IRN - Indophil Resources

San Miguel in exclusive due diligence with Indophil

Big announcement released after market close.

Indophil makes a US$40m share placement to San Miguel at AUD0.86/share (issuing approx. 48m shares-about 10.1% of issued capital on a fully diluted basis).

This removes concerns that Indophil was fast burning through cash reserves (which were $16.8m at end of June 2010 and being spent at a rate of about $4.8m/month). Now Indophil can continue to meet its commitments with respect to Sagittarius Mines/Tampakan development in the short to mid term.

Also Indophil has entered into a binding exclusivity period with San Miguel Corporation until 10 January 2011 during which time San Miguel will complete its due diligence and decide whether to submit a "control proposal" to Indophil.

No assurances as to the price that may be offered if a proposal is put forward by San Miguel.

Indophil will immediately cease discussions with other interested parties in relation to possible corporate actions. No more data room access to be provided to these parties.

"The deal is expected to heat up once more the business rivalry between San Miguel, headed by its president Ramon S. Ang, and businessman Manuel V. Pangilinan, who chairs Philex Mining Corp"

"Philex earlier acquired 3 percent of the project from Indophil."

http://business.inquirer.net/money/topstories/view/20101008-296717/SMC-buys-into-Indophil

"?Engaging the support of San Miguel?a diversified, global corporation based in the Philippines- is a strategically important and positive outcome for the continued successful development of its mining interests. San Miguel brings significant financial strength and regional relationships, underpinned by 120 years of operational experience in the Philippines,? Richard Lauf-mann, Indophil chief executive officer, said."

...

"SMC has been diversifying into heavy industries, including mining.

It earlier acquired two coal concessions in Mindanao in line with its plan to put up a mammoth coal-fired power plant in the region.

Part of the Daguma coal reserves is also located in South Cotabato."


http://www.manilatimes.net/index.ph...erator-of-stalled-mine-enlists-san-miguel-aid

There is a history between Philex Mining Corp, San Miguel and First Pacific Co. See this blog from August 2009

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aR3RMTAUKOL0

"Aug. 7 2009 (Bloomberg) -- Philex Mining Corp. rose to a 19-year high on speculation the largest Philippine metals producer may become the target of a bidding war between San Miguel Corp. President Ramon Ang and First Pacific Co. "

and November 2009

http://www.pmea.com.ph/blog/index.php/2009/11/23/manilas-philex-mining-jumps-early-on-buy-in-talks/

MANILA, Nov 20 (Reuters) - Philex Mining Corp jumped as much as 9 percent in early trade on Friday following a newspaper report saying the president of San Miguel Corp was in talks to buy 22 percent of the Philippines’ top miner.

Unfortunately for holders, this now limits the upside. Hard to see much more than $1 given they have just placed circa 10% at 86c.

Short article in Aust Fin Review today (also picked up by Bloomberg)-

"(Sam Miguel)...was the first to respond to a demand for an equity injection..."

"Indophil Resources...is hoping for a pre-Xmas resolution"

"...the expectation is a takeover bid at anything less than $1.28/share will be tough to get past shareholders"

Philex already has 3% of Indophil.

Xstrata holds 19.9% of Indophil and could possibly side with a hostile bidder.

This capital raising-10.1% shareholding to San Miguel-should force the hand of any potential bidder.

If I was a potentail hostile bidder I'd be buying now, as quietly as I could. The after-market auction might give a few clues here.

Spot copper price could be clsoe to $US4/lb by Xmas-it's at $3.80/lb today( $US4/lb is a full 33% higher than when last takeover bid made). This should have the investment community focused on companies with large scale copper deposits.

Robin Bromby p.26 The Australian Pure Speculation today had a bit to say about the copper price-article headed "Copper is Good News".

Indophil Resources-Sydney Morning Herald article

Good article by Barry Fitzgerald in Sydney Morning Herald today here:-

http://www.smh.com.au/business/laufmann-orchestrates-san-miguel-partnership-20101010-16e23.html

San Miguel mulls tender offer for Indophil Resources

http://www.theaustralian.com.au/bus...dophil-resources/story-e6frg9df-1225937752887

Indophil Resources seeks higher offer from San Miguel

http://www.bworldonline.com/main/content.php?id=19439

"Australian miner seeks higher offer from San Miguel
DESPITE AN agreement that may lead to a takeover by San Miguel Corp., Australian miner Indophil Resources NL, part owner of the $5.2-billion Tampakan copper-gold project in Mindanao, is still open to offers from other investors.

San Miguel may also hike its exposure to the massive Tampakan project by buying shares from the majority owner, Swiss mining giant Xstrata Copper."

San Miguel may build a $900m dedicated coal-fired power plant for Tampakan.

This is another indication of San Miguel's commitment to the success of the Tampakan project.

http://www.malaya.com.ph/10182010/busi5.html

"San Miguel also appears interested in putting up a $900 million power plant to provide energy for the operations of its partly owned Tampakan project in South Cotabato.

"A revised development cost of $5.9 billion (compared with a previous estimate of $5.55 billion for a two stage development of 66 million tons per annum throughput capacity) includes the provision of $900 million for a dedicated power station," Indophil Resources Inc. told the Australian Stock Exchange.

The development was announced after the SMC completed its acquisition of a 10.1-percent stake in the Australian mining firm, which owns a 37.5-percent stake in Sagittarius Mines Inc. (SMI), owner and operator of the Tampakan gold and copper mine in South Cotabato."

http://www.manilatimes.net/index.ph...erator-of-stalled-mine-enlists-san-miguel-aid

"SMC has been diversifying into heavy industries, including mining.

It earlier acquired two coal concessions in Mindanao in line with its plan to put up a mammoth coal-fired power plant in the region.

Part of the Daguma coal reserves is also located in South Cotabato."

sorry for the quick pathetic note but I see that IRN is moving above the $1 mark and may be starting a push back towards the 1.28 that is thrown around in the media a bit.
just want to bring this to attention of anyone that is interested, perhaps better placed in the breakout potential thread. is there something in the wings ? ?

mr. jeff,

read my posts above about San Miguel.

Also there was an article on Indophil in Australian Fin Review (Street Talk) on Wednesday 3rd November containing the following comments:-

"The aim is to strike a deal before Christmas and Xstrata, which controls the $5 billion Tampakan copper-gold project,...is said to be on board".

...

""Indophil remains confident about the project and expects to secure a deal with San Miguel well before the January 10 expiry of their exclusivity agreement"

Things are hotting up for Indophil. Shareprice closed at $1.07 which is the highest it has been since 10 June this year.

News reports that San Miguel president Ramon Ang said on Wednesday that "“If everything turns out well, we’ll have to do a tender offer to buy 100 percent of Indophil”.

The conglomerate was now undertaking due diligence audit of Indophil.

http://business.inquirer.net/money/...02/San-Miguel-eyes-full-ownership-of-Indophil

Also other news articles that San Miguel had risen to 20 year highs on the Philippines stock exchange and was selling a gin distiller and expanding its energy and mining assets. San Miguel already holds 10.1% of Indophil.

http://www.bloomberg.com/news/2010-...-on-sale-of-gin-distiller-expansion-plan.html

May have hit a low a few days back of 76c. Looking like it is recovering now. Closed at 77.5c yesterday after trading as high as 78.5c.

San Miguel still interested. Philippines news mentions San Miguel is in a large capital raising. These funds could be used in part to acquire the balance of Indophil shares (San Miguel already hold 10%). San Miguel is looking at a few acquisitions outside its core business of food.

Once more news of San miguel's intentions is out this should be trading in the 90's again

http://www.mb.com.ph/articles/305106/ang-confident-planned-57b-share-sale-san-miguel

"Ang confident on planned $5.7-B share sale by San MiguelBy Rosemarie FranciscoFebruary 19, 2011, 2:27amMANILA, Philippines – Philippine conglomerate San Miguel Corp. will use proceeds from what could be the country's biggest share sale to fund acquisitions aimed at deepening its exposure in high growth power and infrastructure sectors, its president said....
Ramon Ang told Reuters the group expects to launch a follow-on share offer in April or May. The share sale could raise more than $5 billion based on prices indicated previously by Ang."

This stock has taken a hammering in last few months...with a one for one rights issue at 35c/share and insistence on local govt open cut mining ban.

Hit a low of 24.5c on Tuesday 9th August 2011.

Now trading around 35c (Tuesday 16 August 2011).

Points to consider:-

(1) Zijin Mining has indicated it has not lost interest in acquiring Indophil

(2) Local govt has said decision on review of open cut minig ban this year.

(3) Independent environmental experts from UK to fly to Philippines late Augsust/early September to advise on the Environmetal Impact study lodged for Tampakan-if their advice is positive this could be the catalyst for local government to lift the open cut mining ban

(4) There have been 3 prior takeover bids for Indophil at up to $1.28/share. However there is now twice as much issued capital -almost 1 billion shares on issue (but substantial cash as well from the capital raising).

(5) At time of previous bids gold price was aaround $1150-$1250/ounce now $1765/ounce. Copper price was ranging from $2.00-$2.50/lb and is now over $4.00/lb

(6)Zijin have stated they wish to expand their gold asset base from deposits outside China.

If a takeover bid is forthcoming, it could be at around $0.75/share. With a subsequent bidding war (possibly involvingn Xstrata) shareholders could see $1/share.

(7) The value of metal in ground at Tamapakan per Indophil share exceeds $62. This does not include molybdenum (just gold and copper)

Indophil was the best performing stock in the S & P/ASX300 resources yesterday
(16/8/2011) with a 4.62% increase.

A very rough back of envelope calculation shows the in-ground value of Indophil’s 37.5%interest in the Tampakan deposit:-.

From Indophil’s latest quarterly report, Tampakan has 15.8 million tonnes of copper and 16.2 million ounces of gold. No account is taken of molybdenum which is also present at Tampakan (and increases the in-ground value of the deposit even more)

Assuming $US9,000/tonne for copper and $US1750/ounce for gold

Overall value of copper in ground:-

15.8 million x $US9,000/tonne = $US142,200 million

Overall value of gold in ground:-

16.2 million ounces x $US1,750/ounce = $US28,350 million

Total value of copper and gold in ground= $US170,550 million

Indophil's share 37.5% x $170,550 million = $US63,956 million

With just under 1,000 million IRN shares on issue

Indophil’s share of in ground value of metal at Tampakan=$US63.956/share

Of course there is no calculation of costs of developing the mine, hedging, further dilution of Indophil shareholdings, taxes, royalties, interest, wages, infrastructure costs, mine development costs etc.

Inverted head and shoulders, sitting on resistance at 36.5c

Low risk entry here with good upside to 40/43c.

From Xstrata Jobs List 30 August 2011
Job Name Closing Date Time Remaining Action

Stakeholder and Engagement Partnership Officer - Sarangani Sagittarius Mines, Inc.
General Santos City, Philippines
To support the Sarangani cluster in stakeholder engagement and partnership activities with all key stakeholders.
31-Aug-2011
05:30 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Executive Secretary - Makati
Sagittarius Mines, Inc.
Makati City Based
To provide a high level of secretarial and administrative support.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Community Sustainability Officer (2)
Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
3-year project role; handle effective implementation of institutional and community development programs.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Civil Works Supervisor
Sagittarius Mines Inc.
General Santos City, Philippines
Senior supervisory role; to oversee planned activities to construct roads, drainage, slope protections, and other related civil road works and maintenance projects.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Field Assistants (2)
Sagittarius Mines, Inc
Tampakan, South Cotabato, Philippines
A 3-year project role; to validate ownership claims and to support land management and acquisition.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Senior Geologist / Project Geologist
Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
Senior supervisory role; responsible for geological exploration and drill core logging.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

On-site Land Acquisition and Management Officer (6)
Sagittarius Mines, Inc.
General Santos City, Philippines
Oversee and implement land acquisition strategy.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Project Approvals Advisor Sagittarius Mines, Inc.
Makati, Philippines
Senior supervisory role; to manage the national-level approval and permitting processes for the regulatory licenses for the mine / on-site and off-site projects.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Quantity Engineer / Cost Estimator
Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
To develop cost information of buildings/civil, structural, architectural, electromechanical and power plant construction.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Stakeholder Engagement and Partnership Supervisor - SARGEN
Sagittarius Mines, Inc.
General Santos City, Philippines
Senior supervisory role; to lead and supervise stakeholder engagement and partnership activities with all key stakeholders.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Shift Security Officer - Pioneering Camp
Sagittarius Mines, Inc.
General Santos City, Philippines
Supervisory role; to oversee daily operational security tasks.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Tenements Advisor Sagittarius Mines, Inc.
General Santos City, Philippines
Senior supervisory role; responsible for all tenement applications and associated statutory compliance.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Supply Supervisor
Sagittarius Mines, Inc.
General Santos City, Philippines
Senior supervisory role; to handle supply chain management.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Community Sustainability Specialist - Enterprise Development Downstream and Offsite Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
A 3-years project role; to execute established procedures and guidelines in project implementation.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Cultural Sustainability Superintendent
Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
High level role, lead the planning, development and implementation of strategies to preserve, promote and protect cultural practices of the Indigenous Peoples.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Ambulance Driver
Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
Responsible to transport patients, operate and maintain company's ambulance in compliance with the prescribed standards.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Stakeholder and Engagement Partnership Officer - KITACO / MEDCO
Sagittarius Mines, Inc
General Santos City, Philippines
To assist the implementation of projects engaged with all key stakeholders.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Stakeholder Engagement and Partnership Officer- Social License
Sagittarius Mines, Inc
General Santos City, Philippines
Oversee and maintain social contracts and agreements with external partners.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Training Officer Sagittarius Mines, Inc.
General Santos City, Philippines
To undertake/facilitate delivery of training and other functional services.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Research Analyst (2)
Sagittarius Mines, Inc.
General Santos City, Philippines
A two-year project role to conduct research and data analysis for valuation of land and crops.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Community Sustainability Specialist ? Infrastructure Projects
Sagittarius Mines, Inc.
Tampakan, South Cotabato, Philippines
Handle community engineering and infrastructure projects and resources.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Recruitment Officer
Sagittarius Mines, Inc.
General Santos City, Philippines
An HR professional with at least 4 years work experience, 2 years of which have been spent conducting recruitment
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Environment Specialist ? Buffer Zone Development
Sagittarius Mines Inc.
Tampakan, South Cotabato
This is a 3-year project role tasked to undertake research and provide technical support to the implementation of SMI?s reforestation and buffer zone development programs.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Environment Supervisor ? Buffer Zone Development
Sagittarius MInes Inc.
Tampakan, South Cotabato
This is a 3-year project role responsible for the implementation of SMI?s reforestation program and to provide technical support to various forestry-based livelihood projects as component of the buffer zone development program.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Environment Supervisor ? Field Trial and Research Station
Sagittarius Mines Inc.
Tampakan, South Cotabato
This role is responsible for the effective operation of SMI?s field trial and research stations to support biodiversity management programs.
31-Aug-2011
06:00 PM (AEST) 1 day Start New Application
Access Existing Application
Preview Application Form

Construction Engineer (2)
Sagittarius Mines Inc
Tampakan, South Cotabato
These are project roles for a 2-year engagement required to facilitate preparatory works and construction activities and liaise closely with contractors, line agencies, and government units to support the sustainable resettlement program of the Tampakan Copper-Gold Project.

http://www.indophil.com/shareholder_info.asp

Top Twenty Shareholders (as of 22 August 2011)
Name %Shareholding

Xstrata Queensland Limited 15.79%

National Nominees Limited 14.37%

HSBC Custody Nominees (Australia) Limited 8.47%

J P Morgan Nominees Australia Limited 8.44%

Morgan Stanley Australia Securities (Nominee) P/L 6.75%

Citicorp Nominees Pty Limited 5.34%

Coastal View Exploration Corporation 4.82%

Zero Nominees Pty Ltd 3.42%

Cogent Nominees Pty Limited 3.25%

Alsons Consolidated Resources Inc 2.93%

J P Morgan Nominees Australia Ltd-Cash Income A/C 2.35%

Philex Mining Corporation 1.57%

UBS Nominees Pty Ltd 1.43%

HSBC Custody Nominees (Australia) Limited - A/C 3 1.23%

Merrill Lynch (Australia) Nominees Limited 1.18%

HSBC Custody Nominees (Australia) Limited - A/C 2 1.09%

William Taylor Nominees Pty Ltd 0.96%

Citicorp Nominees Pty Limited 0.83%

ABN AMRO Clearing Sydney Nominees Pty Ltd 0.64%

Indago Resources Ltd 0.57%

Top 20 hold 85.43% of issued capital

Sure feels like something is brewing with these guys. I know that an environmental report is due any minute. They got issued a speeding ticket today.

Personally I can't see how the Philippines government is going to leave SE Asia's largest gold deposit in the ground for much longer. The price of gold is sky rocketing and the world's economy is in the pan. They have bills to pay!

Anyone think they might know what's happening? Up 20% in a week on no news. Fair bit of hopium emanating from Europe but I don't think that's it.

Government should be making an announcement soon r.e. the EIA and future of the mine. Maybe that is it.