MLM - Metallica Minerals

[Sean K]

Hey guys

Just trying to find out some more details regarding the Cape Alumina IPO, how much of the float will be available to MLM shareholders? Is there a maximum uptake allowed and what is the record date to be on the MLM register?

Thanks for your help

They have reserved 2 million Cape shares ($1 million) out of a likely retail total of $8-$10 million for Metallica shareholders. The shares will probably be allocated to Metallica shareholders informally by getting them to return their applications to the Metallica office.

Not sure of maximum entitlement. Might ask.

It's strange they are limiting it to just $1m. I thought they could have just opened up completely to MLM holders as priority and we get what we like...

 

[Sean K]

MLM are going to IPO a bauxite co, and a separate coal co and know one knows this.

Heads up.

Check recent anns.

 

[adobee]

MLM are going to IPO a bauxite co, and a separate coal co and know one knows this.

Heads up.

Check recent anns.

Thanks for that heads up ..
What would the expected consequences and results of this be ???
Please explain if you can ..

 

[Sean K]

Thanks for that heads up ..
What would the expected consequences and results of this be ???
Please explain if you can ..

Sorry for the lack of information.

eeeeek

I want to provide more info but I'm trying to keep it quiet.

Golly, that sounds like a ramp.

See my blog for detailes..

My MLM thread is long.

 

[adobee]

that is a ramp !!!
and i searched your blog and can only find information about diving in peru !
I need this info for my new A4 convertible purchase !!!

 

[Sean K]

that is a ramp !!!
and i searched your blog and can only find information about diving in peru !
I need this info for my new A4 convertible purchase !!!

LOL. In my ASF Blog.

Been punished like everyone else unfortunately, and their 'flagship' project in Ni which is in the doldrums.

I'll paste in some more detail in a tick.

 

[Sean K]

Here's some stuff on Cape Alumina and Metrocoal.

Metrocoal

Queensland Focussed - One of the Best Coal Regions in the World Metrocoal Ltd. is an Australian–based mineral exploration company focused on its coal projects in the Surat Coal Basin locations of South East Queensland
Currently privately owned subsidiary of ASX listed Metallica Minerals Limited.

The 100% owned project tenements cover a total of 4,000 km ² in Queensland’s productive coal region and have extensive coal bearing strata 3 coal projects (Surat, Ipswich & Injune) with extensive coal bearing strata targeting depths 130m - 300m for Underground Coal Gasification (UCG) as well as open pit coal potential <100m

100% owned tenements.

Value Adding Strategy

Utilising "new" technologies (Underground Coal Gasification - UCG) Spinoff of divestment from successful ASX listed Nickel focused company (ASX – MLM)

Proven Brisbane based team.

Metrocoal has an Edge “Latest” technology enhances portfolio High hydrogen Surat Basin coal suits CTL and Coal Gasification.

Previous work on tenements provides confidence of there being extensive and exploitable coal deposits and data base for further work.

Exploration Target > 1Bt Coal
<300m depth + seam thickness 3m

Metrocoal Summary

Shallow, deep coal utilising UCG technologies
4,000km ² coal tenements in currently under utilised but coal-rich Surat Basin.

Excellent locations for infrastructure.

Low sovereign risk.

Experienced team with successful ASX track record.

Clear strategy for diversified growth in Southeast Qld Coal and Energy.

Cape Alumina:

An initial resource statement released in January 2007 of 54 million tonnes of indicated and inferred in-situ bauxite, upgraded to 100Mt recently. Further drilling aimed at defining 10-15 year mine life based on 7mtpa of pisolitic bauxite production.

Economics

Export Export revenue of A$250m-$300m pa (subject to positive feasibility study). Export Sales proposed to Xinfa, one of China’s largest bauxite importers and other Chinese alumina majors.


What's 40% of just that mean for MLM?
How they can be trading at this MC is a bit odd.

Looking forward to drill results and getting on board the IPOs!

 

[JTLP]

MLM has one spikey, ugly chart (isn't that technical )

Still in a downtrend since March as well...and I don't think we have had a green MLM day in quite a while!

Really need to start pumping out some info on Metrocoal and Cape Alumina...especially the Coal! Would nice to see a bigger marketcap reflected in the number of projects!

Kennas, I know you are out...but what's your view on the situation....have we exhausted all sellers yet? bottom nearing?

 

[Sean K]

JTLP, I thought .45 should have been a bottom. Just clinging on.

How's it's MC looking now? Must be about $43m?

Here's a rehash of what they have:

NORNICO resource 35.5Mt @ 0.73% Ni for 259,000 tns of Ni, IGV $5.7b.
Aims to be producing 1Mt per annum for 7500 tn Ni = $16.5m revenue.
Capex/Opex?

Lucky Break Ni JV (FMC 40% manager, MLM 60%)
Plans a 250K tn plant for 1600 tpa Ni = $3.5m gives MLM $2.1m revenue.

Coal (Metrocoal 100%) "Holds six granted coal tenements (EPC’s 1152, 1159, 1164 -1167) and one EPC Application (EPCA) 1251 (acquired during the March Quarter), covering over 4,000 square kilometres of coal bearing strata in the Surat and Moreton Coal Basins. The majority of the known coal bearing strata is within 100m to 300m below surface and is considered highly prospective for coal seams suitable for Underground Coal Gasification (UCG) exploitation, with potential for power generation and fuel production using Coal to Liquids (CTL) processing technology."

Metrocoal are targetting 1b tn of coal. Current drilling program underway. Seed financing found for IPO next year. MLM now have 87%. MLM shareholders will have an allocation set aside in the float.

Has 40% of Cape Alumina (bauxite) to be IPO'd in Q3.

Cape Alumina are targetting $250-300m revenue from their Bauxite project. MLM 40%. $100-120m revenue. Recently Cape A released an updated resource estimate, 100.8Mt @ 53.5%.

Other projects. A bunch:
Gold-Based Metals
Limestone - Lime
Scandium JV
Uranium JV
Zircon-Rutile JV

They're looking at divesting these as 'non core'.

$5.8m ish in cash.
25m shares in COK = $21m ish.

With $25m in cash and investments, their projects are now valued at under $20m...

$20m for:

35.5Mt @ 0.73% Ni
40% of 100Mt Bauxite and
Potentially, 80% of 1Bt Coal.

Kagara Zinc hold 18.2% ?

I think without getting these IPOs to market, they will just be rated on their Ni projects, which aren't very exciting when PON is tanking.

Where's it going in the short term? Maybe market dependant, or good drill results from Metrocoal might turn it around. Otherwise, I'm waiting to see it turn up again.

 

[YOUNG_TRADER]

MLM sold their COK shartes at why I think is an avg price really of 80c, 90c would havew been good and $1 perfect,

Anyhoo they now have around $25m of cash + another large holding in the Bauxite company as well as Metro Coal,

I like MLM for its spin offs, not really MLM for who MLM is so to speak

 

[Sean K]

Crikey, support around .45 crumbles, for what seems to be no reason. Can only be suspiscious. Down 26% to .325. That must be close to how much cash they have on hand. Rediculous, unless there's something in the wood pile. eeeeek!

 

[JTLP]

and woosh finishes the day in the green.

Something very very fishy going on here...volume has been up a bit as well

 

[JTLP]

Kennas...you still in on this one? I'm still holding (oops!) but everything seems good. Still 21 million in cash (backing of 18.6 per share) which will at least provide some nice support in these tough times. Some buying up of shares from a Chinese Nickel party is also nice.

Low expenditure this quarter has been stated which will still leave them with a bit of dosh. I'm hoping they've formed a base around the 20 cent mark and can make a push back up...but Nickel and coal have got zero love at the moment.

 

[Sean K]

Kennas...you still in on this one? I'm still holding (oops!) but everything seems good.

No, sold on the breakdown.

You're right their commods very unloved, like the rest I suppose.

Cape Alumina (CBX) IPO was ordinary, did you get any? MLM have 32%, or something. The IPO was well oversubscribed at 50c a share and they listed at 40. eeeeek. What's that investment worth to them then? A few bucks I'd say.

Metrocoal have been a bit tardy I think. They were supposed to IPO this year. Any update?

You're right cash backing should be a floor on them, but a few others have traded under for a while.

Perhaps when their commods turn around you'll see some green. Just gotta hope China doesn't implode....

 

[JTLP]

Translate Espanol "No Way Jose".

2 reasons I did not participate
1. Definitely wrong environment
2. Was churning every last dollar funding my overseas holiday (which was amazing in case the 4 ppl that read MLM were wondering

I noticed on the Cape Alumina listing that the papers were giving it a bit of a bashing with the Steve Irwin protected parks or something like that. Terri was battling to stop them from mining etc etc (Herald Sun). The CEO seemed fairly confident (as you would expect) that everything would go to plan and they would have the feasibility studies completed by end of '09.

I don't know what's up with the Metrocoal either??? Might have to read up on them. MLM have so many spinoffs and money coming in and out it's all a bit confusing

Hopefully CBX will make a turn around (I see BAU has jumped 42% today) and can begin to make more $$$ for MLM.

 

[Sean K]

Good news probably that they've deferred the Ni Study and concentrating on other things.

Also good news about the UCG drilling commensing in the Surat Basin. More interest in these types of projects recently and they have some excellent ground.


ASX ANNOUNCEMENT AND MEDIA RELEASE
24 March, 2009

Drilling starts on Metallica Minerals’ 84%-owned Queensland Underground Coal Gasification (UCG) project Queensland’s emerging Underground Coal Gasification (UCG) sector has marked a milestone today with the start of drilling on the promising Wandoan UCG project, northwest of Brisbane in the Surat Basin.

The drilling program is being undertaken by Metallica Minerals Limited’s (ASX code: “MLM”) 84%-owned subsidiary, Metrocoal Limited, which holds seven tenements covering about 4,000 sq km in the Surat Basin.

The UCG drill target is within a 60 square kilometre tenement near Wandoan, with an initial exploration coal target potentially big enough to support a coal gas to liquids (GTL) plant producing 20,000 barrels per day.



Interesting move on the charts too. Perhaps finally ran out of sellers at 18c?

 

[JTLP]

I'll rehash my post from QOL thread:

QOL holders get lucky...MLM holders like me get rubbish.

Today after market MLM proposed a takeover of QOL with a 49% premium on last closing price.

The offer is 1 MLM share for ever 22 QOL shares.

No offence...I don't want this QOL crap. Haven't they mothballed operations and were on the verge of admin???

 

[stock nub]

I think its more the fact that they are getting plant which QOL spent ~$40 mill on for only 2 mill in shares.

They are not wasting precious cash.

Sounds ok when you think about it like this.

 

[YOUNG_TRADER]

I think its more the fact that they are getting plant which QOL spent ~$40 mill on for only 2 mill in shares.

They are not wasting precious cash.

Sounds ok when you think about it like this.

I actually think this is a steal given how much QOL invested in its Moly Tungsten deposits/mines $25m+ I think

So at $2.3m cost it looks like a steal for MLM JTLP, 1c ain't exactly paying up

So its was $40m? Then its an even bigger steal, QOL holders are getting robbed blind, I wonder what the scrap salvage value of the plant is, surely at least 40% of original cost????

 

[JTLP]

Sorry doods...

Guess i'm just having a whinge cause I remember seeing somewhere about QOL's operations being mothballed due to uneconomic costs.

Of course buying this at the *potential* bottom of the commodities cycle will be a good thing....just wish they would hurry up with the other assets.