CSM - Consolidated Minerals
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A lot of opposition has already started against the Consolidated Minerals takeover by Pallinghurst Resources.
If you check this website http://www.usail2.com/consolidated_takeover.htm
you will to see the Consolidated Minerals takeover Vote NO website.
If you tell all other sharetraders to visit this site and send their feedback it will be a way of standing up for the rights of shareholders and also to support the people who set up this website.
Lots of interesting info, and links to Asian metals trading websites
Cheers
If you check this website http://www.usail2.com/consolidated_takeover.htm
you will to see the Consolidated Minerals takeover Vote NO website.
If you tell all other sharetraders to visit this site and send their feedback it will be a way of standing up for the rights of shareholders and also to support the people who set up this website.
Lots of interesting info, and links to Asian metals trading websites
Cheers
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My view seems to run contrary to others on this proposed tie up of Pallinghurst resources, AMCI and Consolidated Minerals.
Pallinghurst is headed up by Mr Brian Gilbertson, a former CEO of BHP Billiton and I understand and agree to the favourable arguments put forward.
I will accept the offer and consider buying shares in the new set-up.
Pallinghurst is headed up by Mr Brian Gilbertson, a former CEO of BHP Billiton and I understand and agree to the favourable arguments put forward.
I will accept the offer and consider buying shares in the new set-up.
I note from the Consolidated Minerals takeover website
http://www.usail2.com/consolidated_takeover.htm they are not against having Mr Brian Gilbertson onboard, they just say the price of $2.28 is unacceptable. When you read that they have $150 million stake in other companies, $10 billion of nickel in the ground, $3 billion of manganese and $470 million in Chrome Ore then the $2.28/share offer is for idiots, who don't know any better. The website is just trying to make people aware and making the CEO and Board more accountable. For example they said "in the Company's Half Year Results June 06,
http://www.usail2.com/consolidated_takeover_incorrect_statements.htm
"The Company believes that through providing forecasts of production and costs, along with regular reporting on commodity prices attained by the business, analysts and investors will be better positioned to have an informed view of the profit outlook." In fact the Company has made no statement (to my knowledge) referring to prices attained by the Company during the past six months."
Also did you see on the website today that India has introduced a US$44 tax/ton on chrome ore from 1st April
http://www.usail2.com/consolidated_takeover_chromite.htm
From the www.miningnews.net today 1st March 07
Kiernan added that Gilbertson could bring some strong direction to the company, which he said had moved sideways since his departure.
"To be quite brutal, the new management and the board have basically done nothing with ConsMin and those assets. They've basically just sat on the nest and warmed the eggs. And in some areas they've allowed the eggs to get cracked," Kiernan said.
I agree with the website $2/share and the 2 for 5 share offer. And what about dividends for the next half year , I bet with US$20/lb nickel they'll be making money, shouldn't existing shareholders get that. Not Gilbertson get 60% of the money. Don't be a fool!
They said they haven't any YES votes yet, so if you want to be the lone YES voter then I suggest you vote.
http://www.usail2.com/consolidated_takeover_feedback.htm
http://www.usail2.com/consolidated_takeover.htm they are not against having Mr Brian Gilbertson onboard, they just say the price of $2.28 is unacceptable. When you read that they have $150 million stake in other companies, $10 billion of nickel in the ground, $3 billion of manganese and $470 million in Chrome Ore then the $2.28/share offer is for idiots, who don't know any better. The website is just trying to make people aware and making the CEO and Board more accountable. For example they said "in the Company's Half Year Results June 06,
http://www.usail2.com/consolidated_takeover_incorrect_statements.htm
"The Company believes that through providing forecasts of production and costs, along with regular reporting on commodity prices attained by the business, analysts and investors will be better positioned to have an informed view of the profit outlook." In fact the Company has made no statement (to my knowledge) referring to prices attained by the Company during the past six months."
Also did you see on the website today that India has introduced a US$44 tax/ton on chrome ore from 1st April
http://www.usail2.com/consolidated_takeover_chromite.htm
From the www.miningnews.net today 1st March 07
Kiernan added that Gilbertson could bring some strong direction to the company, which he said had moved sideways since his departure.
"To be quite brutal, the new management and the board have basically done nothing with ConsMin and those assets. They've basically just sat on the nest and warmed the eggs. And in some areas they've allowed the eggs to get cracked," Kiernan said.
I agree with the website $2/share and the 2 for 5 share offer. And what about dividends for the next half year , I bet with US$20/lb nickel they'll be making money, shouldn't existing shareholders get that. Not Gilbertson get 60% of the money. Don't be a fool!
They said they haven't any YES votes yet, so if you want to be the lone YES voter then I suggest you vote.
http://www.usail2.com/consolidated_takeover_feedback.htm
CSM - Chrome ore hots up.
This chrome ore market is about to really hot up. Consolidated Minerals is the only producer in Australia producing 2 1/2% of the worlds supply. With the announcement from India yesterday about the US$44/ton tax and now from South Africa the worlds largest supplier of Chrome ore comes this announcement from South Africa. My guess this going to add a minimum of US$44/ton to the price in China within days. But potentially far more due to the South African announcement. Chrome ore is already up to US$245/ton, if it goes to US$300/ton ( which it will), CSM will be making $60million/pa. on current production and I'm talking PROFIT. Consolidated Minerals is the only producer in Australia and is about to get a huge boost.
http://www.miningweekly.co.za/?show=102934
This chrome ore market is about to really hot up. Consolidated Minerals is the only producer in Australia producing 2 1/2% of the worlds supply. With the announcement from India yesterday about the US$44/ton tax and now from South Africa the worlds largest supplier of Chrome ore comes this announcement from South Africa. My guess this going to add a minimum of US$44/ton to the price in China within days. But potentially far more due to the South African announcement. Chrome ore is already up to US$245/ton, if it goes to US$300/ton ( which it will), CSM will be making $60million/pa. on current production and I'm talking PROFIT. Consolidated Minerals is the only producer in Australia and is about to get a huge boost.
http://www.miningweekly.co.za/?show=102934
All CSM shareholders, there is a website where we can show our disgust with the CSM management. We need to speak up and be heard. $2.28/share is a rip off. If we all tell the Management the offer is unacceptable you can be sure they'll up the offer. If not bad luck, Gilbertson can go somewhere else and the Management can get back to doing what they are paid for.
Register your comments at http://www.usail2.com/consolidated_takeover.htm
Register your comments at http://www.usail2.com/consolidated_takeover.htm
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Watch the CSM share price to see if there is much hope of a counterbid. In the current market and the problems that CSM have to overcome, "The Price is Right" as Bruce Forsythe would say.
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I should add that Consolidated Minerals in the UK (CNM) has every poster against the offer. It does seem that this offer is just a passing shot over the boughs and may well be increased by Gilbertson and Co.
All CSM shareholders should email the Managing Director Mr Rod Baxter and tell him what they think (Politely) rbaxter@consminerals.com.au
This the best way he'll get the message that we all want more money, minimum $2/share plus 2 for 5 share option.
Tell him today, tomorrow and the day after, he'll get sick of it.
This the best way he'll get the message that we all want more money, minimum $2/share plus 2 for 5 share option.
Tell him today,
tomorrow and the day after, he'll get sick of it. CSM - MANGANESE - GILBERTSON
GILBERTSON LOOKS AT MANGANESE
PERTH's Consolidated Minerals is believed to be already casting an eye over assets which have been linked previously to former BHP Billiton chief executive Brian Gilbertson and his close business associates.
Mr Gilbertson last month announced his return to the Australian market through a partial private equity tilt at ConsMin aiming to transform it into a diversified miner on the scale of Oxiana, or even Xstrata, through a series of acquisitions.
Former ConsMin managing director Michael Kiernan, who left the company last year, told the Herald some of his former employees had informed him Mr Gilbertson was very keen on expanding the miner's manganese business.
Mr Gilbertson and his business associates such as London investment banker Roddie Fleming and Russian oligarch Viktor Vekselberg have made several moves in the South African manganese sector in the last few years.
Through his holding company Renova, Mr Vekselberg, the chairman of Russian aluminium producer Sual, obtained 49 per cent of the Kalahari manganese project. Mr Fleming originally held part of that stake but is believed to have sold out. The majority is owned by a black economic empowerment partner.
The Kalahari project is in the same region as Samancor Manganese, which is 60 per cent owned by BHP Billiton and 40 per cent by Anglo American. BHP picked up the project through its merger with Billiton, which was headed by Mr Gilbertson. Mr Vekselberg reportedly attempted to buy Anglo's stake in Samancor in 2005 but was knocked back.
Mr Gilbertson last month told Australian media Mr Vekselberg "might" be an investor in ConsMin via his private equity group and added he held an interest in manganese assets in South Africa.
And Mr Kiernan noted Mr Gilbertson and the proposed new ConsMin strategy head, Arne Frandsen, had a history of involvement with black economic empowerment companies which made a deal with one another possible.
Mr Kiernan added Mr Gilbertson might look at alloy and smelting businesses to make the company a fully integrated supplier and more effective competitor against its larger manganese rivals. Other options included expanding ConsMin's WA nickel business through the purchase of Independence Group, Mincor or Sally Malay. "Brian is a great consolidator," Mr Kiernan said.
Some other assets which have previously been linked to Mr Gilbertson have recently resurfaced. Mr Fleming, the nephew of deceased James Bond author Ian Fleming and the head of UK investment bank Fleming Family and Partners, is looking to float his family's Mozambique tantulum assets in London. The same assets were supposed to be folded into Sual in 2003 but the deal fell over.
However, John Meyer, an analyst with Numis Securities in London, said: "The Flemings are always looking to sell overvalued assets into the market."
GILBERTSON LOOKS AT MANGANESE
PERTH's Consolidated Minerals is believed to be already casting an eye over assets which have been linked previously to former BHP Billiton chief executive Brian Gilbertson and his close business associates.
Mr Gilbertson last month announced his return to the Australian market through a partial private equity tilt at ConsMin aiming to transform it into a diversified miner on the scale of Oxiana, or even Xstrata, through a series of acquisitions.
Former ConsMin managing director Michael Kiernan, who left the company last year, told the Herald some of his former employees had informed him Mr Gilbertson was very keen on expanding the miner's manganese business.
Mr Gilbertson and his business associates such as London investment banker Roddie Fleming and Russian oligarch Viktor Vekselberg have made several moves in the South African manganese sector in the last few years.
Through his holding company Renova, Mr Vekselberg, the chairman of Russian aluminium producer Sual, obtained 49 per cent of the Kalahari manganese project. Mr Fleming originally held part of that stake but is believed to have sold out. The majority is owned by a black economic empowerment partner.
The Kalahari project is in the same region as Samancor Manganese, which is 60 per cent owned by BHP Billiton and 40 per cent by Anglo American. BHP picked up the project through its merger with Billiton, which was headed by Mr Gilbertson. Mr Vekselberg reportedly attempted to buy Anglo's stake in Samancor in 2005 but was knocked back.
Mr Gilbertson last month told Australian media Mr Vekselberg "might" be an investor in ConsMin via his private equity group and added he held an interest in manganese assets in South Africa.
And Mr Kiernan noted Mr Gilbertson and the proposed new ConsMin strategy head, Arne Frandsen, had a history of involvement with black economic empowerment companies which made a deal with one another possible.
Mr Kiernan added Mr Gilbertson might look at alloy and smelting businesses to make the company a fully integrated supplier and more effective competitor against its larger manganese rivals. Other options included expanding ConsMin's WA nickel business through the purchase of Independence Group, Mincor or Sally Malay. "Brian is a great consolidator," Mr Kiernan said.
Some other assets which have previously been linked to Mr Gilbertson have recently resurfaced. Mr Fleming, the nephew of deceased James Bond author Ian Fleming and the head of UK investment bank Fleming Family and Partners, is looking to float his family's Mozambique tantulum assets in London. The same assets were supposed to be folded into Sual in 2003 but the deal fell over.
However, John Meyer, an analyst with Numis Securities in London, said: "The Flemings are always looking to sell overvalued assets into the market."
CSM email rbaxter@consminerals.com.au
All CSM shareholders - the vote NO is hotting up. Email the Managing Director Mr Rod Baxter and tell him what you think. rbaxter@consminerals.com.au
Check on the website Consolidated Minerals takeover Vote No
Post your info, help to make a difference. Vote NO
All CSM shareholders - the vote NO is hotting up. Email the Managing Director Mr Rod Baxter and tell him what you think. rbaxter@consminerals.com.au
Check on the website Consolidated Minerals takeover Vote No
Post your info, help to make a difference. Vote NO
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Investor Roadshow Presentation: http://www.asx.com.au/asxpdf/20070305/pdf/3119jythd85bz9.pdf
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I've added to my holding in CSM. The cash part of the bid will be an excellent back drop if markets slide further. Always the chance of an increased offer, even though this partnership looks good and should see the company accellerate from troubled waters.
I wouldn't count on the deal as it stands getting passed. There is a lot of opposition to the takeover, and the Management hold very few shares, I guess that's why they recommend the deal, they have nothing to lose. Though they don't realise it yet they may even get ousted as many shareholders are already talking about giving them the sack. But who knows they may come to their senses and offer shareholders a decent price. You'll be able to thank us, if that's the case.
CHROME ORE MARKET TO HOT UP
http://www.usail2.com/consolidated_takeover_updates.htm
Chromium Price Set To Soar
FN Arena News - March 06 2007
By Greg Peel
One of the side effects of the great Chinese commodity consumption surge is that we've all become a little bit more familiar with the periodic table. Once familiar metals and minerals began to leap in price, wily investors were quickly out looking for those lesser-known elements that might be next on the list.
You won't read an awful lot about chromite – the ore from which we derive chromium coating for steel – despite the everyday familiarity of chrome. As it is not used a lot in basic construction, it boasts nowhere near the popularity of that other leading steel coating – nickel. Chrome surfaces are actually manufactured by placing a microfine coating of chromium over a nickel layer.
But chromium is nevertheless yet another element coveted by the Chinese in their economic surge, and now the subject of a lot of consternation from two of the world's major sources of chromite.
South Africa has 72% of the world's known chrome reserves, and is the world's number one producer of ferroalloys (of which ferrochromium is one) producing 41%. Beneficiated (processed) chrome is about ten times more valuable than unbeneficiated chrome, so there is a significant incentive to keep control of the beneficiation process when you own all the chromite. Apart from the price difference, the smelting industry is a good employer and that's a problem South Africa constantly faces.
Nevertheless, a company by the name of Kermas has upset the "local" chrome industry by directly exporting raw chromite to China and supposedly undermining the value of the industry in South Africa. Kermas bought Semancor Chrome last year from BHP Billiton (BHP) and Anglo American. Most peeved was Xstrata-Merafe which has lost 16% of its chromium market share due to direct exports.
In 2005, raw chromite exports to China from South Africa totalled 760kt. In 2006 this figure reached over a million tons and the trend has only been up.
So in response, the government is planning legislation to ban the export of raw chromite.
This move follows similar measures by India, another major chromite source, which is planning a US$45/t levy on the export of raw chromite for the same reasons. Most of India's chromite exports go to China.
As the developing world catches up the mature economies, the adjustments are often painful (and South Africa is counted amongst the developing nations, despite its mineral wealth). Having been raped and pillaged for generations, these countries are carefully balancing social costs against the free market, despite such moves being against the tide of globalisation. India, for example, has just clamped down on a newly opened futures exchange in the belief that speculation is pushing up prices.
While Xstrata-Merafe may be a major beneficiary of the South African initiative, CEO Steve Phiri told Mining Weekly Online that "our mineral resources belong to all the people of South Africa and by exporting raw chromite we are destroying jobs".
How long developing nations can hold out before the Chinese simply come in and offer huge incentives, as they have done throughout a lot of Africa recently, is a case in point. But what is no doubt a given is that the price of chromium will be forced up in the meantime.
Australian investors looking for exposure to chromite might care to take a look at Consolidated Minerals (CSM).
http://www.usail2.com/consolidated_takeover_updates.htm
Chromium Price Set To Soar
FN Arena News - March 06 2007
By Greg Peel
One of the side effects of the great Chinese commodity consumption surge is that we've all become a little bit more familiar with the periodic table. Once familiar metals and minerals began to leap in price, wily investors were quickly out looking for those lesser-known elements that might be next on the list.
You won't read an awful lot about chromite – the ore from which we derive chromium coating for steel – despite the everyday familiarity of chrome. As it is not used a lot in basic construction, it boasts nowhere near the popularity of that other leading steel coating – nickel. Chrome surfaces are actually manufactured by placing a microfine coating of chromium over a nickel layer.
But chromium is nevertheless yet another element coveted by the Chinese in their economic surge, and now the subject of a lot of consternation from two of the world's major sources of chromite.
South Africa has 72% of the world's known chrome reserves, and is the world's number one producer of ferroalloys (of which ferrochromium is one) producing 41%. Beneficiated (processed) chrome is about ten times more valuable than unbeneficiated chrome, so there is a significant incentive to keep control of the beneficiation process when you own all the chromite. Apart from the price difference, the smelting industry is a good employer and that's a problem South Africa constantly faces.
Nevertheless, a company by the name of Kermas has upset the "local" chrome industry by directly exporting raw chromite to China and supposedly undermining the value of the industry in South Africa. Kermas bought Semancor Chrome last year from BHP Billiton (BHP) and Anglo American. Most peeved was Xstrata-Merafe which has lost 16% of its chromium market share due to direct exports.
In 2005, raw chromite exports to China from South Africa totalled 760kt. In 2006 this figure reached over a million tons and the trend has only been up.
So in response, the government is planning legislation to ban the export of raw chromite.
This move follows similar measures by India, another major chromite source, which is planning a US$45/t levy on the export of raw chromite for the same reasons. Most of India's chromite exports go to China.
As the developing world catches up the mature economies, the adjustments are often painful (and South Africa is counted amongst the developing nations, despite its mineral wealth). Having been raped and pillaged for generations, these countries are carefully balancing social costs against the free market, despite such moves being against the tide of globalisation. India, for example, has just clamped down on a newly opened futures exchange in the belief that speculation is pushing up prices.
While Xstrata-Merafe may be a major beneficiary of the South African initiative, CEO Steve Phiri told Mining Weekly Online that "our mineral resources belong to all the people of South Africa and by exporting raw chromite we are destroying jobs".
How long developing nations can hold out before the Chinese simply come in and offer huge incentives, as they have done throughout a lot of Africa recently, is a case in point. But what is no doubt a given is that the price of chromium will be forced up in the meantime.
Australian investors looking for exposure to chromite might care to take a look at Consolidated Minerals (CSM).
As one shareholder said on the http://www.usail2.com/consolidated_takeover_opposition.htm
"I reckon David Hicks is getting a better deal than ConsMin shareholders"
"I reckon David Hicks is getting a better deal than ConsMin shareholders"
A very different company
Pallinghurst Resources will buy 60% of CSM from existing shareholders. Pallinghurst is a private equity resource investor led by Brian Gilbertson of Billiton fame. The bid is $6.40 cash and two shares in the new CSM for every five shares, equivalent to $2.28 a share. The new company will be 60% Pallinghurst and 40% current shareholders. It's effectively a partial takeover, well timed and on the cheap. The deal is via scheme of arrangement. Shareholder, noteholder, foreign investment review board and court approval is needed. Directors, including the MD and Chairman, keep their jobs and unanimously support the offer. Gilbertson as well as Hans Mende and Arne Frandsen of AMCI join the board.
Judging by the Sydney lunch this week, some brokers and analysts are unhappy. The premium is modest, 14% on the six month average pre-speculation price. While some are disappointed with the price, owning 40% of new CSM will share upside. Angst is linked to disappointment with previous management, falling manganese prices and the recent poor share price performance. South African management in what is "Australia's next mid tier champion" irks some. Those issues will fade after the first one or two deals. Expect the first acquisitions to be high quality and well considered. Management is determined to escape legacy issues and re-establish credibility.
The plan is to recreate the Billiton and Xstrata experience. Aggressive growth through acquisitions backed by a supportive major investor. For Xstrata it was Glencore. CSM will have Pallinghurst. Pallinghurst has US$1bn and is backed by successful private coal company AMCI. CSM's acquisitions have been a highlight. The company is already looking at potential targets. Management is finally excited after a tough year. With $320m in the game, Pallinghurst should be sufficiently motivated.
For CSM all hinges on successful deal making. We acknowledge control has potentially passed to Pallinghurst with a small premium and that acquisition growth is more difficult in a falling commodity environment and boomy resource market conditions. That said, we see more upside than down. This may be the start of multi year growth. Operations have stabilised and key markets are improving. We upgrade from Hold to Speculative Buy. CSM can be comfortably bought up to the bid price of $2.28 and potentially beyond. Our valuation rises 16% to $2.50 after investment gains, profit upgrades and adding a 25c premium for exploration, development and acquisition potential. Long term assumptions are unchanged. Asset quality reservations are likely be overshadowed by acquisitions.
1H07 NPAT was double our forecast, mainly due to creditable cost control. Sales revenue rose 8% to $119.2m compared to 2H06 with stronger manganese and nickel contributions. Manganese production was up 8%, nickel steady and chromite down 4%. Net operating cashflow more than doubled to $10.8m and the dividend was reinstated. We upgrade our adjusted FY07 NPAT forecast by 27% to $35.0m. Assumptions for 2H07 include a US$2.38/dmtu manganese price and US$15.25/lb nickel. Similarly, FY08 increases 6% to $74.7m based on US$2.50/dmtu manganese and US$11.00/lb nickel.
1H07 RESULT
1H06
2H06
1H07
%CHG*
%CHG^
Sales Revenue ($m)
103.8
110.1
119.2
+14.9
+8.3
EBITDA ($m)
21.3
21.9
30.5
+43.1
+39.5
EBIT ($m)
7.6
12.4
17.1
+123.7
+38.1
Pre-tax Profit ($m)
4.3
10.3
12.6
+191.0
+22.2
Adjusted NPAT ($m)
3.2
12.8
8.3
+162.3
-35.1
Headline NPAT ($m)
3.2
-9.7
10.2
+222.2
n/a
Adjusted EPS (cps)
1.4
5.7
3.7
+153.9
-36.0
Net Op. CF ($m)
4.8
4.2
10.8
+124.1
+154.5
DPS (c)
3.0
0.0
1.75
-41.7
n/a
Net Debt ($m)
57.4
94.2
105.4
+83.7
+11.9
EBITDA Margin (%)
20.5%
19.9%
25.6%
+24.6
+28.8
Pallinghurst Resources will buy 60% of CSM from existing shareholders. Pallinghurst is a private equity resource investor led by Brian Gilbertson of Billiton fame. The bid is $6.40 cash and two shares in the new CSM for every five shares, equivalent to $2.28 a share. The new company will be 60% Pallinghurst and 40% current shareholders. It's effectively a partial takeover, well timed and on the cheap. The deal is via scheme of arrangement. Shareholder, noteholder, foreign investment review board and court approval is needed. Directors, including the MD and Chairman, keep their jobs and unanimously support the offer. Gilbertson as well as Hans Mende and Arne Frandsen of AMCI join the board.
Judging by the Sydney lunch this week, some brokers and analysts are unhappy. The premium is modest, 14% on the six month average pre-speculation price. While some are disappointed with the price, owning 40% of new CSM will share upside. Angst is linked to disappointment with previous management, falling manganese prices and the recent poor share price performance. South African management in what is "Australia's next mid tier champion" irks some. Those issues will fade after the first one or two deals. Expect the first acquisitions to be high quality and well considered. Management is determined to escape legacy issues and re-establish credibility.
The plan is to recreate the Billiton and Xstrata experience. Aggressive growth through acquisitions backed by a supportive major investor. For Xstrata it was Glencore. CSM will have Pallinghurst. Pallinghurst has US$1bn and is backed by successful private coal company AMCI. CSM's acquisitions have been a highlight. The company is already looking at potential targets. Management is finally excited after a tough year. With $320m in the game, Pallinghurst should be sufficiently motivated.
For CSM all hinges on successful deal making. We acknowledge control has potentially passed to Pallinghurst with a small premium and that acquisition growth is more difficult in a falling commodity environment and boomy resource market conditions. That said, we see more upside than down. This may be the start of multi year growth. Operations have stabilised and key markets are improving. We upgrade from Hold to Speculative Buy. CSM can be comfortably bought up to the bid price of $2.28 and potentially beyond. Our valuation rises 16% to $2.50 after investment gains, profit upgrades and adding a 25c premium for exploration, development and acquisition potential. Long term assumptions are unchanged. Asset quality reservations are likely be overshadowed by acquisitions.
1H07 NPAT was double our forecast, mainly due to creditable cost control. Sales revenue rose 8% to $119.2m compared to 2H06 with stronger manganese and nickel contributions. Manganese production was up 8%, nickel steady and chromite down 4%. Net operating cashflow more than doubled to $10.8m and the dividend was reinstated. We upgrade our adjusted FY07 NPAT forecast by 27% to $35.0m. Assumptions for 2H07 include a US$2.38/dmtu manganese price and US$15.25/lb nickel. Similarly, FY08 increases 6% to $74.7m based on US$2.50/dmtu manganese and US$11.00/lb nickel.
1H07 RESULT
1H06
2H06
1H07
%CHG*
%CHG^
Sales Revenue ($m)
103.8
110.1
119.2
+14.9
+8.3
EBITDA ($m)
21.3
21.9
30.5
+43.1
+39.5
EBIT ($m)
7.6
12.4
17.1
+123.7
+38.1
Pre-tax Profit ($m)
4.3
10.3
12.6
+191.0
+22.2
Adjusted NPAT ($m)
3.2
12.8
8.3
+162.3
-35.1
Headline NPAT ($m)
3.2
-9.7
10.2
+222.2
n/a
Adjusted EPS (cps)
1.4
5.7
3.7
+153.9
-36.0
Net Op. CF ($m)
4.8
4.2
10.8
+124.1
+154.5
DPS (c)
3.0
0.0
1.75
-41.7
n/a
Net Debt ($m)
57.4
94.2
105.4
+83.7
+11.9
EBITDA Margin (%)
20.5%
19.9%
25.6%
+24.6
+28.8
10th March 07 Vote NO website http://www.usail2.com/consolidated_takeover_updates.htm
We're not the only ones who think that this takeover of Consolidated Minerals by Pallinghurst Resources STINKS.
“investor led by Brian Gilbertson of Billiton fame. The bid is $6.40 cash and two shares in the new CSM for every five shares, equivalent to $2.28 a share. The new company will be 60% Pallinghurst and 40% current shareholders. It’s effectively a partial takeover, well timed and on the cheap. “
“Judging by the Sydney lunch this week, some brokers and analysts are unhappy. The premium is modest, 14% on the six month average pre-speculation price. While some are disappointed with the price, owning 40% of newCSM will share upside. Angst is linked to disappointment with previous management, falling manganese prices and the recent poor share price performance. South African management in what is “Australia’s next mid tier champion” irks some. Those issues will fade after the first one or two deals. Expect the first acquisitions to be high quality and well considered. Management is determined to escape legacy issues and re-establish credibility.”
This is from Huntley's your weekly money. Pity they can't get their facts right. What it says in my letter from Consolidated Minerals is " an attractive cash and script package comprising
A $1.38 cash for each Consolidated Minerals share they hold. and
2 shares in the new company for every 5 Consolidated Minerals shares they hold."
That's what my letter says, if it said $6.40/ share, we'd all say YES PLEASE.( maybe it's just some fancy way that Huntley's do their arithmetic, but I've calculated it every way, up, down and inside out but I can't get $6.40, or do they mean $1.38X5 = $6.90) (EVEN WORSE THAN THE OFFER -NO THANK YOU)
Sounds like some brokers and analysts are unhappy, what about all us shareholders, we aren't exactly jumping for joy. Huntley's talk about upside, what 40% share in the upside, what upside, we still have the same chickens in the chook house. Maybe the rooster (Gilbertson) will be crowing at 4am to get those lazy chooks off the eggs ( before they crack them even more) and out of the warm henhouse to scratch for some more scraps.
I reckon better to put a bomb under their butts and blow them out of the chook house permanently. Maybe that is what is needed, obviously the chooks don't give a damn about all us baby chicks !!!
We're not the only ones who think that this takeover of Consolidated Minerals by Pallinghurst Resources STINKS.
“investor led by Brian Gilbertson of Billiton fame. The bid is $6.40 cash and two shares in the new CSM for every five shares, equivalent to $2.28 a share. The new company will be 60% Pallinghurst and 40% current shareholders. It’s effectively a partial takeover, well timed and on the cheap. “
“Judging by the Sydney lunch this week, some brokers and analysts are unhappy. The premium is modest, 14% on the six month average pre-speculation price. While some are disappointed with the price, owning 40% of newCSM will share upside. Angst is linked to disappointment with previous management, falling manganese prices and the recent poor share price performance. South African management in what is “Australia’s next mid tier champion” irks some. Those issues will fade after the first one or two deals. Expect the first acquisitions to be high quality and well considered. Management is determined to escape legacy issues and re-establish credibility.”
This is from Huntley's your weekly money. Pity they can't get their facts right. What it says in my letter from Consolidated Minerals is " an attractive cash and script package comprising
A $1.38 cash for each Consolidated Minerals share they hold. and
2 shares in the new company for every 5 Consolidated Minerals shares they hold."
That's what my letter says, if it said $6.40/ share, we'd all say YES PLEASE.( maybe it's just some fancy way that Huntley's do their arithmetic, but I've calculated it every way, up, down and inside out but I can't get $6.40, or do they mean $1.38X5 = $6.90) (EVEN WORSE THAN THE OFFER -NO THANK YOU)
Sounds like some brokers and analysts are unhappy, what about all us shareholders, we aren't exactly jumping for joy. Huntley's talk about upside, what 40% share in the upside, what upside, we still have the same chickens in the chook house. Maybe the rooster (Gilbertson) will be crowing at 4am to get those lazy chooks off the eggs ( before they crack them even more) and out of the warm henhouse to scratch for some more scraps.
I reckon better to put a bomb under their butts and blow them out of the chook house permanently. Maybe that is what is needed, obviously the chooks don't give a damn about all us baby chicks !!!
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Hi, The new company will be owned just 40% by todays CSM shareholders. You are forgetting we get A$1.38 cash as well and anyone who likes the new set-up can buy more shares with their money.
Yes, you can argue for more cash, fair enough, but, it is important not to scupper the deal.
Yes, you can argue for more cash, fair enough, but, it is important not to scupper the deal.
Scuttle the deal, you bet !!! That is the intention if shareholders don't get a fair deal, don't listen to the hype. Remember shareholders will only own 40%, there is no way we can vote down an deal etc after the takeover takes place. There is more behind this deal than most people realise.
zen_machine at HotCopper has done some investigation , I will post some of his info, I'm sure he won't mind, as he is in the Vote NO camp
"Gilbertson says he will build up the company.
But this not something he has done in the past.
It is all smoke and mirrors and means of getting the company cheap.
Just have a look this guy.... Arne Frandsen.
Arne Frandsen is going to be the director of strategy in the new CSM.
Gilbertson was a non-executive director in a black empowerment company called Incwala Resources which he helped to put together.
His side kick at the time was Arne Frandsen who was intalled as the executive director of the company.
Arne Frandsen promised to raise funds and expand the company.
BUT IN THE END NOTHING EVENTUATED!!!
Checkout this article
V
V
V
Frandsen quits Incwala Resources
David McKay & Allan Seccombe
Posted: Wed, 07 Jun 2006
[miningmx.com] -- INCWALA Resources CEO, Arne Frandsen, has resigned less than a year after taking up the position, an announcement that will be a blow to the empowerment outfit.
In an interview with Miningmx, Frandsen said he always planned to spend between one to two or three years at the helm of Incwala Resources. It was now logical to make way for a black CEO, he said.
"As a prominent BEE company, it is prudent that it is led by a historically disadvantaged South African," said Frandsen, who is a Denmark national. However, in terms of his contract with Incwala, he could be asked to serve a six month notice period. "That is entirely up for the board to decide," he said commenting on whether he would retain his post until the year-end.
Earlier in the day, Incwala issued a terse two line statement confirming Frandsen's retirement, and promising more details later.
Tasked with building the empowerment firm's business, Frandsen took Incwala Resources into a memorandum of understanding with Mvelaphanda Holdings in December 2005 to buy its 22% stake in Mvelaphanda Resources (Mvela Resources).
However, the proposed transaction fell through about four months later after an independent committee, established by Mvela Resources, imposed a condition of first right of refusal on new projects, a term Incwala couldn't accept.
It's thought that deputy chairperson Zanele Mavuso Mbatha may take over the CEO position on an interim basis.
Black investors own 52.8% of Incwala and Lonmin and the Industrial Development Corporation both each 23.6%. Incwala owns 18% of Lonplats, the world’s third largest primary platinum producer.
Frandsen is a banker and was appointed to Incwala having worked with Incwala's former chairman, Brian Gilbertson. It's thought that the failure to implement the Mvela Resources deal and the resignation of Gilbertson as chairman of Incwala helped isolate Frandsen. Gilbertson is a non-executive director of Incwala.
Raised expectations about consummating deals also placed extra pressure on Frandsen who was stylised in one media article as the 'Danish Viking'.
“There’s space for a real substantial fourth player in South Africa,” Frandsen said of Incwala in an interview with Miningmx dated July 20.
"It was as much a surprise to us as anyone," said James Wellsted, investor relations manager for Mvela Resources.
"What did he deliver? That was the problem," said another source. "He spoke too liberally about doing a deal a quarter and it just didn't happen," the source said.
Free news alerts: click here to subscribeSaid Frandsen: "I don't measure my success on how much of the company's money I spent. At the top of the commodity cycle, equities we want to buy are very expensive. Sometimes there's more value in not doing deals."
Frandsen helped broker SA Breweries when it bought US brewer Miller, the listing of Ashanti Goldfields in New York and the creation of Incwala itself, the latter while client CEO at JP Morgan (Europe).
"Incwala started as a company worth $400m and now it's worth in excess of $1bn," said Frandsen. "That's partly due to the platinum price but it's wholly prudent that I go now."
continue next post
zen_machine at HotCopper has done some investigation , I will post some of his info, I'm sure he won't mind, as he is in the Vote NO camp
"Gilbertson says he will build up the company.
But this not something he has done in the past.
It is all smoke and mirrors and means of getting the company cheap.
Just have a look this guy.... Arne Frandsen.
Arne Frandsen is going to be the director of strategy in the new CSM.
Gilbertson was a non-executive director in a black empowerment company called Incwala Resources which he helped to put together.
His side kick at the time was Arne Frandsen who was intalled as the executive director of the company.
Arne Frandsen promised to raise funds and expand the company.
BUT IN THE END NOTHING EVENTUATED!!!
Checkout this article
V
V
V
Frandsen quits Incwala Resources
David McKay & Allan Seccombe
Posted: Wed, 07 Jun 2006
[miningmx.com] -- INCWALA Resources CEO, Arne Frandsen, has resigned less than a year after taking up the position, an announcement that will be a blow to the empowerment outfit.
In an interview with Miningmx, Frandsen said he always planned to spend between one to two or three years at the helm of Incwala Resources. It was now logical to make way for a black CEO, he said.
"As a prominent BEE company, it is prudent that it is led by a historically disadvantaged South African," said Frandsen, who is a Denmark national. However, in terms of his contract with Incwala, he could be asked to serve a six month notice period. "That is entirely up for the board to decide," he said commenting on whether he would retain his post until the year-end.
Earlier in the day, Incwala issued a terse two line statement confirming Frandsen's retirement, and promising more details later.
Tasked with building the empowerment firm's business, Frandsen took Incwala Resources into a memorandum of understanding with Mvelaphanda Holdings in December 2005 to buy its 22% stake in Mvelaphanda Resources (Mvela Resources).
However, the proposed transaction fell through about four months later after an independent committee, established by Mvela Resources, imposed a condition of first right of refusal on new projects, a term Incwala couldn't accept.
It's thought that deputy chairperson Zanele Mavuso Mbatha may take over the CEO position on an interim basis.
Black investors own 52.8% of Incwala and Lonmin and the Industrial Development Corporation both each 23.6%. Incwala owns 18% of Lonplats, the world’s third largest primary platinum producer.
Frandsen is a banker and was appointed to Incwala having worked with Incwala's former chairman, Brian Gilbertson. It's thought that the failure to implement the Mvela Resources deal and the resignation of Gilbertson as chairman of Incwala helped isolate Frandsen. Gilbertson is a non-executive director of Incwala.
Raised expectations about consummating deals also placed extra pressure on Frandsen who was stylised in one media article as the 'Danish Viking'.
“There’s space for a real substantial fourth player in South Africa,” Frandsen said of Incwala in an interview with Miningmx dated July 20.
"It was as much a surprise to us as anyone," said James Wellsted, investor relations manager for Mvela Resources.
"What did he deliver? That was the problem," said another source. "He spoke too liberally about doing a deal a quarter and it just didn't happen," the source said.
Free news alerts: click here to subscribeSaid Frandsen: "I don't measure my success on how much of the company's money I spent. At the top of the commodity cycle, equities we want to buy are very expensive. Sometimes there's more value in not doing deals."
Frandsen helped broker SA Breweries when it bought US brewer Miller, the listing of Ashanti Goldfields in New York and the creation of Incwala itself, the latter while client CEO at JP Morgan (Europe).
"Incwala started as a company worth $400m and now it's worth in excess of $1bn," said Frandsen. "That's partly due to the platinum price but it's wholly prudent that I go now."
continue next post
