UMC - United Minerals Corporation

[Zird]

UMC went up 1 cent today - must have be due to dbcok and myself making a comment on ASF. So much of interest elsewhere in the market.

 

[Zird]

Just in case anybody is listening, I inadvertantly ramped up UMC yesterday saying it had gone up 1c. In fact it ended down 12c.
SP is going against the rising market trend. SP is down 65% on last years highs as comparison to Aquilla which has grown back strongly to only approximately 43% down from last years highs.

 

[dbcok]

Yes I saw that ,understood,no worries.
Why the price has not responded to Chinese deal?
My guess is the trucking option,must be much more costly than rail.
And BHP and RIO will do their best to make it hard for the juniors.The Chinese look as if they are trying to broaden their supply line and in the process make things harder for the BHP and RIO...price wise at least.
Anyway the prospectus for the options may reveal more ,hopefully.

 

[gfresh]

Looks like another takeover could be on the cards for this iron ore potential.

Trading halt ahead of "change of control transaction".

 

[sleeper88]

My guess is China Railway Materials Commercial Corp (CRM). They're taking a 11.38% stake in UMC @ A$1.35 a share. Having seen the share price slump to A$0.91, maybe CRM thought it would be better off buying out UMC and merging the assets with their strategic partner FRS.

Quote from previous FRS annoucement:

Eastern Pilbara Focused Investment Co-operation
FerrAus and China Railway Materials (CRM) will mutually seek to develop other resources in the eastern Pilbara region with the intention of assembling a sufficient quantity of quality iron ore resources to support the financing and construction of rail and port infrastructure that is a prerequisite for development of the iron ore resources in the region. Investment cooperation is to be effected by FerrAus or China Railway Materials (CRM), on a
reciprocal basis, offering the other, on terms to be agreed, on a case by case basis, a meaningful right-of co-participation in investment opportunities in East Pilbara iron ore assets or targets.

 

[SilverRanger]

http://news.smh.com.au/breaking-new...ounts-over-united-minerals-20091009-gq4e.html

Seems like it might not be CRM afterall, it's good to see some competition out there

 

[dbcok]

http://news.smh.com.au/breaking-new...ounts-over-united-minerals-20091009-gq4e.html

Seems like it might not be CRM afterall, it's good to see some competition out there

Looks like not much competition at all at $1-30.The directors obviously want to bail out,which seems to happen in these cases.
I held Western Mining when BHP took that over .They,the WMC directors, bailed out just before the boom-the directors said what a marvellous offer that was as well.
No BHP shares,just what I see as an inadequate cash offer again.

 

[Power]

This BHP offer is a joke.

Not long ago UMC CEO Mr Hogan said:

“We welcome the deal with China Railway Materials Commercial Corp. Group and look forward to working with them as
a strategic shareholder in bringing this outstanding deposit to commercialisation. The long term off‐take agreement will
materially assist the financing of the project” he said.

"...significant milestone".
" ...will enable the ....deposit to be advanced towards production."

Now the UMC Chairman Mr Birchmore is talking about an opportunity to deal away " the significant development risks" which the company would need to overcome.

What has happened in the meantime?

It seems the board of UMC is not doing well by unanmiously recommending the offer of BHP. :rocketwho

The share price reached several times a price above 1.20 AUD since summer of 2007. The last time in may 2009, just 5 months ago !!!

Why accepting such an offer? This is not in the interests of the long standing shareholders.

I will refuse the offer.

I want to see the first ore shipped. :jump:

 

[Vizion]

Ive been in & out of this one a couple of times since March.
It was about to hit my stop/loss if it dropped any more, so 43% in my eyes is a win, & I will probably be watching from the sidelines to what happens when the dust settles.

 

[tigerboi]

i see BHP finally made an offer for UMC after i said this on the io transport thread last may.

"This is the 4th force i was saying that have to get together so that they can get the 50mt out each year,i noticed that UMC is not in the alliance does that say something for their future?(bhp to take them?)"

i always thought this was the only way after UMC did not join the 4th force alliance,they wont be the last scooped up by BHP.tb

BRM probably next

 

[grace]

i see BHP finally made an offer for UMC after i said this on the io transport thread last may.

"This is the 4th force i was saying that have to get together so that they can get the 50mt out each year,i noticed that UMC is not in the alliance does that say something for their future?(bhp to take them?)"

i always thought this was the only way after UMC did not join the 4th force alliance,they wont be the last scooped up by BHP.tb

BRM probably next

Yes tb, good call. I sold out early in this bounce. Was always a good deposit and strategically located. Well done to those holding the faith.

I personally think it is easier for BHP to buy out these advanced juniors, than fight in court about the access to the rail line. That way, they take out the competition, and of course, the Chinese don't get a look in! Buy price is not all that flash considering where the share price has been in earlier times.

Remind me to stick to my fundamental research someone.

 

[Santoro]

Yes..makes obvious sense that BHP would acquire UMC (funny that this tenement originally belonged to BHP) but the offer price does seem low, I am sure this is not the best offer up front. Interesting that Citi has become a substantial shareholder in the last week, are they aware of another forthcoming offer?

 

[Broadside]

Yes tb, good call. I sold out early in this bounce. Was always a good deposit and strategically located. Well done to those holding the faith.

I personally think it is easier for BHP to buy out these advanced juniors, than fight in court about the access to the rail line. That way, they take out the competition, and of course, the Chinese don't get a look in! Buy price is not all that flash considering where the share price has been in earlier times.

Remind me to stick to my fundamental research someone.

I think it's the ones who did maintain the faith - and had faith that directors wanted to actually take this to production - that have been dudded.

I won't be accepting the offer as it is woefully inadequate, and there is always the chance BHP will get trumped. The key is where THX's holding ends up, and why Citicorp is buying again. I don't know the answers. if this takeover gets through at $1.30 it is very very smelly, particularly when the Chinese (CRM) were going to take a placement at a premium to that price ($1.35), and all the other iron ore stocks have been strengthening.

One of the best high grade deposits in the Pilbara going for about $1.25 per tonne

 

[dbcok]

My cynical nature has me wondering whether the UMC board etc was every fair dinkum about bringing this one into production.
I hope that they weren't having a lend of us for all this time!