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good call kennas - went past your target this morning! could find support at 2.10
EQN - Equinox Minerals
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that shld have been resistance at 2.10 - which it did and now looking for support at 1.90-1.95 area - still not sure of placements impact at 1.60 so could drift lower.
still long term hold imo - especially when you have a US$1.1 billion to your project - article below
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Lumwana's lucrative by-product
Ben Sharples
Friday, 8 September 2006
WITH a uranium spot price in excess of $US50 per pound, Equinox Minerals is sitting on 22 million pounds of a potentially lucrative by-product at its Lumwana copper project in Zambia.
Addressing delegates at the Africa Downunder Conference in Perth yesterday, Equinox president and chief executive Craig Williams stressed the main focus would be to bring the copper project online, with the uranium an "add-on to the development plan".
"In the current high price market for uranium, we are re-evaluating the potential for a significant uranium by-product from the mine," he said.
"The uranium is not part of our current development plan but may now be an add-on to this plan, as Lumwana's bankable feasibility study was based around a uranium price of $US11/lb compared to the current $US50/lb."
Williams said the uranium occurred as discrete high-grade veins within the copper pits and the company would likely selectively mine and stockpile the uranium ore.
Equinox, which is dual-listed on the Toronto and Australian bourses, is looking to produce about 150,000 tonnes of copper annually from the $US762 million ($A1 billion) Lumwana project when it comes online in 2008.
The project has a mine life of 37 years.
still long term hold imo - especially when you have a US$1.1 billion to your project - article below
______________________________________________
Lumwana's lucrative by-product
Ben Sharples
Friday, 8 September 2006
WITH a uranium spot price in excess of $US50 per pound, Equinox Minerals is sitting on 22 million pounds of a potentially lucrative by-product at its Lumwana copper project in Zambia.
Addressing delegates at the Africa Downunder Conference in Perth yesterday, Equinox president and chief executive Craig Williams stressed the main focus would be to bring the copper project online, with the uranium an "add-on to the development plan".
"In the current high price market for uranium, we are re-evaluating the potential for a significant uranium by-product from the mine," he said.
"The uranium is not part of our current development plan but may now be an add-on to this plan, as Lumwana's bankable feasibility study was based around a uranium price of $US11/lb compared to the current $US50/lb."
Williams said the uranium occurred as discrete high-grade veins within the copper pits and the company would likely selectively mine and stockpile the uranium ore.
Equinox, which is dual-listed on the Toronto and Australian bourses, is looking to produce about 150,000 tonnes of copper annually from the $US762 million ($A1 billion) Lumwana project when it comes online in 2008.
The project has a mine life of 37 years.
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After a lot of confusion and concern - the Zambian elections appear to have gone the right way for EQN
Financing and hedging will be announced in this quarter
Take-off time
Financing and hedging will be announced in this quarter
Take-off time
Sean K
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The ASX charts dont mean much on this one. Volume is 10 times higher on TSX (hence the gaps). I certainly dont fear too much resistance from a chart when financing is announced and they build the mine with output of 180,000 tonnes of Cu per annum.
EQN has fallen 40c because of the election concerns and copper is still $3.40
EQN has fallen 40c because of the election concerns and copper is still $3.40
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Drilling results from new prospect looking good.
Equinox Minerals Limited (TSX:EQN)(ASX:EQN) (the "Corporation") is
pleased to announce drill results for its recently completed drill
program at the Ndola West prospect including an intercept of 64m @ 2.33% Copper, including 38m @ 3.5% Copper.
Eight 4" Reverse Circulation ("RC") holes were drilled for a total of
715m on three lines covering a strike length of 600m along the NE limb
of the Ndola West synform with the best intersection being from hole number KIT0003 generating 64m (depth 32m to 96m) grading 2.33% copper including 38m (depth 58m to 96m) grading 3.5% copper.
Ndola West has generated significant previous intersections (including 9.0m of 3.8% Copper) and interpretation of the geochemical and geophysical data by the Corporation suggests that copper mineralization could extend along a strike length of up to 4.5km
Another elephant in the making?
How many of these are around on the massive Zambian copper belt land holding?
Very early days yet - but a tidy addition to the world-class Lumwana project could be on its way!
Financing for EQN's Lumwana project has the majority of bankers signed off.
Partial hedging of the 2008 production of 396,000,000 pounds will be announced in coming months. Could be done at above $3.00lb USD.
37 year mine life
Only A$900m cap
Do the math...
Equinox Minerals Limited (TSX:EQN)(ASX:EQN) (the "Corporation") is
pleased to announce drill results for its recently completed drill
program at the Ndola West prospect including an intercept of 64m @ 2.33% Copper, including 38m @ 3.5% Copper.
Eight 4" Reverse Circulation ("RC") holes were drilled for a total of
715m on three lines covering a strike length of 600m along the NE limb
of the Ndola West synform with the best intersection being from hole number KIT0003 generating 64m (depth 32m to 96m) grading 2.33% copper including 38m (depth 58m to 96m) grading 3.5% copper.
Ndola West has generated significant previous intersections (including 9.0m of 3.8% Copper) and interpretation of the geochemical and geophysical data by the Corporation suggests that copper mineralization could extend along a strike length of up to 4.5km
Another elephant in the making?
How many of these are around on the massive Zambian copper belt land holding?
Very early days yet - but a tidy addition to the world-class Lumwana project could be on its way!
Financing for EQN's Lumwana project has the majority of bankers signed off.
Partial hedging of the 2008 production of 396,000,000 pounds will be announced in coming months. Could be done at above $3.00lb USD.
37 year mine life
Only A$900m cap
Do the math...
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BSD - but happy to see its progress today..
I haven't had time to read announcements for EQN so wondering if you know if they have made a decision on whether they will be mining the uranium or not? seem to remember seeing they were to decide on this at some stage?
thnks
I haven't had time to read announcements for EQN so wondering if you know if they have made a decision on whether they will be mining the uranium or not? seem to remember seeing they were to decide on this at some stage?
thnks
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Progress on 23million shares traded last night on TSX.
Broker upgrades have emerged from most houses over the last week and the placement overhang appears to be gone.
EQN has defined a 22,000,000 lb U resource in the higher grade Malundwe pit. Being in discrete lenses the U ore can be set-aside for future processing.
At current prices the U is worth over a billion US dollars in ground and is not included in most valuations from brokers.
Off the top of my head, Huntley has $0.10 and Sprott CAD$0.40 (A$0.60) as the value for the U in their valuation models.
The original bankable feasibility had the U breaking even at $11lb - spot is now well in excess of $50lb. A plant was designed and recoveries of 97% were achieved without contamination of the Cu.
Personally, I think that once the copper project is up and running and the US$500m of debt is paid down in the first 12-18 months from free cashflow, EQN will be able to finance the addition of a U circuit to produce yellowcake and also look towards their own roast-leach-electrowin facility to produce Cu cathode onsite - reducing costs substantially.
They may also bring a partner on board for the U.
Remember also that current drilling underway on the Kanga anomaly is along strike from the Malundwe pit that hosts the Uranium and higher grade copper reserves in the Lumwana project - all at shallow depth.
Results from Kanga should be out in the next 4-6 weeks.
They also have multiple nearby prospective U targets and more than 10 on their overall ground package.
To date, EQN has been more concerned with getting financing of the project completed based on the Cu in Lumwana alone.
With 7.8 BILLION lbs of Cu in the ground (measured, indicated and inferred)- why not?
At $3.50USD/lb that is currently worth $27billion USD!!! (a stupid measure but great for effect!)
But with $200m in the bank - a bit of drilling will never be out of the question for a team of geos like those working with EQN.
CEO Craig Williams was instrumental in the discovery and development of Ernest Henry.
Broker upgrades have emerged from most houses over the last week and the placement overhang appears to be gone.
EQN has defined a 22,000,000 lb U resource in the higher grade Malundwe pit. Being in discrete lenses the U ore can be set-aside for future processing.
At current prices the U is worth over a billion US dollars in ground and is not included in most valuations from brokers.
Off the top of my head, Huntley has $0.10 and Sprott CAD$0.40 (A$0.60) as the value for the U in their valuation models.
The original bankable feasibility had the U breaking even at $11lb - spot is now well in excess of $50lb. A plant was designed and recoveries of 97% were achieved without contamination of the Cu.
Personally, I think that once the copper project is up and running and the US$500m of debt is paid down in the first 12-18 months from free cashflow, EQN will be able to finance the addition of a U circuit to produce yellowcake and also look towards their own roast-leach-electrowin facility to produce Cu cathode onsite - reducing costs substantially.
They may also bring a partner on board for the U.
Remember also that current drilling underway on the Kanga anomaly is along strike from the Malundwe pit that hosts the Uranium and higher grade copper reserves in the Lumwana project - all at shallow depth.
Results from Kanga should be out in the next 4-6 weeks.
They also have multiple nearby prospective U targets and more than 10 on their overall ground package.
To date, EQN has been more concerned with getting financing of the project completed based on the Cu in Lumwana alone.
With 7.8 BILLION lbs of Cu in the ground (measured, indicated and inferred)- why not?
At $3.50USD/lb that is currently worth $27billion USD!!! (a stupid measure but great for effect!)
But with $200m in the bank - a bit of drilling will never be out of the question for a team of geos like those working with EQN.
CEO Craig Williams was instrumental in the discovery and development of Ernest Henry.
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BSD said:
I Like EQN. Dirty Cheap compare with Ivanhoe, etc., plus uranium resources. I almost get out of it before the election. I hold on it after I made a bit political research. After this risk is gone, there is no reason that it will go much higher.
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anyway know why EQN has dropped 10% today? - no announcements...
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Checked the copper price?
Cu -7% on my source
Cu -7% on my source
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Equinox Signs US$583.8 Million Bank Debt Facility for the Construction and Development of Lumwana
http://www.ccnmatthews.com/news/rel...earchText=false&showText=all&actionFor=624987
Another tick in the box for EQN on the way to producing in 2008
Offtake/smelting agreements and hedging to come next year while EQN spends the $200m they already have in the bank.
Interesting that banks are happy to lend on the basis of 30% hedging. A bullish sign for the medium to long term view on the copper price.
Touched $2.20CAD overnight on TSX
The broker valuations will push even higher now with discount rates coming down with greater certainty.
EQN will be Australia's largest listed copper pureplay at production.
http://www.ccnmatthews.com/news/rel...earchText=false&showText=all&actionFor=624987
Another tick in the box for EQN on the way to producing in 2008
Offtake/smelting agreements and hedging to come next year while EQN spends the $200m they already have in the bank.
Interesting that banks are happy to lend on the basis of 30% hedging. A bullish sign for the medium to long term view on the copper price.
Touched $2.20CAD overnight on TSX
The broker valuations will push even higher now with discount rates coming down with greater certainty.
EQN will be Australia's largest listed copper pureplay at production.
Sean K
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Hhhmmm, if Xstrata don't pick it off first. They're on the look out.BSD said:
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kennas said:
Very interesting you mention Xstrata in particular. Very interesting...
The biggest copper mine in Africa in one of the most politically reasonable countries must have some appeal to the majors. I note a number of players signalling a growing interest in Africa and Central Asia.
Any deal would have to be friendly and would need to be pitched at $4.00+.
I would not be happy selling below $5.00
This company has drilling targets and a land position to bring numerous copper mines into production over the next 10-20 years and let us not forget about all of that wonderful Uranium.
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Broker upgrades in Canada are out:
Sprott Securities: $3.65CAD price target
GMP: $2.75CAD price target
Raymond James: $3.80CAD price target
"We believe that Lumwana is the most attractive near-term copper development project not yet controlled by a major mining company"
_______________________________________
The OmegaCorp takeover would value EQN's U308 (60% more) at $0.60 per share.
The current share price has $0 valuation for the U308 - let alone the multiple drilling targets on their land position
Sprott Securities: $3.65CAD price target
GMP: $2.75CAD price target
Raymond James: $3.80CAD price target
"We believe that Lumwana is the most attractive near-term copper development project not yet controlled by a major mining company"
_______________________________________
The OmegaCorp takeover would value EQN's U308 (60% more) at $0.60 per share.
The current share price has $0 valuation for the U308 - let alone the multiple drilling targets on their land position
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BSD said:
Thanks for the update. I believe both EQN and CMR are excellent contenders to be the next producer after PDN on ASX. A near producer could be valued much higher in terms of EV/lb.
Happy to be challenged here as I am not even close to being an expert.
Check out the MACD and MDI on this chart. The Blue line rises above the Red and crosses the zero line (or will do shortly)...... indicative of a strong bullish signal? A similar pattern occured back in mid August and again in October .......all preceeded by stronger volumes.
Ignor the black line...thats unintentional
Check out the MACD and MDI on this chart. The Blue line rises above the Red and crosses the zero line (or will do shortly)...... indicative of a strong bullish signal? A similar pattern occured back in mid August and again in October .......all preceeded by stronger volumes.
Ignor the black line...thats unintentional
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I am a patient holder of this one because of the vast amount of copper resources, and exploration upside. Plus the uranium as a sidekick. In short term, the share price seems to be up and down with copper price. I believe there is a opportunity it should be re-rated for near-term producer.
I still believe it is a good takeover target. I can wait. Let's see...
I still believe it is a good takeover target. I can wait. Let's see...
the canadian brokers wanted the uranium aspect talked up by the directors but they haved raised enough capital and seemed to be going the silent achiever path.winning international mining awards and having every drill hole hitting copper including 3 with uranium.you know with such a large deposit they will raise yearly output up to 250000 tonnes per year.this is a lont term elephant.
