MRO - Monaro Mining

[bigdog]

ASX ANN today

11/10/2007 Merger of Monaro Mining
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00768632

MERGER OF MONARO MINING AND URANIUM KING TO CREATE GLOBALY DIVERSIFIED URANIUM EXPLORATION AND DEVELOPMENT COMPANY
11 October 2007
_____________________________________________________________________
Key Points
• Merger Implementation Agreement signed by Monaro Mining NL and Uranium King Ltd
• The merged company will offer shareholders a financially strong and dynamic, well-balanced uranium company with a pipeline of global greenfields, advanced and pre-development projects
• Uranium King shareholders to receive 5 Monaro shares for every 7 Uranium King shares
• The merger is to proceed by way of a Scheme of Arrangement and is subject to shareholder and regulatory approvals

 

[jman2007]

ASX ANN today

11/10/2007 Merger of Monaro Mining
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00768632

MERGER OF MONARO MINING AND URANIUM KING TO CREATE GLOBALY DIVERSIFIED URANIUM EXPLORATION AND DEVELOPMENT COMPANY
11 October 2007
_____________________________________________________________________
Key Points
• Merger Implementation Agreement signed by Monaro Mining NL and Uranium King Ltd
• The merged company will offer shareholders a financially strong and dynamic, well-balanced uranium company with a pipeline of global greenfields, advanced and pre-development projects
• Uranium King shareholders to receive 5 Monaro shares for every 7 Uranium King shares
• The merger is to proceed by way of a Scheme of Arrangement and is subject to shareholder and regulatory approvals

Yes, so I see

Interesting arrangement now, with the proposed merged company having a market cap of $100M. Also guaranteed access to investors in the US looking for a company with an interesting combination of projects, at various stages. This has got Grigors fingerprints all over it, which is not necessarily a bad thing at all. I used to be a holder in UKL but got out at 1.26 for a small loss, just before it went south big-time.

Cheers
jman2007

 

[jman2007]

Added 10c today on relatively light trading to close at 1.05, need some big news from Kyrgyz in my view to get this one rolling again. IMO, Monaro is worth holding in the long term, although the hot money has gone into iron ore recently, U will continue to be a sought after commodity over the next 4-5 years.

Anyone have an opinion re the proposed merger between MRO and UKL? The Market certainly didn't react strongly to it, one way or the other.

Cheers
jman2007

 

[DonAqua]

Added 10c today on relatively light trading to close at 1.05, need some big news from Kyrgyz in my view to get this one rolling again. IMO, Monaro is worth holding in the long term, although the hot money has gone into iron ore recently, U will continue to be a sought after commodity over the next 4-5 years.

Anyone have an opinion re the proposed merger between MRO and UKL? The Market certainly didn't react strongly to it, one way or the other.

Cheers
jman2007

I don't think there's much more downside to the SP of Monaro. Provided USA or Israel are not attacking Iran. For this action could make the area - middle east and surroundings - an even bigger powder keg. And who knows what will come out of that.

The merger in my opinion is positive. I am contemplating buying some more Monaro shares at this level.

 

[tronic72]

Anyone holding or interested in Monaro Mining? Looking at it now as a prospective stock.

 

[jman2007]

Hi tronic

yeah I hold this one, bought in at 1.72 so sitting on a reasonable loss at the moment. New tentative level of support at 90c, merger of UKL and MRO imo will provide a reevaluation of the sp over time, but it may take a while.

jman2007

 

[tronic72]

Thanks for the info. They are a funny. One, they are not purely speculative but on the other had aren't producing much at the moment. Worth keeping an eye on though.

Thanks again.

 

[jman2007]

Thanks for the info. They are a funny. One, they are not purely speculative but on the other had aren't producing much at the moment. Worth keeping an eye on though.

Thanks again.

Well they have a number of projects on the boil,

But no, aren't producing anything as yet. UKL's Apex-Lowboy project is scheduled to commence production in 2009. At this stage the JORC inferred resource is around 1.546M lbs of U3O8 at 0.07%, not a huge resource by any means, so they will need to enlarge this significantly before the market reacts imo. Target potential is 10M lbs +. Based on current financial modelling, cap payback period approx 14 months which is very attractive.

Rio Puerco has the potential to be a real company maker with an underground JORC inferred resource of 4.5M lbs at 0.12%, a sizeable resource AND at an attractive grade, but requires further drill testing.

The MRO Ur projects in Australia targeting unconformity-style deposits look interesting, but appear to me to be more grassroot plays atm. They have conducted extensive drilling at their Aramsu deposit in the Kyrgyz Republic, at this stage it looks to be a relatively small deposit but high grade. The extensive underground workings here will also require further exploration.

The other potential Ur prospects in the K Republic such as Utor, Sogul etc sound like thy're ticking along ok. A bit disappointing that the Djal–Kokildak gold-silver-copper prospect has only returned insignificant Au grades so far.

I think the MRO listing on the US market will eventually tap into the lucrative US investment sector, the merger with UKL will also significantly enhance the prospects of the company imo.

Well that's it for now, anyone else pls feel free to discuss the prospects of this company, I'd be interested to hear them.

Cheers
jman2007

 

[tronic72]

Hi Jman,

Thanks for the info. I was keen to purchase at current levels but there's simply no volume at the moment so I'm a bit wary.With that sort of volume it's impossible to know what the market thinks IMHO.

My heart says buy, but my heads not there yet.

 

[jman2007]

Hi Jman,

Thanks for the info. I was keen to purchase at current levels but there's simply no volume at the moment so I'm a bit wary.With that sort of volume it's impossible to know what the market thinks IMHO.

My heart says buy, but my heads not there yet.

Probably a good call,

waiting on the sidelines to see where this one goes is not a bad place to be. Volumes over the last 4 months have been a bit on the low side, they need to lift their investemt profile in Australia imo, with Warwick Grigor on the Board I'm sure he realises this as much as anyone.

 

[DonAqua]

Probably a good call,

waiting on the sidelines to see where this one goes is not a bad place to be. Volumes over the last 4 months have been a bit on the low side, they need to lift their investemt profile in Australia imo, with Warwick Grigor on the Board I'm sure he realises this as much as anyone.

Patience is the name of the game with this one, as it looks. Maybe the lift is not too far away. A few days ago, there was a new recommendation for MRO in a raw materials letter (rohstoff spiegel) here in German, with facts we already know. Three companies had been recommended in that article (title: Uranium - Hot trend market 2008) by analyst Olaf Hordenbach. One was Monaro Mining (MRO), then there was Greenland Minerals and Energy (GGG), and a third one which is Uranium Equities (UEQ).

Hope the tide is turning soon to our favor.

 

[danewbee]

Patience is the name of the game with this one, as it looks. Maybe the lift is not too far away. A few days ago, there was a new recommendation for MRO in a raw materials letter (rohstoff spiegel) here in German, with facts we already know. Three companies had been recommended in that article (title: Uranium - Hot trend market 2008) by analyst Olaf Hordenbach. One was Monaro Mining (MRO), then there was Greenland Minerals and Energy (GGG), and a third one which is Uranium Equities (UEQ).

Hope the tide is turning soon to our favor.

Good luck, Donaqua, you can buy all three of them at good price now if you looking back. The only problem is we have to look forward.

MRO is a problematic one. Having promising so much, but deliver too little.

A very interesting question nobody dare to ask regarding the promised tones of deposit left by Russians. If they can find any, why don't they keep it?

It could be a good uranium story, but possibly unable to transfered into uranium deposits.

And, I doubt the merge with UKL will be successful if DD is done carefully.

 

[jman2007]

Good luck, Donaqua, you can buy all three of them at good price now if you looking back. The only problem is we have to look forward.

MRO is a problematic one. Having promising so much, but deliver too little.

A very interesting question nobody dare to ask regarding the promised tones of deposit left by Russians. If they can find any, why don't they keep it?

It could be a good uranium story, but possibly unable to transfered into uranium deposits.

And, I doubt the merge with UKL will be successful if DD is done carefully.

Danewbee

What on earth do you mean by "I doubt the merge with UKL will be successful if DD is done carefully"?

It makes absolutely no sense.

jman

 

[jman2007]

Patience is the name of the game with this one, as it looks. Maybe the lift is not too far away. A few days ago, there was a new recommendation for MRO in a raw materials letter (rohstoff spiegel) here in German, with facts we already know. Three companies had been recommended in that article (title: Uranium - Hot trend market 2008) by analyst Olaf Hordenbach. One was Monaro Mining (MRO), then there was Greenland Minerals and Energy (GGG), and a third one which is Uranium Equities (UEQ).

Hope the tide is turning soon to our favor.

Don

This is starting to look very tenuous indeed, low 2day of 65.5c, I couldn't imagine a worse looking chart if I tried. Goes to show how susceptible MRO is to the low volumes of trades going through atm. Thought we had found the floor at 90c, but now I'm really not sure what to think.

jman

 

[tronic72]

Anyone want to go halves in a mining company? I think a few grand will buy MRO at the moment. Send me a PM if you are interested.

Still haven't purchased

 

[jman2007]

Anyone want to go halves in a mining company? I think a few grand will buy MRO at the moment. Send me a PM if you are interested.

Still haven't purchased

Yeah it is starting to look a bit like that tronic....

I've got a better idea, why not split your money, and with the cash left over from MRO pick up a couple of Centro malls in the US at firesale prices?

In all seriousness though, although the U spot price doesn't really impact on MRO's operations at the moment, the sp will be becoming a serious concern to them. Investors seem to be saying they don't really believe that the proposed UKL merger is going to provide the impetus to give a meaningful re-evaluation to the sp. I still think the projects look fairly robust, but delays in Kygyz look to be hurting them, bear in mind that the summer field season doesn't start for several more months yet in the Nthn Hemisphere. On top of all that, UKL appear to be involved in legal action with a former executive....

"Sigh...."

jman

 

[DonAqua]

Don

This is starting to look very tenuous indeed, low 2day of 65.5c, I couldn't imagine a worse looking chart if I tried. Goes to show how susceptible MRO is to the low volumes of trades going through atm. Thought we had found the floor at 90c, but now I'm really not sure what to think.

jman

Yes, I know, jman. Sometimes doubt creeps up like - how is he called? - boogey man? The chart doesn't look nice. Many other U companies are on the slope also. In the north it's winter time, and slope is a nice picture. Shake the not so strong hands, might be a game by the market makers. But I can't see that the fundamentals have turned around. The yearly world wide demand by nuclear power plants is around 66000 tons uranium, but current mine production can cover only 55 % of that. The remaining 45 % comes mainly from recycling and the majority of that from the Russian military.
In the latest rohstoff-spiegel, Olaf Hordenbach renews his recommendation for Monaro Mining, what he already did 2 weeks ago in that same paper. Monaro is also on Buy List of the Value Investor. Monaro will also be listed in New York after the merger, which might give a boost. That will be after February sometime, I guess.

So what to do? Fundamentals haven't changed much. SP of U companies are sliding. MRO has good properties and management. Will there still be a final sell-off before the turn around comes? Don't know. My guess is as good as yours. Patience may be the name of the game. Or buy when no one wants it, sell when everyone wants it. If you have spare money and can afford to wait.

 

[tronic72]

Yes, I know, jman. Sometimes doubt creeps up like - how is he called? - boogey man? The chart doesn't look nice. Many other U companies are on the slope also. In the north it's winter time, and slope is a nice picture. Shake the not so strong hands, might be a game by the market makers. But I can't see that the fundamentals have turned around. The yearly world wide demand by nuclear power plants is around 66000 tons uranium, but current mine production can cover only 55 % of that. The remaining 45 % comes mainly from recycling and the majority of that from the Russian military.
In the latest rohstoff-spiegel, Olaf Hordenbach renews his recommendation for Monaro Mining, what he already did 2 weeks ago in that same paper. Monaro is also on Buy List of the Value Investor. Monaro will also be listed in New York after the merger, which might give a boost. That will be after February sometime, I guess.

So what to do? Fundamentals haven't changed much. SP of U companies are sliding. MRO has good properties and management. Will there still be a final sell-off before the turn around comes? Don't know. My guess is as good as yours. Patience may be the name of the game. Or buy when no one wants it, sell when everyone wants it. If you have spare money and can afford to wait.

As you've said, often nothing needs to change for these sorts of drops. I don't doubt that once it hits some sort of resistance it will bounce back strongly. It's not like it's verging on going under, it's a solid company.

Although the Sub-prime issue and the threat of a US recession is certainly cause for concern I personally don't think it will be as bad as everyone has predicted. Many analysts are saying it may have even started and that it should only continue for six months.

 

[jman2007]

Major announcement out today,

Signing of a MOU with Chinese giant Sinosteel to assess and develop Kyrgyz Uranium assets. I suspect this is the mysterious "Chinese connection" that we have heards about before, but was almost impossible to find any info on! Again, this development is consolidating MRO's long-term position as a serious contender in the Uranium production club, they're not going to go into production tomorrow, but imo this is a necessarry and cruical step along the way.

The crucial factors here are that Sinosteel has the right to a 40% free carried interest in selected projects by conducting exploration and scoping studies, and a 60% ineterest in projects by completing feasibility studies.

Thoughts gentlemen?....

PS Tronic, this could be your entry point perhaps

 

[noirua]

Update on Monaro Mining's interest in the Shekafter Uranium Mine in the KYRGYZ Republic, with Mr Mart Rampe MD on BoardRoom Radio: http://www.brr.com.au/event/43930

Company website: http://www.monaromining.com