ZFX - Zinifex Limited

[profithunter]

I dont ramp stocks...as you pointed out its useless. here is my source

0147 GMT [Dow Jones] Xstrata (XTA.LN) poised to launch A$20/share cash bid for Zinifex
(ZFX.AU), says senior trader with good track record on M&A. Expects bid within 6
months, maybe within weeks. "I think their strategy is to get in here quickly and
blitz some of the major commodities they are interested in. They've picked up nickel
and coal and they want to pick up zinc and I think they want to do it before the Chinese
move on anything preemptively over here. Despite what you are hearing, zinc is up there
(in terms of priorities for Xstrata)." Says Xstrata wanted to wrap up A$3 billion
Jubilee Mines bid before moving on Zinifex, but that Jubilee is now a "done
deal." Xstrata today launched A$1 billion bid for Resource Pacific (RSP.AU). Xstrata
says it has no comment on Zinifex speculation. Zinifex also declines comment. Last month,
Zinifex hit A$16.48 high on talk of looming bid from Oxiana (OXR.AU) or Xstrata. ZFX last
up 2.7% at A$15.01, hits 2-week high of A$15.18 despite 3.0% fall in LME zinc. (DWR)

 

[bigdog]

MARCUS TODAY reported 60 minutes ago!

In the news

* Xstrata have counterbid for Resource Pacific (RSP) on top of Jubilee Mines fuelling thoughts that Xstrata will bid for everything in Australia including Zinifex. Talk of a $20 bid. Now $15. Suggestions that Xstrata are trying to “get set†before the Chinese decide to launch on Australian resource stocks and shut everyone else out. No comment from ZFX.

 

[Nyden]

MARCUS TODAY reported 60 minutes ago!

In the news

* Xstrata have counterbid for Resource Pacific (RSP) on top of Jubilee Mines fuelling thoughts that Xstrata will bid for everything in Australia including Zinifex. Talk of a $20 bid. Now $15. Suggestions that Xstrata are trying to “get set†before the Chinese decide to launch on Australian resource stocks and shut everyone else out. No comment from ZFX.

I'm tired of speculation though, I'm too impatient I wish someone would just launch a darn bid for Zinifex already. I'd be quite happy with a bid of that range.

Just a thought - wouldn't it be wise to make a bid for ZFX before they start making acquisitions? That way the bidder would have more choice.

At the same time though, aren't all these rumors hindering any bidders? They would ideally want to buy in whilst it's low, as opposed to letting rumors slowly inch its way up to the price they were going to offer I'm not convinced to be honest.

 

[3MT]

yeah fellas, stop indirectly ramping up ZFX prices, you scaring Xtrata away.

Let's lie low, keep ZFX prices at these levels and within a few months/weeks we will be handsomely rewarded.

 

[uhu]

I'm tired of speculation though, I'm too impatient I wish someone would just launch a darn bid for Zinifex already. I'd be quite happy with a bid of that range.

Just a thought - wouldn't it be wise to make a bid for ZFX before they start making acquisitions? That way the bidder would have more choice.

At the same time though, aren't all these rumors hindering any bidders? They would ideally want to buy in whilst it's low, as opposed to letting rumors slowly inch its way up to the price they were going to offer I'm not convinced to be honest.

Yes, rumors and rumors but not facts...And, an other thing: in my opinion if a company f.e Xsrtata wants to acquire Zinifex, the mentioned 20 aud price is too low.
First, if Zinifex will buy new mines or acquire an other company at next year, its share price will lift to between 17-19 (if global finance climate will be OK), so, where is the premium?
Second, Xtrata' other bids offer more premium than 25%, see the coal miner. (I read it's about 85% premium).

Well, I will be glad if my stock can lift now, but probably I would be a bit disappointed if I "must" sell my shares...

 

[silence]

Heh, I don't care what happens as long as I get my ~$18 back that I paid for them. Anyhow it looks like a decent time to load up with the cheapish price + good yield (assuming that lasts).

 

[ozrob]

Heh, I don't care what happens as long as I get my ~$18 back that I paid for them. Anyhow it looks like a decent time to load up with the cheapish price + good yield (assuming that lasts).

After the hammering they have received in the last few weeks I think most people holding ZFX would be over the moon to see anything near $18

 

[Stan 101]

yeah fellas, stop indirectly ramping up ZFX prices, you scaring Xtrata away.

Let's lie low, keep ZFX prices at these levels and within a few months/weeks we will be handsomely rewarded.

Good point. It looks like the CEOs of Xtrata haven't logged into the forum for over a week... Imagine the shock when they read the latest posts..What were they thinking?

 

[ozrob]

It looks like the rumour mill has gone in to overdrive again, at the moment ZFX is up about 6% on a possible take over offer.
Edit: Just hit 7%

 

[DionM]

Man, the way ZFX wobbles around you'd think it was some cheap 2-bit speccie stock! Honestly, it's like a rollercoaster ride sometimes!

With MAP also doing a big wobble now and then like ZFX, my portfolio jiggles all over the place ... slowly getting used to it

 

[YELNATS]

Yes, rumors and rumors but not facts...And, an other thing: in my opinion if a company f.e Xsrtata wants to acquire Zinifex, the mentioned 20 aud price is too low.
First, if Zinifex will buy new mines or acquire an other company at next year, its share price will lift to between 17-19 (if global finance climate will be OK), so, where is the premium?
Second, Xtrata' other bids offer more premium than 25%, see the coal miner. (I read it's about 85% premium).

Well, I will be glad if my stock can lift now, but probably I would be a bit disappointed if I "must" sell my shares...

I concur, a $20 offer would be too low. Don't worry too much about the sp trend in the last couple of months, look at ZFX's potential. Refer to my previous post no. 1908,

Quote
I would think that an offer for ZFX would have to be $25 + to be acceptable to ZFX shareholders bearing in mind they already nearly hit $22 last July and also the long term value of the business. I for one would not be happy with only a $20 offer.
Unquote

 

[legs]

Aussie stocks higher; Zinifex up on takeover talk

Thursday December 6, 2007, 12:21 pm


(Adds Zinifex, updates indexes)

SYDNEY, Dec 6 (Reuters) - Australian shares rose 1.2 percent to a three-week high on Thursday, with U.S.-exposed firms such as Westfield Group (ASX: WDC.ax) leading gains after upbeat economic data eased fears of a recession in the world's biggest economy.

The benchmark S&P/ASX 200 index .AXJO rose 79.2 points to 6,587.3 by 0107 GMT, its highest level since Nov. 15, after falling 0.35 percent in the previous session.

New Zealand's benchmark NZX-50 index .NZ50 fell 0.4 percent, or 15.94 points, to 4,018.61. The top stock, Telecom Corp of New Zealand Ltd (NZX: TEL.nz) , was down 0.2 percent at NZ$4.32.

STOCKS ON THE MOVE

* Zinc miner Zinifex Ltd (ASX: ZFX.ax) jumped 5.5 percent to A$15.93, with dealers citing rumours that Swiss mining group Xstrata XTA.L may make A$20.00 per share offer for Zinifex, valuing the firm at A$9.7 billion ($8.4 billion).

There has also been market speculation in recent weeks that fellow miner Oxiana Resources Ltd (ASX: OXR.ax) might launch a bid of four Oxiana shares for every one Zinifex share.

 

[vishalt]

Where the hell do these papers source these rumours from? What a load of absolute ****!

Zinifex is EXPENSIVE, it has LOW MINE LIFE, its relying on its tiny explorer acquisitions to hitch on a major find because in 4 years Zinifex will be just fex without the zinc.

Xstrata's interest is clearly in small coal and nickel assets and if you look at the acquisitions it makes they're generally single digit -billion- or even cheaper.

It's just gone for Jubilee and Pacfic, I'd be blown away if it actually went for Zinifex.

 

[legs]

Where the hell do these papers source these rumours from? What a load of absolute ****!

Zinifex is EXPENSIVE, it has LOW MINE LIFE, its relying on its tiny explorer acquisitions to hitch on a major find because in 4 years Zinifex will be just fex without the zinc.

Xstrata's interest is clearly in small coal and nickel assets and if you look at the acquisitions it makes they're generally single digit -billion- or even cheaper.

It's just gone for Jubilee and Pacfic, I'd be blown away if it actually went for Zinifex.

I am sure they would ALL apologise to the expert you are...obvioulsy you know the real story and you should be printing articles for them.

 

[vishalt]

I am sure they would ALL apologise to the expert you are...obvioulsy you know the real story and you should be printing articles for them.

There's a difference between expertise and a bit of common sense. If you bothered waking up and paying attention yesterday Xstrata launched a bid for a coal miner that has a reasonable operation which has a reasonable mine life, the latter quality being one Zinifex does not possess

oh yeah sure, Xstrata might do Zinifex today, and then oh, how about Oxiana tomorrow, oh and how about some Newcrest early Saturday morning? I've never seen a company that bids for something everyday of the week!

I don't know about you but it blows any common sense to buy something which won't be able to pay for itself - especially as Zinc prices are plummeting and with a lot of commodity traders/fund managers and many happy chappies here at ASF are buying into dribble analysts say about Zinc prices falling through the floor.

And FYI I'm actually a journalist and if the publication I work for had an equities column I'd happily write real facts for it, I'd dig into Xstrata and Zinifex to see if the companies have actually talked to each other or wether one has an intent. Until that's proven what's the difference between a newspaper story and a fiction novel? From my perspective it just seems like a lot of finance newspapers don't know the power the have to manipulate market movements significantly.

 

[Nyden]

Where the hell do these papers source these rumours from? What a load of absolute ****!

Zinifex is EXPENSIVE, it has LOW MINE LIFE, its relying on its tiny explorer acquisitions to hitch on a major find because in 4 years Zinifex will be just fex without the zinc.

Xstrata's interest is clearly in small coal and nickel assets and if you look at the acquisitions it makes they're generally single digit -billion- or even cheaper.

It's just gone for Jubilee and Pacfic, I'd be blown away if it actually went for Zinifex.

They're not just relying on tiny explorer acquisitions, and that's a rather silly logic - are you telling me, that every mining company has mines ready for the next 50 years?

Come the end of the year I believe they're going to have about 2.2bln to spend on acquisitions - both in production and close-to, or even to further exploration.

Can I ask, why the emotional response? Were you hoping for a drop over the past few days, for an entry point or did you have shorts taken out?

Clearly most people disagree with you - these rumors probably are 'random' in a sense, but they're clearly indicative of the fact that many analysts see Zinifex as a t/o target, and no offence - but I, & I'm sure a lot of other people value the opinions of experts in takeovers over an emotional opinion of yours?

If you look at ZFX's P/E ratio in comparison with other companies, you will see that they are not expensive. They're cashed up, own nearly 8% in Nystar, and they will soon own mines that may have very long shelf-lives that are outside of Zinc!


I most certainly do value negative opinions - it helps to see the other side of the coin, but I just don't understand the emotional reactions on ZFX I've seen from yourself, & on other forums. Are you happy to see it fall? Obviously if you had shorts, sorry if that was the case mate.


I guess a lot of Short-traders would be feeling the pinch lately.


& With regards to the single-digit billion dollar acquisitions; if these are value purchases which would greatly help a company (as Xtrata seem to believe), then ZFX can afford to buy 2

 

[legs]

There's a difference between expertise and a bit of common sense. If you bothered waking up and paying attention yesterday Xstrata launched a bid for a coal miner that has a reasonable operation which has a reasonable mine life, the latter quality being one Zinifex does not possess

oh yeah sure, Xstrata might do Zinifex today, and then oh, how about Oxiana tomorrow, oh and how about some Newcrest early Saturday morning? I've never seen a company that bids for something everyday of the week!

I don't know about you but it blows any common sense to buy something which won't be able to pay for itself - especially as Zinc prices are plummeting and with a lot of commodity traders/fund managers and many happy chappies here at ASF are buying into dribble analysts say about Zinc prices falling through the floor.

And FYI I'm actually a journalist and if the publication I work for had an equities column I'd happily write real facts for it, I'd dig into Xstrata and Zinifex to see if the companies have actually talked to each other or wether one has an intent. Until that's proven what's the difference between a newspaper story and a fiction novel? From my perspective it just seems like a lot of finance newspapers don't know the power the have to manipulate market movements significantly.

Like I said they owe you an apology as THEY tried to fool you (had me going too, actually i still believe some of it) and you should be writing for Reuters as you are obviously on the ball, instead of a publication that has no place to comment on the sharemarket.

 

[vishalt]

They're not just relying on tiny explorer acquisitions, and that's a rather silly logic - are you telling me, that every mining company has mines ready for the next 50 years?

Come the end of the year I believe they're going to have about 2.2bln to spend on acquisitions - both in production and close-to, or even to further exploration.

Can I ask, why the emotional response? Were you hoping for a drop over the past few days, for an entry point or did you have shorts taken out?

Clearly most people disagree with you - these rumors probably are 'random' in a sense, but they're clearly indicative of the fact that many analysts see Zinifex as a t/o target, and no offence - but I, & I'm sure a lot of other people value the opinions of experts in takeovers over an emotional opinion of yours?

If you look at ZFX's P/E ratio in comparison with other companies, you will see that they are not expensive. They're cashed up, own nearly 8% in Nystar, and they will soon own mines that may have very long shelf-lives that are outside of Zinc!


I most certainly do value negative opinions - it helps to see the other side of the coin, but I just don't understand the emotional reactions on ZFX I've seen from yourself, & on other forums. Are you happy to see it fall? Obviously if you had shorts, sorry if that was the case mate.


I guess a lot of Short-traders would be feeling the pinch lately.


& With regards to the single-digit billion dollar acquisitions; if these are value purchases which would greatly help a company (as Xtrata seem to believe), then ZFX can afford to buy 2

The internet is a bit of a barrier so I'll just clarify I wasn't being emotional.

And I don't play in small/mid-cap stocks anymore (I bailed out of Zinifex once upon a time when it was $20.)

Of-course you're right, Zinifex does have a nicely loaded warchest, but last I heard Roseberry had around 4 years left and Century around 8 - unless it realizes mine life past 2020 but it has not done so yet, it just seems a big risk for X to take it unless its realised first don't you think?

Legs: Yeah ta, then I can use my massive powers to manipulate market movements by buying the shares the day before and writing rumors about them the next, set the prophecy up yeah? Also maybe you should argue my points instead of lashing out at me like I'm some market guru, that is not the case, its just my perspective and opinion, I don't claim to be an expert by any means but I'll bolt out whatever is on my mind.

 

[Nyden]

The internet is a bit of a barrier so I'll just clarify I wasn't being emotional.

And I don't play in small/mid-cap stocks anymore (I bailed out of Zinifex once upon a time when it was $20.)

Of-course you're right, Zinifex does have a nicely loaded warchest, but last I heard Roseberry had around 4 years left and Century around 8 - unless it realizes mine life past 2020 but it has not done so yet, it just seems a big risk for X to take it unless its realised first don't you think?

Legs: Yeah ta, then I can use my massive powers to manipulate market movements by buying the shares the day before and writing rumors about them the next, set the prophecy up yeah?

Well, most acquisitions involve risks - risks of overpaying, and well there are other risks involved as well.

I believe the only real thing making ZFX safely attractive to predators is that war chest, & the possibilities that come with it. It tends to negate some of the risks, and makes the stock worth-while; & you can't completely discount exploration possibilities, holdings in other companies, and profits from current production.

$20 doesn't seem to be too high a price to pay for all of this in my opinion - If anyone were to make an offer, I wouldn't expect anything higher than that though.

 

[vishalt]

Fair enough.

I admit I'd buy a lot of it if it expands into copper or merges with Oxiana - with that ex WMC chief its got a pretty talented management.