UCL - UCL Resources

[Joe Blow]

This one has been teetering on the brink for a few years now, raising more funds time and time again through placements.

It is still yet to earn any real money and now that all thie middle-east hoo-hah has blown up it's zinc project in Iran is on the skids.

I once got burnt big-time with this one. Anyone have anything positive to say?

 

[Purchaser]

UCL - Union Resources

I have been checking up on Union Resources (UCL) and found the company most interesting. With prices on zinc going up with increasing demand. Maybe this stock could hit the sky within a few years?
Look at some facts that I found at their website: http://www.unionresources.com.au/

Todays trade is 0,083
Please give me some comments on this

UCL: MEHDIABAD – A Giant Resource
•World’s largest known undeveloped resource of zinc

In Ground Resource:
15.7 million tonnes of zinc
5 million tonnes of lead
350 million ounces of silver

•Compares in size with other giant zinc projects: e.g. Century and Red Dog.
•Fully developed expected to produce: 5% world’s zinc
•For around 30-50 years
•The Project will not use any existing zinc refineries

UCL: MEHDIABAD – Processing Plants
Two processing plants were proposed in the Pre-feasibility study

OXIDE PLANT: 160,000 tpa Zinc Metal
•Construction planned to commence 2006, commissioning 2008

SULPHIDE PLANT: 340,000 tpa zinc metal
•In 2 stages each of around 160,000 tpa
•Construction planned 2011 onwards

TOTAL METAL PROJECTION (Fully Developed):
•500,000 tonnes per annum zinc metal
•180,000 tonnes per annum lead and silver concentrates

UCL: MEHDIABAD – Economics

A Very Robust Project
•Projected operating cost US$600 per tonne of zinc
•NPV of the Project is above US$1000 million at current zinc prices (12% discount).
•IRR is 28% on a project basis at current zinc prices
•Projected cash surplus at full production of around US$300 million per annum

UCL: MEHDIABAD – Project Status
•Resource and metallurgical variability data base expected be completed October 2005
•Pilot plant testing is being conducted by Tecnicas Reunidas in Spain

Bankable Feasibility Study (BFS)
•BFS being conducted by Aker Kvaerner Australia (AKA)
•In their March 2005 Progress Report AKA considered the project “ environmentally and technically feasible”
•Next Progress Report expected in November 2005
•Environmental and hydrology studies being conducted by Golder Associates
•Geotechnical studies being conducted by Coffeys International

 

[michael_selway]

Re: Union Resources - a lot of Zinc

I have been checking up on Union Resources (UCL) and found the company most interesting. With prices on zinc going up with increasing demand. Maybe this stock could hit the sky within a few years?
Look at some facts that I found at their website: http://www.unionresources.com.au/

Todays trade is 0,083
Please give me some comments on this

UCL: MEHDIABAD – A Giant Resource
•World’s largest known undeveloped resource of zinc

In Ground Resource:
15.7 million tonnes of zinc
5 million tonnes of lead
350 million ounces of silver

•Compares in size with other giant zinc projects: e.g. Century and Red Dog.
•Fully developed expected to produce: 5% world’s zinc
•For around 30-50 years
•The Project will not use any existing zinc refineries

UCL: MEHDIABAD – Processing Plants
Two processing plants were proposed in the Pre-feasibility study

OXIDE PLANT: 160,000 tpa Zinc Metal
•Construction planned to commence 2006, commissioning 2008

SULPHIDE PLANT: 340,000 tpa zinc metal
•In 2 stages each of around 160,000 tpa
•Construction planned 2011 onwards

TOTAL METAL PROJECTION (Fully Developed):
•500,000 tonnes per annum zinc metal
•180,000 tonnes per annum lead and silver concentrates

UCL: MEHDIABAD – Economics

A Very Robust Project
•Projected operating cost US$600 per tonne of zinc
•NPV of the Project is above US$1000 million at current zinc prices (12% discount).
•IRR is 28% on a project basis at current zinc prices
•Projected cash surplus at full production of around US$300 million per annum

UCL: MEHDIABAD – Project Status
•Resource and metallurgical variability data base expected be completed October 2005
•Pilot plant testing is being conducted by Tecnicas Reunidas in Spain

Bankable Feasibility Study (BFS)
•BFS being conducted by Aker Kvaerner Australia (AKA)
•In their March 2005 Progress Report AKA considered the project “ environmentally and technically feasible”
•Next Progress Report expected in November 2005
•Environmental and hydrology studies being conducted by Golder Associates
•Geotechnical studies being conducted by Coffeys International

What about ZFX? is that going to do well also?

Thanks

MS

 

[macca]

Re: Union Resources - a lot of Zinc

I think the sovereign risk is what is holding it back.

Macca

 

[Purchaser]

Re: Union Resources - a lot of Zinc

MS

I just entered the ASX "world" a couple of days ago..
ZFX is a total different company, a big player.

I am just interested in upcoming companies where I think market has undervalued the potential. UCL is one of them that really got my attention
Check it up and post your comments.

I'm looking for a interesting discussion.

 

[Purchaser]

Re: Union Resources - a lot of Zinc

macca

You are probably right.
My idea is that along with increasing demand the worlds big players in zinc will look for companys like UCL and just buy them for a lot of cash.
Todays market cap is just 53 million...

 

[Purchaser]

Re: Union Resources - a lot of Zinc

Union Resources has been granted an exploration licence for 25 years
Check it out:

http://www.minebox.com/story.asp?articleId=6856

 

[michael_selway]

Re: Union Resources - a lot of Zinc

Union Resources has been granted an exploration licence for 25 years
Check it out:

http://www.minebox.com/story.asp?articleId=6856

http://www.smh.com.au/news/BUSINESS...anian-zinc-mine/2006/07/31/1154198039935.html

Union positive about Iranian zinc mine
July 31, 2006 - 7:39AM

Mining investment company Union Resources Ltd says a mine it wants to build in Iran with two joint venture partners could be the second biggest zinc metal mine in the world.

And now that it has the feasibility studies to prove the venture's economic potential, the company is about 75 per cent sure the mine will be constructed.

"It's now a question of getting the financial backing, and the chances of getting that have got to be much better than 50 per cent. It's probably got to be about 75 per cent on a conservative estimate," said Union managing director Rob Murdoch.

Economic and feasibility studies show the Mehdiabad zinc mine, which if constructed with Union will be the first ever privately financed project in the Iranian mining industry, will have an optimum plant capacity of 300,000 tonnes per annum of zinc metal and 100,000 tonnes of lead/silver concentrates.

The studies also showed the mine will be a low cost producer, Union said.

The Brisbane based company, which has already poured $10 million into the project, said cost of building the mine would be about $US1.6 billion ($A2.10 billion).

Operating costs were stated to be around $US600 ($A788.38) per tonne of zinc metal, reducing to around $US290 ($A381.05) after allowing for lead and silver credits.

Union said that with a mine life of 20 years and applying conservative estimates of the future price of zinc, lead and silver, the internal rate of return for the project would be 15 per cent.

The company's two Iranian joint venture partners are reviewing the feasibility study.

Meetings between Union and the partners are expected to commence next week regarding financial contributions and final equity ownership, Mr Murdoch said.

He said Union would hold in excess of a 40 per cent share in the mine, with it expected to increase to majority ownership as the project is developed.

"At the end of the day we think Union has an excellent chance of acquiring a majority interest in the project," Mr Murdoch said.

The Iranian government granted Union a license protecting its investment in Mehdiabad in January which permits Union to invest up to $US682 million ($A896.13 million).

Mr Murdoch confirmed on Sunday the license protected it from expropriation from any political forces in Iran.

He said Union would not make another announcement on the project until the end of August when it planned to hold a "rubber stamp" shareholder meeting.

thx

MS

 

[YOUNG_TRADER]

Re: UCL - Union Resources

I saw UCL volumes way up and checked ann,

They have recieved the following assays,



Re: Second significant copper intersection at Mehdiabad Union Resources Limited (Union) advises that sampling and assaying of drill hole 5302 on the western side of the Mehdiabad zinc, lead and silver deposit in Iran has produced the following result:
Cut off of 1% Copper:
40.1m @ 2.1% Cu from 92.9m
Cut off of 2% Copper:
21.1m @ 2.4% Cu from 92.9m

The copper mineralisation is hosted by hematitic (and goethitic) gossan with substantial amounts of barite, at the base of the Abkouh Formation, which is stratigraphically located above the zinc, lead, silver resource, predominantly in what has been regarded as waste rock, in the proposed Mehdiabad super pit. The average core recovery for the whole zone is 74.4% with core loss due to poorly consolidated sections within the gossan. Core recovery
for the higher grade zone was 89%.

Hole 5302 is located approximately 120m north of drill hole 8416, which recorded a zone of 35m @ 4.3% Cu from 167m from the same stratigraphic position, and hence the intersections are considered significant.

However, Union is awaiting the results of about 9 more holes currently being assayed, prior to having an independent copper resource estimate made.


Stock is at all time lows, I think its a dog, but those are some damn good copper intersections and with Zinc at record levels, who knows maybe someone will buyout UCL for its huge deposit, after all someone bought out Tethyan Copper whose massive deposit was in between Pakistan Indian war zone

 

[YOUNG_TRADER]

Re: UCL - Union Resources

my my that was fun


In at 0.042 out at 0.047 very nice profit for a 30 minute impulsive day trade

 

[two40]

Re: UCL - Union Resources

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00664721

is this stock gonna keep rising?

 

[Ken]

Re: UCL - Union Resources

They have the resources. but have you seen the costs involved.

their review says they will be making 15% profit. the project is costing over $1 billion dollars...

anyone else disagree.

if price of Zinc falls they would be making a loss

if it was an australian based company it be $1 plus.. but IRan there is a lot of risk in that itself.

 

[EasternGrey1]

Re: UCL - Union Resources

UCL Executive Summary states:

• The plant should produce 300,000 tonnes of zinc metal per annum, plus a further 100,000 tonnes in concentrates.
• Capital cost is US$1645m.
• Operating cost is $291 per tonne of Zinc metal, after allowing for lead and silver credits.

The price of zinc can fall an awful long way before they can't make a decent profit.

Ignoring the concentrates, at 300,000 tonnes p.a, if zinc drops to US$3,000/t say, and profit margin is 15%, that's a profit for UCL (40% share) of about $A70m per annum. Current market cap is $33m, so there's a prospective p/e of under 0.5.

I am pretty sure they would be able to use early revenues to pay some of the capital cost.

I have just bought into UCL - partly because of these calcs, but also because
I think we'll see a sea-change re Iran over the next year or two, which could be of immense benefit to UCL.

With the Democrats half-way into the driving seat in the US, the attitude to Iraq, Iran and others is likely to change for the better. Anything which improves relations between Iran and the West will help to reduce the political risk for UCL.

There was an article in The Times (UK) reprinted today in The Australian on page "The World 11" (inside back page of main paper). Also online at http://www.theaustralian.news.com.au/story/0,20867,20772089-31477,00.html

The article draws a parallel between Iraq and the Vietnam war, and concludes that "the reintegration of Iran into the community of nations" could be a possible outcome.

It's worth reading the whole article.

I don't expect UCL to rocket up overnight, but I do think a sea-change re Iran could lead to a long upward move. I certainly hope so!

 

[Ken]

Re: UCL - Union Resources

Will they be producing ZINC in the short term? Or is this a 3-5 year investment?

 

[EasternGrey1]

Re: UCL - Union Resources

Obviously you can speculate that UCL will fluctuate in the short term, but I am definitely looking at it as long term. Yes, 3-5 years probably, until the value of its deposit ex political risk is reasonably reflected in the share price (maybe 70c to $1).

 

[YOUNG_TRADER]

Re: UCL - Union Resources

I day traded this stock but would never consider it an investment which I'd be willing to hold for more than a few hours due to the following words

'Crazy'

'Iranian'

'Nuclear'

'Extremeists'

and finally

'George Bush'

Theres just wayyyyy to much country risk for me, but thats me

 

[EasternGrey1]

Re: UCL - Union Resources

The time when there's nothing to worry about is the time to get out of the market!! Without worry, there's no upside.

The point about UCL is that there ARE all these worries - or rather, there have been. The way I see it, the worries over "axis of evil" Iran, its nuclear aspirations, Iraq, George Bush, etc, may have reached a peak. Iraq has clearly reached the point where the US has to get out, it may be a devastating PR blow for GWB, but it will help the ME political situation, GWB goes in 2008 anyway, and he doesn't matter that much in the meantime because the Democrats control Congress and the Senate.

World politics will move on, as suggested by The Times article. Ahmedinejad will likely move on too, as there is a large body of reasonable people in Iran who are opposed to him. When (IMHO not "if") the sea-change occurs, UCL will likely be in the "sweet spot".

And if I'm wrong, I've only lost 4 cents!

 

[comptec]

Re: UCL - Union Resources

wow trade halt today sounds like bad news

anyone care to comment?

 

[sleeper88]

Re: UCL - Union Resources

Well not all trading halts result in bad news, but this time for UCL, it is bad news. Read todays announcement, it can be found on the asx site.

 

[YOUNG_TRADER]

Re: UCL - Union Resources

I day traded this stock but would never consider it an investment which I'd be willing to hold for more than a few hours due to the following words

'Crazy'

'Iranian'

'Nuclear'

'Extremeists'

and finally

'George Bush'

Theres just wayyyyy to much country risk for me, but thats me

Looks like my foresight was 20/20 on this one