QOL - Queensland Ores

[Bushman]

Yep it has been a frustrating little stock this one. 12 cps is dilutive but surely it has to form a permanent bottom now. Debt free, entering production, 1 year sales off-take etc.

Maybe $12m is to fund an aggressive exploration program? Drill hits is what this one needs now to deliver those long awaited above average returns on Wolfram. Mine life is still low based on the current JORC. Less talk, more drilling please.

But it is about to leave 'explorer' to 'explorer/producer'. That equals cash in as well as cash out and makes this a different beastie all together.

 

[AnDy62]

Personally im disappointed with the SPP. Why do they need 12mill? They said it would only be about 2 - 3 mill needed to finish Wolfram off.

They should have used less dilution (preferabbly debt) just to cover the small amount needed before production. Now the people who forked out 35c in the last placement will be pissed and the new finance guys (BBY) will be laughing as they get a sub market price SPP just before production starts.
A poor effort by management IMO, after doing so much right, its amazing how they failed at this...

All my thoughts only

So do we think the SPP should be taken up? Is there any reasonable chance that 12c will not be a sub-market price due to dilution

 

[jman2007]

Barring any negative news, such as delays in production or plant commssioning etc I can't see a major retrace on the cards.

Well, looks like I'm well and truly eating my words

Apparently QOL were also considering arranging a $10M working capital facility as oppposed to a cap raising, so I didn't find the size of the share issue too surprising.

Dilution can be useful sometimes, as it can also breed liquidity in the market place. Bit of an overreaction to pummel this back to 14c imo.

Prawn, existing shareholders will get an option to purchase up to $5000 @ 12c, so we can all have a chance at reducing our buy-in price

I for one, may actually consider the share purchase plan.

jman

 

[benwex]

I spoke with the management today ( MD Greenweood and company secretary Gill) about the capital raising...

I asked if they need the full amount of the second tranche $12m and they said yes, all of it which surprised me as I was under the impression they need only a small amount to see the project to production. The money is to get then to comissioning and production so I think they are really short of funds!!! They are confident they will raise the required amount and there advises BBY suggest the price of 12c.

I asked about project finance and as they have no bank feasabilty study on the project no bank would touch them...

Also I asked about institutions and there seems to be no real interest

Very mixed impression from them.

Forgot to ask when the record date is for the share purchase plan. Any ideas???

The money is for the completion of the Wolfram project, they did not mention any funds for exploration..

benwex

 

[jman2007]

I spoke with the management today ( MD Greenweood and company secretary Gill) about the capital raising...

I asked if they need the full amount of the second tranche $12m and they said yes, all of it which surprised me as I was under the impression they need only a small amount to see the project to production. The money is to get then to comissioning and production so I think they are really short of funds!!! They are confident they will raise the required amount and there advises BBY suggest the price of 12c.

I asked about project finance and as they have no bank feasabilty study on the project no bank would touch them...

Also I asked about institutions and there seems to be no real interest

Very mixed impression from them.

Forgot to ask when the record date is for the share purchase plan. Any ideas???

The money is for the completion of the Wolfram project, they did not mention any funds for exploration..

benwex

Hey good on you for being proactive,

According to the release, there is an Extraordinary General Meeting scheduled for the 17th June to approve the issue of Tranche 2 placement shares and the SPP. Shareholders should begin to receive info over the next 7 days re the SPP.

Still approx $7.5M cash on hand according to their last quaterly, lack of institutional support somewhat perplexing. I know the delays have led to increasing costs, and that there has been an increase in the stripping ratio in the due to some tweaking of the pit shell, but I found the following comment from Taff Greenwood in the Quaterly interesting:

"Our aim is to lift the resources to at least 3 million tonnes which at the currently planned treatment rate will extend the mine and project life to twenty years" Mr Greenwood said.

However, lets not put the horse before the cart just yet and pray that the commissioning of this little baby is successful, also very pleased to hear that ore stockpiling has begun.

jman

 

[nioka]

But it is about to leave 'explorer' to 'explorer/producer'. That equals cash in as well as cash out and makes this a different beastie all together.

I like to get into a stock just before it commences production and starts to get a cash flow. The construction period is usually a flat period for share prices and there is usually a bounce after a successful start up. I've decided to get into QOL on that basis. The new issue will be a good opportunity for some to reduce their average buy in price. Just my opinion. DYOR.

 

[AnDy62]

Correct me if I'm wrong but the 15/5, Thurs was the scheduled date for the first treatment of ores at Wolfram ? I wonder if this will be price sensitive, if the company can make the date. Also, does anyone know when the 12c share placement will be offered?

The share price has been interesting, thrashing around 13.5c - 15.5c on high volume. I think this represents the polarity of sentiment surrounding QOL

 

[morton_mains]

AnDy
Yes 15th May first production date - newspaper report, but don't think there was any ann.

First tranche of 20m shares available for sale yesterday so good to see they have enough sense to dribble them onto market. Can't quite figure why no Substantial Notices have been done?

To answer your question the next tranche and the SPP have to be mailed to shareholders and approved at extra-ord gen meeting scheduled for 17/6. Time is getting tight, there's probably a specified time period so they will be working hard. I imagine the sticking point will be how to "sell" the need for $x, with other matter being how much stock will have to be issued - I suspect it hinges on capital for FUTURE project (Mt C.) and not Wolfram - all very Trojan Horse feel to me.

 

[nick2fish]

Doses anyone know what will be the record date for spp.
I'm thinking of getting in tomorrow and the spp would be the clincher.Just stumbled onto this company tonite (Had my head in the sand lately) and find it hard to believe the sp decline.
I thought companies were supposed to increase value as they neared production
Oh well maybe my trade in the morn will spark off a stock stampede
Cheers

 

[Synergy]

From: http://www.steelguru.com/news/index...ian_miner_eyes_old_tungsten_mine_restart.html


Australian miner eyes old tungsten mine restart
Reuters reported that Australian prospector Queensland Ores Ltd is on track to revive production from a century old molybdenum and tungsten mine this summer, having agreed to sell the ore to China.

Mr Taff Greenwood MD of Queensland Ores Ltd told Reuters that "Shipment of the first concentrate in July is looking good. The plant is just short of commissioning and the first ore will go through the plant on May 15."

He said that it is building an ore treatment plant, which will yield 1,100 tonnes of tungsten bearing wolframite concentrate and 200 tonnes of molybdenum concentrate over the next 12 months.

The concentrates produced by Queensland Ores contain 65% to 685 wolframite and 50% to 51% molybdenum.

As per report CITIC, one of China's biggest diversified state owned enterprises, will buy all the output for the first year of production, with an option for another three, under a deal announced last December, the latest firm looking to Australia to provide raw materials to sustain China's growth.



So hopefully we'll get some positive news sometime over the next couple of days... Knowing this company, they won't waste any time in filling us in once things get going.

 

[countryboy]

in the que of 20 plus at 14c...cant see the point of paying too much if i can buy $5000 at 12c. just gotta watch that deadline. looked at anumber of MOY plays and this looks the goods with scope to upgrade the resource

 

[benwex]

in the que of 20 plus at 14c...cant see the point of paying too much if i can buy $5000 at 12c. just gotta watch that deadline. looked at anumber of MOY plays and this looks the goods with scope to upgrade the resource

does anyone yet know when the record date is for the $5000 at 12c???

I might call them tommorrow to find out...

benwex

 

[AnDy62]

:^ cheers, let me know the answer :

If candle analysis means anything, this must be at the bottom. First an obvious morning star, then the long-legged dojis- QOL is trying to break up. Hopefully, there will be the ann today re treatment of first ores and some price momentum

 

[benwex]

:^ cheers, let me know the answer :

If candle analysis means anything, this must be at the bottom. First an obvious morning star, then the long-legged dojis- QOL is trying to break up. Hopefully, there will be the ann today re treatment of first ores and some price momentum

I spoke with the company secretry this morning

the rec date has not been set yet but he did say it wont be for a few more weeks...

benwex

 

[doogie_goes_off]

Yep looking forward to being offered more shares at 12c, would be a real treat if they start an upward run. All these type of ops take a while to get their plant right but presumably there will be price movement when first sales are announced.

 

[juw177]

The capping at 15c continues. Maybe they are taking the share issue and reducing their current heads? Maybe it is ANZ?

I am watching the supply very closely as this may well be the bottom.

 

[AnDy62]

There we have it. Just too many big buyers to hold her down today, up to 16c, looking for 16.5c. Record volume I think too. I'm a little perplexed as I thought that there might be an ann today, but there wasn't and the price went up anyway. The insiders aren't often wrong with QOL so let's hope, that there is some good news comin'

 

[questionall_42]

Just wondering if there would a minimum amount of shares to hold to be entitled to the SPP (up to $5K of stock I assume). I realise the date has not been set for QOL, but just wondering what others' experience with SPP has been. Entered this a few times and looking to book some losses on strength while buying into the SPP @ 12c. Thanks.

 

[doogie_goes_off]

ANNOUNCEMENT: First Ore Fed Into Crusher...etc. I'd say there is a chance that this mine will actually get it's ore to market on schedule, nothing short of spectacular in the current conditions. I still hold a few, let's hope the new plant runs efficiently and we see a positive cash flow.

 

[prawn_86]

Very good announcement, once again good to see promises been delivered on time.

The final photo looks the best to me. Quite a large stockpile of crushed ore there already and that was 4 days ago