LNR - Lanthanein Resources

Hi all, this is my first post here. I have a reasonable holding in FNT, and would like to be positive about it. The political football, that Kodu is, must surely be of some concern. Although FNT have other interests, both in PNG and Tasmania, (correct me if i am wrong), these are all further from potential production (if at all) than Kodu. Coming from the West Coast of Tasmania, and also having worked as a fisherman on this coast, i am well aware of the difficulty in accessing the project area that is SMRV. Should an economical resource be discovered in the SMRV, the question must be asked. How will it be transported out of the area?
The latest news from FNT (today) has left me wondering what will become of the Kodu deposit. I am self taught, when it comes to share trading, and have made my fair share of mistakes. The biggest one being, selling to soon, before a small cap like FNT,makes its move from explorer to producer. I lose my patience!
I would be very interested to hear what others think of todays announcement, regarding the companies new strategy.
Thanks in advance, to anyone who has thoughts on this matter.

When I first saw where the SMRV project was...the first thing I thought was
"theres no way thats ever gona happen" logistically, environmentally and most important, politically."


Kodu is a great project..just the dev costs are gonna be hard to cover.

payshense said:

Hi all, this is my first post here. I have a reasonable holding in FNT, and would like to be positive about it. The political football, that Kodu is, must surely be of some concern. Although FNT have other interests, both in PNG and Tasmania, (correct me if i am wrong), these are all further from potential production (if at all) than Kodu. Coming from the West Coast of Tasmania, and also having worked as a fisherman on this coast, i am well aware of the difficulty in accessing the project area that is SMRV. Should an economical resource be discovered in the SMRV, the question must be asked. How will it be transported out of the area?
The latest news from FNT (today) has left me wondering what will become of the Kodu deposit. I am self taught, when it comes to share trading, and have made my fair share of mistakes. The biggest one being, selling to soon, before a small cap like FNT,makes its move from explorer to producer. I lose my patience!
I would be very interested to hear what others think of todays announcement, regarding the companies new strategy.
Thanks in advance, to anyone who has thoughts on this matter.

Click to expand...

I agree the SMRV project has big issues in terms of cost, and of course politics, if of course they prove up a decent deposit.

Not sure about the announcement today re Kodu. Spinning off an IPO to fund the $15m for a BFS - on the plus side a good BFS makes the economic benefits closer and more compelling for the PNG landowners who have equity, the PNG govt who gets a slice, and, may interest a major for a JV.

On the negative side depending on how much share FNT retains in the IPO, FNT shareholders may be losing a large share of their main asset. (Of course their share would be diluted through an equit raising also)

Also, unfortunately the tone did sound a bit more negative about the results of the Aus govts pressure on the PNG govt. However, if the landholders though are as adamant as FNT says - eg. "no mine-no tourism" then they may still prevail. Giving local landowners 5% equity was a smart move.

Look for some action here today,

the track has been blocked, wouldnt expect this to drag out for too long,
Rudd is in PNG at start of march and with trecking season to start soon will make the headlines bringing the media attention to the situation - whether a 1km diversion will affect the history of the kokoda track - NO

I also read that some australian politician wants more ammenities for treckers - just like the diggers had - not

what would be more detremental - a 1 km diversion or public toilets scattered throught the jungle.

Kodu project was quoted as being 1.7 billion project paper now saying 6.7 billion big difference, especially with the very good upgrade potential.
Big things to come here
I am a share holder

The report is headed with the word "strategy". I suggest it is more a political statement than a company update. It certainly was a good move to give the local land owners a share of the project and I think that is the factor that will see the project advance. PNG needs more than tourist income and I can not see a huge number of people wanting to walk the track anyway. I'm sure the project will proceed.
With regards to dilution of the shares by raising more capital, this must happen one way or another or the finance for the project will not be there. Original holders must still benefit. I'd be happy if they give us a chance to participate if the price is right. I will continue to hold long term but may trade a little along the way to free carry my investment.

From ABC News website this morning:

http://www.abc.net.au/news/stories/2008/02/07/2156377.htm

Kokoda Track closed over mine dispute


From News.com

http://www.news.com.au/story/0,23599,23173315-2,00.html

Aussies not welcome on Kokoda Trail

The pro mining camp just got bigger - all the trekers who think their going to do the track for anzac day can forget about it, i wonder if the tour operators will give them a refund.......

Any chartist can have a look at this one?

Looks like it will break out today?

Very risky with politics invlolved but money always talks louder than words.......

PNGIndustryNews.net

Kokoda Track challenges Rudd once again


Thursday, 7 February 2008


Only weeks before his first official visit to Papua New Guinea, Australian Prime Minister is on the front page of the PNG newspapers for all the wrong reasons. By Brian Gomez


"Rudd wants fuzzy wuzzy angels to live in perpetual poverty," declares a banner photographed today on the front page of The National newspaper, alongside a story about the closure of the Kokoda Track to tourists.

Kevin Rudd of course is inheriting problems created during the regime of former Prime Minister John Howard, who was not on good terms with PNG Prime Minister Sir Michael Somare.

Rudd has yet to deal with the complexity of the Kokoda Track issue and the controversial plan by an Australian-listed company, Frontier Resources, to develop a copper mine that comes fairly close to a section of the track.

Frontier has already spent K8 million ($US2.9 million) on mineral exploration and believes it could have a sizeable mining operation up and running in 2012, bringing benefits to PNG that will far outweigh revenues generated by the thousands of hikers â€" mainly Australians â€" who tackle the iconic track every year.

Rudd will feel the barb of the photographed poster more intensely than most Australians.

Not long before he became Prime Minister he had personally done the gruelling trek, partly as a personal challenge but also to recall the terrible hardships Australian soldiers underwent during World War II.

It would have been obvious to him that the so-called "fuzzy wuzzy angels" and their descendants have continued to live a life of abject poverty in the six decades since the end of the war.

In all that time Australians had done nothing to improve the living standards of these people who themselves played a heroic role in supporting Australia.

They had also been neglected by successive Papua New Guinean governments, as has been the case with many other remote parts of this vast but sparsely populated nation.

Since independence Australia has provided PNG with some A$10 billion ($US8.9 billion) in aid â€" approximately A$300 million a year â€" but much of that has gone into unsustainable areas such as the purchase of drugs for rural medical posts.

Another significant chunk has also gone to providing scholarships to Papua New Guineans to study largely in Australian secondary schools even though these funds would have been much more effective in helping PNG to try and attain universal primary education.

The nature of this aid and overall bilateral relationships have led some Papua New Guinean leaders, such as former Deputy Prime Minister Sir Moi Avei, to conclude that it was Australian policy to ensure that PNG remains subservient and dependant on Australia.

One placard in the newspaper photograph posed the question: "What has Australia done for Fuzzy Wuzzies in 65 years?"

This is a question Rudd will have to contemplate and confront during his forthcoming visit to a country that has made significant progress in recent years even though the former Australian government, and the Australian media, has continued to paint a bleak picture of Papua New Guinea.

In the last couple of years about 5000 Australians, many of them youth, have flown to PNG to experience the Kokoda Track. Even though it is claimed that this generates K25 million in tourism revenue, little of these funds seep through to the people who live along the track.

The Koiari landowners say they have closed the track because the PNG Government has failed for several months to renew Frontier's exploration licence (EL 1348) for the area and they say that if there is "no exploration and mining" there will also be "no tourism".

Frontier has been working closely with the landowners since they began exploring the area and, in its latest initiative, has decided it will provide 5% equity to all landowners to any mining project it develops in Papua New Guinea.

Besides the Kodu project, the company also has exciting projects on New Britain Island, more than 400km from Kokoda.



(Mods please remove if it is not ok to post this article)

Wondering why no one is remarking on the rise in SP
Up 32% since start of month
It seems the market expects the PNG Government to bow to landowners of that part of the Kokoda Track and let the mine lease be granted.The way I slice it is that they would have to cave in.Not only will the mine not go ahead ,but a lucrative tourist "cash cow" will not be delivering any milk

Does anyone else see it that way?

I am a holder

I believe it's a case of any publicity is good publicity here. FNT had TV exposure last night; bunch of locals wearing Frontier Resources hats ... got a lot of punters intrigued, perhaps?

Australian govt hypocrites should pi** right off and let the people of a sovereign nation make their own decision on whats best for their own people. We have dug up millions of acres of sacred Aboriginal land and sold it off overseas without so much as a please or thankyou to the indigenous people and yet PNG want to do the same thing and Australian politician hypocrits get some pathetic moral crusade about it. 600 meters of unhistoric track to be re-routed out of 90km. You are kidding Australia get real and let them get on with the mine. :iamwithst

Looks like the mine isnt even near the original track

Mcneil thinks they will get the licence in a few months,

If it doesnt go ahead i wonder if rudd will say sorry to the png landowners as he dd today to australia's original landowners for mining their land.

http://news.smh.com.au/png-mine-not-near-kokoda-trail-frontier/20080213-1s1x.html


Current market cap 17mill - resources 8 billion times 1% = 80 million mkt cap
ie 5 bagger

The Mcneils have upped the ante in the war with Aus and PNG Governments over the right to mine. this announcement from the company website on Feb.29
With copper up 25%,if the lease is granted, things might be going to get interesting.SP has been very static lately..everyones holding their breath


BENEFITS FROM POSSIBLE KODU MINE WIDENED TO ENCOMPASS MORE PNG STAKEHOLDERS, ENLISTING THEIR SUPPORT FOR THE RENEWAL OF EL 1348 AND POSSIBLE MINE DEVELOPMENT
* Frontier Resources’ Board of Directors is pleased to announce that a seven % equity interest in total is now offered to PNG stakeholders, including the ‘Kokoda Track Authority’, if the Kodu Deposit is mined (probably in the Mining Lease holding Company).
* Kodu Deposit landowners (who would be impacted directly by mine development) have stated they will give 1% of their previously promised 5% equity to all other Kokoda Track/ nearby landowners, proving the wealth would be equitably distributed in the region.
* Frontier Resources wish to recognise this generous gift of 1% by the Kodu Deposit landowners with an allocation of a further 2% equity interest in the Kodu Deposit to be administered by the ‘Kokoda Track Authority’ –KTA (or successor) &/or Koiari LLG, half for funding to preserve, operate and improve the Kokoda Trail and half for the creation of an educational fund for all ‘Trail’ and nearby landowners.
* This 3% equity could amount to tens of million of dollars over the 10 year life of the mine, depending on costs, commodity prices and taxes. The fund will be subject to specific transparency, governance and Board of Directors representation provisions by Frontier.

Rudd in PNG tomorrow and thursday

Segment on foreign correspondent tonight

http://www.abc.net.au/foreign/

Metals prices 30% up since release of CMS - mine now worth 8billion plus
some sneaky buyers trying to get stock

Market looking for some good news and might just get it,

Maybe get it thursday???

kanga2008 said:

Rudd in PNG tomorrow and thursday

Segment on foreign correspondent tonight

http://www.abc.net.au/foreign/

Metals prices 30% up since release of CMS - mine now worth 8billion plus
some sneaky buyers trying to get stock

Market looking for some good news and might just get it,

Maybe get it thursday???

Click to expand...

The interesting part: Soc Kiengle " The trekkers come along here, the're moving along the main track when they DEVIATE ONTO THIS SIDE TRACK which is of no historical consequence for Australia or New Guinea and from THAT point they looked down onto the mine. now as far as I'm concerned this area down here is irrevelant."
I think this is significant. It is a reason for a diplomatic back down by both governments to be possible without losing face. I think the project will get the go ahead after Rudds visit and the local villager's protests blocking the track.
I think you may be right about thursday.

Another interesting point was when soc said that if it doesnt get approved the landowners would be very angry with australia and therefore australian treckers....

would the track become a security issue??

Rudd is playing with fire here and i think his 80% approval rating is doing things to his mind, i here his off to the US now,
probably to claim some heritage land there too i suppose

I have a significant holding (in the red) which i have had for over 1 year

Also this is not a one mine company a liitle investigation will show many projects that are potential company makers on their own

Market sentiment says Frontier is full steam ahead again, Kev got an unwelcome welcome, what do you expect when you have no idea about the industry and you try and take peoples livelihood away!

I no longer hold these guys, although i do still think they have potential.

Pity for options holders they are about 6 months late on it all, if it does go through.

Also, one of their reports last year mentioned the need for a capital raising 'early 2008' which we are yet to see...

Not the best of news but not all bad. According to news reports the matter will be discussed later on in the month with Rudd suggesting the area should be preserved and suggesting the local land owners will be compensated. The protests for the mine to go ahead looked serious. My guess is a 60 to 70% chance of the mine proceeding.What's your guess.