MRE - Minara Resources

[Realist]

Minara has almost doubled in the past 2 days. Why is no one talking about it?

It used to pay great dividends and it stormed up about 7 times in value.

The fundamentals are extremely strong - they have a lot of money. Although the price of Nickle's down a lot, and sulphur (which they need to use) is up a lot.


But why the storming performance over the past 2 days. What's the word?

 

[Miner]

Minara has almost doubled in the past 2 days. Why is no one talking about it?

It used to pay great dividends and it stormed up about 7 times in value.

The fundamentals are extremely strong - they have a lot of money. Although the price of Nickle's down a lot, and sulphur (which they need to use) is up a lot.


But why the storming performance over the past 2 days. What's the word?

Realist

Like you ASX has also asked the same question.

If you noticed, the directors have been buying heavily on this

I think it is the foreign partner who bought at very high price and could be possible take over

Just guess. Wait and see

Cheers

 

[So_Cynical]

Minara has almost doubled in the past 2 days. Why is no one talking about it?

And 3 weeks later and MRE is trading under 90 cents and has been for days.

I took a bit of an average down today @ 83 cents...and thus lowered my
average cost per share by about 40%...there's just so much value around.

 

[McNovice]

gee that Nickel price just does not seem to stop dropping

I bought some more at 0.90c and thought that was a great price, but now it's about .80c

Need that Nickel to start lifting, surely all those purchases by the Shareholders at higher prices means this company is a sound investment?????? and the fact they produced more last quarter than the previous has to be good?

Sit and wait I guess

 

[Thrive]

I now worry about MRE with Nickel prices so low. The fall in the Aussie dollar was a buffer there for a while, however AUD Nickel is now around $6.60lb or $14,500t with nickel stock piles still at record highs.

MRE is far from cash rich and has recently put in place some short term credit lines so is likely to return to debt very soon if not already.

MRE is going out of its way to reduce costs and Sulphur prices have come down but I doubt MRE being a laterite producer can survive long at these prices.

Good news for MRE though with Shakespeare and Cawse in the last few days ceasing production due to the low Nickel price and it is believed that nickel pig iron producers are uneconomical at these prices.

Demand maybe falling but supply is likely to dive very quickly if these prices hold for long.

Those producers that survive will come out the other end of all this doing very well. Its likely that when demand returns that it will do so more quickly than supply can be turned back on.

I liked MRE however got out at $1.40 and think those more likely to survive are WSA, MCR and maybe PAN.

I'm avoiding all base metal stocks in the short term until things show signs of turning.

IMO base metal prices will turn around quickly but it wont happen until production is substantially reduced through closures.

Sad thing is when Nickel prices start to improve Glencore will more in on MRE and pick it up for a bargain.

Thrive

 

[McNovice]

So today Minara are trying to raise funds through this rights issue to the tune of 210m. I see quotes from Peter Johnson that this will see them through the Nickel prices that have dropped dramatically. I also see from looking at the Nickel charts of the past few days that it's (fingers crossed) starting to go upward again.

To me the offer sounds quite good at the the price, and the 3 for 2, butI guess means nothing if they go bust hey?

So like I said, sounds good to my Novice eye due to Nickel on the up, Sulphur on the down, think the gas issue is resolved.

Any more experienced guys guess?

 

[Sunburnt Land]

I'd steer clear of MRE and buy into MCR, Australia's third biggest nickel producer.

With over $100m in the bank and no debt, MCR is in a strong position for these volatile times. I also expect MCR to maintain some sort of dividend, as opposed to MRE.

It wouldn't surprise me if MCR is a takover target at these low prices.

 

[So_Cynical]

Lets call a spade a spade...its a capitol raising via issue of shares on a grand scale.

• Number of Shares currently on issue: 467,113,164
  
  
• Maximum number of New Shares to be issued under the Offer: 700,680,000
  
  
• Maximum number of Shares on issue upon completion of the Offer: 1,167,793,164

So if u hold and don't participate your diluting your holding by approximately 65%
(please correct if im wrong as im really bad at maths) this is the financial equivelent
of having a gun held to your head.

Minara are basicly giving the company to Glencore for a bargain basement price as
Glencore are underwriting the issue and theres no way there will be anywhere near
100% acceptance.

:shake:

And on the positive side of things MRE will have 100 odd mill to keep producing at a
loss...how long that will keep them going, and at what price (Nickel) they will be at
break even is a mystery.

Its a pure punt on the Nickel price....and exchange rate......and sulphur price.

And seriously whats with the market update of 2 days ago
http://www.minara.com.au/files/docs/187_Market_Update.pdf

i would of thought that including the fact that there producing at a loss would
be something to consider releasing to the market in a market update.

 

[So_Cynical]

MRE up 96.2% today and no ones got anything top say?

Open 0.5400
High 1.0400
Low 0.5350

All the price action was in the last 90 minutes...whats this mean?

 

[Nick Radge]

How about, "...96% of nothing is nothing?"



This post may contain advice that has been prepared by Reef Capital Coaching ABN 24 092 309 978 (“RCC”) and is general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice you should therefore consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

 

[Miner]

MRE up 96.2% today and no ones got anything top say?

Open 0.5400
High 1.0400
Low 0.5350

All the price action was in the last 90 minutes...whats this mean?

I am guessing to attract right shares fully subscribed and helping raising money probably some one is doing handy work. To buy three shares for two shares it need to look bloody attractive to nullify the diluted shares situation

Nickel is dropping and I doubt if there is any good news behind this rise

 

[rederob]

There is a surplus of ferronickel in China that is gradually winding through refineries. Once that glut is cleared then nickel inventories will quickly decline despite a current oversupply of steel.
Minara produced nickel at a cash cost of $5.25 before the massive spike in sulphur prices. That spike has completely retreated and costs are again normal after massive changes in the commodity landscape.
I checked Panoramic's cash costs for Savannah and Lanfranchi, and both were higher than Minara. Panoramic gets significant byproduct credits to lower its cash cost, but these same byproduct's prices are also now below cost of production: So it will be interesting to see if HPAL process lateritic nickel miners come out of this better than nickel sulphide miners.

 

[So_Cynical]

I am guessing to attract right shares fully subscribed and helping raising money probably some one is doing handy work. To buy three shares for two shares it need to look bloody attractive to nullify the diluted shares situation

Hey Miner...im supposed to be the Cynic around here. :blbl:

Your probably right though...i thought the timing of the
rights issue was super suspect and now this.

 

[McNovice]

So I believe we have until Friday to take up the share offer, what at first seemed to be a good offer at the time, now not so good as the price has dropped. If prices go up this week though, if the shares are purchashed will that dilute and drop the share price further?

Is anybody else taking these shares up?

 

[aussiger]

Any good news about Minara out there? The stock is heading straight downwards Is this company going bankrupt?

 

[So_Cynical]

Any good news about Minara out there? The stock is heading straight downwards

HUH...what u talkn about, The Sp's been going sideways for almost 2 months.

Got to 33 cents today...was 24 cents a week and a half ago.

Is this company going bankrupt?

Not for at least 8 > 12 months....that's about how long it will take them to burn
through the 85 odd million they have in cash.

 

[Swanny2705]

More like 24 months. By which time everything will well and truly be on the up again.

Minara seem to take a hammering at every turn, yet 6 months ago measures were put in place to see them through what has been a catastrophic time for many junior/mid tier miners.

They are currently producing nickel for $9,500 a tonne. Prices on the LME were $12995 a tonne as of yesterday.

They'll also produce at least 30,000 tonnes this year. Even a modest $3 to $4,000 profit per tonne gives you 90 to 100 million dollars. Not bad. This is also why Glencore continue to back them, they can obviously see the potential.

 

[So_Cynical]

Hey Swanny, first time poster i see...welcome to the forum.

They are currently producing nickel for $9,500 a tonne.

Got evidence? - a link perhaps? not that in skeptical

 

[Swanny2705]

Thanks mate.

I know a few guys who work up there and an email went out to the effect that the place was safeguarded for the next couple of years after the share rights issue and Glencores injection of more cash.

The CEO has been up to address the management and that's when the break even figure of $9,500 came about.

Sulphur is now down to roughly $100 dollars a tonne after reaching more than $800 at one point. This along with the US/AU exchange rate being much more favourable and all the cost cutting/redundancies etc all points to the place having a brighter future than many are giving them credit for.

When the markets start a prolonged recovery in the next 6 to 12 months I reckon it's the companies like Minara that tried to get their house in order early on that will really prosper.

And at 30 odd cents a share at the minute i would say it's got to be worth a punt!

 

[So_Cynical]

Nice work Swanny...keep us up to date.

Meanwhile Nickel $13110 USD/tn Market Close / up 12.93% / Jan 02