QOL - Queensland Ores

[doogie_goes_off]

Well this graph tells the story: a 'recent performance' evaluation seems like there is stuff all margin in the moly world again. This will put some pressure on low grade Cu (+Mo) producers that are already dealing with a turn around in Cu demand. It's a very nasty decline and I have to say I'm sad for a well set up operation to have valuable assets sitting idle. Maybe there will be a day when they start again. Beating the cycle is a hard thing and maybe they will get the jump on the competition when the time is right.

 

[Sean K]

Well this graph tells the story: a 'recent performance' evaluation seems like there is stuff all margin in the moly world again. This will put some pressure on low grade Cu (+Mo) producers that are already dealing with a turn around in Cu demand. It's a very nasty decline and I have to say I'm sad for a well set up operation to have valuable assets sitting idle. Maybe there will be a day when they start again. Beating the cycle is a hard thing and maybe they will get the jump on the competition when the time is right.

No wonder these and other players like KMN have been slaughtered.

Nothing is safe.

 

[jman2007]

Well Done Jman .... write on the money and I hope that your post may have stopped someone from dipping thier toe in the water..... well done Cheers

Unfortunately todays announcement no surprise I guess nick

Yes well... hopefully might have saved someone from a bit of pain I guess. I never invested a huge amount in the company, about 3K from memory - definitely worse off punters out there than me, and the 30-40 staff from Wolfram Camp will obviously have got their summary executions with 2-3 hours to pack up their dongers and get the hell out of dodge... the usual story. So in that respect I can't be too bitter.

Ultimately it was the moly price crash that killed the project, but I think there were a number of other factors that contributed to their downfall:

- Inability to demonstrate to the market quickly enough that they had a saleable and marketable product - see my previous post.

- Clearly not the right skill sets across their workforce to deal with the pocessing issues that arose.

- Perhaps headed into production prematurely?.. perhaps they didn't understand the metallurgy of the ore properly? May explain low head grade. We still don't know if their product is even saleable at this stage - that's very poor.

I noticed that QOL were very positive prior to and just after the handover from Lycopodium and the specialist met's, but that the positve news dried up very quickly once they took control of the plant themselves. Again, this says to me that they were a pretty green crew.

I do think QOL have taken the right steps to shut the mine down and try and conserve their cash, remains to be seen whether the company has the ability to pick themselves up, re-group and sort their s$$t out.

At least they have a mine, even if it didn't make any money

jman

 

[prawn_86]

Pretty honest letter out by the MD today stating what went wrong and why.

Shame they didnt announce these things to the market as they were happening...

 

[It's Snake Pliskin]

So what is the liong term future of QOL and moly stocks fundamentally? Has the boom really finished until the next one?

 

[jman2007]

So what is the liong term future of QOL and moly stocks fundamentally? Has the boom really finished until the next one?

I wonder how long this suspension from trading will last?

Regardless I don't think QOL holders are going to get much back from their investment. Outback Metals may have put in a bid for their assets perhaps?... QOL look to be painted into a corner atm.

I still can't believe these turkeys spent $40M on a plant and infrastructure to produce only $90K worth of concentrate.

jman

 

[ands]

The market didn't like it, but isn't this some kind of a life saver. Being taken over by a company that has funds and is hoping to have there own projects moving into production by 2010. 1 Outback metals share for every 4.79 QOL shares isn't the best outcome, but at least it gives shareholders some kind of future with a company that can hopefully move forward.

 

[nick2fish]

What a joke, glad my holding is very small, and I will not be taking up the offer...rather put them in the bin and learn from it.

 

[JTLP]

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???

 

[YOUNG_TRADER]

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

 

[UPKA]

Looks like MLM's rival OUM is accumulating QOL stocks on market (see market announcements), OUM currently has 8.5% of QOL anything over 10% will block MLM's takeover and forcing it to better its offer

 

[UPKA]

OUM acquired almost 10% of QOL, in which they can now block MLM's takeover. Another statement issued on the extension of the offer, valuing OUM's offer higher than MLM's, we'll probably see MLM up their offer in the short term! I hold a small amount of QOL as a punt, which less than $800k cash left, the company is running on 1 leg...

 

[UPKA]

Anyone else taking a punt on QOL? recent statement from OUM seems to be quite threatening to QOL holders whos backing MLM... not very happy with that kinda of response!

 

[jman2007]

OUM acquired almost 10% of QOL, in which they can now block MLM's takeover. Another statement issued on the extension of the offer, valuing OUM's offer higher than MLM's, we'll probably see MLM up their offer in the short term! I hold a small amount of QOL as a punt, which less than $800k cash left, the company is running on 1 leg...

More like 1 leg, half an amputated arm with the other arm trying to hold their insides in UPKA... :

These OUM douchebags sound like they're getting a bit shirty, and I have absolutely zero intention of accepting the crumbs they're offering us.

QOL is the meat in the sandwich atm, this was probably always going to happen once Wolfam Camp turned out to be a dud;... the vultures came sniffing around looking to pick up a virtually new plant for next to nothing.

Now we just have to wait while they scrap it out amongst themselves. I have to say though, that MLM's portfolio looks to be superio to OUM's, who have nothing to offer but blue-sky potential, which I want nothing to do with at this stage.

jman

 

[JTLP]

More like 1 leg, half an amputated arm with the other arm trying to hold their insides in UPKA... :

These OUM douchebags sound like they're getting a bit shirty, and I have absolutely zero intention of accepting the crumbs they're offering us.

QOL is the meat in the sandwich atm, this was probably always going to happen once Wolfam Camp turned out to be a dud;... the vultures came sniffing around looking to pick up a virtually new plant for next to nothing.

Now we just have to wait while they scrap it out amongst themselves. I have to say though, that MLM's portfolio looks to be superio to OUM's, who have nothing to offer but blue-sky potential, which I want nothing to do with at this stage.

jman

Just had a read of the statements and agree wholeheartedly jman. OUM sound very shirty and don't want to agree on any terms whatsoever from MLM. I feel sorry for QOL holders at this stage...looks like it could turn into a dog fight unless MLM withdraws or changes terms considerably. Does OUM really have the best interests of its and QOL's holders at present?

 

[jman2007]

Just had a read of the statements and agree wholeheartedly jman. OUM sound very shirty and don't want to agree on any terms whatsoever from MLM. I feel sorry for QOL holders at this stage...looks like it could turn into a dog fight unless MLM withdraws or changes terms considerably. Does OUM really have the best interests of its and QOL's holders at present?

JTLP, something really smells with the entire OUM and QOL relationship imo. I notice that Christopher Jodinson who is the CEO of OUM is also a former company secretary for QOL, so potentially there is some collusion going on here. QOL's management are an absolute disgrace to say the least, to potentially sell of a $40M brand new plant which is owned by the shareholders for next to nothing leaves me lost for words. I also note that QOL have made next to no effort to try and secure a better outcome for shareholders since Wolfam fell over.

So no, I don't believe either OUM or QOL give a rats about their shareholders, and just how OUM intend to fund the new entity remains to be seen. The eventual outcome may provide slightly better terms fo QOL holders, but unless you bought @<5c the effect will probably be negligible.

jman

 

[JTLP]

JTLP, something really smells with the entire OUM and QOL relationship imo. I notice that Christopher Jodinson who is the CEO of OUM is also a former company secretary for QOL, so potentially there is some collusion going on here. QOL's management are an absolute disgrace to say the least, to potentially sell of a $40M brand new plant which is owned by the shareholders for next to nothing leaves me lost for words. I also note that QOL have made next to no effort to try and secure a better outcome for shareholders since Wolfam fell over.

So no, I don't believe either OUM or QOL give a rats about their shareholders, and just how OUM intend to fund the new entity remains to be seen. The eventual outcome may provide slightly better terms fo QOL holders, but unless you bought @<5c the effect will probably be negligible.

jman

Wow...didn't know that about the secretary. That does seem like some dirty collusion. And you're right...for the board to potentially let themselves be taken over for 90% less than the price of the plant is a joke...holders should really be firing off!

I am actually surprised (but it's probably not in anyone's best interest so this is why they haven't done it) that the QOL board have NOT said that holders should intermittently take the MLM offer if nothing better is offered. You stated it before J-Man; MLM have cash, projects etc and will survive. I can only base what you have written about OUM and their set up...and a blue sky prediction in today's market seems like a very bad outcome for holders.

This actually might not be a bad one to have a quick nibble at. I think it is currently below both offer prices and you might see a bidding war (as the price between plant and offers is so great). I would like to see MLM succeed after my earlier disgust (thanks YT and co!)...would be nice to have a plant ready for a commodities upturn...could time it to go online with their other projects.

 

[ands]

http://www.metallicaminerals.com.au/documents/MLM-China_Nickel_major_moves_to_15_percent.pdf

Well, MLM went up over 25% yesterday to finish at 32c after China's second largest nickel producer increased its holding of MLM to over 15%. Also QOL directors accepted the MLM bid. Surely MLM will improve it's bid, 22 for 1 doesn't fairly value QOL at all.

 

[UPKA]

MLM broke thru their 25c resistance with high volume due to the chinese interest. QOL directors have all accepted MLM's offer, so if OUM is in the way, MLM will up their offer?

 

[UPKA]

the OUM and MLM's fight over QOL has been taken to the Takeovers Panel:

Metallica seeks final orders to the effect that:
1. Outback provide corrective disclosure remedying the allegedly misleading
statements and
2. withdrawal rights be granted to Queensland Ores shareholders who have
accepted the Outback offer in reliance on the allegedly misleading statements.

this will be interesting to see how it'll play out..