NRZ - NeuRizer Ltd
- Thread starter Mistermoon
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Re: MTN - Marathon Resources
Wake up peeps!
Someone is finally seeing the value in MTN offmarket bid @ 68c
Wake up peeps!
Someone is finally seeing the value in MTN offmarket bid @ 68c
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Re: MTN - Marathon Resources
Very opportunistic bid IMO,
As stated MTN has one of the largest undeveloped Uranium Resources in Australia, Approximately
33,000t U3O8 = 72.6M lbs Uranium,
@ their bid of 68c they are paying $33.5m for the company or an amazingly low 46c per lb of Uranium,
I Always said if they're EV per lb Uranium stayed so low you'd see a takeover bid sooner or later, well here it is, and they have timed it well, just after 2 corrections 1 in Uranium he other in the general Market, so they can put in such a cheap offer!
This stock was heavily backed by Fat Prophets @ $1 and Patersons as well lets see what they're analysts say regarding this offer, fair value? I don't think so
Very opportunistic bid IMO,
As stated MTN has one of the largest undeveloped Uranium Resources in Australia, Approximately
33,000t U3O8 = 72.6M lbs Uranium,
@ their bid of 68c they are paying $33.5m for the company or an amazingly low 46c per lb of Uranium,
I Always said if they're EV per lb Uranium stayed so low you'd see a takeover bid sooner or later, well here it is, and they have timed it well, just after 2 corrections 1 in Uranium he other in the general Market, so they can put in such a cheap offer!
This stock was heavily backed by Fat Prophets @ $1 and Patersons as well lets see what they're analysts say regarding this offer, fair value? I don't think so
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Re: MTN - Marathon Resources
But still, this sp before was $1.375 and goes down since....
now up quite good. not enough to return profit for me yet...
But still, this sp before was $1.375 and goes down since....
now up quite good. not enough to return profit for me yet...
michael_selway
Coal & Phosphate, thats it!
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Re: MTN - Marathon Resources
Do you think offer is a bit cheap/disgraceful?
thx
MS
powerkoala said:But still, this sp before was $1.375 and goes down since....
now up quite good. not enough to return profit for me yet...
Do you think offer is a bit cheap/disgraceful?
thx
MS
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Re: MTN - Marathon Resources
MS, I'm in Coporate Law and I'm not salt, I'm as sweet as sugar (So sweet I'll make your teeth rot! )
But yes this offer is disgracefully undervalued as I posted above,
Very opportunistic bid IMO,
As stated MTN has one of the largest undeveloped Uranium Resources in Australia, Approximately
33,000t U3O8 = 72.6M lbs Uranium,
@ their bid of 68c they are paying $33.5m for the company or an amazingly low 46c per lb of Uranium,
I Always said if they're EV per lb Uranium stayed so low you'd see a takeover bid sooner or later, well here it is, and they have timed it well, just after 2 corrections 1 in Uranium he other in the general Market, so they can put in such a cheap offer!
This stock was heavily backed by Fat Prophets @ $1 and Patersons as well lets see what they're analysts say regarding this offer, fair value? I don't
think so
michael_selway said:
MS, I'm in Coporate Law and I'm not salt, I'm as sweet as sugar (So sweet I'll make your teeth rot!
)But yes this offer is disgracefully undervalued as I posted above,
Very opportunistic bid IMO,
As stated MTN has one of the largest undeveloped Uranium Resources in Australia, Approximately
33,000t U3O8 = 72.6M lbs Uranium,
@ their bid of 68c they are paying $33.5m for the company or an amazingly low 46c per lb of Uranium,
I Always said if they're EV per lb Uranium stayed so low you'd see a takeover bid sooner or later, well here it is, and they have timed it well, just after 2 corrections 1 in Uranium he other in the general Market, so they can put in such a cheap offer!
This stock was heavily backed by Fat Prophets @ $1 and Patersons as well lets see what they're analysts say regarding this offer, fair value? I don't
think so
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Re: MTN - Marathon Resources
Here are the fundamentals for my reasoning, as stated in previous post (see my early posts on MTN) Avg EV per lb Australian Uranium Companies is $2.65
Now here Crosby is trying to buy MTN for 0.45c a lb so immediately how cheap does their offer seem, realistically they can double or even tripple their offer in terms of price so that the EV they pay rises to 90c per lb or $1.35c per lb and it would still be cheap, at $1.35c per lb (which would require a bid of around $2) they are still only paying half what the market avg is for a lb of Uranium,
I hope this all makes sense,
So in essence what Crosby are paying for is the resource (73m lbs) they should be paying at least $1 per lb if not $1.35 which requires $73m - $100m bid = $1.50 - $2
So we'll wait and see, one thing is for sure 68c is just too cheap
Here are the fundamentals for my reasoning, as stated in previous post (see my early posts on MTN) Avg EV per lb Australian Uranium Companies is $2.65
Now here Crosby is trying to buy MTN for 0.45c a lb so immediately how cheap does their offer seem, realistically they can double or even tripple their offer in terms of price so that the EV they pay rises to 90c per lb or $1.35c per lb and it would still be cheap, at $1.35c per lb (which would require a bid of around $2) they are still only paying half what the market avg is for a lb of Uranium,
I hope this all makes sense,
So in essence what Crosby are paying for is the resource (73m lbs) they should be paying at least $1 per lb if not $1.35 which requires $73m - $100m bid = $1.50 - $2
So we'll wait and see, one thing is for sure 68c is just too cheap
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Re: MTN - Marathon Resources
What price do u expect than? $1?
YOUNG_TRADER said:
What price do u expect than? $1?
Sean K
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Re: MTN - Marathon Resources
Please correct me if I'm wrong here but I think the reason they can get away with a lower bid atm is that mining will not be approved while the Labor Party has 3 mine policy. They could be buying something that can never actually operate! Where's the value in that?
Please correct me if I'm wrong here but I think the reason they can get away with a lower bid atm is that mining will not be approved while the Labor Party has 3 mine policy. They could be buying something that can never actually operate! Where's the value in that?
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Re: MTN - Marathon Resources
Hey YT this can't be the type of takeover you were thinking about????
Didn't they put the strangest spin on the reasons for takeover....
it was'nt all serious was it?
Hey YT this can't be the type of takeover you were thinking about????
Didn't they put the strangest spin on the reasons for takeover....
it was'nt all serious was it?
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Re: MTN - Marathon Resources
Well if that were true, Mega should not have bid (and increased its bid by 300% eventually) for HMR
Stocks like NEL, ENR, AGS, VUL, SMM should command very low EV per lb mkt caps,
The key word when I was highlighting my EV per lb avg was Australian companies which is a very low $2.65 per lb,
For Example EME in NT gets well over $5 per lb because its in N.T.
PDN gets like $30 because its about to produce,
So no I don't think that 0.45c per lb is justifiable given its in S.A. the 2nd best place to be in Aus, and given that worse places like Qld and W.A. command $2.65 and even AGS operating in S.A. commands over $2 per lb
Its all comparative!
kennas said:
Well if that were true, Mega should not have bid (and increased its bid by 300% eventually) for HMR
Stocks like NEL, ENR, AGS, VUL, SMM should command very low EV per lb mkt caps,
The key word when I was highlighting my EV per lb avg was Australian companies which is a very low $2.65 per lb,
For Example EME in NT gets well over $5 per lb because its in N.T.
PDN gets like $30 because its about to produce,
So no I don't think that 0.45c per lb is justifiable given its in S.A. the 2nd best place to be in Aus, and given that worse places like Qld and W.A. command $2.65 and even AGS operating in S.A. commands over $2 per lb
Its all comparative!
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Re: MTN - Marathon Resources
Well if I wanted to acquire an excellent asset, I'd wait as Captain Jack Sparrow says for the 'Opportune Time' which in the case of listed equities after a sevre correction and an exodus from investors in that sector (Uranium) I'd then put in the cheapest offer I could stating that it was at a premium to the Companies stock price (Which just happens to be at a 12 month low)
I'd then also seek to put out as much negativity so that un-informed investors were encouraged to accept the offer,
I think MS summed it up best
I don't hold MTN but I do find the offer letter funny.
You should sell because they're no liquidity. Therefore I should sell my BHP, less liquid than MTN.
You should sell because project cost is multiple of market cap. Therefore I should sell all my exploration based shares in case they discover something and have to deveolp it.
You should sell because of uranium price risk. Therefore I should sell all of my commodities portfolio.
I'm glad I read that, could have saved me a fortune. Corporate lawyers, salt of the earth.
kgee said:Hey YT this can't be the type of takeover you were thinking about????
Didn't they put the strangest spin on the reasons for takeover....
it was'nt all serious was it?
Well if I wanted to acquire an excellent asset, I'd wait as Captain Jack Sparrow says for the 'Opportune Time' which in the case of listed equities after a sevre correction and an exodus from investors in that sector (Uranium) I'd then put in the cheapest offer I could stating that it was at a premium to the Companies stock price (Which just happens to be at a 12 month low)
I'd then also seek to put out as much negativity so that un-informed investors were encouraged to accept the offer,
I think MS summed it up best
I don't hold MTN but I do find the offer letter funny.
You should sell because they're no liquidity. Therefore I should sell my BHP, less liquid than MTN.
You should sell because project cost is multiple of market cap. Therefore I should sell all my exploration based shares in case they discover something and have to deveolp it.
You should sell because of uranium price risk. Therefore I should sell all of my commodities portfolio.
I'm glad I read that, could have saved me a fortune. Corporate lawyers, salt of the earth.
Sean K
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Re: MTN - Marathon Resources
I agree YT, it's the potential that is being bought, but with significant risk which Crosby outline well in the bidder statement. All part of the game I suppose.
Anyone gambling on a higher bid? The environment is ripe for it.
I agree YT, it's the potential that is being bought, but with significant risk which Crosby outline well in the bidder statement. All part of the game I suppose.
Anyone gambling on a higher bid? The environment is ripe for it.
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Re: MTN - Marathon Resources
To put it into perspective MTN has deposits with an in-situ value of $4.3b gross
Thats 72m lbs @ $45 us/lb @ 75c:1 excahnge rate
I'd be very very very suprised if 1 of 2 things didn't happen,
1. Company Rejects the offer (if they didn't I'd suspect foul play and would wish to know exactly who is bidding for it)
2. Another Major steps in and ups the Anti
To put it into perspective MTN has deposits with an in-situ value of $4.3b gross
Thats 72m lbs @ $45 us/lb @ 75c:1 excahnge rate
I'd be very very very suprised if 1 of 2 things didn't happen,
1. Company Rejects the offer (if they didn't I'd suspect foul play and would wish to know exactly who is bidding for it)
2. Another Major steps in and ups the Anti
Re: MTN - Marathon Resources
Who is Crosby and who do they really represent?
I think their low offer and the way they talk the company down is a bit shabby and lacks credibility.
As a holder of MTN I'm hanging out for a better bid from Crosby or a counter-bidder.
Who is Crosby and who do they really represent?
I think their low offer and the way they talk the company down is a bit shabby and lacks credibility.
As a holder of MTN I'm hanging out for a better bid from Crosby or a counter-bidder.
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Re: MTN - Marathon Resources
Crosby is the same group who went after Tethyan Copper, offering a very low bid for the company
"TAKE NO ACTION IN RELATION TO CROSBY’S OFFER
In the next day or two you should receive takeover documentation from Skafell Pty Ltd (the nominee
company that Crosby Capital Partners is using to make its unsolicited takeover Offer).
Your Directors remain convinced that Crosby’s Offer undervalues the Company and its assets and advise you
to take no action in relation to the Offer. We are working on our detailed response to Crosby’s Offer (our
Target’s Statement) and will send it to you within the next 14 days."
A serious offer appeared well above Crosby's that eventually won,
Look at it like this its downside is 68c, its upside is $1.50 - $2 IMO hence I jumped on board as soon as I saw take over bid because I like those odds, low downside, extremely high upside
YELNATS said:
Crosby is the same group who went after Tethyan Copper, offering a very low bid for the company
"TAKE NO ACTION IN RELATION TO CROSBY’S OFFER
In the next day or two you should receive takeover documentation from Skafell Pty Ltd (the nominee
company that Crosby Capital Partners is using to make its unsolicited takeover Offer).
Your Directors remain convinced that Crosby’s Offer undervalues the Company and its assets and advise you
to take no action in relation to the Offer. We are working on our detailed response to Crosby’s Offer (our
Target’s Statement) and will send it to you within the next 14 days."
A serious offer appeared well above Crosby's that eventually won,
Look at it like this its downside is 68c, its upside is $1.50 - $2 IMO hence I jumped on board as soon as I saw take over bid because I like those odds, low downside, extremely high upside
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Re: MTN - Marathon Resources
I seem to remember TOE was floated with one of its objectives to consolidate uranium interests in Australia - I wonder if TOE will start getting active in buying up other small uranium hopefuls?
I seem to remember TOE was floated with one of its objectives to consolidate uranium interests in Australia - I wonder if TOE will start getting active in buying up other small uranium hopefuls?
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Re: MTN - Marathon Resources
A response,
The bid will be rejected!!!!!!!!
Crosby bids for Marathon
Ben Sharples
Thursday, July 06, 2006
FRESH from its failed takeover bid for Tethyan Copper, Crosby Capital has popped up on the Australian resource radar again, this time with a $A33.4 million hostile bid for junior Marathon Resources. However, the Hong Kong-based investment bank may have a fight on its hands.
Under terms of the bid, Crosby has offered to buy all of Marathon's ordinary shares, including those to be issued on the exercise of outstanding options for 68c per share.
Marathon chief executive John Santich told MiningNews.net the bid clearly and significantly undervalued the company and the board would not be recommending its shareholders to sell at 68c.
In its bid to soften up shareholders, Crosby listed a number of "significant risks" to shareholders, including project development risk and significant capital funding requirements; regulatory uncertainty over uranium mining; concentrated commodity price risk; uncertainty over the management's capability to advance and develop projects; and lack of liquidity.
"Lots of those things are true, that's the nature of the minerals industry, nobody's arguing about that, we all know that, that is why you invest in companies that you hope make a discovery," Santich said.
"That is the nature of the business."
Santich described the concentrated commodity risk related to Marathon as a "furphy" and poured cold water over suggestions that the company's management was not capable of advancing and developing projects.
"The only uncertainty is we haven't developed our full development team, but quite clearly we have the skills and we have the track record in terms of developing projects," he said.
"As for the lack of liquidity, I'm not sure that that is true, I think there is a fair amount of turnover, I think that the only pointer that they have there is, who would want to sell with the stock plummeting to 50c.
"There are plenty of reasons for that – the end of the financial year, the state of the market generally, and the fact that we've had a bit of difficulty getting our assays in on time from the laboratories."
Santich said Crosby has taken the stock at a long-time low and applied a "fantastic" premium, but have failed to take a long-term view.
"They've done it before, they recognise value when they see it, they'll take it out, pull it apart and put it back in for $200 million and they'll have the profits instead of our shareholders," Santich said.
"I hope we can manage to demonstrate to shareholders there is value there, but on the other hand, it's good to see somebody come out of the woodwork and say 'hey, this stock is undervalued, let's buy it'.
"Let's face it, Crosby are not going to pay full value for anything, it's a banker's bid, and that's what you do when you're in that sort of business, you look for something that is undervalued and you try and buy it."
Marathon is exploring the Paralana mineral system in the North Flinders Rangers, which hosts the company's Hodgkinson and Mt Gee uranium deposits.
The advanced Mt Gee deposit has an inferred resource of 57 million tones at 0.06% uranium oxide for 33,000t of contained uranium oxide, while recent drilling at Hodgkinson returned hits of 23m at 0.15% uranium oxide, including 1m at 1.15%.
Marathon also has a portfolio of copper-gold-uranium properties in the Gawler Craton, South Australia, along with copper-gold properties in western Victoria.
Shares in the company, which hit a 52-week high of $1.45 in April, remained unchanged during morning trade at 55c, capitalising the company at $24 million.
A response,
The bid will be rejected!!!!!!!!
Crosby bids for Marathon
Ben Sharples
Thursday, July 06, 2006
FRESH from its failed takeover bid for Tethyan Copper, Crosby Capital has popped up on the Australian resource radar again, this time with a $A33.4 million hostile bid for junior Marathon Resources. However, the Hong Kong-based investment bank may have a fight on its hands.
Under terms of the bid, Crosby has offered to buy all of Marathon's ordinary shares, including those to be issued on the exercise of outstanding options for 68c per share.
Marathon chief executive John Santich told MiningNews.net the bid clearly and significantly undervalued the company and the board would not be recommending its shareholders to sell at 68c.
In its bid to soften up shareholders, Crosby listed a number of "significant risks" to shareholders, including project development risk and significant capital funding requirements; regulatory uncertainty over uranium mining; concentrated commodity price risk; uncertainty over the management's capability to advance and develop projects; and lack of liquidity.
"Lots of those things are true, that's the nature of the minerals industry, nobody's arguing about that, we all know that, that is why you invest in companies that you hope make a discovery," Santich said.
"That is the nature of the business."
Santich described the concentrated commodity risk related to Marathon as a "furphy" and poured cold water over suggestions that the company's management was not capable of advancing and developing projects.
"The only uncertainty is we haven't developed our full development team, but quite clearly we have the skills and we have the track record in terms of developing projects," he said.
"As for the lack of liquidity, I'm not sure that that is true, I think there is a fair amount of turnover, I think that the only pointer that they have there is, who would want to sell with the stock plummeting to 50c.
"There are plenty of reasons for that – the end of the financial year, the state of the market generally, and the fact that we've had a bit of difficulty getting our assays in on time from the laboratories."
Santich said Crosby has taken the stock at a long-time low and applied a "fantastic" premium, but have failed to take a long-term view.
"They've done it before, they recognise value when they see it, they'll take it out, pull it apart and put it back in for $200 million and they'll have the profits instead of our shareholders," Santich said.
"I hope we can manage to demonstrate to shareholders there is value there, but on the other hand, it's good to see somebody come out of the woodwork and say 'hey, this stock is undervalued, let's buy it'.
"Let's face it, Crosby are not going to pay full value for anything, it's a banker's bid, and that's what you do when you're in that sort of business, you look for something that is undervalued and you try and buy it."
Marathon is exploring the Paralana mineral system in the North Flinders Rangers, which hosts the company's Hodgkinson and Mt Gee uranium deposits.
The advanced Mt Gee deposit has an inferred resource of 57 million tones at 0.06% uranium oxide for 33,000t of contained uranium oxide, while recent drilling at Hodgkinson returned hits of 23m at 0.15% uranium oxide, including 1m at 1.15%.
Marathon also has a portfolio of copper-gold-uranium properties in the Gawler Craton, South Australia, along with copper-gold properties in western Victoria.
Shares in the company, which hit a 52-week high of $1.45 in April, remained unchanged during morning trade at 55c, capitalising the company at $24 million.
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Re: MTN - Marathon Resources
And there it is, the rejection!
What will Crosby do? Should be a fair bit of speculation in the air, I'd expect Fat Prophets and Patersons to make comments on the offer,
At least it throws the spotlight on this hugely undervalued company
RESPONSE TO CROSBY BID
The Board of Marathon has met to consider the announcement dated 5 July 2006 by Crosby
Capital Partners Inc (Crosby) that it intends to make a takeover bid for Marathon.
The Board believes the unsolicited bid to be opportunistic and significantly undervalues
Marathon’s assets and future prospects.
The bid is also heavily conditional and uncertain. The Crosby announcement only contains an
outline of conditions of the bid. The full terms of these conditions will be set out in the
Bidder’s Statement.
The directors of Marathon collectively control 22.8% of Marathon’s fully diluted issued
capital and do not intend to accept the proposed offer. This means the minimum acceptance
condition set out in Crosby’s announcement will not be able to be met and the proposed offer
cannot succeed unless this condition is waived or varied.
Directors advise shareholders to take no action in respect of Crosby’s announcement or
the offer, when it eventuates, until the board of Marathon provides its detailed response
in the target statement, which will be provided to all shareholders in accordance with
the statutory timetable after Crosby’s formal offer documents have been received by
Marathon.
And there it is, the rejection!
What will Crosby do? Should be a fair bit of speculation in the air, I'd expect Fat Prophets and Patersons to make comments on the offer,
At least it throws the spotlight on this hugely undervalued company
RESPONSE TO CROSBY BID
The Board of Marathon has met to consider the announcement dated 5 July 2006 by Crosby
Capital Partners Inc (Crosby) that it intends to make a takeover bid for Marathon.
The Board believes the unsolicited bid to be opportunistic and significantly undervalues
Marathon’s assets and future prospects.
The bid is also heavily conditional and uncertain. The Crosby announcement only contains an
outline of conditions of the bid. The full terms of these conditions will be set out in the
Bidder’s Statement.
The directors of Marathon collectively control 22.8% of Marathon’s fully diluted issued
capital and do not intend to accept the proposed offer. This means the minimum acceptance
condition set out in Crosby’s announcement will not be able to be met and the proposed offer
cannot succeed unless this condition is waived or varied.
Directors advise shareholders to take no action in respect of Crosby’s announcement or
the offer, when it eventuates, until the board of Marathon provides its detailed response
in the target statement, which will be provided to all shareholders in accordance with
the statutory timetable after Crosby’s formal offer documents have been received by
Marathon.
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Re: MTN - Marathon Resources
Small buyers scrambling to get on board before close,
Should be some very interesting articles in the paper tommorrow
Small buyers scrambling to get on board before close,
Should be some very interesting articles in the paper tommorrow