LAF in a trading halt today. This is either good news or bad news, I doubt if there is anything in between the two for this struggling miner. Probably associated with a new issue or possibly a take over. Hopefully I'll get out of this one at a profit.
LAF - Lafayette Mining
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Trading halt since yesterday. It is to do with the investor group no longer interested in exercising their exclusive call option.
hangseng
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Despite all good intentions LAF is gone, insurmountable problems it seems. I took a small loss (highly speculative holding) but I feel for those who have lost more. Lion investments have lost a small fortune.
This may hurt some spec (and larger) stocks with large debt in the short term at the moment.
This may hurt some spec (and larger) stocks with large debt in the short term at the moment.
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Dear Folks
You may have read this already. IN case not : UPDATE 3-Australia's Lafayette moves to avoid bankruptcy (Source Yahoo Finance)
Tuesday December 18, 2007, 8:17 pm
(Adds analyst comment, more detail)
SYDNEY, Dec 18 (Reuters) - Australia-listed Lafayette Mining (ASX: LAF.ax) entered voluntary administration on Tuesday to avoid bankruptcy and give it time to obtain new capital or to sell its troubled Philippine mining business.
Lafayette was the first foreign company to operate a mine in the Philippines after a law granting full foreign ownership of local projects was upheld in 2004.
But cyanide spills in 2005 shut the copper and zinc mine for more than a year, causing huge financial strain and making the Australian owner the poster child for the perils of large-scale mining in a country deeply suspicious of the sector.
The ensuing uproar hampered government plans to attract billions of dollars in foreign investments to the minerals industry but after a period of quiet, big players are testing the waters and Lafayette's financial distress is unlikely to put off the industry's slow revival.
"Mining companies always have lessons learned and cautionary tales and Lafayette always comes up," said Tom Green, executive director of Pacific Strategies and Assessments, a risk consultancy.
"The mining companies are well aware of Lafayette's woes over this thing and what they went through. They were aware of it before they started to come in."
Environmental campaigners, who have kept up the pressure on Lafayette since the spills on the central island of Rapu Rapu, saw the group's financial difficulties as a victory.
"We hope this development will lead to the permanent closure of mining operations in Rapu Rapu," said Clemente Bautista, national coordinator for environmental group Kalikasan-PNE.
But Carlos Dominguez, the chairman of the Lafayette's Philippine operations, said the mine and its 1,000 strong workforce would continue working until the Australia-based administrator told them otherwise.
"We have no plans to shut down the mine. We will stay open for as long as it is profitable," Dominguez told Reuters.
He said the project, 350 km (218 miles) southeast of Manila, was forecast to generate net cash operating income of $52 million on gross revenues of $105 million in its 2007/08 fiscal year.
A bailout plan under consideration by a private equity group, South East Asian Strategic Asset Fund, would have eliminated around A$300 million ($260 million) of Lafayette's debt and bad hedges with the help of a $151 million capital raising.
Late last month, Lafayette said crucial financial support from the private equity group was a possibility. But on Tuesday it said that the level of certainty over the plan had declined, and it had no grounds to continue to hold that view.
Australia-based administrator Ferrier Hodgson has now been appointed to take control of the the company and its property.
The Rapu Rapu mine had been forecast to turn out 10,000 tonnes of copper in concentrate, 14,000 tonnes of zinc in concentrate, 50,000 ounces of gold, and 600,000 ounces of silver annually.
LG International Corp 001120.KS and state-run Korea Resources Corp together hold a 26 percent stake in the mine. (Reporting by James Regan; Additional reporting by Carmel Crimmins in Manila; editing by Jan Dahinten)
Thanks for the heads up Miner. Good to see someone else is up waiting to see what this crazy Market does. the UK looks OK but commodities are still up and down. I wouldn't pick it at the stage.
Game on! 1:30AM
Edit: Just had a peek and the DOW is up .5% and NASDAQ .8% Hopefully we'll see some sunshine in AU tomorrow.
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Lafayette Philippines in talks with new mining investors
Tue Jan 8, 2008 4:52am EST
MANILA, Jan 8 (Reuters) - The Philippine unit of Australia-listed Lafayette Mining (LAF.AX: Quote, Profile, Research) said on Tuesday it was in serious talks with at least three foreign groups willing to take over its mine in the centre of the archipelago.
Lafayette Philippines, whose parent company in Australia entered voluntary administration last month to avoid bankruptcy, also said it was preparing to ship almost $5 million worth of copper concentrates to China later this week.
"This shipment belies reports of our bankruptcy and closure. We have not laid off employees and will not lay off anyone," Bayani Agabin, Lafayette spokesman, said in a statement.
"We are only going through rehabilitation which will allow us to continue operating and employing people while raising additional capital," he said.
Lafayette was the first foreign firm to operate a mine in the Philippines after a law granting full foreign ownership of local projects was upheld by the courts in late 2004.
But two cyanide spills in 2005 shut the mine for more than a year, causing huge financial strain on its Australian owner and stunting the mining sector's revival in the Philippines.
The Rapu Rapu mine, with its 1,000-strong workforce, was forecast to generate net cash operating income of $52 million on gross revenues of $105 million in its 2007/08 fiscal year ending in June.
Lafayette Philippines is set to export 2,700 dry metric tonnes of copper concentrates to China this week.
It is the company's sixth shipment to China since it started exporting copper in April last year following the resumption of its mine operations, which were controversially shuttered after two cyanide spills.
Lafayette owns 74 percent of the mine while LG International Corp (001120.KS: Quote, Profile, Research) and state-run Korea Resources Corp together hold the remaining 26 percent stake.
Tue Jan 8, 2008 4:52am EST
MANILA, Jan 8 (Reuters) - The Philippine unit of Australia-listed Lafayette Mining (LAF.AX: Quote, Profile, Research) said on Tuesday it was in serious talks with at least three foreign groups willing to take over its mine in the centre of the archipelago.
Lafayette Philippines, whose parent company in Australia entered voluntary administration last month to avoid bankruptcy, also said it was preparing to ship almost $5 million worth of copper concentrates to China later this week.
"This shipment belies reports of our bankruptcy and closure. We have not laid off employees and will not lay off anyone," Bayani Agabin, Lafayette spokesman, said in a statement.
"We are only going through rehabilitation which will allow us to continue operating and employing people while raising additional capital," he said.
Lafayette was the first foreign firm to operate a mine in the Philippines after a law granting full foreign ownership of local projects was upheld by the courts in late 2004.
But two cyanide spills in 2005 shut the mine for more than a year, causing huge financial strain on its Australian owner and stunting the mining sector's revival in the Philippines.
The Rapu Rapu mine, with its 1,000-strong workforce, was forecast to generate net cash operating income of $52 million on gross revenues of $105 million in its 2007/08 fiscal year ending in June.
Lafayette Philippines is set to export 2,700 dry metric tonnes of copper concentrates to China this week.
It is the company's sixth shipment to China since it started exporting copper in April last year following the resumption of its mine operations, which were controversially shuttered after two cyanide spills.
Lafayette owns 74 percent of the mine while LG International Corp (001120.KS: Quote, Profile, Research) and state-run Korea Resources Corp together hold the remaining 26 percent stake.
LAF holders can forget about getting much (if any) value for their shares as their interest in the copper mine has been sold without there being any thing left for LAF. Because the receivers are endeavouring to restructure the company the company will not be wound up at this stage so the losses are not claimable as a tax loss in this financial year. There seems little chance of the company being restructured.
