EQN - Equinox Minerals

[Halba]

Hi mmmining.


Doesn't seem to be getting hit too hard on the TSX. Bear in mind this will be the largest individual mine in africa so its got strategic value. Cobalt, Uranium prices are and will continue to be at high levels. Zambia is also a good country to invest.

Disclosure: have a small position in this one for long term.

Additionally with the Kanga open pit to the south, they can increase production above the base case provided.

 

[mmmmining]

EQN has got $232.2m from a share placement.

One line in the ann. is, quote:

"The Company will also use funds to undertake a feasibility study on the treatment of the Lumwana uranium ore, the funding of ongoing exploration for both copper and uranium in Zambia..."

To revisit: EQN has 19.4mlb U3O8 indicated resources, and further 2.4mlb inferred.

Like BHP, uranium will be the by-product..

I believe either EQN or CMR, both are classified as base metal producers are the next uranium producers for companies on ASX.

 

[Halba]

Agree.

Its going to be a tight call between EQN, CMR or AGS which have jorc.

 

[petervan]

Ausenco gets the job to do the groundwork for uranium production.they are doing the prep work for Luwanna and seem to have a good relationship.By q1 2008 they have everything in place to decide what to do with the uranium.Can see a few million more oz with all the drilling going on.Might be in production by 2009.

 

[56gsa]

One line in the ann. is, quote:

"The Company will also use funds to undertake a feasibility study on the treatment of the Lumwana uranium ore, the funding of ongoing exploration for both copper and uranium in Zambia..."

To revisit: EQN has 19.4mlb U3O8 indicated resources, and further 2.4mlb inferred.

Like BHP, uranium will be the by-product..

I believe either EQN or CMR, both are classified as base metal producers are the next uranium producers for companies on ASX.

well spotted mmmining - confirmed with announcement today - now 21m lbs means $2bn resource which i don't believe has been factored into share price - once people realise this and start talking EQN as a uranium stock this re-rate
ann does mention UFS will confirm if uranium extraction is economically viable - presume this is to do the chemical extraction process which i obviously have no idea about - any metallurgists out there that can describe this? how often do you have a 21m+ lb resource @ US$100 / lb thats not economically viable?

 

[mmmmining]

I always thought EQN is an excellent takeover target. But I might be wrong because CEO has a huge "Ego", and want to see the finish line. Nothing wrong, as we are proud Aussies, as long as he is capable of doing his job, so far so excellent.

The huge re-rating will be around the corner for Copper/uranium producer if the budget is under control.

You can email them to ask for the latest broker reports. They will MAIL it to you no matter where you are, every time.

 

[petervan]

Correct me if i,m wrong but i believe when they set up in Canada, they organised the shareholdings so you could not own more than 20%.A newscorp scenario like a poison pill.That might be ego in play.

 

[Halba]

hmm 20 million pound resource...lets not get excited here there are plenty of specialist uranium companies with a bigger resource and better grade

 

[deftfear]

Sure there are other specialist companies with bigger resources, but do any of them have an undeveloped resource the size of Lumwana? Apparently its the largest undeveloped copper resource in construction at the moment, and they are just looking at the uranium as a by product. The uranium has been so insignificant to them in the scheme of things.

Any of those specialist companies would be doing all they can to get a jorc, bfs etc for a resource that size, but this company has such a great project that they just put the uranium on the back burner while they focus on their copper project. Doesn't that say something about the company if they just let the uranium sit there and go unnoticed for so long?

I do not hold, sold out of this in the crash

 

[kerosam]

hi fellows,

went on to the asx website to find a web link to EQN... do they actually have a website???

just want to find out what this company does or specialises... all it says from the asx website is 'mineral exploration & production'.

 

[nomore4s]

Try this link

www.equinoxminerals.com

 

[kerosam]

thanks nomore4s!!

so their main resource is copper... and maybe uranium, with the recent feasiblity studies.

did i miss anything?

 

[56gsa]

this is now testing tops of 18month holding pattern and 10-year highs - presumably on the back of stronger copper but also perhaps peoples also realising U potential, and the fact it may be producing U by 2008

the previous BFS they did a few years ago found the U was uneconomic at the then current price of $11/lb!! will probably be $111/lb by the time they finish this one

enjoy

 

[mmmmining]

With U or without U, it is a huge project, and can make a lot of money. A lot of brokers call it CAN$4+ stocks even copper price at $2/lb. It will be the largest copper mine in Africa, 373mlbs/yr copper at cash cost US$0.8 with 37 years life.

According to RCR, the uranium project has NPV/share at $0.77.

 

[BSD]

New highs on both ASX/TSX this week with massive volume on TSX and buyers happy to pay a premium on ASX due to lack of stock available on sell side

Canadian brokers continue to upgrade EQN targets.

GMP going from CAD$2.75 to CAD$3.25 (A$3.50) target yesterday.

EQN remains cheap on all metrics

 

[danc]

Another strong day day week mth look sensational. weekly really tells story with breaking of triangle just all green candles OBV on all three time frames very hi.looks the goods to me.

 

[56gsa]

looking very interesting now since announcement of mining couple of weeks ago - has had a bit of a breather, not pushing thru $3 mark, but now on the rise again

fib works very well from the 2.09 support level - currently testing the 61.8% level - there was a peak in share price back in late 1990s around the 3.05-3.15 mark - not sure how much influence this will have now? Based on fib the target would be around the $3,50 mark which equates nicely with GMP's target as mentioned above

 

[danc]

Why would you sell at 3.50?? with what it has going on looks set to run a lot higher,potential to be a huge copper producer in the not too distant future, up grade of ux resource, to produce ux 08??? surely a lot higher almost at 3.5 now.Looking at the mth ly chart since the all time low there have been 13 up mths and 10 wishy washy down mths and the positive vol certainly favours the up side i am going to back it to go a lot higher than 3.50 all things being equal.

 

[56gsa]

Why would you sell at 3.50?? with what it has going on looks set to run a lot higher,potential to be a huge copper producer in the not too distant future, up grade of ux resource, to produce ux 08??? surely a lot higher almost at 3.5 now.Looking at the mth ly chart since the all time low there have been 13 up mths and 10 wishy washy down mths and the positive vol certainly favours the up side i am going to back it to go a lot higher than 3.50 all things being equal.

Agree danc - I'm in this one for the long haul - but if it looks like clearing $3 might be worth a shorter term trade? What do you think of the previous spike back in the late 1990s - does this still have an impact on resistance levels today - i imagine anyone that bought at those levels previously have long since sold out? in which case clearing $3 may see a clear run to $3.50 and in essence this is blue sky for EQN??

all being said copper is at its high again and looks to have got nervous approaching the $3.80 mark so of course EQN will retreat if we see a fall in copper - i do think tho this is currently being re-rated so we might see support levels around 2.40 - 2.65?

 

[56gsa]

10% rise today sees it sitting pretty at the $3.50 mark.. with large sale at end of the day. This against the recent falls in copper suggests a possible re-rating based on further canadian interest ie recent broker recommendation? delayed response to uranium feasability study news? or is it too out of the question to be talking possible takeover?