CLE - Cyclone Metals

The market hasn't accepted the news as good news and the mini lemming rush continues. Expecting a rise for the SP this morning I entered the preopen bidding and bought at 56.5c which I thought was a steal ?????. Paid a little too much.
I'll put them back on at 76.5c and hope to reach that within a week or two. I'll still hold my original purchase as, in my estimation the value is around $1. That is based on the companies potential cash position and it's remaining assets.

Consider the fact that the 87m tax will not be paid until June 2010, the 65.5c share price per book value I have calculated previously is undervalued.

Ignore other factors, just account for the money MCC paid for the project, 240m + 80m +60.5m - 0.5m - 38m - 70m (which is the discounted value of 87m tax in 2010) = 272m, plus 54.9m (value of options), then divided by 500m shares and options, equal to 65.4c, it is the value not even include all the other stuff CFE currently hold such as cash, equipment, and more important, the south project.

In my eyes, CFE is absolutely cheap at the moment, as soon as the Chinese deposit the 240m into the bank, we won't see the 50's again. I'm lucky to pick some at 52c, I still cant figure out who is the seller for the huge amount earlier today.

Happy trading,

Eva

I am a little bemused by the selling tbh,

And I'm also a little confused by Evraz's motives, despite the fact that they openly opposed the deal and launched a surprise raid on the share register last week, my understanding is that they abstained from voting.

In terms of the selling perhaps we'll see some change in substansial holding notices put out over the coming week, even at current levels I think the current sp is about 10c lower than Evraz's conservative estimate of what the deal was worth per share.

Not overly concerned at this stage however.

jman

Always a twist with CFE.

Evraz now doing a deal direct with MCC even though MCC do not own CFE as yet. Plus the $240 mill didnt get paid yesterday.

The article at the below link states that CFE did not know that MCC and Evraz were cutting them out but you have to wonder about the director share sale that occured after the Russian talks with Tony sage.

I am not machiavellian enough to understand the alternatives that could present with this latest turn. Thankfully free carried on this one now so happy to wait for a while longer

Any suggestions on where this might end up?

http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=88384

Good news I believe...

Sage says $240m in the mail

2nd August 2008, 9:45 WST

Cape Lambert Iron Ore expects to receive a $240 million down payment from China Metallurgical Group Corp (MCC) to end speculation the $400 million sale of its flagship magnetite project to the Chinese buyer might have collapsed.

Settlement of the deal was to have occurred on Thursday afternoon but the deadline passed without any news from MCC. Instead, Cape Lambert was stunned to hear that MCC and Russian steelmaker Evraz had signed a development deal over the magnetite project.

Cape Lambert director Tony Sage said it had received a letter of assurance from MCC yesterday morning declaring that the Bank of China had arranged for the $240 million down payment to be transferred to the WA miner’s accounts.

Mr Sage said he expected the money to arrive on Monday.

“We are very, very, very confident that we are going to settle otherwise that whole deal they (MCC) have done with Evraz will be put to shame,” he said.

Investors have expressed concern given that a similar project sales deal signed between Cape Lambert and Singapore-listed steel group Delong Holdings collapsed suddenly last year, triggering a sharp slide in Cape Lambert’s share price.

Cape Lambert shares closed steady at 59 ¢ yesterday. The MCC deal values Cape Lambert between 67 ¢ and 90 ¢, depending on which analysis is used, and confirmation the down payment has been received is expected to rerate the WA miner’s stock.

Neither Evraz nor MCC would comment.

Under the deal struck between the two, Evraz would take a 75 per cent stake in the magnetite project with MCC owning the remaining 25 per cent. All the ore from the yet-to-be developed project would be sold into the Chinese market, with MCC able to negotiate an off-take for up to 60 per cent of the project’s likely production of 15-20 million tonnes a year.

Evraz is also Cape Lambert’s biggest shareholder with a 19 per cent stake and had toyed with launching a takeover bid for the WA miner. The speculation drove Cape Lambert’s shares as high as 92 ¢ last week.

However, given Cape Lambert’s board’s opposition to a low-ball bid of around 75 ¢ a share, Evraz instead pursued the project joint venture with MCC.

Evraz needs the Cape Lambert magnetite to feed the steel mills of Delong, which it is in the process of taking over.


Personally I think CFE is now ready for possibly a rerating of some kind hopefully.

^^^
No one with any comments?

I for one am going shopping monday morning to pick up mroe CFE by the bucket loads.

ans25 said:

^^^
No one with any comments?

I for one am going shopping monday morning to pick up mroe CFE by the bucket loads.

Click to expand...

There was no more to say. your post was sufficient. I've been shopping, didn't see a reason not to shop last week. You should have followed my suggestion then about getting in on the lemming rush.

Yep good comments b4 and I got in at 57.5 last week and today at 60c.

A good increase to 62c but I thought it might of got higher than that.
Anyways maybe Im beeing greedy but nevertheless this will go back to 90c easily within 1 month I think.

Happy times ahead

Even the Chinese news website has announced the joint venture between the Russian and MCC. I just do not understand why CFE have not put an announcement yet, since they should notify the ASX as soon as they receive the money. Did something go wrong there?

I felt the danger and sold my shares, I may regret in the near future.

Time for a bit of patience perhaps.

.... hopefully the money has gone in.... gulp

Did I buy in too quickly?

Oh dear me. Trading Halt on CFE for an announcement of the settlement. Is this a bad sign?

Anyone got more news?

Family_Guy said:

Oh dear me. Trading Halt on CFE for an announcement of the settlement. Is this a bad sign?

Anyone got more news?

Click to expand...

No I'd think TS etc. would want the world to know.

EVAS34... But you still made a profit. Did better than me this time.

http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=89402

Some info here Family-guy..........................................

From the sounds of it, everything is okay.

Maybe they didnt want it to run down thats why the TH??

I dont know but I think this will run again to previous high's.

The money is in ppl!!!!!!!!!!!!!!!

Congrats to all holders,

I must admit I sold out b4 at abt 70c but couldnt resist getting back in at such discounted prices around 57c.

Anyways I wonder what the share price will be tomm, Im not expecting too much in this market, maybe a nice 5-10% gain hopefully.

Would rather see this increase steadily back to $1 or so.

Show me the money!
There it finally is.
$20m + options in 2005 to $400m in 2008 (3 years).
Good Job......... which ever way you look at it........

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1921675&source=RNS

Yeah MR I heard at one point in London it was up %15 straight away!

Im not sure the impact in oz here, some people are thinking even it might get up to 80-90c by end of friday.

Hmmm Im not sure abt that that quick esp in this market. But one thing for sure I aint selling @ 70c this time!

Good Luck all.

If the market situation here improves this can sky rocket indeed by end of year. Just my opinion but perhaps we can even see $1.50 perhaps along with a couple of good ann's coming.

But that's a long way away at this stage..... one day at a time

http://www.advfn.com/quote_Cape-Lambert_LSE_CLIO.html

http://www.londonstockexchange.com/...ices.htm?sym=AU000000CFE0GBGBXAIM B13V404CLIO

Above are a couple of links to the AIM. Better to get your info' first hand. Anyway after 121 posts on this stock more than double anyone else it is good to see this announcement.

TS was looking for $1.20 for the CFE takeover, Ha, he once told me it was worth $6- a share.

I wonder if some of my questions will ever be answered. Bye.......

Did anyone watch the buying and selling of this today?? Didn't seem to do much. Might slowly slowly head north and an announcement of divvies fire this one up??

I guess not, huh? Just broke 50c this morning. What is the support level for this now, please. And which chart do we use to work out that support level?
Cheers