TTY - Territory Resources

I forgot to post this but Fat Prophets receommended it as a hold in the last week or 2, will post more details as i have them.

I can't see many companies recovering shareprices from these lows

SenTineL said:

I forgot to post this but Fat Prophets receommended it as a hold in the last week or 2, will post more details as i have them.

I can't see many companies recovering shareprices from these lows

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No, it doesn't look too promising. Market cap now down to $38m, price and demand for iron ore falling out of bed. Time for big shareholder - Nobles? - to come to the rescue?

SenTineL said:

I forgot to post this but Fat Prophets receommended it as a hold in the last week or 2, will post more details as i have them.

I can't see many companies recovering shareprices from these lows

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Ha! Fat Prophets, probably some more irresponsible advice from them, they also said tty was a good buy at .80c!

They may be right this time but their recommendations in the last few months have been a sea of 70-80% losses & i certainly won't be holding anything because they said to!

S&P have removed TTY from the All Ords Index

They've also removed Oceanagold Corporation (OGC) from the All Ords Index, didn't that come close to winning last month's comp ??

ann out before open this morning regarding a resource upgrade at frances creek

...

112% increase in the resource estimate for its flagship Helene 6/7 Deposit, the principal source of high-grade ore at its 100%-owned Frances Creek Iron Ore Mine, located 200 km south of Darwin in the Northern Territory.

The JORC-compliant Indicated and Inferred Resource has increased by 2.2 million tonnes to 4.1 million tonnes at an average grade of 59.5% Fe

...

The resource has been increased from the previously reported figure for the Helene 6/7 Deposit of 1.9 Mt @ 61.4% Fe

...

this represents an important step towards ... delineating a further 4-5 million tonnes in resources

...

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potentially the only good news s/holders in this co have had for a long time

that and the fact they use swick for their drilling

sp currently up approx 7% on neither here nor there volume

cheers

happytown said:

ann out before open this morning regarding a resource upgrade at frances creek

potentially the only good news s/holders in this co have had for a long time

that and the fact they use swick for their drilling

sp currently up approx 7% on neither here nor there volume

cheers

Click to expand...

What is the significance of them using Swick?

I'm interested, being a SWK shareholder. ( Hope TTY are paying their bills!)

Roll on the 12th August. Hopefully by then a deed of agreement can be reached with their financiers. Clearup some debt and start moving forward !

12 August 20..... ?

Click TTY from time to time, but nothing to see.......... suspended.......

Perhaps by the time she starts trading again the boom will have returned!

Back in the market .... heady start and made 28 cents .... finished at 22.5 cents with near 3 million changing hands. Whoooooeeeeeeee ... got out for cost on this one. (less brokerage fee of course) Cheque is in the mail.

As a TTY holder I was interested in the following news item"


"The Kanatarka State Government of India that mines
46 Million Tonnes of iron ore each year and exports 60% of this ore has officially announced the ban of Iron Ore from 10 of its ports to China and has urged the other Indian mining regions to do the same.

The Kanatarka share of Indian iron ore exports is approx 27Mt, out of the total 100Mt that India exports to China.

This is now GONE from the world Seaborne Trade as of Monday!

At the minute with subdued Iron Ore demand this will provide a floor to the Spot Price of Iron ore of around $110 per tonne, $23 less than current spot price, but when demand rises in next 4 weeks for the peak season the supply shortage of 27Mt will increase the peak price of the ore!

If more Indian States join the ban the price of Iron Ore will spike!

http://www.dnaindia.com/bangalore/report_karnataka-government-bans-export-of-iron-ore-from-10-ports_1415194"


This should be good for the small iron ore miners that sell on the spot market as does TTY.

TTY is climbing out of the black hole it found itself in. Debt to Noble is slowly being paid back and its reserves are increasing. It will soon be operating with surplus funds. Hopefully the new management will not squander the profits as was the case with TTY in the past. The SP is starting to reflect the positive results and in my opinion it will continue to improve further as the debt is paid.

High activity but still in decline. Hopefully as nioka pointed out they will be able to trade back with a surplus.
Code Last % Chg Bid Offer Open High Low Vol
TTY 0.260 -5.45% 0.260 0.270 0.270 0.275 0.260 373,137

The release of an upgrade to reserves has had a great reception on the market today with a 20% increase in the SP. News report (company announcement) as below.

"Territory Targets Further Mine Life Extensions with a $4.67M Exploration programme underway toextend mine life beyond 2014
Australian iron ore producer Territory Resources Limited (ASX: TTY – “Territory” or “the Company”) is pleased to advise that a re-optimisation of the deposits has extended the mine life at its 2 Mtpa Frances Creek Iron Ore Mine in the Northern Territory with a 50% increase in Ore Reserves that will
underpin continued iron ore production at the mine until at least 2013.
Territory said today that is has also unveiled a three-pronged programme to further extend the mine life at its operation at Frances Creek. A budget of $4.67 million has been approved for the 2011 financial year to aggressively explore for and develop iron ore resources both in the near-mine environment and within a 35 km radius of the Frances Creek operation.

50% Ore Reserve Upgrade
The Ore Reserve upgrade follows a re-optimisation of the existing resource inventory after taking into account recent increases in the iron ore price as well as earlier product specification changes, and the inclusion of scalps and low-grade stockpiles. In addition, the Fe cut off grade has been reduced to 50% at all deposits to be consistent with the head grade cut-off at the flag ship Helene 6/7 deposit.
The Company has taken the opportunity created by the new market metrics to change the mining parameters at Frances Creek to access more of the Company’s resource inventory. The new metrics have allowed for a re-assessment of the pit shells and optimisations as higher iron ore prices have
allowed access to deeper ore that was previously uneconomic to extract. The new, larger pit shells have higher strip ratios and costs but allow for the Company to increase the value and return on the Resources.
The re-optimisation has resulted in conversion of additional Indicated Mineral Resources to Ore Reserves, increasing the total Probable Ore Reserves at Frances Creek as at 30 June 2010 to 5.69 million tonnes grading 57.8% Fe, 0.10% P, 8.8% SiO2 and 3.5% Al2O3."

Is Keirnan still involved in these guys?

I would never invest in a stock he is involved with, as for him it seems more about directors wages and free shares than creating shareholder value.

prawn_86 said:

Is Keirnan still involved in these guys?

I would never invest in a stock he is involved with, as for him it seems more about directors wages and free shares than creating shareholder value.

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No. I sold out because of his management and investing style but bought back in recently when it was obvious that TTY had a good reliable partner in Noble, Keirnan was gone and new management appeared to have a sound plan to return the company to profitability. TTY are reducing debt at a great rate and will soon have some decent cash to work with.

A different TTY to that of the past. Their bad reputation kept the SP at a low level for some time allowing a cheap entry. That bad reputation is slowly disappearing. That is how I see TTY.

Iron ore output drop keeps markets tight: UNCTAD

Topics:Commodities.On Friday 30 July 2010, 20:19 SGT

Iron ore output fell in 2009 for the first time in seven years despite continued growth in trade to record levels, keeping market conditions tight and prices high until 2012, a UN thinktank said Friday.

Global output of the raw material for steel fell by 6.2 percent year-on-year in 2009 to 1.588 billion tonnes, the UN Conference on Trade and Development (UNCTAD) said in a report on the iron ore market.

China, once the world's largest iron ore producer, was only the fourth largest producer with output of 234 million tonnes last year behind India (257 million tonnes), Brazil (300) and Australia (394).

The report said mining output declined in most countries last year except Australia and South Africa, while Chinese domestic production was expected to fall even further this year due to widespread mine closures.

Nonethless, trade in iron ore reached a record 955 million tonnes in 2009, growing by 7.4 percent over the previous year largely thanks to increasing Chinese imports, UNCTAD added.

Australia exported the equivalent of 92 percent of its output, an increase of 17 percent, ahead of Brazil and India.

The report cautioned that supply would continue to lag behind demand in the short term, while pricing had become more obscure following the breakdown of an annual benchmark negotiation process on iron ore markets earlier this year.

"We think that this year and next year the world iron ore market will be characterised by tight conditions," said UNCTAD official Alexei Mojarov.

Mojarov predicted that new iron ore mining capacity coming online would gradually bridge the gap with continuously growing demand over the coming years.

"We believe that in the future the supply will gradually catch up and prices will gradually decline from present extreme levels but will stay at a higher level than 2008," he told journalists.

The report said 75 million tonnes of new cpacity came on tap last year, with 685 million tonnes expected to come onstream between 2010 and 2012.

The annual report was compiled by UNCTAD and Swedish mining analysts Raw Materials Group.

Here is some TTY news that is worth a read.

http://au.news.yahoo.com/thewest/bu...revived-territory-on-lookout-for-second-mine/

Just two years after being forced to the brink of collapse, Territory Resources plans to spend at least $500 million acquiring and developing a second iron ore mine.

The iron ore miner has spent much of this year running the ruler over iron ore projects around the world, particularly in Australia. Hong Kong commodities trader and Territory's biggest shareholder Noble Group, which will bankroll the acquisition, is also understood to be interested in Africa and is pushing for a deal to be done sooner rather than later.

In a fillip to the iron ore junior's credentials as one of the best turnaround stories of the year, Territory chairman Andrew Simpson said the company expected to be debt free by the end of this year if iron ore prices remained stable.
In the meantime, he said, the focus was on acquiring a project that could be brought into production within three years and generate minimum annual production of five million tonnes.

Speaking on the sidelines of the Diggers & Dealers conference in Kalgoorlie-Boulder yesterday, Mr Simpson said Territory's ideal project would probably cost at least $500 million to buy and develop.

Although the company hopes it can clear its debts by the end of the year, the acquisition is not contingent on the debt being repaid.

Mr Simpson and managing director Andy Haslam will fly to the Eastern States next week for the company's first roadshow in two years in a bid to sell its vision of a debt-free, two-operation Territory.

Territory's Frances Creek mine in the Northern Territory has enough ore to run until at least 2013, based on production of 2mtpa.

Territory came near to collapse amid the global financial crisis when a series of inter-company loans left it crippled by debt. It was thrown a lifeline late last year by Noble, which agreed to take on the company's most pressing debts.

Mr Simpson told the conference yesterday that when he inherited the chairmanship of Territory, its iron ore mine was "easily the highest-cost operation in the world" and its portfolio was a mixed bag of assets, most of which have since been sold. "The only thing those projects had in common is that they were burning cash faster than Tiger Woods on a Saturday night," he said.

This stock is relatively quite compare other Iron ore stocks in recent time, I believe it is a reasonable time to entry or accumlate. Noble group should be a great partner to have, but I guess the market is still reluctant to give it a huge re-rating due to the previous finance problem. I am happy to hold, and buy more. DYOR.

Big jump today up over 50%

Territory Resources announced that the company and Exxaro Resources, a South African-based mining group listed on the Johannesburg Stock Exchange, have executed a Bid Implementation Agreement under which Exxaro will offer to acquire up to 100% of the FPO shares in the company by way of an off-market takeover bid at $0.46 per share. In the absence of a superior proposal, the offer is recommended by a majority of the Territory Board. Furthermore, each recommending director has agreed to accept the offer with respect to all shares owned or controlled by them. The company also reported that it has now ceased discussions with Noble in relation to the non-binding proposal announced on 10 May 2011. Territory Recommeds A$0.46 Cash Per Share Takeover Offer (Requires Adobe Acrobat Reader)