LNR - Lanthanein Resources

[alankew]

My limited understanding is that sells(usually for small amounts?is this correct)are placed to keep the sp at a lower price so tha the capper can accumulate at a much lower price than the comapny is worth

 

[Spaghetti]

From ASX site

Capping and pegging
This involves activity on both the stock market and the derivatives market. A trader writes an option, which obliges the trader to sell to (in the case of a call option) or buy from (in the case of a put option) the option holder a specified number of shares at a specified price. The trader then trades in the shares covered by the option in order to affect the share price in a direction that will make the option unprofitable to exercise.

 

[mick2006]

gee whiz guys who thought a single email could cause so much discussion

well back to the business of making money, its amazing how often a single announcement can change the outlook for a particular stock. Time after time I have seen stocks trade sideways un-noticed until a market sensitive release. I for one are hoping this is the case for FNT, we have seen it run on announcements before and then drop back into a trading range. This time maybe a little different, not so much with the first announcement only one drill hole, but in about two weeks there will be a very detailed large scale announcement in regards drilling results from Kodu (PNG).

And on top of that a week or so later the Resource Upgrade statement, and if you go by the wording of previous announcements this will be a significant increase in tonnage and inturn resources.

Why do I think it may run this time compared to previous attemps, because of the continious releasing of drilling results it won't be given time to settle in a rut without news!

Anyway its good to see such varied debate about the merrits of FNT its never fun to only see one side of the story.

 

[greggy]

gee whiz guys who thought a single email could cause so much discussion

well back to the business of making money, its amazing how often a single announcement can change the outlook for a particular stock. Time after time I have seen stocks trade sideways un-noticed until a market sensitive release. I for one are hoping this is the case for FNT, we have seen it run on announcements before and then drop back into a trading range. This time maybe a little different, not so much with the first announcement only one drill hole, but in about two weeks there will be a very detailed large scale announcement in regards drilling results from Kodu (PNG).

And on top of that a week or so later the Resource Upgrade statement, and if you go by the wording of previous announcements this will be a significant increase in tonnage and inturn resources.

Why do I think it may run this time compared to previous attemps, because of the continious releasing of drilling results it won't be given time to settle in a rut without news!

Anyway its good to see such varied debate about the merrits of FNT its never fun to only see one side of the story.

Mick2006,

Its unbeleivable how people don't realise enough how valuable a tool it is to contact company directors in relation to getting a better feel of the company. Most directors worth their salt are often too happy to communicate with shareholders as they themselves gain a better understanding of market sentiment towards their stock. IMO when communicating with companies, if the directors aren't helpful in answering questions I will just take those companies off my watch list. Directors not responding to shareholders queries is definitely a big turn off. To me it shows that they're just not interested.
Its good to post such information on these threads for the benefit of ASF users. I do this whenever possible. Its then up to the individual member to make up their own minds about the information contained. Should they have any doubts they can either ignore it or perhaps even better contact the respective companies direct.
I should mention at this point that I'm not a shareholder in FNT.
DYOR

 

[YOUNG_TRADER]

WHATS FUNNY IS HOW QUICKLY SENTIMENT CAN/WILL CHANGE, ie SP goes up everyones bullish, nay sayers go into hiding, SP flat or drops, nay sayers emerge and bulls begin to question their reasoning,


FNT is a medium term play for me, (ie 3-6months)

Micks email was nothing other than more info to be added to the plethora that has already been posted, so if anything it re-affirms my view.

One of the best things FNT has is management that have a large stake in the company like YML, ie they're wealth is determined greatly by SP and so they're situation is greatly aligned with the Shareholders (ie us)

At 13c the mkt cap is what now? $15m -$16m
And they have $5m-6m cash

So your paying $10m for a JORC 108Mtdeposit grading 0.5% Cu Equiv = 1.2 Billion lbs Cu

$10m for 1.2Billion lbs Cu = 0.0084c per lb Cu

Less than 1c per lb Cu!

If this company were listed on the TSX it would have a minimum 2.5c per lb Cu = $30m

They have 135m shares on issue + 85m options
Fully diluted thats 220m but would = $17m from the opies

So company would have
220m shares fully diluted
Cash = $5m + $17m from the opies
A Cu deposit worth $30m on 2.5c per lb EV

Attributable value = $52m = 23.5c per share,

If the JORC increases by 50% = Cu deposit worth $45m
Attributable Value = $67m = 30c per share

 

[mick2006]

For those following FNT this is a summary of hole depth that will be reported on over the next couple of weeks.

Hopefully this week

KFD004 Extension 88.1 metres

About 7-10 days after hole KFD004 Extension

KFD005 109.8 metres
KFD005A 500 metres (this is the most important to be reported on being the deepest of the program, could be a real market mover if it has a hit of 500m at around 0.7% copper eq.)
KFD007 397.3 metres
KFD009 286.8 metres

As you can see the second round of results is the high impact component, and has the potential to give the company a real kick start.

There has been talk of the need to weed out the stale shareholders, with the increased volume over the last couple of weeks we maybe getting closer to this acheivement and when this is acheived, we should find less resistance going forward.

Everything is firmly in place for FNT a rising Aussie Sharemarket, rising Global Sharemarkets, and firming commodity prices.

All we need now is the drilling results to get the ball rolling!!

 

[Pommiegranite]

Having reviewed the Powerpoint presentation on FNT's website:

http://www.frontierresources.com.au.../downloads/FNT_AMEC_2007.5.6b.ppt#707,2,Slide 2

I note on slide 9 the follwing: "...seek JV partners to assist in exploration and development"
However, Mick, from your emailed reply from the MD, he says something along the lines of "JV's are not in the interest of FNT at this time"

Any theories as to whether this is a contradiction or a just a change in approch, and any reasons why?

I would infer that this suggests bullish sentiment from management.

 

[mick2006]

I think the company has decided it is in their best interests to complete this 2year drilling campaign to prove up some of their vast resources. Which inturn will put it in a much stronger position when it comes time to talk about JV's or development of their projects.

Over time they will come to realise which projects are the company makers and which ones are better served being in JV's letting other companies spend time and money uncovering reserves, while they can focus on the most important ones.

But saying that Peter did say Newcrest were sniffing around and wanted some data sets on the PNG projects, so who knows what will happen in the future.

I guess we as shareholders can just focus on the here and now, that is the Kodu deposit and its drilling results and resource upgrade. This upcoming news will determine the short term share price of the company.

 

[Pommiegranite]

I think the company has decided it is in their best interests to complete this 2year drilling campaign to prove up some of their vast resources. Which inturn will put it in a much stronger position when it comes time to talk about JV's or development of their projects.

Over time they will come to realise which projects are the company makers and which ones are better served being in JV's letting other companies spend time and money uncovering reserves, while they can focus on the most important ones.

But saying that Peter did say Newcrest were sniffing around and wanted some data sets on the PNG projects, so who knows what will happen in the future.

I guess we as shareholders can just focus on the here and now, that is the Kodu deposit and its drilling results and resource upgrade. This upcoming news will determine the short term share price of the company.

Thanks Mick

Got to say that the PPT presentation really is impressive. Well worth another review.

 

[mick2006]

FNT has been churning through the 12.5-14c level over the last couple of weeks.

With the impending release of Kodu drilling results, could we finally breakout of this trading range?

Would be interested to hear technical and fundamental analysis.

 

[Pommiegranite]

I think the company has decided it is in their best interests to complete this 2year drilling campaign to prove up some of their vast resources. Which inturn will put it in a much stronger position when it comes time to talk about JV's or development of their projects.

Over time they will come to realise which projects are the company makers and which ones are better served being in JV's letting other companies spend time and money uncovering reserves, while they can focus on the most important ones.

But saying that Peter did say Newcrest were sniffing around and wanted some data sets on the PNG projects, so who knows what will happen in the future.

I guess we as shareholders can just focus on the here and now, that is the Kodu deposit and its drilling results and resource upgrade. This upcoming news will determine the short term share price of the company.

I put the JV question to Mr McNeil and today received the reply below

I infer his views to be a positive from a size of resource point of view. It could well be a case of FNT having the luxury of choosing their options from here.

(I also requested a State One stockbroking report from earlier in the year. Please feel free to PM me if you require it)

Dear Mr XXXXXX

Thank you for your positive and uplifting comment – it makes it easier to be sitting here working because I couldn’t sleep on a public holiday!

We are working hard to create and uphold that attitude – it is never easy unfortunately.


The analysis attached used an incorrect share capital (much larger than the ~132 million shares out), so the value relatively should be even better.



We are seeking JV partners, but not rushing to accept any. In many ways it is the reverse of their normal ‘tyre kicking’. This policy is the same as it has been since listing. We have a large tenement portfolio and once the ELAs are finally granted in PNG (very soon I hope now) it may be ultimately fiscally too much for us. We are however planning on keeping what we feel has the best potential to move Frontier forward for short and longer term potential.



Thanks again for your interest and please feel free to field any questions you like to me. If I cant answer them Ill tell you!

Regards Peter



Peter McNeil

Managing Director

Frontier Resources Ltd

 

[Pommiegranite]

Okay...I couldn't figure out how to attach a pdf in a message, so for all who requested the report, here it is. I expected it to be a little more detailed though...and more recent (March 22nd)...oh well

ps thanks to YT for bringing this stock to my attention.

 

[alankew]

First of several announcements that Mick highlighted to us that will be coming out in June http://imagesignal.comsec.com.au/asxdata/20070604/pdf/00726828.pdf Hole KFD004 which is a new hole has copper,gold and moly present.Every hole drilled so far have terminated in mineralisation.No effect on sp-YET!Spoke too soon-options down slightly

 

[mick2006]

good to see the announcement out right on time as Peter McNeil said it would be monday.

Just one hole as was already pointed out, but like I said over the weekend it is the next set of results due next week that are the significant ones. Alot more holes to be reported on, including several very deep ones that have the potential to be real market movers.

 

[chicken8]

announcement is out guys

right on schedule

but the sp seems to be dropping and buy side is weaker than before the announcement?

 

[alankew]

Mick i presume the lack of response from the share price is because "the mineralisation appears wek megascopically" but still economically significant.On the plus side they are getting something in every hole.Hole KFD005a,am i blind or is that present on the pic on this yet

 

[chicken8]

i spoke too soon

the buyers are back.

just need some movement in sp now. in the upward direction of course

 

[dj_420]

guys i think you will find buy depth is starting to build now. FNT have begun to provide what they stated, people waiting for results may start buying in now.

deserves more than 12 million market cap!

 

[mick2006]

guys don't worry about what happens to the shareprice today, it was only one shallow drill hole, we knew this was all that was going to be reported. It is more important to focus on the upcoming results next week, more holes deeper targets and is angled towards the higher graded mineralisation.

So we can anticipate with a bit more certainty the fact the drilling results and resource upgrade will happen around the time stated by Peter in the email, so the shareprice should remain firm awaiting the next announcements.

 

[mick2006]

For those interested FNT holder, I just received the latest top 20 shareholders list from Peter McNeil

ANZ is now the largest holder with 13.4% of the stock
with other notable holders

Fortis Bank
Comsec
National Bank
Macmin Silver
McNeil Family

Also the top 20 now hold 48.31% of the company up from 39.60% at the end of March.

This is another positive sign as the pool of available shares is slowly being sucked up by the top 20. Meaning as time goes on the amount of available shares for the average investor is getting smaller and people wanting in will have to cough up at higher levels to grab their stake.