CAPE LAMBERT (CFE) 50% capital return

[COLIN]

ipo not yet completed????? what happened?????

I, too, would like to know what and why. Issue oversubscribed, so what's the issue? They should have worked out a scaling-back formula beforehand. Time for something more definitive to be issued by CFE. Its not a good look to have your shares suspended from quotation for no justifiable reason - that's my issue!

[JBmurc]

Q Copper float delayed after UK investor pulls outPETER KLINGER, The West Australian
December 11, 2009, 12:14 pm

Buzz up! Send

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DeliciousTwitterMyspaceDiggStumble UponFacebookPrintCape Lambert Resources has been forced to delay the $225 million float of its Q Copper offshoot after a UK investor had to pull out of the fund-raising because of its exposure to the Dubai credit crisis.

It is understood the UK institution had planned to invest between $10 million and $20 million in the Q Copper initial public offering (IPO), which had sought to raise between $204 million and $214 million at $1 a share, but failed to meet the raising deadline after being caught up in the credit crisis engulfing the Middle Eastern emirate.

Patersons Securities, which was lead manager to Q Cooper's IPO, managed to raise its full entitlement of more than $150 million from retail and institutional clients.

The Tony Sage-headed Cape Lambert had planned to raise the remainder of the IPO target through its own network of investors, including the unnamed UK fund.

Under the original IPO plan, Cape Lambert was to have retained about $150 million of the cash proceeds in return for reducing its equity stake in Q Copper to about 10 per cent.

Assuming Patersons clients agree, Cape Lambert is likely to suggest that it scales back its cash demands to $135 million to $140 million to reflect the IPO's reduced total of money raised.

That way Q Copper's post-IPO cash position would remain unchanged from its prospectus forecast, although Cape Lambert would have to reduce the amount of cash it had promised to pay its own shareholders via a special dividend.

Q Copper represents the Lady Annie copper mine in Queensland which Cape Lambert picked up from the administrators of failed company Copperco, which collapsed earlier this year.

Cape Lambert shares have been in suspension since Tuesday, having last traded at 53¢.

The Perth-based company told its shareholders this morning that it expected to complete the Q Copper IPO by Tuesday.

[soulman]

I, too, would like to know what and why. Issue oversubscribed, so what's the issue? They should have worked out a scaling-back formula beforehand. Time for something more definitive to be issued by CFE. Its not a good look to have your shares suspended from quotation for no justifiable reason - that's my issue!

Read AFR today if you got one, maybe the weekend edition. Here's the 411 anyway:

The $203 million offering of the largest resources float for this year, Q Copper, has been delayed after a UK investor, introduced by Cape Lambert Resources, had to pull out.

Settlement of Q Copper's initial public offer was due to be today however parent company Cape Lambert placed a suspension order on its shares today, advising that the IPO has yet to be completed.

The Tony Sage-led Cape Lambert said it expects to make an announcement by the start of trade on Tuesday.

[COLIN]

Not the best of news, but hopefully other investors won't use this as an excuse to review their own participation.

[JBmurc]

fact is CFE paid round 40mill for lady anne -

Assuming Patersons clients agree, Cape Lambert is likely to suggest that it scales back its cash demands to $135 million to $140 million to reflect the IPO's reduced total of money raised.

could CFE take a larger holding in Q copper then pass on the shares to CFE S/H's with cash eitherway I'm not planning on selling any of the 750k interest I control

[evilroyrule]

nice to have you back JB. any thoughts as to effect on sp in short term? i have resigned myself to putting current stocks to bed till next year, but there was a time when i thought successful ipo wld give us a lift. buy hey, thats the market for you. my corvette is looking good imo.

[JBmurc]

nice to have you back JB. any thoughts as to effect on sp in short term? i have resigned myself to putting current stocks to bed till next year, but there was a time when i thought successful ipo wld give us a lift. buy hey, thats the market for you. my corvette is looking good imo.

yeah we will know soon enough what the go is with the IPO shortfall because of the pull-out of the U.k investor personal I think CFE will be wise to increase their ownership to the max 20% then in time they could sell down that larger than planned interest no to stressed Qcopper will still be a successive copper producer IMHO just a miner setback even if CFE walk away with less cash a more ownership

[evilroyrule]

complete over reaction i think. suits me, back for more at .47. suspect i wont be the only one.

[evilroyrule]

someone working overtime to try and keep lid on the price.

[JBmurc]

guess the market not to happy with the delay an reduction in IPO price of 40.5mill might be keen to get some of the IPO myself before feb 10 CFE to take upto 15% of new IPO in the mean time don't expect the CFE crew to sit round -IRON ORE ,Gold sale next up



Cape Lambert Executive Chairman, Mr Tony Sage, said “Whilst we are disappointed with the need to
reprice and extend the closing date of the Q Copper IPO, it will not affect our proposed partially
franked, special dividend of 10¢ per share and still represents an excellent return over the acquisition
cost of the asset in a relatively short period of time.”
Details of the proposed partially franked, special dividend of 10¢ per share, which is subject to the
successful listing of Q Copper are expected to be announced to shareholders in the first quarter
2010, and follows the A$100M (A$0.217¢ per share) paid to shareholders last year from the sale of
the Company’s namesake iron ore asset in Western Australia.

[JBmurc]

MELBOURNE, Dec 15 (Reuters) - Australian mining firm Cape Lambert Resources has cut the size of a planned initial public offering of its Q Copper unit and extended the closing date to Feb. 3 after it failed to raise its target sum.
Its shares fell more than 8 percent after it said on Tuesday it would reduce the minimum raising to A$164.5 million ($150 million) through the issue of 164.5 million shares at A$1 each, down from a minimum A$203 million in its prospectus lodged on Nov. 16.
Cape Lambert had aimed to float Q Copper by the end of the year end in what would have been the largest resources float this year. Q Copper is the vehicle for the Lady Annie Copper mine in northern Queensland state, Cape Lambert's only producing asset.
"We just think taking less money now and recouping it down the track just to get the float away is a better way of going," Cape Lambert Executive Chairman Tony Sage told Reuters.
He blamed market nerves around Dubai's debt woes earlier in the month for dampening demand for the float.
"I think it had a lot to do with market sentiment ... the Dubai crisis ... All we know is that when the count finally happened there was A$25 million short of what we thought there was going to be." Cape Lambert plans to retain 15 percent of Q Copper, up from its original plan to hold 5 percent.
Q Copper's listing on the Australian Securities Exchange has been delayed to February because Cape Lambert has to ask all retail subscribers to reapply and has to go back to shareholders to seek approval for the lower sum the company will be receiving.
Cape Lambert shares last traded down 6.6 percent at A$0.495 after touching a low of A$0.455, in a broader market up 0.4 percent.
Patersons Securities is running the IPO.
One fund manager said institutions were shifting positions from copper to other commodities towards the end of the year.
"We did look at it briefly, but it was a little bit expensive for us," said Tim Schroeders, a portfolio manager at Pengana Capital.
At least two other planned floats have recently been scrapped. Talison Lithium Ltd, one of the world's leading lithium producers, abandoned its A$196 million IPO, managed by Macquarie Capital, and Morgan Stanley scrapped plans for a A$1 billion IPO of some office assets.

[snowball]

It is not good karma to b**g** (i.e. Toyota) up a float.

I hold some CFE but would sit a little and wait it out.

CFE ain't going to go nowhere until this is resolved satisfactorily.

TS has some credibility at issue.

JB, just noticed. Not surprised you changed your pic.

[Corporate]

[QUOTE=snowball;285948]

CFE ain't going to go nowhere until this is resolved satisfactorily.

QUOTE]

Or Marampa sale annoucement

[evilroyrule]

i thought the primary reason ipo didnt proceed was that uk investor pulled out citing the dubai debt crisis. given recent events there i wldnt have thought it was too difficult to get them back on board???

any thoughts JB on how these CFE rumblings might/could affect likelihood of tgf/cov merger?

[evilroyrule]

hmmm, cant accuse TS of sitting on his hands. see todays asx announcement

[Corporate]

Wow, that was left field. I am slightly interested in Monitor through my ex-holding in VPE.

CFE takes a 10% stake in MHL.

[evilroyrule]

bugger corp, we shld have been on mhl. up 33%. glad cfe has spin off for others, but how about us????

ok, im going in. buy side looks good, nothing else working, why not a stab

[mamos]

I exited CFE today. Think it has a great business model, but a little sceptical over the float. Think it will be harder the second time to get the same investors on board given it crashed the first time. It was probably priced a little too high for current market and now the original investors may not see the same value. Would rather wait until it gets away in February 2010.

[Corporate]

I'm staying. The Lady Annie float isn't the be all and end all of CFE. We paid bugger all for it as part of the copperco package.

I'm not expert but the uptrend appears to still be in place.

[evilroyrule]

wld appreciate it if any of you seasoned traders cld read my off market discussions thread re direct broking re issue i had today. its doing my head in!!!!!!! i must have been in time to change the order because it didnt say " the status of the order you are trying to change...." but instead took it, declined it, then reverted to th old order and flipped me out. all done with srn 12. surely i got a strong case here?????:confused:

[evilroyrule]

thANK YOU FOR all those concerned souls who helped out re the above. glad i remortgaged the house to buy more cfe at 46. must be the law of karma

[Corporate]

New 52week high hit!!

[Corporate]

Late annoucement. AIM and Tonkilili are really heating up!

CRM takes at 152m POUND holding in AIM and signs an offtake agreement. AIM intends to spend the money on upgrading Pepel Port.

http://www.asx.com.au/asxpdf/20100107/pdf/31n2vwkjmq4w3b.pdf

CFE 80c by end of quarter 1.

[Corporate]

Chinese stake in African Minerals
By William MacNamara

Published: January 7 2010 02:00 | Last updated: January 7 2010 02:00

African Minerals is discussing a "corporate deal" with several large companies, even as it conditionally agreed a 153m investment with a Chinese industrial conglomerate, according to its chairman.

The Aim-listed explorer, whose top asset is an iron ore deposit in Sierra Leone, provisionally agreed to sell China Railway Materials Commercial Corp (CRM) about 40 per cent of the iron ore it plans to produce from its Tonkolili deposit in the west African country.

The agreement would last at least 20 years, African Minerals said, feeding Chinese steelmakers' demand for iron ore.

In return CRM would buy 30.5m new shares in the company at a premium price of 500p a share, providing 153m that would fund the first phase of Tonkolili's development. That would give CRM a 12.5 per cent stake in the group.

CRM - a sprawling state-owned company that provides steel and other materials needed by the Chinese railway industry - has also expressed interest in funding the second phase of Tonkolili, Frank Timis, African Minerals' chairman and largest shareholder, told the Financial Times. The second phase, expected to start by 2013, will cost $2.5bn (1.6bn) and include construction of a railway and port.

Both companies expect the deal to complete by March 31 subject to due diligence.

Mr Timis suggested CRM or other Chinese companies may be among many eyeing a takeover of African Minerals.

"We are in discussions with industrial groups in China and several large corporations - from Europe to Brazil to Australia - about a corporate deal," he said. "[CRM] can come in and watch for 12 months, until we start our first stage of production, and then anything can happen."

African Minerals hopes soon to announce a doubling of Tonkolili's iron ore reserves to 10bn tonnes, Mr Timis said.

A range of analysts and mining executives predict China's demand for iron ore will grow as it continues to upgrade the infrastructure in its interior provinces as well as manufacture many of the world's industrial products.

The country's strategic desire to own iron ore supplies underpinned Aluminium Corp of China's attempt to buy a minority stake in Rio Tinto subsidiary Hamersley Iron, part of an investment proposal that Rio abandoned in June.

Mr Timis said Chinese corporations were interested in buying iron ore from sources other than Rio, BHP Billiton and Vale, the three producers that dominate world supply.

If completed, the deal will mark the latest example of Chinese investment in west Africa's raw materials. Sinopec bought Addax Petroleum, owner of offshore west African fields, in August for $7.3bn

African Minerals shares rose 21p to 439p.


WOW - this bodes extremely well for CFE.

[JBmurc]

WOW - this bodes extremely well for CFE.

yeah add in the fact they'll get Lady annie sorted with the high copper prices to help fill the IPO quick smart + CFE 100% ownership at Marampa could well be next to be sold esp. if they can increase the iron ore resources which I believe there doing soon....

2010 should well be the year CFE brings in sales of assets north of 500mill

CFE Mrktcap-330mill

[evilroyrule]

good work corp, nice to hear from you JB. will be interesting open and days trading me thinks. hard to believe this was 46 a few weeks ago!

[Dusty]

http://www.bloomberg.com/apps/news?pid=20601080&sid=a.yHNJq3QPoI

http://www.bloomberg.com/apps/news?pid=20601081&sid=agBz4GTEFUo0


China's Iron Ore imports up 42% from last year pushing price to record, can only help with the interest in a Marampa sale.
Copper is still in a strong uptend, over $7500/t on the LME. I would like to see some news on the Lady Annie float, I dont think this is factored into the recent SP rise rather the iron ore news flow has been the key driver.

[Corporate]

http://www.bloomberg.com/apps/news?pid=20601080&sid=a.yHNJq3QPoI

http://www.bloomberg.com/apps/news?pid=20601081&sid=agBz4GTEFUo0


China's Iron Ore imports up 42% from last year pushing price to record, can only help with the interest in a Marampa sale.
Copper is still in a strong uptend, over $7500/t on the LME. I would like to see some news on the Lady Annie float, I dont think this is factored into the recent SP rise rather the iron ore news flow has been the key driver.

And the march towards 60c continues (58.5c/59c at the moment).

[evilroyrule]

and on increasing volume. looking sound. cov is looking good also.

59! oh yeah ill have some of that. 46.5 on 14/12.

[evilroyrule]

Breakdance/breakout anyone????????????

[Corporate]

Breakdance/breakout anyone????????????

Silly silly sellers only just before christmas at 46c. I'm now up over 50% of this.

[Dusty]

http://imagesignal.comsec.com.au/asxdata/20100113/pdf/01028714.pdf

Sold some of its AIM listed holdings that it picked it the CopperCo purchase realising A$27.7m cash.
Those analysts tracking CFE have got a full-time job on their hand with the speed that TS cuts his deals. Funds to be applied to current portfolio and futher acquisitions.

[COLIN]

http://imagesignal.comsec.com.au/asxdata/20100113/pdf/01028714.pdf

Sold some of its AIM listed holdings that it picked it the CopperCo purchase realising A$27.7m cash.
Those analysts tracking CFE have got a full-time job on their hand with the speed that TS cuts his deals. Funds to be applied to current portfolio and futher acquisitions.

These chaps are conjurors - increased their holding in another company "at no cost"! How did they do that? Perhaps they will also discover the secret of Perpetual Motion some day.

[evilroyrule]

anyone expecting news re cfe?????? some big bad boy bids this morning. its run good since jan, and looks set for another gallop.

[Dusty]

anyone expecting news re cfe?????? some big bad boy bids this morning. its run good since jan, and looks set for another gallop.

May have been on this news

So new closing date of the Lady Annie IPO is February 3rd,

http://imagesignal.comsec.com.au/asxdata/20100114/pdf/01029016.pdf

[evilroyrule]

bloody hope the ipo pans out this time....volume in last week points to good news

[evilroyrule]

bloody hope the ipo pans out this time....volume in last week points to good news

Should start a new thread but dont know how.

Anyhoo, with todays announcement re Drilling commencement at Lady Annie (perhaps designed to encourage more interest in the Q Copper IPO) and with the now diluted shares on offer (194 million) i see the new spin is buy now at market discount of 16%. Any thoughts out there?

[Corporate]

I wonder I we can break the top trend line or if we will head back to mid/low 50's. I have a feeling that with all the news on the horizon we could push past 65c and up around 70-75c in the next two weeks.

[gazprom1]

I think we can Corporate. We need global markets to be ok but we should see a run up to the Lady Annie IPO in the next 2 weeks. The realising of the cash from the CopperCo assets this week was positive and should assist the board in its ability to pay the dividend they alluded to IF Lady Annie goes ahead.

IMO the stock still looks attractive given the asset base and potential dividend yield. I know we have discussed it before (I think Colin raised it) but the lingering doubt I have about CFE is what happens when they sell (by whatever means - IPO, private sale, etc) their major assets and the markets are still ticking along nicely? They may not be able to pick up super cheap assets and flick them on 6 -12 months later for huge returns. However, these guys are astute investors and there are always "cheap" assets around somewhere!!!!

Gazprom

Dislc: Hold

[Corporate]

I think we can Corporate. We need global markets to be ok but we should see a run up to the Lady Annie IPO in the next 2 weeks. The realising of the cash from the CopperCo assets this week was positive and should assist the board in its ability to pay the dividend they alluded to IF Lady Annie goes ahead.

IMO the stock still looks attractive given the asset base and potential dividend yield. I know we have discussed it before (I think Colin raised it) but the lingering doubt I have about CFE is what happens when they sell (by whatever means - IPO, private sale, etc) their major assets and the markets are still ticking along nicely? They may not be able to pick up super cheap assets and flick them on 6 -12 months later for huge returns. However, these guys are astute investors and there are always "cheap" assets around somewhere!!!!

Gazprom

Dislc: Hold


In relation to your last point Gazprom. I think TS has the "connections" to get into good deals before they reach the general market. Meaning CFE gets them earlier and cheaper. There are still alot of cash strapped companies with good assets that are ripe for the picking (see match made in heaven COV/TGF).

I like that we are also getting into the oil game through MHL and IPO.

But hey I'm slightly bias since I hold from 40c.

[Lego_Man]

I have seen them as a good undervalued play, but i too question the direction of the company once they've disposed of the current "jewels in the crown".

Bear in mind that these companies can often trade at sizeable discounts to NTA for sustained periods (if not forever) so those 1.50+ forecasts may be ambitious.

I'll be selling at 90c plus, definitely a buck...and wouldnt rule it out before that either.

[evilroyrule]

now cut out the doom and gloom you lot!!

one big bite of over 300k at 62 just now. new higher high today at 62.5. on increased volume there is definitely something in the wind.....

[JBmurc]

I have seen them as a good undervalued play, but i too question the direction of the company once they've disposed of the current "jewels in the crown".

Bear in mind that these companies can often trade at sizeable discounts to NTA for sustained periods (if not forever) so those 1.50+ forecasts may be ambitious.

I'll be selling at 90c plus, definitely a buck...and wouldnt rule it out before that either.

Even If CFE sells it jewels -Marampa Iron ore-Lady annie-sappes-AIM listing etc(400m +)
they still have penatly assets to develop one of the top of the head= CAPE lambert south iron ore 100%cfe-talk with a JORC 100m+

when I get a chance I'll go more in depth to other assests CFE have hidden away that I believe CFE will develop then sell for a tidy profit

[gazprom1]

CFE having a solid day today. Getting close to the closing of the Lady Annie IPO. All but 100% up over the past 6 months. New 12 month high.

[evilroyrule]

GP, i think its related to TGF/COV JV> both of these are UP 20% today (so far!). a good day for cfe and related entities

[Stranger_Danger]

I got out over the last few days at 61.5 average.

No real comment on CFE - just a general paring back of risk.

Thanks to JB for highlighting what has been a high return foray.

[Corporate]

I got out over the last few days at 61.5 average.

No real comment on CFE - just a general paring back of risk.

Thanks to JB for highlighting what has been a high return foray.

Well done SD - a profits a profit.

Myself I am holding tight and will not sell until the market tells me. The march towards 70, 80, 90 and $1 continues. Lots of news on the horizon.


African Uranium drilling results from Hoasib project add lustre to Cape Lambert Resources
by Proactive Investors

The valuation of Cape Lambert continued on its upward trajectory after the Tony Sage-led Cape Lambert Resources (ASX: CFE) advised that promising results were received from recently completed drilling by Africa Uranium at the Hoasib project in Namibia.

Mr Sage, a Perth businessman who is executive chairman of the mineral investment company Cape Lambert, said drilling had confirmed the existence of shallow calcrete hosted uranium mineralisation over a large area in the Southern Basin. Which significantly, is proximal to Paladin Resources' (ASX: PDN) Langer Heinrich uranium mine.

Cape Lambert has a 10% beneficial interest in private company Africa Uranium, which has uranium exploration projects in Namibia and South Africa, with its flagship project being the Hoasib project located in Namibia.

The Hoasib Project is only 40 km from the Langer Heinrich uranium mine, owned by Paladin Resources. Exploration by Africa Uranium has been focused on identifying a large tonnage - low grade calcrete hosted uranium deposit, similar to Langer Henrich (Paladin) and Trekkopje (Areva).

As a result, Mr Sage believed the commencement of exploration activities at Hoasib had not only yielded results in line with expectations but had given the company and investors an insight into the potential of the project.

“Africa Uranium has defined the broad outline of one area of mineralisation in the Southern Basin, however, the reconnaissance drilling is widely spaced and we believe any higher-grade mineralised channels will be individually less than 50 metres wide,” Mr Sage said.

“There are more areas to explore in the Southern Basin, plus two more untested alluvial basins to the north, not to mention the possibility of hard-rock uranium mineralisation."

In late 2009 Africa Uranium completed two drilling programs on the Hoasib Project, which "confirmed the existence of shallow calcrete hosted uranium mineralisation over a large area in the “Southern Basin”.

Wide-spaced drilling (predominantly 1,000 m by 500 m) has defined low grade uranium in calcrete over an area of 4 km by 1.5 km, which appears open along strike, the company said.

The best results received to date include 308 eU3O8 over 0.10 m from the downhole gamma probe and 181 U3O8 over 0.5 m in physical sample.

Africa Uranium proposes to continue reconnaissance exploration, to fully test and define other targets, before committing to detailed exploration in any one area.

It has been a busy start to the year for Cape Lambert, as investors have begun to realise the intrinsic value in the company and in related entities.

Just last week, the company successfully disposed of non-core shareholdings in three companies included in the CopperCo transaction, realising cash of $27.7M. shareholdings in three companies included in the CopperCo transaction, realising cash of $27.7M.

The company also proposed to acquire the remaining 37% of the Marampa Project, located in Sierra Leone, West Africa.

Cape Lambert currently owns 63% of the Marampa Project, with the latest proposal subject to Cape Lambert shareholder approval at a general meeting of shareholders scheduled for 25 January 2010

[Lego_Man]

I cast a weather eye over the technicals and they're still looking OK/good.

Will continue to hold - Mr P would approve!!

[evilroyrule]

any one been reading the postings on HC (yes, i know!) about todays GM? one wld have thought that at least those posts wld be fairly accurate? didnt do anything to the SP today!

[Dusty]

Havent been reading HC but new Q Copper Spin off given the green light. If this is succesful then intial investment in CopperCo by TS has been well and truly covered with plenty more to come. CFE on a pull back at 55c looking like there could be a quick 20% in the run up to Feb 3rd.

http://www.news.com.au/couriermail/story/0,23739,26633362-3122,00.html

[shasta]

Havent been reading HC but new Q Copper Spin off given the green light. If this is succesful then intial investment in CopperCo by TS has been well and truly covered with plenty more to come. CFE on a pull back at 55c looking like there could be a quick 20% in the run up to Feb 3rd.

http://www.news.com.au/couriermail/story/0,23739,26633362-3122,00.html

CFE - Drill Results at Marampa

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=477978

Good to see CFE doing what they do best, dressing it up ready for sale ;)

[Dusty]

Will CFE head into a trading halt today to announce the successful completion (hopefully) of the Q Copper IPO, last date indicated was the 3rd of feb.



Useful breakdown of the most recent activities of Cape Lambert, basically took the Quartely activities report and broke it down into bulletpoints so not the most detailed reporting.
http://www.proactiveinvestors.com.au/companies/news/4628/cape-lambert-resources-one-to-watch-in-2010-4628.html

[evilroyrule]

i was expecting news today re IPO. is that a bot we have trading today???

[Dusty]

Deferred again due to deteriorating market conditions

http://www.asx.com.au/asxpdf/20100204/pdf/31njjhxbnpvnvc.pdf

[Lego_Man]

What a ****ing debacle...

[Dusty]

What a ****ing debacle...

Yes very dissapointing, especially as it was at a reduced price. SP taking a beating as to be expected down 12% so far today.
They are going to continue with the drilling program to upgrade the resource potential but if they can't put together a sale in todays market climate which TS describes as adverse, I really don't see that changing in the near future.

[evilroyrule]

i was expecting news today re IPO. is that a bot we have trading today???

i sold half yesterday believing that bot was trading to keep the price up. that may be completely off the mark. but i jumped back in today at 44. everything, will in time, be allright.

[drillfix]

Sorry to hear this guys.

At the expense of such disappointment I took a small position at 45.5c, in for a quick scalp so to speak.

[asc4]

This is a major blow to the entire business plan constructed by CFE, if 2010 is picked to be 'volitile', then how are they suppose to sell off assets if there are consistently going to be 'adverse conditions'?

Obviously the dividend has gone out the window, and without an incentive like that, will investors stick around?

This float was overvalued, even after a reduction...is TS being to unrealistic and in the process ruining the shareholders value? This IPO has turned into a joke, I can't see any investors taking it seriously for a long time.


Despite these concerns, CFE are still undervalued and at these prices a good buy....i may just sell leading up to the next Lady Annie IPO haha!

Sorry about the negativity guys

Just Venting

[Stranger_Danger]

I reckon CFE are probably a sell at todays price. not a buy.

Buying assets is easier than selling them.

If I "get" the TS personality, he will probably attempt to buy something in order to restore market confidence. That'll just double up this dilemma.

CFE is 100% a confidence play. They must be fairly close to losing the confidence of the market.

When you strip away confidence, all that counts is the weekly profit you make from running a hopefully stable operating business. Thats what pays the bills until confidence is restored.

Anyone able to tell me what part of the CFE is the profitable stable operating business?

[soulman]

Wow, clearly a dagger for CFE.

And not to mention the money spent on the campaign (admin and HR), paying Paterson fees etc etc......

The exploration on Lady Annie would incur more cash burn to CFE shareholders and this stock now is at the end of Phaedrus SELL warning. A chart at the end of the trading day would be appreciated.

[drillfix]

Not much of a chart but a chart nonetheless

http://i49.tinypic.com/28tx94n.gif


There is clear disappointment here but I think there is a mix of market sentiment at play, paranoia, and other human emotion.

Im not the FA type of guy but look what happened to WDS not long ago, a huge fall and then a climb back.

Now not saying this will bounce back but with all the Previous FA stories I have read on this thread over the duration, surely it all cannot be based upon Q copper?

Im just a visitor for a day or two, no more, no less, but there is a chart for ya anyways, until Phaedrus gives you the full detailed version.

[Snapper]

TS always seemed very confident (read overconfident) and will have deeply disappointed his many previously fervent followers with this latest cockup (Messiahs always let you down in the end...sigh).

I've got shares in CFE but never quite bought in to his supposed dealmaking genius. To give him his due, though, he has done some very good deals including the sale of Cape Lambert Iron and the purchase of the Lady Annie mine et al. This isn't the only IPO to go tits up on either side of the Tasman in the last few months.

You win some and you lose some; TS is not infallible but he does seem to have a good instinct for a bargain. He should bide his time and do a deal with the Chinese when they show an interest.

[shasta]

TS always seemed very confident (read overconfident) and will have deeply disappointed his many previously fervent followers with this latest cockup (Messiahs always let you down in the end...sigh).

I've got shares in CFE but never quite bought in to his supposed dealmaking genius. To give him his due, though, he has done some very good deals including the sale of Cape Lambert Iron and the purchase of the Lady Annie mine et al. This isn't the only IPO to go tits up on either side of the Tasman in the last few months.

You win some and you lose some; TS is not infallible but he does seem to have a good instinct for a bargain. He should bide his time and do a deal with the Chinese when they show an interest.

Alot of doom & gloom on here, but really so a couple of projects are delayed, CFE can work on them & get more down the track, there is no pressure to sell into a weak market, & Tony knows this.

He'll be happy to wait & sell on his terms, he's done it before & i'd say he will do what rights for all shareholders when the time comes.

[Snapper]

Yeah I agree, Shasta, I'm not too worried. At least people will realise now that only the pope's infallible...:)

[Lego_Man]

It's crap though...a weak market?

Indices have been down a couple of weeks, so what? Doesnt make the whole investment/economic climate unpalatable.

What would constitute an acceptable market? A couple of years of strong GDP growth and a VIX below what level?

[Stranger_Danger]

Yup. its crap. Bet he believes it though.

[drillfix]

Can anybody tell me, is this company cashed up, like does it have stacks of cashed banked?

Or does it depend on the sale of this so recent spin off?

To me, doesn't matter which company it is, sometimes/at times stocks just need a reason to be sold off for whatever reason. Kinda like a re-shuffle of the deck so to speak.

[drillfix]

Decided to get out on close for a small loss. Ahh well, till next time.

[corporateraider]

I don't think the endless stories from the company are going to have much credibility anymore. The fact is they have had 3 goes to try and sell Q Copper. Despite all the bravado it was a float with only 4 years of copper reserves. Yeah, mine it more slowly and spin it out to 6, but then you increase fixed costs as a proportion of revenue. At least they are now doing what they should have all along and proved up some more reserves at Lady Annie.

And now everyone is saying that Marampa is the next big thing. But there are many issues with this asset. The first thing that is glaringly obvious is that when you buy an asset in a country with sovereign risk you buy it more cheaply than elsewhere. Obviously the seller has sold it more cheaply and the same will apply when CFE comes to sell it. Where the asset comes good of course is when you actually produce something. A tonne of iron ore sells for the same price anywhere. But CFE are never going to produce anything so this doesn't matter.

I have listened to the repeated assertions of how undervalued this company is and at one stage I suscribed to that view. I gave up on the company in November and nothing is changing my mind that this was a great decision.

[rev]

Edited by Vince :-)

Final warning!!!!

[drillfix]

Edited by Vince :-)

Ok Ok Vince, no worries~!

[Huang Chung]

I think a big mistake of CFE is this notion that they won't ever mine anything themselves. What is a potential buyer of one of their assets to think?.....CFE got the asset cheap, and now we're paying top dollar buying it from them, or the only thing they intend to mine is us!

It might work once or twice, but seems a self-defeating strategy over the long run.

[evilroyrule]

lifted this from Hot Cop, so perhaps take with salt, but interesting nonetheless:

DJ Cape Lambert Has Chinese, Indian Interest In Lady Annie04/02/2010 04:03PM AEST
MELBOURNE (Dow Jones)--Cape Lambert Resources Ltd. (CFE.AU) Executive Chairman Tony Sage said Thursday the company had approaches in January from Chinese and Indian buyers interested in its Lady Annie copper project in Queensland state.

Cape Lambert has withdrawn a planned float of the mine due to weaker copper prices and Sage said it would consider any firm offers from the Chinese and Indian parties but otherwise planned to restart the float when conditions improved.

"They will go on site for the next two or three weeks so if we get an offer that is close to the IPO number, we will take it," he told Dow Jones Newswires.

Sage said Cape Lambert was not a distressed seller and had A$146 million in cash and receivables, and that it would now proceed with a two month infill drilling program to convert resources at the mine to reserves.

This would increase the mine life to between seven and 10 years from the current life of four to six and this would in turn allow it to raise more than A$200 million in a future IPO, as long as the copper price had stabilized.

[Dusty]

lifted this from Hot Cop, so perhaps take with salt, but interesting nonetheless:

DJ Cape Lambert Has Chinese, Indian Interest In Lady Annie04/02/2010 04:03PM AEST
MELBOURNE (Dow Jones)--Cape Lambert Resources Ltd. (CFE.AU) Executive Chairman Tony Sage said Thursday the company had approaches in January from Chinese and Indian buyers interested in its Lady Annie copper project in Queensland state.

Cape Lambert has withdrawn a planned float of the mine due to weaker copper prices and Sage said it would consider any firm offers from the Chinese and Indian parties but otherwise planned to restart the float when conditions improved.

"They will go on site for the next two or three weeks so if we get an offer that is close to the IPO number, we will take it," he told Dow Jones Newswires.

Sage said Cape Lambert was not a distressed seller and had A$146 million in cash and receivables, and that it would now proceed with a two month infill drilling program to convert resources at the mine to reserves.

This would increase the mine life to between seven and 10 years from the current life of four to six and this would in turn allow it to raise more than A$200 million in a future IPO, as long as the copper price had stabilized.



I read that to Evilroy, its from The Wall Street journal. It also answers your question Drilly in regards to how much cash CFE have, which is alot in relation to its market cap.
http://online.wsj.com/article/SB10001424052748704259304575044292163160232.html?m od=googlenews_wsj

[drillfix]

It also answers your question Drilly in regards to how much cash CFE have, which is alot in relation to its market cap.
http://online.wsj.com/article/SB10001424052748704259304575044292163160232.html?m od=googlenews_wsj

Yep, thanks dusty.

Im kinda glad I exited market close out yesterday, but still good to know the situation with cash for future reference.

[evilroyrule]

you did good drilly if you were looking for quick trade. im still and will continue to hold, and perhaps to my further detriment. but got a long term view on this. hope everyone holding up ok out there. i have to bow down to mr p. if i had sold when his chart first went red, things would look a little rosier. but what they hell happened to make the dow do that!!! i still feel there not a lot of news out there, or news that im reading.

best of luck everyone. in challenging times there lies opportunity. einstein said that or something similar. still, einstein didnt play the markets i guess!

[Stranger_Danger]

I get why P follows charts so faithfully.

It is real hard to "know" on a day which piece of "noise" is driving the ultimate result.

However, it wouldn't surprise me if, in hindsight, we work out that what is increasingly spooking the market is the threat of protectionism breaking out.

Homework assignment (you should of been working on this for months) : what stocks, if any, could benefit from a creeping protectionism?

My first nomination : CAA (disc : not a holder yet)

[asc4]

Being a new trader, I took my first substantial-ish loss on CFE. :(

Thanks to all the posts, that made me see things from a different angle. Less emotion more objectivity.

It has certainly been a real learning curve!

Think I'll cash up most things and wait for this correction to bottom out.:D

[evilroyrule]

im going to say very quietly in case im accused of being a cheer leader that i reckon they already got a buyer, and deferred IPO as received approach prior to its close. time will tell....

[Lego_Man]

If that is the case then it would be a shocking breach of their continuous disclosure obligations.

[evilroyrule]

yes i knw legs. and we all know there is no such thing as insider trading either. maybe im just looking for positives in all the wring places. big buyer just walked in for a million at .41. ill be quiet now. have a good weekend everyone.

[drillfix]

you did good drilly if you were looking for quick trade.

Thanks ER, I lost $100 at close yesterday but it beats taking a $500 hit.

Markets right after open totally dove as you know but since have been moving sideways on support.

If we dont get a bounce on the All Ords (xao) and breaks through the 450x support, then IMO I would not choose to ride the path down hill.

Here is hoping for a bounce so good luck with this one.

[evilroyrule]

if its good enough for tony sage to buy another 300k on market tuesday, thats good enough for me. im in for more. god knws i need somethng to work out this year.

[lissica]

In todays Australian:

http://tinyurl.com/yap3fzt

WEST Australian mining entrepreneur Tony Sage is close to finalising due diligence on beleaguered Griffin Coal.

Mr Sage said he was reviewing making a play for the company at the debt level, instead of picking over its various assets.

He said the move would be similar to his mining vehicle Cape Lambert’s purchase of the debt of failed Queensland miner Copper Co.

Ric Stowes’ Griffin Coal was placed in administration on January 4 after missing deadlines for the payment of debt instalments and tax liabilities.

Griffin Coal is thought to have about $1 billion of unsecured debts but Mr Sage said it was likely to be up to $3bn.

“We are treading carefully and the due diligence is expected to be complete in a fortnight,” Mr Sage said.

He added that once the due diligence was complete, he would start talking to key stakeholders of the group.

The privately held Griffin produces between 5 million and 6 million tonnes of thermal coal annually from its Western Australian mines, mostly for domestic power stations.

Griffin Coal owns, and can sell, Griffin Power, which runs the Bluewater power stations in WA but Griffin Power is not in administration.

[evilroyrule]

mmmmm. something going on behind the scenes. but not sure if it related to the above, or perhaps developments on annie/marampa. at least with cfe, life is never boring!

[Stranger_Danger]

Note my post from 4/2/2010

"Buying assets is easier than selling them.

If I "get" the TS personality, he will probably attempt to buy something in order to restore market confidence. That'll just double up this dilemma."

Clearly, Tony is not one to waste time!

Memo to TS : You have no cashflow. You need to buy AND sell assets in the business model you have chosen!

[evilroyrule]

agree. i wld actually see it as a negative if he tried to purchase this pup for anywhere near the debt level of $3b.

[JBmurc]

agree. i wld actually see it as a negative if he tried to purchase this pup for anywhere near the debt level of $3b.

Yeah I agree still I wouldn't be surprised if TS has some buyers already lined up for some of the assets investors are happy to buy more stock of late-
taking on massive depts will only downgrade an well bankrupt CFE I'm sure there'll not that stupid.

[evilroyrule]

that was a bloody awful end to the day. any ideas or just profit takers. 20+% in less than 2 weeks i guess saw some cashing in???

[COLIN]

that was a bloody awful end to the day. any ideas or just profit takers. 20+% in less than 2 weeks i guess saw some cashing in???

Their response to the ASX query may have dampened peoples' expectations as to just how far down the track they actually were - but I don't quite understand how you can carry out satisfactory "due diligence" without having access to the target's records.

[evilroyrule]

yes, i think you are right. clearly though TS was never serious, just a case of him trying to keep his name in the headlines. 3b??? he is starting to turn me off a bit (not that he ever turned me on! ok, maybe just a little)

[Corporate]

boom! trade sale for lady annie!

Roll on $200m in the bank for CFE.

[JBmurc]

annoucement on trade sale of the Lady Annie Project

we could well be getting a 10cps divie after all

[drillfix]

When will the stock come out of TH, today?

[gazprom1]

DF,

Monday at the latest or when the announcement comes out. Great for holders!!

Gaz

[JBmurc]

the securities will remain in pre-open until
the earlier of the commencement of normal trading on Monday, 15 March 2010 or when
the announcement is released to the market.

I did sell half of my holding with a stoploss at .465c might be fighting with the rest of the market come monday over 50c

[JBmurc]

DJ Cape Lambert Sells Lady Annie For About A$150M To Asian Buyer-Source
11/03/2010 10:25AM AEST



MELBOURNE (Dow Jones)--Cape Lambert Resources Ltd. (CFE.AU) has sold its Lady Annie copper mine to an Asian buyer for about A$150 million, a person familiar with the situation said Thursday.

The company requested a trading halt in its shares Thursday ahead of an announcement on a trade sale of the mine in Queensland state.

The person said the buyer is Asian and the sale price is in the same ballpark as the A$150 million outlined by Executive Chairman Tony Sage in previous comments.

The Perth-based miner pulled a planned float of the mine on the Australian exchange in February, citing adverse market conditions, and Sage said at the time he had received approaches from Chinese and Indian buyers interested in the mine.

[Snapper]

Great result. Keeping my fingers and toes crossed, however, until they've actually got the dosh. Anyone know if this needs approval from the FIRB?

[JBmurc]

Cape Lambert in halt on Lady Annie sale
11-March-10 by Rebecca Lawson

Shares in the Tony Sage-led Cape Lambert Resources have been placed in a trading halt as it prepares to offload its Lady Annie copper mine to a potential Asian buyer.

The company advised the Australian stock exchange this morning that it expects to make an announcement regarding the mine sale before the start of trade on Monday.

Shares in Cape Lambert last traded at 44.5 cents.

The company has previously tried to spin out the asset into new company Q Copper, which was to list on the ASX however its $165 million initial public offer was pulled last month due to adverse market conditions.

Cape Lambert was to receive $137.5 million from the sale of the mine to Q Copper if the IPO was successful.

It's believed the sale of Lady Annie will achieve a better result for Cape Lambert, with the company expected to reap about $150 million from the transaction.

[lissica]

In todays The Australian
http://tinyurl.com/ladyannie

CAPE Lambert Resources has sold its Lady Annie copper mine in Queensland to an Asian buyer for about $35 million more than it would have raised in an abandoned public float of the mine, executive chairman Tony Sage said.

Mr Sage told Dow Jones Newswires the initial public offering would have generated about $108.5m for Cape Lambert, with the company planning to retain a 15 per cent stake in the listed entity.

"Under this deal we will sell the whole lot and will be getting in cash back immediately of about $35m more than we were under the old deal," he said in an interview.

Another person familiar with the deal said the sale price is in the same ballpark as the $150m the company had previously publicly canvassed as a likely price.

The sale highlights the ongoing strength of interest from Asian buyers in Australian mining assets.

Mr Sage said confidentiality clauses prevented him from naming the buyer, but that it was a publicly listed company in a jurisdiction controlled by China and was able to pay up front for the mine as it had a billion dollars in cash.

The buyer is not a Chinese Government agency, he said, adding that the deal was finalized on the sidelines of the PDAC mining conference in Toronto.

The Perth-based miner pulled its planned float of the mine on the Australian exchange in February, citing adverse market conditions, and Mr Sage said at the time he had received approaches from Chinese and Indian buyers interested in the mine.

Lady Annie has been on care and maintenance since February 2009, but in offer documents for the planned float Cape Lambert had outlined plans to restart mining by July 2010.

Targeted production in 2010 was to have been 20,000 tonnes, rising to 25,000 tonnes in 2011 with exploration work planned to extend the mine's life to a minimum of seven years.

The Lady Annie assets include open pit mines and a heap leach processing plant as well as thousands of square kilometers of exploration tenements in Queensland's north.

Cape Lambert shares are on a trading halt ahead of the announcement of the details of the sale.

[Corporate]

Yep great news. Glad I'm still holding all of mine, if this opens below 50c I'll double my holding with any luck.

After the sale CFE will have more cash and receivables than it's market cap (no debt). Plus upside from all of it's other assets no factored in.

[JBmurc]

hey just wait to i get my 80,000 extra -Corp- I'm in bid at 48c though I'd say it will open north of 50c with a likely large divie coming are way

still holding 100,000 direct 500,000 indirect

[Corporate]

hey just wait to i get my 80,000 extra -Corp- I'm in bid at 48c though I'd say it will open north of 50c with a likely large divie coming are way

still holding 100,000 direct 500,000 indirect

Hahah well I'll be up their battling you for some. IMO if the deal is good, then I'm happy to pay 50c+

[Corporate]

Trade sale $135m - after all the failed IPO's i'm happy with that!

http://www.asx.com.au/asxpdf/20100312/pdf/31p6wch4m8dg9c.pdf

[JBmurc]

Cape Lambert agrees to A$135M trade sale of Lady
Annie to China Sci-Tech
Key Points:
 Cape Lambert signs formal agreement to sell Lady Annie for a
total consideration of A$135M,
 China Sci-Tech has completed its due diligence and paid a
A$5M deposit, with a further A$125M to be paid on completion
of Sale Agreement,
 Remaining A$5M payable in two tranches on achievement of
certain production and reserve milestones,
 Cape Lambert intends to make A$0.08 to A$0.10 return to
Shareholders following receipt of A$125M, and
 China Sci-Tech granted a right of first refusal over any sale of
Cape Lambert’s interest in Lady Loretta project.
Australian resources and investment company, Cape Lambert Resources
Limited (ASX: CFE) (“Cape Lambert” or the “Company”) has entered into a
conditional sale agreement with Hong Kong listed company China Sci-Tech
Holdings Limited (“CST”), for the sale of its 100% interest in the Lady Annie
Project (“Lady Annie”) for a total consideration of A$135 million.
Under the terms of the binding Share Sale Agreement (“SSA”), Cape Lambert



The Company will also receive approximately A$13 million of cash back from the release of
environmental and other bonds related to Lady Annie.

[Ketel One]

Ann out: $135M all up for Lady Annie.

Cash and receivables after the transaction ~$300M + Listed securities ~$70M.

Current Mkt. Cap = $250M @ 44.5c. If it opens at around 50c that's still only a Mkt. Cap of $283M.

Would probably pick some up if I had any cash available to do so!

[JBmurc]

whats going be the most interesting is who will be selling sub 60c I'm sure there be penatly sell orders get pulled on open an buyers fight to get a piece Divie ex date won't be till MAY 8-10c divie



20% up open likely

[Corporate]

Did you get your top up JB? I didn't :-(

[JBmurc]

yep but I had to pay placed order at 52c before open had to take only 75,000 shares did open at .535 sub 60c cheap IMHO will be over 70c by mid year to many assets to smart of management not to get more good sales done before the years out my pick is a Iron ore sale while the contract price for the ore is high CFE have 2 very good assets they could sell 400m+

[lissica]

yep but I had to pay placed order at 52c before open had to take only 75,000 shares did open at .535 sub 60c cheap IMHO will be over 70c by mid year to many assets to smart of management not to get more good sales done before the years out my pick is a Iron ore sale while the contract price for the ore is high CFE have 2 very good assets they could sell 400m+

Looks like you'll get your chance. Currently trading at 50c

[JBmurc]

Yep looks like some holders are happy to sell out at forward cash backing an forget the easy 500mill+ of other assets CFE have-the patiance will be well rewarded again this year
CFE talk the talk an walk the walk so many others don't

[lissica]

Yep looks like some holders are happy to sell out at forward cash backing an forget the easy 500mill+ of other assets CFE have-the patiance will be well rewarded again this year
CFE talk the talk an walk the walk so many others don't

How did you figure that 500mill again? Cash and receivables 300Mill and listed securities at 70mill?

[soulman]

That's $500 plus mil lissica. I think JB was referring to their non-listed asset - Marampa iron ore project in SA.

[JBmurc]

That's $500 plus mil lissica. I think JB was referring to their non-listed asset - Marampa iron ore project in SA.

yeah dead right soulman -Lady annie is only one of many parts CFE Iron ore assets alone could well reap in 400mill+ then CFE still have major shareholdings in CVX,NIP,IGC etc Greek gold, 25% Lady loretta high grade zinc-lead-silver mine,convertibl notes 6mill

-current likely sale of lady annie =====
135m (trade sale) + 13m (envo bonds) + 3m (reimbursement for care & maintainence) = 151m.
-CFE will now have 370m in cash/receivables & listed entities or round 60c per share

48.5c is a joke

[soulman]

Opened high, closed at it's low. Some cat is selling this. Nevertheless, a 9% gain is good in anyone's language. But from another view, it is a 9% fall from their opening bid. Might look to trade this next week.

[Corporate]

Well I put a question to Tony this evening and got a reply within a few hours!! I'm looking to pick up some more CFE on monday under 50c.

[JBmurc]

be good to know what the Question&answer was corp I'll be also looking at buying some more next week

[Corporate]

be good to know what the Question&answer was corp I'll be also looking at buying some more next week

No worries - I'm sure Tony wouldn't mind.

Basically my question was whether he would consider some sort of dividend reinvestment scheme. As any franking credits are useless to us New Zealand shareholders (and probably most non-resident australians).

He said "I will put it to the directors"

[lissica]

No worries - I'm sure Tony wouldn't mind.

Basically my question was whether he would consider some sort of dividend reinvestment scheme. As any franking credits are useless to us New Zealand shareholders (and probably most non-resident australians).

He said "I will put it to the directors"

It might be a dumb question...but how does that benefit NZ shareholders? I don't think any of our Australian holdings use gross dividends for the DRP. So in effect, we still lose the franking credit. Or am I missing something here?

[Corporate]

It might be a dumb question...but how does that benefit NZ shareholders? I don't think any of our Australian holdings use gross dividends for the DRP. So in effect, we still lose the franking credit. Or am I missing something here?

It means I get some more CFE shares without paying tax on the dividend when it gets to NZ. Also no brokerage.

Make sense?

[Corporate]

Basically you swap a 10c dividend (gross) or 7c net for 1/5th* of a CFE share. The 1/5th for a CFE shares is worth more than the 7c after tax dividend.


*assuming that CFE is trading at 50cps.

[lissica]

It means I get some more CFE shares without paying tax on the dividend when it gets to NZ. Also no brokerage.

Make sense?

Are you sure? I thought DRPs were treated equally the same as with Dividends. I'll have to check with my accountant.

Having no brokerage and usually a discount is the main reason most of our holdings in Australia are subscribed for DRPs. But I think they're still taxed. We need NZ to recognise Australian franking credits, like they do with personal income earned in Australia.

[shasta]

It might be a dumb question...but how does that benefit NZ shareholders? I don't think any of our Australian holdings use gross dividends for the DRP. So in effect, we still lose the franking credit. Or am I missing something here?

Was Corporate referring to a share buyback, that is the most tax effective/friendly way of treating shareholders equally

[shasta]

It means I get some more CFE shares without paying tax on the dividend when it gets to NZ. Also no brokerage.

Make sense?

Receiving a dividend or taking the shares in the DRP, leave you in the same tax position, where you lose the franking credits & end up having to pay the tax on it in your NZ return.

[Corporate]

Receiving a dividend or taking the shares in the DRP, leave you in the same tax position, where you lose the franking credits & end up having to pay the tax on it in your NZ return.

Really. Oh well, at least I'll have know brokerage costs. I suppose it is still a dividend for your tax return.

[shasta]

Really. Oh well, at least I'll have know brokerage costs. I suppose it is still a dividend for your tax return.

If CFE are cash rich, they should buyback there shares on market, which would benefit all shareholders

[JBmurc]

Can't see that happening shasta going from their past payout I think CFE want to be known as a company that returns some of the cash to shareholders invests the rest into undervalued assets & companies IMHO I think their doing a good job...am more than happy to get a 15-20k AUD chq, help pay some interest

[shasta]

For sure, i understand how CFE want to be seen as a capital returning/dividend paying company, i was merely informing others that, for tax fairness to both Australian & NZ shareholders, a share buyback treats all shareholders equally.

I note from my old CFE spreadsheet, they have $23m in forecast outgoings in May, can you recall what that was for?

[JBmurc]

Not sure ? forecast drilling at Marampa probably(this Iron ore mine will be the next to be sold IMHO first show up a large resource then sell with good infrastructure in place 300m+)

Further Work
Diamond drilling now underway at Matukia is designed to test the structure, width and grade of
mapped units of hematite schist extending 1.8 km north from Masaboin Hill. Initial drilling will be
collared on 4 wide-spaced traverses with 2 holes on each traverse. This drilling will be completed in
the March quarter 2010. Further drilling will then be undertaken at Gafal West and an initial program
is planned at Mafuri.
A ground gravity geophysical survey will be undertaken in the March quarter 2010 along the
prospective stratigraphy between the Matukia and Makambo prospects and further north with the aim
of identifying further drill targets.
A detailed metallurgical testwork program is being planned utilising the drill core that has been sent
to Perth for head grade analysis. The program will assess ore breakage and comminution
characteristics, and optimise the WHIMS flowsheet.
Yours faithfully
Cape Lambert Resources Limited

[buns]

Just happily picked up a chunk at .49

Going to be very interesting to see how this one plays out from here. Seems the market feels fair value for this is in the high 40 range. So would expect this news to push the SP by the divvy amount (8-10c) with it coming back out ex div?

I’ve got a feeling it won’t drop by the whole amount as the market will now be reassured that Tony can both buy and sell these assets. The delays around the IPO seemed to bring out a lot of doubters around the ease of CFE to sell.

Hoping this is the last Monday CFE ever see’s the 40’s.

[JBmurc]

worth a watch -tony sage interview-

http://www.switzer.com.au/video

Buying more to cheap at these levels

[JBmurc]

Cape Lambert to make A$0.40 all cash take-over offer
for DMC Mining
Key Points:
· Cape Lambert Resources Limited (ASX: CFE) to make all-cash
takeover offer for shares in DMC Mining Limited (ASX: DMM),
· Offer will be A$0.40 cash for every one (1) DMM share, which
represents a substantial and attractive bid premium of:
o 24% to 1 month volume weighted average price
(“VWAP”) of DMM shares on ASX of A$0.3037 prior to
this announcement; and
o 33% to DMM closing share price on ASX of A$0.30 on 22
March 2010, the last trading day prior to this
announcement;
o 27% to the 3 month VWAP of DMM shares on ASX of
A$0.31497 prior to this announcement.
· Cape Lambert already holds a 36.2% relevant interest in DMC
Mining, and
· Cape Lambert believes the assets of DMM would achieve a
significant increase in value under the corporate structure of
Cape Lambert.
Australian resources and investment company, Cape Lambert Resources
Limited (ASX: CFE) (“Cape Lambert” or the “Company”) wishes to announce
its intention to make an off-market takeover for shares in DMC Mining Limited
(ASX: DMM) (“DMC Mining” or “DMM”) (“Offer”).

[Corporate]

Cape Lambert to make A$0.40 all cash take-over offer
for DMC Mining
Key Points:
· Cape Lambert Resources Limited (ASX: CFE) to make all-cash
takeover offer for shares in DMC Mining Limited (ASX: DMM),
· Offer will be A$0.40 cash for every one (1) DMM share, which
represents a substantial and attractive bid premium of:
o 24% to 1 month volume weighted average price
(“VWAP”) of DMM shares on ASX of A$0.3037 prior to
this announcement; and
o 33% to DMM closing share price on ASX of A$0.30 on 22
March 2010, the last trading day prior to this
announcement;
o 27% to the 3 month VWAP of DMM shares on ASX of
A$0.31497 prior to this announcement.
· Cape Lambert already holds a 36.2% relevant interest in DMC
Mining, and
· Cape Lambert believes the assets of DMM would achieve a
significant increase in value under the corporate structure of
Cape Lambert.
Australian resources and investment company, Cape Lambert Resources
Limited (ASX: CFE) (“Cape Lambert” or the “Company”) wishes to announce
its intention to make an off-market takeover for shares in DMC Mining Limited
(ASX: DMM) (“DMC Mining” or “DMM”) (“Offer”).


Well it is a billion tonne resource with infustructure right there!

[JBmurc]

If CFE do get DMM they are going have one world class IRON ORE portfolio maybe they might get a major billion dollar deal if they can prove up 3 major IRON ORE mines with billions of tons of resource for One sale to the Chinese esp as RIO BHP etc are looking to increase prices hugely

I'm sure they have a plan ,an with their past IRON ORE deal they have the right contacts

CFE my biggest holding for good reason

[JBmurc]

OKLO TO ACQUIRE HIGHLY PROSPECTIVE NAMIBIAN URANIUM PROJECT NEAR LANGER HEINRICH URANIUM MINE AS PART OF A$20M DEAL
KEY POINTS
•
Oklo to acquire a 70% interest in the Hoasib Uranium Project (EPL 3664 A&B) in Namibia
•
Project is located near the Langer Heinrich Uranium Mine owned and operated by Paladin Resources Limited
•
Consideration for acquisition comprises approximately 309M Oklo shares (valued at ~ A$17M) and A$3M cash
•
Project has been subjected to recent drilling, with positive results received, with Oklo planning to undertake an extensive drilling program at the project with the objective of delineating a major new uranium resource
•
Following the proposed transaction prominent ASX listed resources company Cape Lambert Resources Limited (ASX:CFE) will emerge as a major shareholder of Oklo
•
CFE and Africa Uranium Limited to each appoint members to Oklo’s board
Australian resources company Oklo Uranium Limited (ASX: OKU) (“Oklo” or “the Company”) has acquired rights to a 70% interest in the highly prospective Hoasib Uranium Project (“Hoasib Project”), located near the operating Langer Heinrich Uranium Mine in Eastern Namibia, in a cash/share transaction valued at approximately A$20M.
Under the terms of the agreement Oklo has agreed to acquire 70% of Green Mineral Resources Pty. Limited (“GMR”) a company incorporated in Namibia and owner of exploration licences EPL 3664 A &B in Namibia. The vendor of the shares in GMR is Africa Uranium Limited (“AUL”), an unlisted public company in which ASX listed company Cape Lambert Resources Limited (ASX: CFE) holds an interest.
The consideration for the acquisition is to be made up of approximately 309M Oklo shares (valued at ~ A$17M) and A$3M cash (refer “TERMS OF THE PROPOSED TRANSACTION” for full details). It is the intention of AUL, post completion of transaction to distribute Oklo consideration shares to its shareholders, thereby making CFE a major shareholder of Oklo.
As part of the transaction Oklo will undertake a capital raising for the outstanding cash portion of the transaction as well as sufficient funds to undertake an extensive exploration and drilling programme with the objective of identifying a major new uranium resource.

[JBmurc]

OKU currently up 85%

[drillfix]

Wow, those who ever picked up a few million shares at 4c a while back would be doing alright, near triple bagger in a month.

[Corporate]

worth a watch -tony sage interview-

http://www.switzer.com.au/video

Buying more to cheap at these levels

Great interview. Everyone interested in CFE should listen to this.

[JBmurc]

It appears as though China Sci-Tech Holdings do not anticipate any problems with the FIRB approving this sale process ( which will release $ 135 million in cash to CFE ) .

They are quoted in this weekend's Financial Review as saying that they expect the mine producing again by December . They have also nominated former Deutsche Bank executive Damon Barber as chief executive and former Oxiana chief Owen Hegarty to be vice-chairman and executive director .

[evilroyrule]

keep loading up JB. talk is that big boys are keeping this capped to accumulate ahead of announcement.

[percy]

Great interview. Everyone interested in CFE should listen to this.

Brought some today on the strength of it. Plus it confirmed all of CFE postings.Again thank you JBmurc.

[JBmurc]

keep loading up JB. talk is that big boys are keeping this capped to accumulate ahead of announcement.

got near 800,000 cfe direct an indirect holdings in CFE is my biggest holding looking forward to my 8-10cps div
Yes only fools selling at this stage along with the watchers not buying cheap thing is they'll be fighting with the rest of the market once CFE MgM ann. completed sale of Lady annie an the divie ----55c-58c min at that stage then give the boys another few months an I wouldn't be surprised to see a major ann. relating to their IRON ORE portfilo -sale,resource upgrade etc
80c+ later in the year

[evilroyrule]

now that FIRB approval is to hand, if my assumptions are right the foot will come off the lid and they will let the sp go. cld be interesting day!

[JBmurc]

A$135M sale of Lady Annie Project on track
China Sci-Tech receives FIRB approval
Key Points:
• Cape Lambert has agreed to sell Lady Annie in Queensland, Australia, to China Sci-Tech for A$135M,
• China Sci-Tech has completed its due diligence and paid a A$5M deposit, with a further A$125M to be paid on completion of Sale Agreement,
• Remaining A$5M payable in two tranches on achievement of certain production and reserve milestones,
• A key condition of transaction was FIRB approval, which has now been received, and
• Cape Lambert intends to make A$0.08 to A$0.10 return to Shareholders following receipt of A$125M.
Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (“Cape Lambert” or the “Company”) wishes to advise that Hong Kong listed company China Sci-Tech Holdings Limited (“CST”) has received written approval from the Foreign Investment Review Board (“FIRB”) for its acquisition of a 100% interest in the Lady Annie Project (“Lady Annie”) in Queensland, Australia.
Under the terms of the binding Share Sale Agreement (“SSA”) announced to the ASX on 12 March 2010, Cape Lambert agreed to sell its 100% interest in Lady Annie to CST for a total consideration of A$135M.
Completion of the sale is conditional on a number of matters including CST receiving FIRB and its shareholders’ approval, and other regulatory approvals and third party consents.
“Given this acquisition is being funded from existing cash reserves, the key condition needed prior to settlement was FIRB approval, with that now received CST can move towards completion of the agreement,” said Cape Lambert Resources Chairman, Mr Tony Sage.
“On completion of the agreement we will be in receipt of A$130M, at which time we will be able to finalise our plans regarding a partially franked dividend to Shareholders”.
“It is our intention to return between A$0.08 and A$0.10 per share to Shareholders once the sale completes and the A$130 million cash is received,” added Mr Sage.

[Snapper]

Isn't it strange that even with the FIRB approval the share price has only moved 2c. The only reason I can think of is that there must be a very deep level of mistrust among a lot of Aussie investors regarding Tony Sage. He's obviously regarded as a bit of a wide boy and his various 'colourful' acquaintances and prematurely optimistic pronouncements re the Lady Annie IPOs wouldn't have helped either. Regardless, he seems to get the deals done eventually and to the great benefit of shareholders. I have a reasonable exposure to this but I'm not in boots and all as I think with this company you're only as good as your last deal.

The Lady Annie sale seems like a done deal but I'll be very happy to see the money in the bank when the sale goes through...

[JBmurc]

Following the sale of Lady Annie, Cape Lambert will still retain a number key assets acquired as part of the CopperCo Limited transaction, including a 25 per cent interest in the high-grade Lady Loretta lead-zinc-silver project located near Lady Annie, the high-grade Sappes gold project located in Greece, the early definition Australis rock phosphate land package, and controlling interest in listed NiPlats Australia Limited (ASX: NIP), Corvette Resources Limited (ASX: CVX) and Fe Limited (ASX: FEL)

then add in CFE many Convert notes to junior explorers- 00 mills

their massively growing IRON ORE portfolio



----Lodge Partners Research---BUY 66c target

Sale of Lady Annie for A$135M
Cape Lambert has entered into a binding agreement to sell its Lady Annie copper project to China Sci-Tech Holdings Ltd for a total consideration of A$135M. The transaction is expected to be completed before the end of May assuming FIRB and shareholder approval, neither of which should be an issue. Whilst we believe Lady Annie is worth substantially more than the A$135M (particularly at spot copper prices), the unfavourable market sentiment arising from the unsuccessful IPO leading into Christmas was impacting Cape Lambert’s business strategy. The pending transaction more than validates the CopperCo asset acquisition, whilst also providing valuable learnings.
Offer for DMC Mining
Cape Lambert has made an all-cash offer of A$0.40 per share for the 63.8% of DMC Mining it does not already own, valuing the latter at A$34M. DMC Mining’s key asset is the Mayoko iron ore project in the Republic of Congo with a 0.9 – 1.3Bt hematite itabirite / magnetite exploration target, within 2.3km of a railway line which connects to a deep water port. We consider Mayoko to be comparable to Cape Lambert’s Marampa iron ore project.
Strong News Flow Over the Coming Months
•
Completion of Lady Annie sale (April – May)
•
8 – 10c dividend (April – May)
•
Pinnacle exploration program (April)
•
Mayoko exploration program (April)
•
Marampa exploration program (April)
•
Sappes trade sale (April – June)
•
Final payment of A$80M from MCC (July)
Our View and Recommendation
Cape Lambert’s pro forma cash and receivables totals A$337M.

-report from-Fat Prophets----

javascript:openPopUpFull('http://www.capelam.com.au/IRM/Company/ShowPage.aspx?CPID=1960&EID=81752082&PageName=Fat Prophets Analyst Research - March 2010','Fat Prophets Analyst Research - March 2010')

[JBmurc]

"West Africa is becoming increasingly popular with investors because of the region's huge and largely untapped iron ore riches.
Rio Tinto and China's Chinalco want to develop the Simandou asset in Guinea while Franki Timis' plan for a massive venture in Sierra Leone gained momentum on Thursday when he convinced China Railway Materials Commercial Corp to invest 168 million pounds in his African Minerals vehicle. The deal should prove a boon for Tony Sage's Cape Lambert Rescources, which owns the nearby Marampa iron ore project" end quote

[JBmurc]

Cape Lambert to benefit from upgrade of rail and port infrastructure at Marampa, and appoints independent, non-executive director
Key Points:
• African Minerals to secure Chinese funding to underwrite Phase One hematite development at its Tonkolili project,
• As part of Phase One, African Minerals will upgrade Marampa rail and Pepel port infrastructure, with completion by 2011,
• Cape Lambert’s Marampa project is connected to the deep water port, stockpiling and ship loading facility located at Pepel, via the 84km Marampa railway,
• Pursuant to the First Marampa Agreement, Cape Lambert has ownership and access rights to the rail and port infrastructure on commercial terms to be agreed,
• Cape Lambert is currently formalising the commercial terms of its ownership and access rights through the negotiation of a term sheet,
• Mr. Ross Levin appointed an independent, non-executive director with effect from 1 April 2010.

[evilroyrule]

JB, DMM announce superior take offer from third party. what do you make of that? do CFE really want this asset this bad? shld have loaded up on DMM. i see potential for neithjer party to pick it up myself. just fun and games

[JBmurc]

JB, DMM announce superior take offer from third party. what do you make of that? do CFE really want this asset this bad? shld have loaded up on DMM. i see potential for neithjer party to pick it up myself. just fun and games

It's going be a win-win for CFE if the bid is alot higher CFE can just sell an take a nice profit on their 36.2% DMM shareholding if the new bid is 45c CFE will walk away with 10mill

-Worth looking at CFE new presentation to see how undervalued CFE are--

Capital Structure Share Price Performance
Ordinary shares (ASX: CFE) 625M
Market Cap at $0.50 $312M
Cash & receivables $290M
Amount owing $23M
Enterprise value $45M
Options
30 June 2010 - $0.432 8.4M
Shareholding
Directors & management 5.2%
Top 20 63%

[evilroyrule]

thanks JB. i completely didnt think about cfe shareholding in dmm. nice move to flush out other bidders perhaps to realise some value. well said. win/win. jeez cvx has gone to the sock draw. im thinking about packing up and going home.

[JBmurc]

thanks JB. i completely didnt think about cfe shareholding in dmm. nice move to flush out other bidders perhaps to realise some value. well said. win/win. jeez cvx has gone to the sock draw. im thinking about packing up and going home.

Yeah tell me about it CVX needs to get that drill bit working on discovering the next big gold find S/H don't like to wait these days (one HC poster believe their was a rumour round that CFE may well takeover CVX in time)

[Rif-Raf]

It's going be a win-win for CFE if the bid is alot higher CFE can just sell an take a nice profit on their 36.2% DMM shareholding if the new bid is 45c CFE will walk away with 10mill

-Worth looking at CFE new presentation to see how undervalued CFE are--

Capital Structure Share Price Performance
Ordinary shares (ASX: CFE) 625M
Market Cap at $0.50 $312M
Cash & receivables $290M
Amount owing $23M
Enterprise value $45M
Options
30 June 2010 - $0.432 8.4M
Shareholding
Directors & management 5.2%
Top 20 63%
Any idea why their presentation states they have 625m shares for mc of $312m, yet on Direct Broking they list 565m for mc of $279m? DB do not appear to have updated their records for the shares issued when they took their holding in Marampa to 100%. Perhaps because the shares have not been granted shareholder approval?
It's frustrating when this happens as it overstates the undervaluation of the company.

As to the presentation, being valued just above cash/cash equivalent highlights the upside

[Xerof]

Well, shares outstanding are now 593,166,467, with the 28 million options converted a couple of days ago. I wouldn't be relying on brokers to have accurate records.....

[JBmurc]

Any idea why their presentation states they have 625m shares for mc of $312m, yet on Direct Broking they list 565m for mc of $279m? DB do not appear to have updated their records for the shares issued when they took their holding in Marampa to 100%. Perhaps because the shares have not been granted shareholder approval?
It's frustrating when this happens as it overstates the undervaluation of the company.

As to the presentation, being valued just above cash/cash equivalent highlights the upside

Yeah I wouldn't trust DB ---cash/cash equivalent is really gold if DMM does get taking over by some else add another 10mill on to 300mill now even after they pay us shareholders a 8-10c divie they will still have one nice pile of cash

[JBmurc]

tony sage on CNBC nice

-http://www.cnbc.com/id/15840232?video=1470386526&play=1


When you look at CFE's assets an large cash base I wouldn't at all be surprised if the Chinese aren't running the ruler over CFE
anything under $1 would be a steal for the chinese IMHO for one they would get their hands on near on 300mill cash&recv an 3 world class Iron ore deposit's + gold ,copper,phos,mag,plus large exploration grounds for what 200mill meer peanuts

[evilroyrule]

new ann out "mineralisation intersected". its a little too technical for me. any diamond/mining experts have time to elaborate?

still trying to figure out how to post links.

[JBmurc]

SIGNIFICANT WIDTHS OF SHALLOW IRON ORE MINERALISATION INTERSECTED AT MATUKIA PROSPECT AT MARAMPA
Key Points:
• First assay results received from diamond drilling at Matukia with significant intersections of specular hematite schist over 1.2km of strike including:
• MPDD015: 132m at 34% Fe from 0m;
• MPDD016: 81.2m at 36% Fe from 32.8m;
• MPDD017: 98m at 33% Fe from 152m;
• Metallurgical response expected to be similar to Gafal West, where a concentrate of >60% Fe is produced with simple magnetic separation,
• Ground geophysical survey identifies 3 new targets north of Matukia enhancing the overall prospectivity of the field.
Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (“Cape Lambert” or the “Company”) is pleased to announce the first assay results from a recently completed diamond drilling program at the Matukia prospect (“Matukia”) comprising part of its 100% owned Marampa Iron Ore Project (“Marampa Project”) located in Sierra Leone, West Africa (refer Figure 1).
Matukia is located immediately to the north and along strike of the historic Masaboin open pit, an iron ore mine operated by Sierra Leone Development Corporation until the late 1970’s (refer Figure 2). Matukia is the second of 6 prospects (refer Figure 2) defined by surface exploration in 2009 to be subject to systematic drill testing.

[JBmurc]

Cape Lambert bid 'opportunistic': DMC.

XAVIER LA CANNA - April 27, 2010 - 7:14PM

AAP - DMC Mining Ltd has warned that a takeover bid from Cape Lambert Resources Ltd is opportunistic and that it is instead working to solicit a better offer from other interested parties.

Cape Lambert recently offered DMC shareholders 46 cents per share, valuing the target at $40 million, far less than Cape Lambert apparently believes it is worth.

DMC said it was working with its advisers to solicit a superior transaction to the Cape Lambert offer, which was timed ahead of results of a key drilling program at the target's major iron ore project.

"To that end a number of such groups are currently conducting due diligence on DMC, subject to confidentiality undertakings," DMC said in a statement on Tuesday. Although DMC is yet to make a formal recommendation to shareholders about the Cape Lambert bid, the iron ore explorer told investors in a letter that the offer was too low.

DMC quoted Cape Lambert chief executive Tony Sage, who reportedly told a newspaper that a 46 cents per share approach for DMC from another, unnamed party, was too cheap. "If, according to Mr Sage, an approach at 46 cents per DMC share from a third party is too cheap, then what does that say about Cape Lambert offer at 46 cents per DMC share?" DMC said.

It said Mr Sage had estimated DMC to be worth $200 million, implying a market price of $2.30 per DMC share.
DMC warned its investors the Cape Lambert offer was unsolicited and opportunistically timed.

"The company (DMC) considers this offer to be opportunistic and is timed prior to the completion of the current drilling program on the company's flagship Mayoko iron ore project," it said. DMC's main asset is an 80 per cent interest in the Mayoko iron ore project in the Democratic Republic of the Congo, in West Africa.

Shares in DMC closed up 3.5 cents at 50 cents on Tuesday, while Cape Lambert was steady at 48 cents.

[Caesius]

So pretty much the company would be a lot better off if the CEO hadn't come out and basically admitted that they're willing to pay much more...

[JBmurc]

So pretty much the company would be a lot better off if the CEO hadn't come out and basically admitted that they're willing to pay much more...

Yeah seems a very stupid thing to say unless his motive wasn't to buy but sell CFE 30%+ interest at a much higher price with conditions to suit CFE's other iron ore interests in the area

[shasta]

Yeah seems a very stupid thing to say unless his motive wasn't to buy but sell CFE 30%+ interest at a much higher price with conditions to suit CFE's other iron ore interests in the area

Unless he's calling out another suitor at which CFE could sell out at a tidy profit

TS is smart enough to know if he cant get it cheap, he'll sell out & make some coin for his troubles

[JBmurc]

Tony Sage --- brought another 1,000,000 shares in CFE other day at 48c
Can only be seen as a good thing

[Corporate]

Tony Sage --- brought another 1,000,000 shares in CFE other day at 48c
Can only be seen as a good thing

Very positive!

[Corporate]

Good quarterly. I'm going to top up on Monday's dip.

[shasta]

Good quarterly. I'm going to top up on Monday's dip.

$52m cash ($47m as per cashflow report, + the $5m Lady Annie deposit) & the Lady Annie funds $130m+ to come

8 - 10c dividend/return to come

Should spark some interest in CFE next week, even though the DOW dropped

[Caesius]

Someone help me out, I'm confused. How can this (http://www.theage.com.au/business/cape-lambert-scraps-400m-project-20100504-u66p.html) article be released by the media, but no official announcement made to the sharemarket?

[JBmurc]

bit of laugh Tony talking about the Cape lambert south Iron ore project If you read through the last CFE Presentation I don't even think it was mentioned
CFE getting sold down again yet they shouldn't really be affected all the badly but the TAX REFORM which IMHO will not go through as rudd will be Gooonnneeee next year

an if anything it will make CFE many A grade overseas assets worth so much more


CFE makes up 35% of my portifoilo

[JBmurc]

I think the fact of the matter on the news was Tony an mates wanting to buy more shares cheap --remember he's one class act dealer-take advantage of the scare in the market from the maybe TAX REFORMS talk up how bad as they won't get 400mill for a project (they had on the backburner LOL)
CFE current market cap 250mill less than cash & recieveables LOL ---where only days away from getting the big payout from lady annie sale
whats the bet Tony will have to disclose another 1mill shares purchased next couple days

[percy]

you are doing well JB but I would love to have drillfix giving us his view!!!or his views.Bet the 20min moving ave would be giving him 10 min trading positions.

[evilroyrule]

its a tough call where to put any money this week. bow taken a hammering, hun getting slaughtered, cfe taking it up the back door. competing sensibilities re buying more are sage bought 1million @ 48 less than a week ago versus there was similar selling pressure just before announcement ipo was canned. slight concern lady annie sake may not be as tight as we like them...ahem. if its on the back of silly media story today then different story. rudd you dick. i was looking for some sp happiness this month.

or, come to think of it, annie is a goer, which is why sage bought a million more a week ago. couldnt help himself re the new tax angle, and put himself on tv today to drive the sp lower to acquire another million in the lead up to annie announcement. out there, but watch to see if any more notices re further directors buying. that will be the key. now, where did i put those pills.......

[percy]

article on cape lambert in www.theaustralian.com this morning

[Corporate]

I think we will see some more weakness today with the DOW shredding 200+ points at this point. Not great. I've been holding quite a big amount of CFE at an average of 40c. I didn't top up during the week but I think I'll buy more today tomorrow.

[float]

interesting start today, geeze is there something i haven't heard about .... wish I had some extra cash to invest

[buns]

ouch, not many got his this hard...

[float]

should maybe check tony didn't short sell a million shares...

[Caesius]

Where is this announcement??

[stephens.pc]

I think Karlos is referring to this

http://www.asx.com.au/asxpdf/20100505/pdf/31q5lpklxy9nnk.pdf

[evilroyrule]

weird **** today with this stock. bow looks like it did similar thing. i genuinely think a lot of people are spooked at the mo, all over the show like a cut cat.

[JBmurc]

agreement with an entity associated with DMCs
Managing Director, David Sumich; and
no "prescribed occurrences" occurring before the date of satisfaction of the preconditions
noted above.
The preconditions need to be satisfied or waived by 5.00pm Perth time on 7 May 2010. If the
preconditions are satisfied or waived, Meijin will make the off-market takeover bid. If the
preconditions are not satisfied or waived, the Meijin Offer will not be made.
DMC will update the market in due course as to the status of the satisfaction of the preconditions.
The Meijin Offer will be subject to a number of conditions, being a minimum acceptance condition of
48,700,000 shares and no prescribed occurrences, details of which are set out in full in schedule 1 of
the attached TBID.
A mutual break fee of A$150,000 is payable in certain circumstances as set out in clause 7 of the
attached TBID.
DMCs directors have agreed they will unanimously recommend that DMC shareholders accept the
Meijin Offer if made, in the absence of a superior proposal and subject to the proposed price for each
1 Based on DMCs shares on issue of 86,867,867
DMC Mining Ltd 2 | P a g e
DMC share under the proposed Meijin Offer being within or above the valuation range for a DMC
share ("Valuation Range") as assessed by an Independent Expert.
DMCs directors have also indicated that they intend to accept the Meijin Offer, if made, in respect of
their own shareholdings, in the absence of a superior proposal and subject to the consideration under
the Meijin Offer being within or above the Valuation Range.
BDO Corporate Finance (WA) Pty Ltd has been appointed as the Independent Expert to determine and
advise whether the Cape Lambert Offer is fair and reasonable to DMC Shareholders not associated
with Cape Lambert.
As announced on 27 April 2010, the DMC Board recommends that, until such time as you receive the
targets statement (which will be issued on or before 10 May 2010) in respect of the Cape Lambert
Offer, you should take no action with respect to the Cape Lambert Offer.
David Sumich noted, Shareholders will be aware of the status of the preconditions to the Meijin Offer
well before the closing date of the Cape Lambert Offer, of 25 May 2010. As such, we recommend that
shareholders take no action at this time with respect to the Cape Lambert Offer.

[evilroyrule]

jp morgan notice received becoming a substantial holder. hc has a fatprohets valuation at 1.18 excl annie sale cash. keep buying on weakness i say/do

[evilroyrule]

its a tough call where to put any money this week. bow taken a hammering, hun getting slaughtered, cfe taking it up the back door. competing sensibilities re buying more are sage bought 1million @ 48 less than a week ago versus there was similar selling pressure just before announcement ipo was canned. slight concern lady annie sake may not be as tight as we like them...ahem. if its on the back of silly media story today then different story. rudd you dick. i was looking for some sp happiness this month.

or, come to think of it, annie is a goer, which is why sage bought a million more a week ago. couldnt help himself re the new tax angle, and put himself on tv today to drive the sp lower to acquire another million in the lead up to annie announcement. out there, but watch to see if any more notices re further directors buying. that will be the key. now, where did i put those pills.......

not that it is going to matter a lot today (sheesh) but TS picked up another 900k yesterday. so 2 million in a week. i doubt he was trying to hold the sp up!

[Corporate]

not that it is going to matter a lot today (sheesh) but TS picked up another 900k yesterday. so 2 million in a week. i doubt he was trying to hold the sp up!

I think this is TS way of saying. Lady Anne is a done deal.

[evilroyrule]

so would you buy more today? im tempted despite the scorn everyone pours upon me!

[JBmurc]

so would you buy more today? im tempted despite the scorn everyone pours upon me!

With the lady annies sale 90% likely CFE will soon have more cash&cash receivables than the entire market cap--which is plain crazy ----buying at current prices is like buying gold bars for half price an is why TS is loading up big time talk about easy money...

Even if the DOW an the rest of the world markets crash another 50% over the next few months CFE will have pockets full of cash to like last time buy real assets for peanuts an make another 100's mill profit for 10/11

[evilroyrule]

hmmm. i been thinking bout that JB. if cfe came out soon and announced lady annie sale, isnt TS going to be in the gun for loading up before that information was made public? i.e the clear inference is he bought kowing of the transaction being approved (if it had) which wld be tantamount to insider trading? just a thought, albeit a negative one

[JBmurc]

hmmm. i been thinking bout that JB. if cfe came out soon and announced lady annie sale, isnt TS going to be in the gun for loading up before that information was made public? i.e the clear inference is he bought kowing of the transaction being approved (if it had) which wld be tantamount to insider trading? just a thought, albeit a negative one

No I wouldn't think so CFE announced the sale 31/03(if he was selling then CFE ann. sale fell through days later they would get him in the crapper)
Key Points:
• Cape Lambert has agreed to sell Lady Annie in Queensland, Australia, to China Sci-Tech for A$135M,
• China Sci-Tech has completed its due diligence and paid a A$5M deposit, with a further A$125M to be paid on completion of Sale Agreement,
• Remaining A$5M payable in two tranches on achievement of certain production and reserve milestones,
• A key condition of transaction was FIRB approval, which has now been received, and
• Cape Lambert intends to make A$0.08 to A$0.10 return to Shareholders following receipt of A$125M.

the market is fully awhere of the up coming payment tony sage has every reason to buy up while ther S/P is being stupidly sold off

[evilroyrule]

looking to fin green.

[evilroyrule]

oh yeah baby. something on the cards.....

[Corporate]

This downturn could actually be perfect timing for CFE.....AGAIN.

Sale of LA goes through, cash and receivables higher than market cap. TS goes on a spending spree again picking up cheap assets :-)

[JBmurc]

This downturn could actually be perfect timing for CFE.....AGAIN.

Sale of LA goes through, cash and receivables higher than market cap. TS goes on a spending spree again picking up cheap assets :-)

Yeah thats right an then this time next year CFE will pay another divi as well as having more cash than today CFE business model is so simple most investors don't seem to be able to see how smart an undervalued CFE is......
will be buying more CFE for me mate on monday 400-500k-- tony sage is buying cause he knows the cash is coming an he will decide on divie size I'm putting my money on 10cps
25% yield very nice ---same again next year....an the next ...an the next CFE could well pay us as much in gross divies in 4yrs as we pay for the shares on monday LOL...................

[Huang Chung]

In view of the current turmoil in the markets, wouldn't it be safer to wait for confirmation of the LA sale, and then buy in?

Sure, you'll pay a few cents more, but you'll have also largely avoided the downside risk of the sale not going through.

Just my 2c.

[JBmurc]

In view of the current turmoil in the markets, wouldn't it be safer to wait for confirmation of the LA sale, and then buy in?

Sure, you'll pay a few cents more, but you'll have also largely avoided the downside risk of the sale not going through.

Just my 2c.

Yes that would be the safer option ,but with Tony sage MD buying 1.9mill shares over the last couple weeks it would seem to be in the bag time will tell

[evilroyrule]

that would be safer! ha. i see your 200k at 40.5 JB. news shld be this week.

[JBmurc]

so would you buy more today? im tempted despite the scorn everyone pours upon me!

got two 200k orders in place for the day---- 230 mill value for CFE is far to cheap even if lady annie deal doesn't go through the outside aussie iron ore assets an infurstrature is worth twice their total market value

[evilroyrule]

couldnt say no at 38. now im tapped completely. hurry up. hopefully TS buying is on the level....

[JBmurc]

I see CFE have yet again lifted the takeover bid for DMC to 50c as China's largest coking coal miner Meijin Energy group also lifted their bid early to 52c what gets me is even if DMC shareholder go with the Meijin bid CFE holds 35% of DMC so can just block the takeover as you must get 90% of a companies shares to takeover,CFE I guess either will ask for the much higher price for their large stake or stay as a major holder till they get the price they want..

[evilroyrule]

hi peoples, we got a bot trading at 42.5? does thay ever mean anything?

i see on HC they doing leaps and bounds that LA all but done. if so, would that alter the meaning of bot trading. just curious is all. hope everyone good. remember the 62c days?

[Caesius]

I'm answering your question with a question evil. Sorry. But what is bot trading?

Cheers, Benjamin

[evilroyrule]

see, we really do need drilly. if you look at the buys that were occurring during the latter part of the day, for instance:
42 1 16:10
42 19,999 16:10
42 7,916 16:10
42 3,331 16:10
42 140 16:10
42.5 10,000 15:58
42.5 16,133 15:58
42.5 981 15:58
42.5 5,155 15:58
42.5 34 15:58
43 17 15:58
42.5 6,705 15:58
42.5 34 15:58
42.5 60,511 15:58
43 75 15:58


you can see some irregular orders i.e 75 shares etc. this was happening throughout the day and is generally thought to be an automated buy programme/accumulation ( a robot/bot) buying up, bt not in large amounts so as to tip any indexes etc and drive the price higher. thats a very crude summary. see below for a google result.

A lot of the insto's run algo execution systems instead of placing the order with a dealer.

The algo system then "manages' the order into the market.

The overwhelming "strategy" is a simple VWAP execution. Ie Complete my order and beat the VWAP for the day (or from order placement time). The execution system will do this by splitting up the order into multiple trades over the course of the day.

[Corporate]

check this link out....

http://seek.co.uk/jobsearch/index.ascx?DateRange=999&catindustry=1218&catoccupation=1445&Keywords=lady%20annie&searchfrom=quickupper&searchtype=again

[remy]

the thing i don't understand with that is why do they bother, the transaction fees are going to kill any profits??

[Corporate]

the thing i don't understand with that is why do they bother, the transaction fees are going to kill any profits??

I think they only pay one fee for all the trades.

[Penfold]

check this link out....

http://seek.co.uk/jobsearch/index.ascx?DateRange=999&catindustry=1218&catoccupation=1445&Keywords=lady%20annie&searchfrom=quickupper&searchtype=again

Nice sleuthing corporate... That puts my mind a little more at ease.

[evilroyrule]

definitely getting closer. will see 43+ today. 10% plus last week. still good buying if its on

[Snapper]

This thread was pretty civil up till now....

[Shaneoz]

Fyi I see in the careers section of the courier mail paper an advertisement for cst. Re the start up of lady annie. Hoped to be in production by December. Said they were in the final stages of the sale.

Might be of interest to someone.

[gazprom1]

Bought some CFE just now at 39.5...price dropped reasonably quickly. Hope all is well with the LA deal. SP could go a little lower yet.

Gazprom

[evilroyrule]

well we just days away from news re sale of LA and not a dicky interested. i guess given the carnage waiting for announcement first prudent. still at 37 you have to be keen dont you? (anyone who wants to reply you have to be stupid piss off). with a potential 8 to 10 c divvy, this looks massively oversold to me, still, cant blame anyone in this climate. but jeebers fellas, just days away and no talk???? whats the matter, are we all shot to pieces? come on, rally the troops and all that. up down round and round.

plus that bot is keeping the lid at 37. good signs. (glass half full)

pps. here they come

[gazprom1]

ERR,

Looks like a great buy at these levels, agreed...I have bought of recent days but probably have enough. Possibily a few more if really falls out of bed. Risk is of course that shareholder approval for the deal is not forthcoming and then no dividend for us.

Been a very bad day generally. Going to be a tough few weeks with the volatility.

Gazprom

[Snapper]

I'm just quietly keeping my fingers crossed. Don't want to tempt fate by being overly optimistic about the Lady Annie sale as a third failure would not be a good look.

[evilroyrule]

yes thats a good point. ok, no more for now.

[Stranger_Danger]

I have absolutely no inside info or basis for this, but I have a gut feeling that LA could fall through.

Hope not for the sake of holders but given the twists and turns already, the "there is never just one cockroach in the kitchen" argument keeps ringing in my head.

[shigeorge]

check this link,

http://chinamarket.com.cn/templates/en_area/jiaxing/templates/include/news_detail.jsp?id=100520092450384

[evilroyrule]

deleted; possibly shameful ramping. apologies

[gazprom1]

Holders,

Tomorrow is the shareholders meeting of China Sci-Tech in Hong Kong to aprove the Lady Annie purchase. Probably will not know until after the close of trading tomorrow re result. Contemplating buying some more CFE but fear that the sale may not go ahead...greed/fear? The SP of CFE would drop a reasonable amount IMHO if the sale were not to proceed - guessing a good 5-8 cents a share. Would be a blow for Sage and his plans re Marampa.

Views??

Gazprom

[percy]

Holders,

Tomorrow is the shareholders meeting of China Sci-Tech in Hong Kong to aprove the Lady Annie purchase. Probably will not know until after the close of trading tomorrow re result. Contemplating buying some more CFE but fear that the sale may not go ahead...greed/fear? The SP of CFE would drop a reasonable amount IMHO if the sale were not to proceed - guessing a good 5-8 cents a share. Would be a blow for Sage and his plans re Marampa.

Views??

Gazprom

My view is shareholders will approve.Most companies have the votes lined up before the meeting.Not the sort of thing shareholders vote against.If it is only shareholder approval it should go though.

[shasta]

Holders,

Tomorrow is the shareholders meeting of China Sci-Tech in Hong Kong to aprove the Lady Annie purchase. Probably will not know until after the close of trading tomorrow re result. Contemplating buying some more CFE but fear that the sale may not go ahead...greed/fear? The SP of CFE would drop a reasonable amount IMHO if the sale were not to proceed - guessing a good 5-8 cents a share. Would be a blow for Sage and his plans re Marampa.

Views??

Gazprom

Remember CFE picked up these assets on the cheap, & they have no need to sell them off cheaply, TS is smart enough to know to sit on assets & wait til they become in demand again.

They don't need to rush into any agreement, especially when they have had a few approaches in the past over certain assets

[gazprom1]

Further to my earlier post, I have bought some more at 38.5...looking at assets of CFE and mkt cap it becomes a no brainer IMO even in these volatile times. So, if the sale does not proceed and the SP drops to 30-33 cents, it will represent another great buying opportunity. Sage is very astute and CFE has fingers in many pies!!

Gazprom

[evilroyrule]

good call gp. just get some. big buys coming in now at 39.5 and gone again.

ohhh. and back once again at 40 (with the renegade master)

[evilroyrule]

looking positive fellas judging by size of bids coming in. we should no for sure late arvo our time

looking good for us long time suffering holders. up 5% on opening. wld be nice to see it go into trading halt at 10% +

[gazprom1]

looking positive fellas judging by size of bids coming in. we should no for sure late arvo our time

looking good for us long time suffering holders. up 5% on opening. wld be nice to see it go into trading halt at 10% +

ERR,

That is a good call ERR. Market sentiment is on our side today so that is great. I am happy to be exposed to CFE and the market. It reopens the debate re FA and TA and I guess this thread is not the best place for a discussion.

Fingers crossed for this afternoon.

Gazprom

[evilroyrule]

yep and bots back buying at 40.5 trying to keep foot on the lid. everything crossed...

[shasta]

Before everyone says "flamin Karlos again, wheres Vince when you need him:mad ;:".........Well Karlos has fantastic news:)..Just been on Hot Copper and Sellier on CFE thread said he been talking to Tony Sage and Lady Annie is sold:t_up:..... Like Ive stated before, Tony Sage is THE MAN:t_up:

If it came off Hotcopper then i'd wait for an official announcement before getting too excited.

[gazprom1]

Cannot find any news on the sale of Lady Annie on the wires. I see that China Sci-Tech has another Special Meeting on Monday, 1 June to consider the arrangement concerning Chariot. I wonder if we will not have a formal announcement on lady Annie until Monday afternoon. Should be some leaks out over the weekend.

Gazprom

[Corporate]

http://www.irasia.com/listco/hk/chinascitech/announcement/a57716-ecst.pdf

There will be an announcement Monday morning!

[gazprom1]

http://www.irasia.com/listco/hk/chinascitech/announcement/a57716-ecst.pdf

There will be an announcement Monday morning!

Thanks Corporate. Will be interesting to see what reaction we will get on Monday at the open.

[percy]

Thanks Corporate. Will be interesting to see what reaction we will get on Monday at the open.

The reaction will be gazprom1 proves yet again he makes money averaging down when the story has not changed.Well done!!!

[JBmurc]

Lady Annie mine sale approved
May 30, 2010 - 2:59PM

Shareholders of Hong Kong-listed China Sci-Tech Holdings Ltd have approved a $135 million acquisition of the Lady Annie copper mine in Queensland from Cape Lambert Resources Ltd.

China Sci-Tech said in a statement that shareholders meeting on Friday had overwhelmingly approved the acquisition of the Lady Annie mine.

Cape Lambert said earlier in May that it intended to make a return of eight to 10 cents per share to shareholders, following receipt of the sale funds.

Cape Lambert also plans to use some of the funds received to ramp up its drilling program at the Marampa iron ore project, and to start drill assessment of the Pinnacle assets, both located in Sierra Leone, West Africa.

http://news.smh.com.au/breaking-news-business/lady-annie-mine-sale-approved-20100530-wn5p.html

[evilroyrule]

be interesting to see where sp goes JB. at 50 cents we talking about a 20% return (gross)?

[Snapper]

A lot of holders will be using their divvy to buy more shares, it wouldn't surprise me to see it go up to 60 cents again in the next month or so (I think that's the first ramp I've ever done!).

[evilroyrule]

strange, no real interest this morning judging by buy depth

[Caesius]

Tbh, I doubt the announcement going this way will do much to the SP. Don't get me wrong, if the sale of Lady Annie HAD fallen through the SP would have dropped dramatically, but I don't think the reverse is true, i.e., it may go up one or two cents but the general trend of the market is still DOWN DOWN DOWN

[JBmurc]

be interesting to see where sp goes JB. at 50 cents we talking about a 20% return (gross)?

Yeah the dive will be well recieved IMHO I talked my mate into buying more CFE which he will be rewarded with the divie with some 800,000 shares 38c av My divie sadly will go towards the new house to be built should help pay some of the 2nd payment.... Talk round on HC is of Tony view to do a share buy back later this year on the 80mill MCC payment (cape lambert N) so if the market still doesn't give CFE the Attention it deserves the company will buy shares from the drop kick sellers

[evilroyrule]

notice in. its all on boys!

[Snapper]

notice in. its all on boys!

Do they have to do a trading halt just for the LA sale. It's not exactly top secret and CST have already announced the results of their meeting. From memory, the money was going to change hands today??? They may be making an announcement on the date of the dividend.

[JBmurc]

Do they have to do a trading halt just for the LA sale. It's not exactly top secret and CST have already announced the results of their meeting. From memory, the money was going to change hands today??? They may be making an announcement on the date of the dividend.

Yeah I'd say we'll get a ex. divie date IMHO it should be straight away with payment late june
also be good to see their plan on DMM

[JBmurc]

Cape Lambert in trading halt over mine sale
AAP May 31, 2010, 8:05 am

Tony Sage's Cape Lambert Resources has entered a trading halt ahead of an announcement about the sale of its Lady Annie copper mine in Queensland.

On Friday shareholders of Hong Kong-listed China Sci-Tech Holdings approved the $135 million acquisition of the Lady Annie mine from Cape Lambert.

China Sci-Tech said in a statement that shareholders had overwhelmingly approved the acquisition of the Lady Annie mine.

Cape Lambert said earlier in May that it intended to make a return of eight to 10 cents per share to shareholders, following receipt of the sale funds.

Cape Lambert also plans to use some of the funds received to ramp up its drilling program at the Marampa iron ore project, and to start drill assessment of the Pinnacle assets, both located in Sierra Leone, West Africa.
Cape Lambert last traded at 40.5 cents.

Follow thewest.com.au on Twitte

[sparrow]

In a case like this, how would the capital return be paid to NZ shareholders who only have a New Zealand bank account.
Does anyone know?

[Lego_Man]

In a case like this, how would the capital return be paid to NZ shareholders who only have a New Zealand bank account.
Does anyone know?

They'll probably just send a cheque i would have thought...

[sparrow]

The cheque would be in Aussie dollars ?? I guess??

[JBmurc]

In a case like this, how would the capital return be paid to NZ shareholders who only have a New Zealand bank account.
Does anyone know?

Yes you will be sent a AUD Chq from their bank -Commonweath etc -I'll be banking mine into my ASB AUD treasury account then getting then to convert it to NZD at a far better rate than my normal ASB account it's all about interbank rates -going off my last divie chq from TRY it took like 20-30 days to clear

[sparrow]

Thanks JB for that

[percy]

Yes you will be sent a AUD Chq from their bank -Commonweath etc -I'll be banking mine into my ASB AUD treasury account then getting then to convert it to NZD at a far better rate than my normal ASB account it's all about interbank rates -going off my last divie chq from TRY it took like 20-30 days to clear

The last large cheque I received was a refund on taking up a SPP .Westpac did not want to know about it.All about clearing funds as you point 20-30days.I went to my broker Craigs who put in my Aussie cash management account I didnot Know I had.Told me to just give them any Aussie divie cheques and they would put into my Aussie cash management account.They said they could give me clear funds within 3 or 4 days and should I wish to buy Aussie shares I could straight away.Westpac were very unpleasant to deal with.I have had the misfotune to deal with them for over 45 years and am sure they are getting worse.

[upside_umop]

A share buyback would be much more beneficial...especially for overseas holder such as yourself JB.

Claiming tax twice, once at Aussie corporate rate, then at your own marginal tax rate surely doesn't work out that great?

Chances are, it will be an effective tax rate of almost 60% for some here.

[JBmurc]

A share buyback would be much more beneficial...especially for overseas holder such as yourself JB.

Claiming tax twice, once at Aussie corporate rate, then at your own marginal tax rate surely doesn't work out that great?

Chances are, it will be an effective tax rate of almost 60% for some here.

Yeah for sure still 20k AUD will come in handy an should wake-up some investors esp as I have a feeling it will be more than 8cps --10cps would be arc the buyers up

with the sale CFE should have round 200mill in cash with 80mill to turn up in AUG this year ---the market values CFE at 240-250mill
Doesn't value CFE many assets at all which even at firesale price must be worth 300m+

[percy]

[QUOTE=JBmurc;306534]Cape Lambert in trading halt over mine sale
AAP May 31, 2010, 8:05 am



Cape Lambert said earlier in May that it intended to make a return of eight to 10 cents per share to shareholders, following receipt of the sale funds.

I would think a capital return would not be taxable,where a divie would be.

[upside_umop]

That depends where your receiving it percy. If your an Australian, and receive full franking credits then you wont be personally liable for much (you may even get some back!...unless your a super high earner) but in NZ you will still have to pay your tax on your 'cash' earnings. CFE's capital return, will be by way of dividend most likely, and therefore, the cash amount you receive (after franking credits) will be subject to tax in NZ at your marginal tax rate. NZ dividends usually have imputation credits attached and therefore your not taxed twice (unless, your marginal tax rate is above the corporate tax rate).

There was talk of NZ and Australia collaborating together over this, but nothing as yet. It does seem a little unfair doesnt it? It sure puts me off investing in cash-cows in Australia.

[Snapper]

Under the FIF rules it probably won't mean a large tax liability on this dividend. Under FDR its 5% of the opening value which was 25.5 cents. For this year, if you've got 100,000 shares then you have to pay tax on $1495 so only about $500(Oz dollars). As the dividend is paid in the 2010-2011 year you would still use FDR (unless the price is lower than49.5 cents - the opening value) which would be $2900 income so there would be less than $1000 tax to pay.