UXA - UXA Resources

[frankie_boy]

UXA have now moved from 'very high risk' to one that must be unacceptable to most investors.

Market cap at 0.6c is a little over $3 million. New debt over the next three years is $7.55 million and convertible into shares at a 9.8% discount. Looks very adventurous at best.

UXA have taken in addition $1 million from La Jolla Cove which they have converted mainly into shares at a 20% discount; last price 0.49c against a last trade at 0.6c.

UXA have taken a further $750,000 of a $1.5 million further loan from La Jolla.

UXA also have a $3m major debt to banks.

The money will help UXA continue their drilling program. If they fail the lions, tigers, wolves and vultures have taken up position.

Noirua i came across this on proactive

UXAUXAUXA

 

[noirua]

Noirua i came across this on proactive

UXAUXAUXA

An interesting link, thanks, though the pressure of the La Jolla Cove conversions and share sales are still pushing UXA's shares lower and lower -- not mentioned by Proactive Investors and rather concerning.

The major Bank debt is around $3 million and re-payable over the next few years. The Lind lending does take the pressure off paying these back but it only works if UXA make a good find.

High risk, as we wait for Straights Resources.

 

[noirua]

An interesting link, thanks, though the pressure of the La Jolla Cove conversions and share sales are still pushing UXA's shares lower and lower -- not mentioned by Proactive Investors and rather concerning.

The major Bank debt is around $3 million and re-payable over the next few years. The Lind lending does take the pressure off paying these back but it only works if UXA make a good find.

High risk, as we wait for Straights Resources.

The result was a 150 metre width copper find at Winjabbie, South Australia, by operator Straights Resources. The assay results are due in the coming weeks, and markets do not expect the find, at quite a depth, to be commercial. If for once the UXA Resources bad luck turns the 0.6c stock price should re-rate

 

[noirua]

...and so UXA Resources trundle on and on. Debt conversion into shares in the company is a VERY serious matter for the stocks share price -- La Jolla Cove at a 20% discount and lind at an 8.5% discount.

Shares in issue exceed 600m and with La Jolla not finished converting yet and $7.5m from Lind to come for possible conversions into shares; the view from the shore of the good ship 'UXA' are very worrying -- 0.1c is the lowest point possible on the ASX so only a commercial find, new JV, or asset sale can sop the slide.

The company will survive, for at least three years, I think, as long as UXA makes some strides in the form of a commercial discovery.

GAA Wireline, the profitable Aussie-American based part of UXA looks very good on its own. The UXA drilling side and general expenditure is still around $4.5m per annum and not sustainable unless UXA sells about 50% of GAA Wireline.

GAA cost around A$9m with interest and stamp duty. Worth now is difficult to work out but may be around $6 - $8m although UXA MAY think it's nearer $12m. The American side looks very upbeat and the Aussie side improving rapidly.

A youtube report in the form of an interview with UXA CEO Andrew White at the Hi Alpha Conference recently: http://www.youtube.com/watch?v=gTj_fH1Vs0I

 

[frankie_boy]

...and so UXA Resources trundle on and on. Debt conversion into shares in the company is a VERY serious matter for the stocks share price -- La Jolla Cove at a 20% discount and lind at an 8.5% discount.

Shares in issue exceed 600m and with La Jolla not finished converting yet and $7.5m from Lind to come for possible conversions into shares; the view from the shore of the good ship 'UXA' are very worrying -- 0.1c is the lowest point possible on the ASX so only a commercial find, new JV, or asset sale can sop the slide.

The company will survive, for at least three years, I think, as long as UXA makes some strides in the form of a commercial discovery.

GAA Wireline, the profitable Aussie-American based part of UXA looks very good on its own. The UXA drilling side and general expenditure is still around $4.5m per annum and not sustainable unless UXA sells about 50% of GAA Wireline.

GAA cost around A$9m with interest and stamp duty. Worth now is difficult to work out but may be around $6 - $8m although UXA MAY think it's nearer $12m. The American side looks very upbeat and the Aussie side improving rapidly.

A youtube report in the form of an interview with UXA CEO Andrew White at the Hi Alpha Conference recently: http://www.youtube.com/watch?v=gTj_fH1Vs0I

So all is not lost yet I hope. This is a big red mark in my portfolio..

 

[noirua]

So all is not lost yet I hope. This is a big red mark in my portfolio..

It looks as if UXA will remain a big red mark for some considerable time.

The company appears to be trying to draw a line under the La Jolla cove $2.5m loan disaster and refusing to issue shares under 0.4c each against the remaining loan that can be converted into shares. It seems the new lender wants to get this La Jolla conversion affair ended as soon as possible.

UXA's next move is to float on the US OTC market at 4 cents per share requiring a consolidation.

Directors have started buying shares which should raise confidence a little.

UXA are awaiting drilling results at Oak Dam, SA close to the Carapateena Copper/gold strike, undertaken by Straights Resources.

 

[frankie_boy]

It looks as if UXA will remain a big red mark for some considerable time.

The company appears to be trying to draw a line under the La Jolla cove $2.5m loan disaster and refusing to issue shares under 0.4c each against the remaining loan that can be converted into shares. It seems the new lender wants to get this La Jolla conversion affair ended as soon as possible.

UXA's next move is to float on the US OTC market at 4 cents per share requiring a consolidation.

Directors have started buying shares which should raise confidence a little.

UXA are awaiting drilling results at Oak Dam, SA close to the Carapateena Copper/gold strike, undertaken by Straights Resources.

I saw that the directors were buying shares.. but not by very much I would have thought to increase my confidence

 

[noirua]

I saw that the directors were buying shares.. but not by very much I would have thought to increase my confidence

Difficult to say where UXA are going next. Lots of interest to buy at 0.3c a share and stock available at 0.4c - La Jolla Cove shareholders may still be trying to unload at 0.4c, roughly 110 million shares bought at 0.26c to 0.31c recently.

UXA have reduced their bank loans by about $2 million (excluding loans by GAA Wireline) but in doing so have run cash down to about $1.4 million and about 0.9 million is earmarked for Nabarlek drilling this and next month.
They must now draw down the last $250,000 from La Jolla Cove and draw, from this month, part of their $7.5 million loan from Lind; who have the right to convert into shares at a 8.3% discount.

Fourth Quarter result is out in about 10 days time and may point to continuing cash problems partly balanced by GAA Wireline's improvement.

Drilling by Straights Resources depends on the depth of any find, less than 0.5% copper need to be a close to surface find.

Directors purchases are disappointing and if they had confidence they'd have bought far more. Their purchases recently have been the equivalent of us putting in $100, not much -- good luck

 

[noirua]

I'm not so much on the ball with UXA Resources as I was a few years back as, with many others, I reduced my holding in the run up on takeover rumors over 18 months ago. Still, I hold some stock and can see that IF drilling results from Nabarlek are outstanding I'll be kicking myself - preliminary drilling results due out in 4 weeks or so.

The fourth quarter report was very mildly positive but only due to their subsidiary GAA Wireline increasing turnover by 34%. Chairman Neill Arthur wants to expand GAA so doubts remain on a partner emerging and helping with funding. My view, this move is a positive performance moving down to just above neutral on expansion risk.

Only $1.04m in the bank account on 30th June is disappointing after drawing $2.5m in loans from La Jolla Cove and $500k from Lind partners.

Trading at 0.3c - 0.4c and weakening on the bid side with more La Jolla Cove investors likely to convert into shares at 2.4c.

High risk on financing going forward even though $7m in further loans are secured from Lind over 2 or three years. Drilling side is an even higher risk balanced against high confidence and profitability at GAA.

A contact of mine is buying shares at 0.3c but I'm not quite buying the story myself as yet.

 

[frankie_boy]

I'm not so much on the ball with UXA Resources as I was a few years back as, with many others, I reduced my holding in the run up on takeover rumors over 18 months ago. Still, I hold some stock and can see that IF drilling results from Nabarlek are outstanding I'll be kicking myself - preliminary drilling results due out in 4 weeks or so.

The fourth quarter report was very mildly positive but only due to their subsidiary GAA Wireline increasing turnover by 34%. Chairman Neill Arthur wants to expand GAA so doubts remain on a partner emerging and helping with funding. My view, this move is a positive performance moving down to just above neutral on expansion risk.

Only $1.04m in the bank account on 30th June is disappointing after drawing $2.5m in loans from La Jolla Cove and $500k from Lind partners.

Trading at 0.3c - 0.4c and weakening on the bid side with more La Jolla Cove investors likely to convert into shares at 2.4c.

High risk on financing going forward even though $7m in further loans are secured from Lind over 2 or three years. Drilling side is an even higher risk balanced against high confidence and profitability at GAA.

A contact of mine is buying shares at 0.3c but I'm not quite buying the story myself as yet.

Yes I see its its been flicking between 0.3c - 0.2 in the last week or so. Will be watching and waiting for the results from Narbarlek. I would have thought there may have been some buys in anticipation but there has been nothing, Im guessing from past results. Im not holding my breath to see any return soon to my average buy price

 

[noirua]

Yes I see its its been flicking between 0.3c - 0.2 in the last week or so. Will be watching and waiting for the results from Narbarlek. I would have thought there may have been some buys in anticipation but there has been nothing, Im guessing from past results. Im not holding my breath to see any return soon to my average buy price

The drilling at Nabarlek North has been put back to later in September and results expected soon after as results will come quickly from GAA Wireline. Most uranium miners are mothballing mines, except very low cost producers, and UXA cant be that hopeful that any find will be good enough.

I'm uncertain as to the full setup of the Lind loan of $7.5m over two or three years and it looks likely to have been borrowed against GAA Wireline Limited, or if Lind do not want to convert at an 8.5% discount into UXA shares, then the games looks up for UXA, imho.

 

[noirua]

Yes I see its its been flicking between 0.3c - 0.2 in the last week or so. Will be watching and waiting for the results from Narbarlek. I would have thought there may have been some buys in anticipation but there has been nothing, Im guessing from past results. Im not holding my breath to see any return soon to my average buy price

Looks now to be stuck closer to 0.2c a share after the latest La Jolla conversion at 0.17c, 0.16c next -- I saw an original comment somewhere that referred to UXA having been La Jolla coved, seems some know a bit of history on the company.

UXA now have a market cap of about $1.58m and 16 times the shares originally number issued in 2006. Value of GAA Wireline is $10 to $12 million, imho, and other assets worth about A$2million, making A$12 to $14 million. Unfortunately loans are building up and running costs remain quite high.

 

[frankie_boy]

Looks now to be stuck closer to 0.2c a share after the latest La Jolla conversion at 0.17c, 0.16c next -- I saw an original comment somewhere that referred to UXA having been La Jolla coved, seems some know a bit of history on the company.

UXA now have a market cap of about $1.58m and 16 times the shares originally number issued in 2006. Value of GAA Wireline is $10 to $12 million, imho, and other assets worth about A$2million, making A$12 to $14 million. Unfortunately loans are building up and running costs remain quite high.

So they have started their drill on the 7th Sept, not much movement though I see a number of buyers lying in wait. A little bit of volume movement today than previous days, tho I am hanging onto any movement I see with baited breath until i recover somewhat

As you say, the bills have to be paid..

 

[bandicoot76]

i saw an interview with a mineral council of qld official last night calling for uranium mining to be allowed in qld to counteract the current chaos in the mining sector caused by dropping coal prices,

any thoughts on how this may affect UXA shareprice should qld govt allow it anyone? i know GCR have uranium tenements around the mt isa region, do UXA have any qld exploration operations on the cards?

 

[noirua]

i saw an interview with a mineral council of qld official last night calling for uranium mining to be allowed in qld to counteract the current chaos in the mining sector caused by dropping coal prices,

any thoughts on how this may affect UXA shareprice should qld govt allow it anyone? i know GCR have uranium tenements around the mt isa region, do UXA have any qld exploration operations on the cards?

UXA only have GAA Wireline Limited operating in Queensland and have no tenements there. I doubt anyone is interested in drilling for uranium in QLD at the present uranium price.

 

[frankie_boy]

UXA only have GAA Wireline Limited operating in Queensland and have no tenements there. I doubt anyone is interested in drilling for uranium in QLD at the present uranium price.

Gone into trading halt. Results to come I expect. Will there be tears of joy or dispair...

 

[noirua]

Gone into trading halt. Results to come I expect. Will there be tears of joy or dispair...

Worse than a 'Trading Halt', suspension by the ASX. It could be a long time before trading starts again.

I did read a comment that UXA would not be unhappy about this suspension as long as Lind continues to pay the agreed loan package.

 

[frankie_boy]

Worse than a 'Trading Halt', suspension by the ASX. It could be a long time before trading starts again.

I did read a comment that UXA would not be unhappy about this suspension as long as Lind continues to pay the agreed loan package.

Yes I did finally read as to why. Hmmm

 

[noirua]

UXA are taking a chance here in that La Jolla Cove $792k and Lind $500k could call in their convertible loans plus interest immediately -- UXA indicate they wont.

UXA are now to sell the whole or part of GAA Wireline and some tenements. MD Dr Russel Penney is now in the United States and hopes to finalise deals that should clear all or most of the company's debts.

Drilling results from Nabarlek North are due in a few weeks.

 

[frankie_boy]

UXA are taking a chance here in that La Jolla Cove $792k and Lind $500k could call in their convertible loans plus interest immediately -- UXA indicate they wont.

UXA are now to sell the whole or part of GAA Wireline and some tenements. MD Dr Russel Penney is now in the United States and hopes to finalise deals that should clear all or most of the company's debts.

Drilling results from Nabarlek North are due in a few weeks.

Good knowing it looks like they can get on top of the debt.