised from the Transaction (being $400,000,000) as follows:
Use Funds
In-specie distribution to Shareholders (Resolution 2) Up to
approximately $37,700,000
Possible unfranked dividend Up to approximately $62,300,0001
Commission for introduction of Transaction $38,000,0002
Taxation costs as a result of Transaction $87,000,000
Proposed exploration expenditure on existing projects $3,355,000
Working capital and new projects $171,145,000 3,4 Expenses of Transaction $500,000
Total $400,000,000
RESOLUTION 2 – EQUAL REDUCTION OF CAPITAL
To consider and, if thought fit, to pass, with or without amendment, the following
Resolution as an ordinary resolution:
“That, subject to the passing of Resolution 1 and settlement of the
Transaction contemplated in the Sale Agreement, for the purposes of
Sections 256B and 256C of the Corporations Act 2001 and for all other
purposes, approval is given for:
(a) the paid up share capital of the Company to be reduced by
up to approximately $37,700,000; and
(b) such reduction to be effected and satisfied by the Company paying Shareholders who are registered as Shareholders of the Company on the Record Date, an amount per Share to be determined, on the terms and conditions set out in the Explanatory Statement accompanying this Notice of Meeting”.
1.5 Use of funds
It is intended to apply funds raised from the Transaction (being $400,000,000) as follows:
Use Funds
In-specie distribution to Shareholders (Resolution 2) Up to
approximately $37,700,000
Possible unfranked dividend Up to approximately $62,300,0001
Commission for introduction of Transaction $38,000,0002
Taxation costs as a result of Transaction $87,000,000
Proposed exploration expenditure on existing projects $3,355,000
Working capital and new projects $171,145,000 3,4 Expenses of Transaction $500,000
Total $400,000,000
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Shaunm, The Abyss, Go Nuke, and others... Back in March I wrote the sale is worth 76c or perhaps 63c ... I was a little out.
$400,000,000 - $87,000,000 (taxation) - $38,000,000 (commission) = $275,000,000 + excercise of the following options $78,000,000 = $353,000,000 in total.
320,000,000 shares on issue + 184,000,000 options excercisable October (0.277) on issue + 98,000,000 options excercisable October (0.277) = 602,000,000 shares.
I now get 59c (not 76c or 63c) and thats without any more options issued!
How can you guys possibly continue to get 90c?
