NWA - New World Alloy

[ongchuan]

NWA is a growing Australian mining and metals processing group with resources and operations in the NT of Australia, the Democratic Republic of Congo and South Africa.
Through NWA’s subsidiary company “Smelting Technologies” in S Africa, the group has developed process techniques in transforming various minerals into metals, largely using furnace technology.
The present focus of the company is to complete the expansionof the Nova Mining Copper Project , based in Lubumbashi, DR of Congo.



NWA has strategic assets as the foundation for its future growth –

Nova Mining – Democratic Republic of Congo.
The mineral rich region of northern Zambia and the southern Congo province of Katanga is known as the ‘Copperbelt’. It has long been an area of mining exploitation by major international companies from colonial times to the present resurgence of interest, driven by an international metals boom. During the past 20-30 years, many international companies withdrew from the region because of political instability and unfavorable commercial policies towards foreign companies.
However, as political stability steadily returned to Congo from 2003, the investment climate has improved, creating opportunities for smaller mining companies such as NWA. The important factors leading to the success of this ‘high risk’ project was (a) a management team with strong local knowledge, (b) low process risk of smelter success using ‘in house’ technology and (c) financial support from committed investors.
From this initiative, the Nova Project began producing blister copper on 5 June 2004. The first campaign from #1 blast furnace produced 15 t of blister grade copper over 3 days, assaying 95% copper content. Since then, the furnace technology has been further developed to run 3 month campaigns, now running both units#1 and #2 concurrently.
Current production of blister grade copper is over 300 t/month, which is all sold to European refineries. Construction of additional furnaces at Nova is in progress, to expand copper metal production in stages, targeting 1,000 t/month by the end of 2007.

Current NWA Projects in Progress

Nova Mining Sprl (Congo) - Copper Smelter(Expansion) Project
Future NWA Projects in Planning

Macro Mining Sprl (Congo) – Copper & Cobalt Smelter Project




Positive cashflow and good revenue. Anyone have any comment on this NWA??

 

[ongchuan]

This is one of the post in HC by Raks. Thanks to him for the detailed analysis:


" Just to reinforce the fundamentals, here's some workings from the quarterly.
They HAVE been put on another thread.

Here's what I've come up with from the quarterly, along with the other odd bits they've given us too.

167m Congo Copper shares at IPO level of 10p = AUD40m
Cash at Hand = $1.2m +
1.6m Uranium Aust Shares at par 50c = $800k
Plus Smelter royalty ex Korab in future

Total value say $42m .... with upside in SAMR float and Uranium Aust floats.

587m shares on issue = 7.15cps BEFORE anything new backed in ... (hope to hear more about that on or before August 14th)

So at 7.15cps with potential upside deals - why are we trading at under 2c? Does the market have NFI - or am I missing something?

Risk = Cu price doesnt hold up and the Congo Copper float on AIM doesn't proceed , although this is probably covered off now and simply awaiting approval at meeting Aug 14th.
Remember Congo Copper is only raising GBP2m at 10p so hardly a big ask.


Quarterly ann:
NEW WORLD ALLOYS LIMITED
ABN 36 060 774 227
989 Wellington Street, West Perth WA 6005
PO Box 403, Victoria Park, 6979, Western Australia
Telephone +61(8) 9322 2744 Facsimile +61(8) 9226 3233
Email info@newworldalloys.com Website www.newworldalloys.com
30th July 2007
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
QUARTERLY REPORT FOR THE QUARTER ENDED 3oth JUNE 2007
NEW WORLD ALLOYS (ASX: NWA) (the “company”) is pleased to advise shareholders of the following key activities during the quarter.
As reported previously, the Board had been conducting serious negotiations with a London based group over a period of time to enable the Congo operations to be fully funded with suitable plant, a reliable source of ore and coke supply and suitable sales arrangements.
Negotiations resulted in the announcement during the quarter of an agreement being entered into to restructure the Company’s assets in the Democratic Republic of Congo. Under the Agreement, NWA will transfer its interest in two of its subsidiaries, Nova Mining SPRL (Nova) and Macro Mining (Macro) (which in turn owns 80% of Phoenix Resources) for the issue of 166,666,667 shares in the capital of Sino Asia Mining Resources Ltd (SAMR) at a deemed issue price of 2p each (Consideration Shares). Prior to and dependent on settlement of the transfer, SAMR has completed a fund raising of approximately £2,200,000 at 2p. At the completion of that raising and settlement, NWA will hold 55% of SAMR. SAMR intends to change its name to Congo Copper plc and seek admission to the Alternative Investment Market in London (AIM) at which time they may seek to raise a further ₤2,000,000. The proposed pricing of the second fund raising should be higher than 2p and, hopefully, in the region of 10p. NWA’s diluted position in SAMR would then be 52%. At the completion of all raisings, Sino-Asia will still be a subsidiary of NWA and NWA will retain its controlling interest in the operations.
A meeting of NWA shareholders to approve the transaction is set down for 11 am on August 14, 2007 at 129 Edward Street, Perth. We encourage those shareholders who cannot attend to send in their proxies.
SAMR have well placed and experienced contacts in London and will be able to bring to the operations access to the London financial markets as well as mining engineering skills and personnel with widespread African experience. The Board feels that these, combined with the assets and skills the Company has in DRC, will lead to a fulfilment of the Company’s objectives for the furnace business in DRC. Further, as the Government is now enforcing its ban on copper ore being exported across the border in Zambia for processing, the prospects for the Company’s furnace business in DRC has greatly improved.
Page 1
Further, the operations in Lubambashi have been operating one furnace on a rental basis over the past month at a rental of US$100,000 per month. The rentor is supplying the ore and is meeting all costs.
BATCHELOR JOINT VENTURE
The Company also announced after the end of the quarter that they had renegotiated their agreement with Korab Resources Ltd and Uranium Australia Pty Ltd over the Batchelor project held by the Company’s subsidiary Savanna Mineral Resources Pty Ltd.
Previously, Korab could earn a 60% interest in the tenements by spending $600,000 over a 4 year period.
Under the amended agreement Korab Resources and Uranium Australia can now acquire a 90% interest in the tenements in consideration of $200,000 in cash and 1.6m Uranium Australia Pty Ltd shares at an issue price of 50 cents each. Korab have advised that their intention is to float Uranium Australia at some time in the not too distant future. Korab will attend to all historical rehabilitation on the tenements. Savanna will be free carried for 10% through to completion of a bankable feasibility study. At that time Savanna will have the option to either contribute to the project on a pro-rata basis, or convert their interest to a 3% net smelter royalty return.
CORPORATE
During the quarter the Company conducted an entitlements issue to all shareholders on the basis of one new share for every share held at the record date at an issue price of one cent each to raise an amount of $2.9m less costs. That issue was fully underwritten and closed on 24 April 2007.
The Board is also pleased to announce that Mr Lindsay Colless, a non-executive director has been appointed Chairman of the Company.
For and on behalf of the Board.
Lindsay A Colless
Chairman."



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Thanks to Raks....

 

[ongchuan]

RESTRUCTURE AND REFINANCING OF CONGO ASSETS
The Directors of New World Alloys Limited (NWA) are pleased to advise that a meeting of shareholders of Sino-Asia Mining and Resources plc (SAMR) was held on Monday 20 August 2007 at which the shareholders of SAMR approved the proposed transaction to purchase NWA’s assets in the Democratic Republic of Congo and the change of name to Congo Copper Corporation plc.
Under the Agreement, NWA will transfer its interest in two of its subsidiaries, Nova Mining SPRL (Nova) and Macro Mining (Macro) (which in turn owns 80% of Phoenix Resources) for the issue of 166,666,667 shares in the capital of SAMR at a deemed issue price of 2p each (Consideration Shares). SAMR have already raised some GBP₤2.2m and intends to seek admission to the Alternative Investment Market in London (AIM) around mid October.
On or before Settlement, NWA will enter into an exploration joint venture agreement (with Phoenix and Macro) in respect of the exploration licences held by Phoenix (Exploration Licences) and exploration licence applications held by Macro (Exploration Licence Applications). Pursuant to the joint venture agreement, NWA will retain a 30% interest in the Exploration Licences and Exploration Licence Applications and will fund 30% of all expenditure incurred in respect of the Exploration Licences and Exploration Licence Applications.
SAMR will use the funds raised referred to above to bring the 3 copper cupolas owned by Nova back into production, to carry out initial investigation of the Exploration Licences and Exploration Licence Applications and to fund investigation of on-site concentration of lower grade oxide ores.
Following Settlement Mr Ian Cornelius and Mr Gerard Zytkow will be appointed to the Board of SAMR representing NWA.

 

[ongchuan]

Low volume for few days already. Good support seen at 0.015-0.017 level. However, sellers are trying to queue up for 0.019 cents. Anyone got any opinion on this company? Can anyone pls do some valuation for this company? IMO, it got good prospects and probably we just need for the time to come. I am expecting good return within 2 months.

 

[ongchuan]

Today's breakout i guess is a very good sign. People start to realise this small undervalued company i guess. Hopefully it will go back to its usual SP around 4 to 6 cents. Very strategic place with good fundamental i think. Located in DRC. Check out this post http://www.canada.com/nationalpost/financialpost/story.html?id=16a0155d-8290-49e1-8fe0-e74fb76ed530

worth have a go on it!

 

[hangseng]

Today's breakout i guess is a very good sign. People start to realise this small undervalued company i guess. Hopefully it will go back to its usual SP around 4 to 6 cents. Very strategic place with good fundamental i think. Located in DRC. Check out this post http://www.canada.com/nationalpost/financialpost/story.html?id=16a0155d-8290-49e1-8fe0-e74fb76ed530

worth have a go on it!

Not a breakout yet ongchuan, but I have commented on it as a potential breakout on that thread. looking good though both technically and fundamentally. Might have a flutter myself.

 

[sydneysider]

Not a breakout yet ongchuan, but I have commented on it as a potential breakout on that thread. looking good though both technically and fundamentally. Might have a flutter myself.

Understanding that the recent issue was completed on May 1st and the stock has rallied 3 times into the 3's and on the third rally this week hit 3.5 on 320 million shares and then retreated back to the mid 2's. IMHO this is building into a very dynamic play. I took a position on yesterdays pullback as it seems it was very overdone. U can see this in the following chart where both MACD and stochastics have dived into the concrete on the basement floor.

Great theatrics with a perfect entry point yesterday afternoon.

 

[sydneysider]

Sell off continued til 2.2 earlier to-day. Now it appears that over 20 million on the bid between 2.2 and 2.4. Technicals have turned and put another buy order in at 2.5. Congo Copper float now imminent on AIM and punting on a major re-valuation of NWA based on strong cash flow from refinery operations vended into Congo Copper which willremain under the majority control of NWA.

 

[agro]

anyone else notice the ascending triangle on the chart of NWA?

e.g. an upward buying trend with a horizontal resistance line at around 2.5?

it did break that resistance level and hit 2.7.. is this breakout material?

apparently the company is to list on the AIM soon.

like to hear others thoughts?