Australian (ASX) Stock Market Forum

CUO - Copperco Limited

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monkeybusiness said:
Hi, does anyone have any idea what's happening with Copperco, from trading halt and suspension today? Does this bear well for the market price?
Cheers :eek:
Click to expand...

Well the announcement today states that the suspension is to finalise documentation related to the expansion phase for Lady Annie, so barring any other news and eventualities, this is what is happening. Once the private placement is in place, I wouldn't expect this to have a huge impact on the current sp price, although it will confirm to the Market CUO's committment to Lady Annie, and will be an interesting test of their ability to stick to a tight schedule and get Lady Annie going ahead all guns blazing.

jman
 
Well, what a dud this is turning out to be. At year low, I believe.

I think the proposed merger would have to be under some doubt due to the falling SP. Those who took up the placement at 54c would already be starting to wonder. Will the MXX offer have to be revised ? Is there something else going on behind the scenes that we are not aware of ? Have we hit the bottom ?

Ah, too many questions. :banghead:
 
TheIceMan said:
I think the proposed merger would have to be under some doubt due to the falling SP. Those who took up the placement at 54c would already be starting to wonder. Will the MXX offer have to be revised ? Is there something else going on behind the scenes that we are not aware of ? Have we hit the bottom ?
Click to expand...

I for one am very concerned at the recent turn of events,

I am not aware of any major issues that would have forced such a dramatic re-evaluation to take place. CUO was originally spawned from Mineral Securities, so now it looks like they are merging back together again. MXX basically comprises of a group of finance, geological and metallurgical gurus whose job it is to evaluate and assess resource projects around the world. If they see something they like, they purchase it and then spin it off as a new float, and that was how CUO was born.

Now if only I had my crystal ball handy...:rolleyes:

jman
 
Eureka Report has a very informative article on Cuo/ Mxx this evening. Think l bought into more than l knew but great to see the share price rise finally today and maybe the 1/4 report tomorrow will also hold some joy. Also listened to interview with MD on www.brr.com (14/4) which was confident.
Cheers
 
The merger strategy has recieved a pretty luke-warm reception from the market so far. But the recent KPMG report is interesting, in that it values MinSec significantly more than the merger details would indicate (a "preferred" value of approx Aus $0.5B).

It appears as though the recent glut of selling has dried up, and there is now a significant disparity between the numbers of buyers vs sellers, up 30% in two days. Received the CopperCo MinSec paperwork in the mail today, haven't really had a chance to look at it yet, but my back-of-the envelope calculations has Sappes in Greece sitting at about 500,000oz, but I need to do a lot more research into this project, although I've seen the words "high-grade" being thrown around.

jman
 
The price has been thrashing around a fair bit lately,

Probably a fair reflection of the mixture in sentiment towards the merger. On Friday a meeting will decide whether the merger goes ahead or not, I think it is going to be very close.

After agonizing for a while, I finally voted "yes", I know some MXX holders are not happy, and there are some reservations from the CUO quater, in inheriting some of MXX's associtated debt (?) I think for a long term outlook, diversification of CUO's assets will be important, a single commodity, single producing project does carry substansial risk. That's what clinched it for me in the end.

jman
 
Well the price has taken another hammering and today finished down nearly 6% on a day the market was up over 3%.

I'm not a holder but have been watching with interest.

Quarterly released today and while i have only skimmed though it, it looked very positive.

Anyone got any ideas on why this stock is being treated so harshly atm?
 
Pretty sure falling sp is because of the merger & believe someone overseas had been selling recently,needed funds.Report today looks Ok. Stock looks very cheap, doesn't add up, getting flogged. Beware when stocks fall by this much on a good up day.
 
So we are now in voluntary administration after CUO failed to refinance debt. What happens now? Do I kiss all my money goodbye? :mad:
 
November 29, 2008

That Was The Week That Was … In Australia
By Our Man in Oz >> www.minesite.com

Minews. Good morning Australia. It looks like your market staged a strong recovery over the past week.

Oz. It does, though it depends on where you started counting. If restricted to last week only, then it was the boom returned with the key metals and mining index up an eye-catching 25.5 per cent. If looked at over the whole of November, it was simply a case of recovering lost ground, as prices effectively moved back to where they were at the end of October. If you continue that theme of one event cancelling out the other, it was the same at a corporate level with a very strong rise from BHP Billiton (BHP) on the index counteracting the heavy fall of Rio Tinto (RIO).

Minews. Well, if the numbers don’t provide a clear picture, then what was the mood like?

Oz. Better, but once again you would have to say that the flow of news was evenly balanced, with the negatives almost cancelling out the positives. The negative situations at OZ Minerals (OZL) and CopperCo (CUO) took a lot of people by surprise. OZ was in a trading halt on Friday night as it renegotiated some of its debt facilities. That sort of renegotiation tends to frighten the horses at times when debt is hard to find. CopperCo looks somewhat worse, as administrators were called in after it failed to finalise a new debt and equity package.

Minews. Okay then, let’s start this week’s review in a different way, by looking first at the corporate situations before covering the sectors.

Oz. Good idea, because it’s the deals which provided much of the week’s news. The obvious starting point is debt, and the collapse of the proposed BHP Billiton merger with Rio Tinto. One key cause for the collapse of that deal, though there were others, was Rio’s high debt levels. The market was also relieved that BHP Billiton’s proposed new US$55 billion debt was now off the table. And you don’t have to be Einstein to see that debt also lies at the bottom of the troubles at CopperCo and OZ. In the case of CopperCo the company was killed when a “financing transaction”, as documents have it, collapsed. OZ, meanwhile, is also in the process of re-arranging debt facilities after a major shuffle of project development schedules and cost-cutting. It expects to resume trading on the ASX on Tuesday. Before requesting the suspension, OZ had fallen A4.5 cents to A55 cents. CopperCo’s last trade was at A5 cents.

The nasty bit of these re-financing and debt troubles is that even the biggest miners in the world are not immune, and that includes Rio Tinto itself. BHP Billiton’s decision to walk away from a deal it has spent years hatching tells us three things. BHP Billiton does appear to be genuinely concerned about Rio Tinto’s US$42 billion debt, acquired when it bought Alcan. It is also likely that the concern stretches as far as BHP Billiton itself, worried about the chances of re-financing such an enormous dollop of money at a time when debt markets are closed. The third message is that BHP Billiton has sidelined itself, but only until next year, when it might re-bid for Rio Tinto at a substantially lower price, or buy some of its assets should forced sales become necessary.

Minews. An interesting scenario. Time now for prices, please.

Oz. This is the good bit, but remember we’re looking at one week’s recovery and while the earlybirds sometimes get the worm, they can also move too soon. Let’s have a look at other deals because there was some good news to be had there too. OM Holdings, a low-key manganese miner, appears to be in the takeover cross-hairs of Ukrainian-controlled Consolidated Minerals which snapped up an 11 per cent stake in the company during the week. That move drove OM shares up by 62.5 per cent to A$1.30. Meanwhile, Moly Mines (MOL) reported that it is looking for possible joint venture partners for its Spinifex Ridge molybdenum project, an announcement which helped lift the stock by 29.5 per cent to A28.5 cents.

And as we switch now to the sectors, it’s worth noting that this was a week when finding any stock which fell was a hard job, and that makes a pleasant change from playing spot the riser which we’ve been doing a lot of over the past few months. Among the gold, uranium and iron ore sectors it was all up. Most of the coal stocks also rose, while the base metals did not do as well.

Minews. Let’s start with gold.

Oz. Biggest mover was a stock we haven’t heard much from for a long time, Tanami Gold (TAM). After a long struggle Tanami seems to have got its operations and financial matters back into good order, a process which has included a fresh capital raising. The company’s shares rose a seemingly tiny A1.5 cents during the week, but when you’re coming up from a A0.7 cents Friday’s closing price of A2.2 cents represents a stellar gain of 214 per cent. Another gold company on the rise was Adamus (ADU), up by 76 per cent to A22 cents, though it is worth noting that the low price of the previous week was on very thin turnover. And other gold movers included Perseus (PRU), up by 20 per cent to A30 cents, Allied Gold (ALD) up by 25.6 per cent to A27 cents, Troy (TRY), up by 17 per cent to A82 cents, Centamin (CNT), up by 17 per cent to A82 cents, and Kingsgate (KCN), up by 12.6 per cent to A$2.67.

Minews. Iron ore next.

Oz. All up, as mentioned earlier. Atlas (AGO) regained a bit of lost ground with a rise of 42.2 per cent to A64 cents. Northern Iron (NFE), another emerging producer, and one which we took a look at mid-week, was up by 25.4 per cent to A69 cents. Mt Gibson (MGX) shook off some of its recent heavy losses to rise 46 per cent to A30 cents. Meanwhile, Territory (TTY) also made a modest comeback after a sharp fall during November. It closed at A11 cents, up 37.5 per cent. FerrAus (FRS) was another strong riser, 33 per cent to the good, and finally Gindalbie (GBG) rose 18.8 per cent to A41 cents.

Base metal stocks put in a mixed performance, as we said, but it was notable that there were few reasonable recovery stories among the zinc producers. Perilya (PEM) ended a long losing streak with a rise of 33 per cent to A14 cents. CBH (CBH) rose by 30 per cent to A3.9 cents,, and Kagara (KZL) rose 29 per cent to A44 cents.

Copper stocks were more muted, perhaps because of CopperCo’s demise and the debt issues at OZ. Marengo (MGO) was the star, though rising off a low base. It rose 50.6 per cent to A11 cents. Also moving up, Anvil (AVM) rose 11.7 per cent to A95 cents, and Equinox (EQN) rose 12 per cent to A$1.68. Among the fallers, Citadel (CGG) dropped half a cent to A12.5 cents.

Nickel stocks trended up, some better than others. Independence (IGO) rose by 20 per cent to A$1.48, Western Areas (WSA) rose 27 per cent to A$3.50, and Mincor (MCR) was steady at A52 cents. On the downside, Albidon (ALB) slipped A1 cent lower to A24 cents, although the company does seem successfully to be addressing market concerns about the working capital issues at the Munali nickel mine in Zambia. On thing the market liked was that its Chinese off-take partner was sticking by it.

Minews. Let’s finish with uranium and coal.

Oz. It was hard to find a uranium stock that lost ground last week. Bannerman (BMN) continued to star thanks to its new management team and its fresh capital. The company rose 19.5 per cent to A58 cents. Wild Horse (WHE) delivered a terrific return for some lucky punter, rising by 111 per cent to A9.5 cents, while Uranex (UNX) rose 17 per cent to A17 cents.

Most coal stocks rose. Riversdale (RIV) rose a very strong 34.7 per cent to A$2.56 as it strengthened ties with the Talbot Group, the private company behind Macarthur Coal (MCC). Macarthur itself performed slightly less strongly, rising 9.4 per cent to A$3.71. Coal of Africa (CZA) shook off its losing streak with a strong 46.5 per cent rise to A$1.26. But losing ground, Felix (FLX) and Centennial (CEY) fell by 15.4 per cent and four per cent respectively, to A$5.50 and A$2.61.

Minews. Thanks Oz.
 
On another forum (HC), a shareholder group has been created to explore what options might be available for anyone caught out by the CUO collapse. The more the better as there is strength in numbers and a bigger range of ideas etc. From Susan's emails so far it seems like all hope is not yet lost.

To join the group, email Susan at the address below:

hayman_and_king@hotmail.com

(Permission has been obtained to post this)

Cheers, V
 
hi all,
i'm new to this forum and this is my first post so be kind...lol..

with regards to copperco, i had 100,000 shares in this lemon and i'm outraged that the management were talking up the companies position at a mining conference only days before they went into receivership!!!!!
surely some sort of business ethic's law has been violated by these scoundrels??? i have read that the brokerage firm 'fat prophets' are calling for an enquirey from the relevant government body into CUO's demise as they had a "buy" rating on the company.

i am disgusted that a profitable,producing company could be so destroyed and now seems to be going to have its assets sold off in a fire sale to the detriment of its shareholders and for the profit of macquarie bank, surely minsec's huge debts ($35M) to macquarie bank should have been made public knowledge for shareholders prior to the merger vote?

i hope i havnt violated any of this forums rules but i am smokin mad about the whole thing! :mad:
 
bandicoot76 said:
hi all,
i'm new to this forum and this is my first post so be kind...lol..

with regards to copperco, i had 100,000 shares in this lemon and i'm outraged that the management were talking up the companies position at a mining conference only days before they went into receivership!!!!!

i hope i havnt violated any of this forums rules but i am smokin mad about the whole thing! :mad:
Click to expand...

Hi Bandicoot,

Don't worry, there has been a lot worse things said on this forum ;)

I am very sympathetic towards your plight, as I "was" (and technically still am) also a CUO shareholder and was caught completely buy surprise in their collapse. There was clearly blatant insider trading occurring over the past 1-2 weeks as those-in-the-know cashed in their shares. This by itself should be investigated.

You pretty much nailed it with the reference to the MinSec nasty $35-40M debt, tbh even the analaysts who followed the stock were scarcely aware of it. It makes me think MinSec were just after CUO's cash. It s extremely annoying that a relatively successful operation will probably be broken up and sold for next to nothng, and we as shareholders will get zilch.

By the way, I bought at 60c, rode it to $1.20 and from there to zero :eek:

jman
 
re:jman

good to hear i'm not the only one suspicious of the whole mess, wow i bought at 40c and thought i'd been hit hard! sorry to hear you got a worse deal mate.

i'm always nervous when macquarie bank gets involved in things,do you think minsec could have been a 'trojan horse' for "other interests" to get hold of copperco's assets?
 
anyone know if we, the shareholders, will get ANYTHING back on our CUO "investment"????????????????????????????????????????????????????
 
I hate to sound smug, but this is why technical analysis is soo important. CUO gave a clear SELL signal back in early 08 when it traced out a Head and Shoulders reversal pattern. Investors could have got out at $0.70 and never re-entered as it never again offered a buy signal.
 

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anybody have any news about whats happening regarding copperco's assets etc? i have been searching the web for any snippets of information with no luck, i guess we just have to wash our hands of it, take our losses and live & learn hey? :mad:
 
The following was released by Cape Lambert in the UK.

Headline Cape Lambert acquires CopperCo secured debt
Released 11:30 06-Feb-09
Number 9288M11

RNS Number : 9288M
Cape Lambert Iron Ore Limited
06 February 2009

Cape Lambert Iron Ore Limited
6 February 2009
Cape Lambert acquires CopperCo secured debt

Australian resources company Cape Lambert Iron Ore Limited ("Cape Lambert") (ASX: CFE, AIM: CLIO) has today acquired the secured debt owed by ASX listed CopperCo Limited (ASX: CUO) ("CopperCo") and its subsidiaries from Macquarie Bank Limited ("Macquarie") and LinQ Capital Limited as Responsible Entity for the LinQ Resources Fund.

The directors of CopperCo and other members of the CopperCo corporate group appointed joint and several administrators on 26 November 2008. On the following day, Macquarie appointed joint and several receivers and managers. Following the acquisition of the secured debt by Cape Lambert, the existing receivers and managers have been replaced and Gary Doran and David Lombe of Deloitte Touche Tohmatsu Australia have been appointed as new joint and several receivers and managers.

Under the transaction, Cape Lambert acquired CopperCo's outstanding secured debt to these parties for a total cash payment of approximately AUD$72.7 million (the payment of approximately AUD$15.0 million of which is deferred until late July 2009).

In addition, Cape Lambert has provided bank guarantees in place of existing performance bonds and receivers unpaid liabilities to an approximate aggregate of AUD$33.8 million.

The Board of Cape Lambert believes that the CopperCo group holds an attractive portfolio of assets which represent significant value, despite current market conditions. Cape Lambert believes that this transaction provides an exposure to CopperCo's assets in a relatively low-risk manner and is confident of securing a return on its investment.

A further announcement in relation to this transaction will be made in due course.

For more information please contact:

Cape Lambert Iron Ore Limited:
Tony Sage +61 (0)8 9380 9555

Australian Enquiries:
Professional Public Relations
David Tasker +61 (0)8 9388 0944/ +61 433 112 936

UK Enquiries:
Nominated Adviser:
Grant Thornton UK LLP
Fiona Owen +44 (0)20 7383 5100

AIM Broker:
Collins Stewart Europe Limited
Adrian Hadden +44 (0)20 7523 8353

Conduit PR:
Jos Simson +44 (0)20 7429 6603/+44 (0)7899 870 450
Jane Stacey +44 (0)20 7429 6606

Website: www.capelam.com.au


This information is provided by RNS
The company news service from the London Stock Exchange
 

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