CAPE LAMBERT (CFE) 50% capital return

[evilroyrule]

well i am a little bedazzled by the lack of divvy details in the announcement. lets hope not recalibrating the 8-10 cps. market hardly hardly captivated by this news

i stand corrected.

[float]

So what's the story?:confused:

I'm starting to think we're all wearing rose tinted spectacles. It’s been a disappointing
reaction from the market since completion of the lady annie sale.
Hopefully it's the current state of the market that's preventing cfe from nudging fifty cents.

At only 15 million dollars more than the purchase price, was Lady Annie sold too cheap? (excluding the other copperco assets). Sci-tech was more than keen to continue with the sale in this uncertain economic climate.

What's a conservative prediction on the value of lady lorrette, etc?

I personally would like to forfeit a dividend and have the money reinvested into the company.
Partly because of the tax incurred with the dividend, but also to capitalize on the opportunity
of CFE having more purchasing power.

[evilroyrule]

i got no friggn idea but i reckon that android worker bot has something to do with it. if you watch the hisotry of trades, big buy, small sell effectively keeping a lid on. thats my theory anyway, been wrong plenty of times before. but i am searching for all the coin i can find and am looking for more tomorrow. there is an easy 20% in this i reckon. look at the buy versus sell depth. 10 to 1. happy hunting peoples.

[COLIN]

i got no friggn idea but i reckon that android worker bot has something to do with it. if you watch the hisotry of trades, big buy, small sell effectively keeping a lid on. thats my theory anyway, been wrong plenty of times before. but i am searching for all the coin i can find and am looking for more tomorrow. there is an easy 20% in this i reckon. look at the buy versus sell depth. 10 to 1. happy hunting peoples.

Should be able to get them "cheap" tomorrow - things are looking pretty nasty on the FTSE right now. BP down 15%! I'm not so sure that I'll be doing any serious buying in this fear-filled market - apart from "special situations" e.g. my gold digger purchases.

[sparrow]

From another forum:

The Capital Group is holding the sp down. They're getting out because of the Rudd tax.

CFE just sold its main australian asset so is by no means influenced by the Rudd tax.

Maybe they're afraid of loosing money due to the declining AUD towards to the USD ??

Anyway, no risk in being in CFE when they're fully cashed up and hold highly valuable overseas assets.

[evilroyrule]

bot still working over time.

[JBmurc]

Great news market hohum will prob be sold down with the massive DOW sell-off --the sale of lady annie will reap CFE a total of 149mill bring on the 10cps divie
I see they have just matched the offer on DMM looks like CFE want the price alot higher before they sell-out for a tidy profit

[Shaneoz]

Any more news on when the divvie is going to be paid and the conditions attached?

Sp starting to look like it may be on a slippery slope.

[evilroyrule]

nice bid for 400k. hopefully points to some news re div.

[float]

posts on the hotcopper forum suggest a divi announcement will be made this coming monday or tuesday.

Rio tinto, bhp & vale are likely to increase iron ore prices 23% for the july - september quarter. Good news for the marampa project ... hopefully get some interest from prospective buyers if tony hasn't organised this already
http://www.google.com/hostednews/afp/article/ALeqM5jGUMmzjYPq8QaPEyL31ntP3ySvxw

[JBmurc]

posts on the hotcopper forum suggest a divi announcement will be made this coming monday or tuesday.

Rio tinto, bhp & vale are likely to increase iron ore prices 23% for the july - september quarter. Good news for the marampa project ... hopefully get some interest from prospective buyers if tony hasn't organised this already
http://www.google.com/hostednews/afp/article/ALeqM5jGUMmzjYPq8QaPEyL31ntP3ySvxw

Now a sale of marampa project for 400mill+ would spark up the buyers then we could have more than twice the market cap in cash an still have many assets worth as much if the market turns to real assets

[JBmurc]

Well brought another 39900 shares in CFE now they can announce the 10cps divie hopefully unfranked as we NZD'er would get no benefit anyway

[JBmurc]

From recent Analyst report--CFE running late on the announcement's they predicted

Strong News Flow Over the Coming Months
•
Completion of Lady Annie sale (April – May)
•
8 – 10c dividend (April – May)(I see last time CFE paid a divie it was unfranked)
•
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)

[evilroyrule]

looks like we in business jb. notice just received. bid for 200k straight in on top

[evilroyrule]

7 cps. avergae imo

[JBmurc]

Cape Lambert to return ~A$44M to shareholders
via A$0.07 per share special dividend
Key Points:
• Cape Lambert board agrees to return ~A$44M to
shareholders by way of a A$0.07 per share special
dividend,
• Payment of special dividend was made possible by the
completion of the A$135M sale of the Lady Annie Project
in Queensland to China Sci-Tech Holdings Limited,
• Special dividend is marginally lower than planned, as a
result of the need to maintain sufficient cash reserves to
fund:
o Offer for DMC Mining Limited
o Upgrade of the Marampa rail and port
o Settlement of the Leichardt Copper Project
transaction
o Other investment opportunities
• Payment of special dividend brings the total returned to
shareholders in the past two years to ~A$144M (or ~
A$0.30 per share), and
• Cape Lambert will aggressively expand exploration
activities at key projects, including Marampa and
Pinnacle.
Event Date *
Announcement of Dividend 15 June 2010
Effective Date 24 June 2010
Trading in Shares starts on an “ex dividend basis” 24 June 2010
Record Date 30 June 2010
Payment and Dispatch Date 16 July 2010

[evilroyrule]

any idea hw that will wrk for us? do we get any tax withheld or do we receive the full cps and deal with tax this end? should hit 45 cps shortly

[lissica]

any idea hw that will wrk for us? do we get any tax withheld or do we receive the full cps and deal with tax this end? should hit 45 cps shortly

Yes, I can't see any mention of franking in the announcement. Hopefully none which would be better for NZ holders as we can't use it.

Also, the announcement is titled capital return- anyone know if that is taxable for long term holders? Would it be equivalent to selling down your holding if you are not a trader?

[JBmurc]

any idea hw that will wrk for us? do we get any tax withheld or do we receive the full cps and deal with tax this end? should hit 45 cps shortly

well I not 100% but I know we get no benefit from the partly franked part of the divie so IMHO we just pay are NZ tax code I know for myself I'll pay the corp rate 30%
going of the current interbank AUD/NZD rate +1% I would receive $24,809NZD gross less 30% tax = $17366nett (i haven't had a divie for a long time so would be great to here others view)

[JBmurc]

Some other good news to come from the announcement via where some of the left over 170mil+l cash is going CFE plan to have a JORC resource defined at -Marampa late this year an a rail port upgrades of their prime infrastructure
IMHO we will see this entire project sold off early next year for yet another Special divie 30cps+
--also the Settlement of the Leichardt Copper Project transaction
-an to help buy DMC iron ore
-NIP is looking at raising funds CFE will help there

-also going off the analyst report I read today CFE's Sappes high grade gold discovery could well reap CFE another 80mill AUD if the price of gold holds or goes higher maybe more add in MCC 80mill payment july-aug CFE could well have an extra 160mill gross before the years out

[buns]

As predicted, not much excitement generated from this divy. You have to fear a little what is going to happen when this goes ex dividend (25 June), logic says it should drop to 35c, and I think it will and sum as a lot of people hanged around for this LA sale, and probably lost patience and got a good lesson on how hard it really is to sell these kinds of ventures.

[JBmurc]

As predicted, not much excitement generated from this divy. You have to fear a little what is going to happen when this goes ex dividend (25 June), logic says it should drop to 35c, and I think it will and sum as a lot of people hanged around for this LA sale, and probably lost patience and got a good lesson on how hard it really is to sell these kinds of ventures.

Yes I think on the back of The Capital Group Companies, Inc. selling down there holding being a major negative pressure on the SP(CGC are also selling down their QBE holdings need to raise cash,troubles) add in the massive world market volatility, Resource Tax(which if anything would be positive for CFE)overall I just love the fundamentals of CFE the 18% yield I'll receive this year a added bonus..

On the major seller It reminds me of MCR when AMP sold out once they had totally sold out MCR soared

I'm planning on buying more before the 23rd take my holding to 300,000 direct- indirect 900,000

got off HC---------
When I emailed TS a while ago, he was aiming to have Marampa sold in the second half of this year, rather than next year. I'm expecting a sale conditional upon a JORC (end of this year) of X million tonnes and the infrastructure upgrade-------(Now Tony said awhile ago he believed Marampa should well command a 500mill sale price,now whats the bet Tony has the buyer in waiting but first he must get a JORC,an spend 40-50mill on infrastructure before they'll talk final numbers)

[evilroyrule]

ann just out is that div. is fully franked. im guessing this wont alter tax position for us in nz JB? at least its put a rocket up sp!

[float]

had a quick search and it looks as though we wont benefit from the shares being franked. I'm considing selling up before wednesday .... and reinvesting at a nice low price ...

[soulman]

Yep, it looks like a lot of aussie will look to CFE before the ex date. I am tipping between 45 and 47 before the 24th of June.

[evilroyrule]

had a quick search and it looks as though we wont benefit from the shares being franked. I'm considing selling up before wednesday .... and reinvesting at a nice low price ...

im with you float. as a result of gfc i dont pay tax, so franked no use to me either. im guessing 47. il jump out 22nd and hopefully in at 35 ex div.. plenty more value with marampa to come

[COLIN]

im with you float. as a result of gfc i dont pay tax, so franked no use to me either. im guessing 47. il jump out 22nd and hopefully in at 35 ex div.. plenty more value with marampa to come
Careful. From past experience with other companies I have noticed that the drop in price ex-div often tends to be less than the grossed-up value of the div., in this type of situation. I think I'll stay in, throughout.

[float]

Cheers Collin, has been alot of downward pressure as jb mentioned that would likely result in less of selloff ex divi.
But then on the other hand, how many people brought above 50 cents, and want out. Could make progress slow.

There are numerous different scenarios that could eventuate, I guess each persons situation is different.
In my case, 44 cents per share is just below my average price, so I could:

A. miss the dividend, secure my money, and have the option to re-enter at a lower price, BUT possibly miss the moment market realises the potential of cfe, or

B. take the divi, see the share price retrace and wait until it heads north. BUT be exposed to the market with no margin of safety, (ie in the red) & miss other oportunities, or

C. kick myself for not making the right decision :) most likely

As you can probably tell, I'm in two minds as to what i should do ...... six of one, half a dozen of the other

[percy]

Float. I am with Colin on this.
Also you would have 2 lots of brokerage to pay, selling and buying back.

[soulman]

Careful. From past experience with other companies I have noticed that the drop in price ex-div often tends to be less than the grossed-up value of the div., in this type of situation. I think I'll stay in, throughout.

Just see what NAB did with their div of 74 cents FF that went ex on the 4th of June. The SP recovered back to their original value in 8 trading days. That would certainly not happen to CFE but it's not beyond them. I am only looking to potential profit from CFE on the date up to the ex date or just after the ex date. There's still time for them to go 47 before Thurs next week.

[COLIN]

Float. I am with Colin on this.
Also you would have 2 lots of brokerage to pay, selling and buying back.

Also need to take into account the fact that, if a significant proportion of CFE holders try and sell cum-div and then buy back ex-div, this will create downwards pressure on the former price and upwards pressure on the latter price, thus making it more unlikely that the trading gain would be as much as the dividend amount foregone. Such a scenario is more likely to happen in the case of CFE (with its relatively high trader interest) than with the likes of NAB.

[float]

Well tomorrows the last day trading cum dividend ... my prediction, after some consideration, is that the price wont exceed 45 cents (vwap at least). And ex divi, wont fall much below 40 cents. I'm not going to worry about CFE over the next couple of months. There is heaps of good news to come.
Looks as though DMC will go ahead, hopefully another Mamrampa in the making!!

Thanks for the replies, they were very helpful :)

[evilroyrule]

yes i agree. my exhuberance was it seems misplaced. so what happens next? post 23/06 i expect we will receive a notice relating to dividend? i have never held an auz. stock that paid a dividend!!

[Caesius]

And BAM down to 35c. So it would definitely have paid off to sell out before today..

[float]

where's the bottom?
Guess i didn't give enough weight to the idiotic selling portion in my calculation haha, (no affence to anyone that sold) :)
I decided not to sell and buy back, wish i did. But i stand by my decision, cant understand why people are selling.
Anyway ...... we can compare profits in the longterm.

Pssss dont sell ;)

[float]

As for the dividend cheque, not sure when we'll see that. might serve as a good comforter

[Snapper]

Tony Sage just bought another million at 34c. Float, payment date is 16th July.

[JBmurc]

where's the bottom?
Guess i didn't give enough weight to the idiotic selling portion in my calculation haha, (no affence to anyone that sold) :)
I decided not to sell and buy back, wish i did. But i stand by my decision, cant understand why people are selling.
Anyway ...... we can compare profits in the longterm.

Pssss dont sell ;)

yes selling at 43-44 would have been a good short term move longer term CFE will smash a $1 SP becoming a major IRON ORE dealer with some A class projects under their ownership
---CFE has once again shown it know's how to get a deal across with the sale of Lady annie an the major ownership of DMC over the chinese bidders I have confindence Tony an the boys will have another major sale late 2010 early 2011 t

[Corporate]

yes selling at 43-44 would have been a good short term move longer term CFE will smash a $1 SP becoming a major IRON ORE dealer with some A class projects under their ownership
---CFE has once again shown it know's how to get a deal across with the sale of Lady annie an the major ownership of DMC over the chinese bidders I have confindence Tony an the boys will have another major sale late 2010 early 2011 t

JB definitely agree. TS doesn't muck around, so much on the go. I wish they had bought shares back instead of paying a dividend though...it's not go for NZ shareholder :-(

[evilroyrule]

corp, can you elaborate please on why the div. not so good for us nz shareholders?

[shasta]

corp, can you elaborate please on why the div. not so good for us nz shareholders?

The dividend will be fully franked = good for Australian shareholders, & results in a tax liability for NZ shareholders

Had CFE used the money to buyback shares, this would favour everyone equally & not result in any tax liability

[JBmurc]

The dividend will be fully franked = good for Australian shareholders, & results in a tax liability for NZ shareholders

Had CFE used the money to buyback shares, this would favour everyone equally & not result in any tax liability

so we'll pay say are corp tax rate 30% on the 7cps AUD where the Aussie will be able to claim back the tax right? shasta

there was some talk CFE will look to buy-back on the next major sale -IRON ORE,GOLD sale etc

[evilroyrule]

ok. coz i lost so much in the global meltdown i dont have tax to pay for a while (read i lost my fortune) so seems like no skin of my nose. hopefully. im buying more at 32 cents.

if cfe holds 80% approx of DMM, and DMM trades at say 50-53 cps, how can cfe remain at 30's. hasnt it increased its assets/capital by the acquisition. clearly there is a basic accountang step i am missing here

[JBmurc]

Market values CFE at -193mill (what a joke)
-their total ownership of DMM is now worth round 39mill --
--cash at bank 80mill min(even after buying up DMM + 44mill divie to SH)
--CFE will receive an extra 80mill from MCC later this year+have 11.6mill in convert notes exp within 18months(I also believe L.A will return another 20mill+ in bonds returned etc)
so of my rough calcs CFE will have round 190mill in cash an cash receivables in the short term...

Now lets add up CFE larger ASX share interests @ todays market values -DMM-39mill CVX-11mill NIP-7mill FEL-1mill MHL-1.1mill OKU-250k GFE-1.8mill URL-250k
--total ASX share value= $61,400,000

Now add in the real hidden value an most likely to be sold over the next 18months -Marampa(300mill min) Cape lambert south (50mill min) Sappes(50mill)

other high class CFE assets -Pinnacle Group Assets(26.2% ownership and Manager)
-Lady loretta(next door to Lady annie) 25%
-Leichhardt copper 100%
-Australis-phosphate 100%=================total 50mill min

so all up CFE fair fundamental value IMHO round 700mill min or say just north of $1sp

[shasta]

so we'll pay say are corp tax rate 30% on the 7cps AUD where the Aussie will be able to claim back the tax right? shasta

there was some talk CFE will look to buy-back on the next major sale -IRON ORE,GOLD sale etc

As the dividend is fully franked it is more benefical for Australian shareholders, but im not sure of there tax laws, for NZ residents you will pay tax based on your marginal tax rate (i assume its the same over there in OZ, someone please correct me if im wrong!).

With our corporate tax rate now 30% & our top tax rate 38%, those earning over $70k will have an additional tax liability even on fully imputed NZ dividends.

Those with fairly large portfolios of NZ dividend paying companies might wanna look at forming a company to benefit from an 8% tax saving

[evilroyrule]

JB, you expecting div cheque this month?

[COLIN]

Sage has bought yet another 1,000,000 shares, I see.

[evilroyrule]

i have been watching all his buying. has to be a positive in my book. he been buying all the way down from 46/48 . phadreus wont be pleased. i will be buying with my div.

[Caesius]

Cape Lambert now have 92% of DMM shares. Just out of interest why haven't they just gone and taken over the WHOLE company?

[shasta]

Cape Lambert now have 92% of DMM shares. Just out of interest why haven't they just gone and taken over the WHOLE company?

Now they have breached the 90% threshold, they can acquire the rest of the shares by compulsory acquistion, so CFE now has full control over DMM

[JBmurc]

JB, you expecting div cheque this month?
prob more likely we will receive early next month

As for the CFE takeover of DMM just yet another high quality asset I'm sure CFE will turn round an sell for a tidy profit

[Brut]

prob more likely we will receive early next month

As for the CFE takeover of DMM just yet another high quality asset I'm sure CFE will turn round an sell for a tidy profit

I read the cheques were being posted on 16 July? I think a few might waiting for there cheques to buy a few more at these levels...

[JBmurc]

I read the cheques were being posted on 16 July? I think a few might waiting for there cheques to buy a few more at these levels...

yeah getting so much assets for free at current levels 3 major iron ore projects for one- here's hoping the madness stops with CFE stepping up an backing up the MD buying with a market buyback of size get rid of a few of the brain dead sellers

[lissica]

I read the cheques were being posted on 16 July? I think a few might waiting for there cheques to buy a few more at these levels...

I hope so! I'm relying on this payment date so that it can go into my Macquarie CMT account before it gets closed on 30 July.

*edit* Just logged into the share registry and they don't have my direct debit details. Looks like I'll be getting a cheque

[JBmurc]

Yeah bud Im thinking this too. Just read the AWE thread and Phaedrus has a good reminder why we dont buy in a down trend

yes to true but how much lower can CFE go there basically value at cash+cash receivables at current market value go any lower they will be worth less than cash ??
their 3 Iron ore assets for one are worth well north of the 193mill market cap I'd say a Chinese resource group would happily pay 600mill an Tony sage knows it (is why he's been buying up large) but crazy of all take all the cash away an the 3 iron ore project off the books an CFE could still command the same market cap from other assets if the market was in a more bullish less fearful mood like say 3-4yrs ago.

Be greedy when others are fearful

[Stranger_Danger]

JB,

This isn't politically correct, but do you have any personal experience in dealing with Chinese receivables?

[JBmurc]

JB,

This isn't politically correct, but do you have any personal experience in dealing with Chinese receivables?

CFE MD Tony sage has stated that they will get a mining lease in August and we will get our 80m from MCC round this time you think MCC spent billions not to mine Cape lambert north iron ore mine?

Pilbara - MCC Cape Lambert Iron Ore Project
MCC Mining (Western Australia ) Pty Ltd
MCC Australia Holding Pty Ltd (MCCAH Pty Ltd) is
developing a 15Mtpa iron ore (magnetite) concentrate
project at Cape Lambert and aims to ship its first ore
by mid-2013. The Project comprises a proven JORC
compliant 1.9bt iron ore resource and exploration
licences covering 369 square kilometres. The Project
would consist of a beneficiation plant (A$1b), 300MW
power plant, a port for exporting concentrate (A$1b)
and other related infrastructure. A feasibility study
and ongoing environmental and social studies are
being conducted by consultancy companies GHD and
GRD Minproc on behalf of MCC. GHD is currently
preparing a draft Public Environmental Review
document. A heritage agreement with the Gnarluma
Aboriginal people was signed in January 2010 and the
company commenced formal negotiations under the
Native Title Act in March 2010.
Expenditure: $3.7b.
Employment: Construction: 3000; Operation: 1000

[evilroyrule]

looks like auzzie investors ploughing their div. back in today. looks like we missed the boat and then some JB! give a shout anyone of your cheque turns up so the rest of us knw when we shld be worried!

[JBmurc]

Na I won't be buying much more maybe another 10k take it to 300k shares

[JBmurc]

Finally the sellers are thinning some bigger buyers coming to the market 37-38c IMHO before the weeks out I'm sure there's penalty of CFE holders that will re-invest their divie next week
should get as back into the 40's

[shasta]

Finally the sellers are thinning some bigger buyers coming to the market 37-38c IMHO before the weeks out I'm sure there's penalty of CFE holders that will re-invest their divie next week
should get as back into the 40's

CFE - Compulsory Acquistion of DMM

http://www.stocknessmonster.com/news-item?S=DMM&E=ASX&N=497287

Game, set & match ...

Those with DMM shares, they will be sold into this offer (you dont need to do anything) & you'll be paid 53c per share

[JBmurc]

Man I love reading news like this:)

African Minerals in $1.5 billion deal with Shandong.

Tue Jul 13, 2010 7:20am GMT

LONDON(Reuters) - African Minerals Ltd has sealed a second investment deal with a Chinese group for its flagship iron ore project in Sierra Leone, selling a 25 percent stake to Shandong Iron & Steel for $1.5 billion.

In January, the London-listed company inked a 153 million pounds deal with the China Railway Materials Commercial Corporation -- one of the country's largest steel trading companies -- to help fund the first stage of the Tonkolili project.

News of the latest deal, which involves a three-stage investment and an agreement for Shandong to buy 10 million tonnes of iron ore per year at discounted prices, sent shares soaring 19.5 percent by 0714 GMT.

"When completed, this strategic investment will enable us to accelerate the development of Tonkolili," Executive Chairman Frank Timis said in a statement on Tuesday.

The investment will allow the firm to boost production from the first phase of the project to 10 million tonnes a year from 8 million tonnes, the firm said.

It will also speed up the launch of the second phase to the fourth quarter of 2012.

The new funds will allow an improvement in the planned infrastructure so that all transport will be on rail, instead of a mix with road haulage.

This means that there will be "uninterrupted year-round shipment, unaffected by the wet season", the company said.

[Corporate]

Not only that JB....Tony Sage just bought another million!!

[JBmurc]

Not only that JB....Tony Sage just bought another million!!

Yeah I keep receiving these e-mails from "The Inside Trader" took their free month trail haven't cancelled as there worth a read ,one thing they continue to push on rating a company as "A BUY" is Management buyer up their owns shares as a major reason to also jump on board once the numbers have been crunched of course----I've done CFE numbers a doz times an it's a F'n Strong BUY BUY
Tony has been loading up as he knows he'll triple his money from what he's got planned in the short term no-brainer really.

[JBmurc]

Jeez guys, what does Karlos do:confused:. Been reading so much on this thread and Hot Copper and charts and bloomberg and price of Copper is steady and etc etc......Decided to do something crazy a.se today and took my savings for my V8 purchase and put it back in our business and put a buy for 62000 at .325 today. Should I grow big balls and buy at market tomorrow;) or does someone have advice like"run for the hills you silly a.se, Phaedrus would agree"

I would agree on buying at market CFE Iron ore assets in them selfs are a billion dollar asset with the right discovery---- CFE hovers round forward cash backing ----next asset sale or drilling result will soon spark market interest to 40-50c IMHO---
As for V8s just spashed out on a new TR6060 T56 gearbox for my V8--CFE will pay for it

[JBmurc]

looks like the aussie CFE S/holders are getting their Divie Chq we shouldn't be far behind

[evilroyrule]

jb, company secretary emailed and said all were posted on the 16th of july. only variable at play is time to cross the ditch. not long now.

[JBmurc]

jb, company secretary emailed and said all were posted on the 16th of july. only variable at play is time to cross the ditch. not long now.

Yeah might check me PO BOX today be the best divie chq I've ever recieved :) 20kAUD best of all I reckon CFE will do it again next year

[JBmurc]

jb, company secretary emailed and said all were posted on the 16th of july. only variable at play is time to cross the ditch. not long now.

was talking with me bank today as I though the AUD chq will take 21 days to clear hope the NZD drop against the AUD alot more by then 77 be nice,checked Box nothing yet maybe tomorrow

[evilroyrule]

you cld try and get special answer on cheque. ill just ring my bank manager and see how long to clear. nothing in my mailbox either. im actually thinking next week. back soon

[JBmurc]

West African iron ore over-hyped?
Tuesday, 20 July 2010


BROKEN dreams are inevitable in the fashionable, but over-hyped, west African iron ore belt, says Macquarie Bank. And some prominent Australia-backed ventures don?t even make it to the bank?s A-list. The Metal Detective by Stephen Bell
For one reason or another, the budding west African iron ore province ? stretching a couple of thousand kilometres from Mauritania to the Congo ? has been in the spotlight of late.

Recent multibillion-dollar Chinese and Brazilian investments have highlighted the region?s potential to become a Pilbara on the Atlantic.

This is despite shipping distances to China that are three times greater than the Pilbara.

West African enthusiasts say China is determined to put its foot on ore outside the tentacles of the Big Three (Rio Tinto, BHP and Vale), no matter how remote or expensive the deposit.

A Macquarie report, ?West African Iron Ore: Hype or Hope?, was written in response to the move last week by China?s Shandong Iron and Steel Group to pay $US1.5 billion for a minority stake in Tonkolili, the Sierra Leone project owned by Frank Timis?s African Minerals.

West African iron ore is ?suddenly in vogue again?, Macquarie says, adding that it expects certain ?project clusters? to come to market, aided by Chinese infrastructure build-outs.

?However, there is certainly no room for all the projects out there, and overcoming the political risk barrier and being first to market will be critical,? the bank says.

Project ?delays and cancellations are inevitable, and we do not see the African share of the seaborne market exceeding 2.7 per cent by 2015?, it adds.

On paper, west African production could increase from near zero at present to more than 300 million tonnes per annum by 2015, based on optimistic company projections.

Macquarie reckons that roughly 50Mtpa by that date is more realistic.
But the bank?s published table of 22 projects ignores several Australia-backed trailblazers, including Sundance Resources? Mbalam in Cameroon and Cape Lambert?s Marampa in Sierra Leone.

It does, however, give a guernsey to Perth-based Sphere Minerals at its Guelb el Aouj project in Mauritania.

Sundance chairman George Jones isn?t fazed by Macquarie?s oversight as he tries to get the company back on track following last month?s tragic plane crash in the Congo, which killed the iron ore hopeful?s entire board.

Though drawing international attention to the iron ore rush in west Africa, the accident was a sobering reminder of the region?s remoteness and primitive infrastructure.

?There are major broker firms in the UK who cover Africa properly, and that includes Cameroon, Gabon and Congo ? Macquarie aren?t everything,? Jones said.

Speaking to the Metal Detective from France, Jones said he and acting chief executive Peter Canterbury will travel to west Africa in the next week to resume talks with Cameroon government officials over a fiscal ?state agreement? for the $US3.4 billion Mbalam project.

?The board had met with them prior to the accident, and all the company information of those meetings is lost,? Jones said.

?I?ll be looking to have those discussions again,? he said, adding that Sundance is sticking to its December 2010 target for completing a definitive feasibility study.

Talks on a potential JV partner at Mbalam, meanwhile, are ?quite advanced?, Jones said, with the company attracting interest from ?a wide range of international participants in the iron ore industry?.

Cape Lambert executive chairman Tony Sage was also miffed at the Macquarie snub, worsened by the bank?s inclusion of a rival project owned by London Mining.

Sage told MD that London Mining has 13 square kilometres of ground in Sierra Leone in the Marampa area, compared with Cape Lambert?s 300sq.km.
?And they?ve got no access to the railway line,? he said, in a reference to Cape Lambert?s deal with African Minerals on Friday to secure rail and port capacity.

As for the overall tenor of Macquarie?s commentary, Sage says it is inevitable that some west African projects will struggle.

?I agree with the Macquarie guys ? some of them will get cancelled and some won?t go ahead,? he said.

?But the ones in Sierra Leone ? with their proximity to the coast and the investment now from the Chinese ? they will definitely proceed.?

Macquarie seems to agree: ?Given the capital investment from Shandong, we are more confident on the Sierra Leone project cluster,? the bank said.

?With this [deal], refurbishment of the current 84-kilometre railway from Pepel port to Marampa, together with a further 120-kilometre extension to Tonkolili will be possible.

?While not the cheapest African project, being first to market will have distinct advantage.?

Having gained port and rail rights, Sage is optimistic about the sale of Marampa, planned for later this year once a scoping study is finished.

?Given all the prices around us and how hot Sierra Leone-Guinea is at the moment for iron ore, our asking price is going to be $US600 million,? he said.

Up to now Cape has referred to a possible value of $US500 million for Marampa.

Sage says three potential buyers have already been onsite, including two Chinese groups and one from Switzerland.

A feature on the west African iron ore rush will appear in the August issue of Australia?s Mining Monthly.

[evilroyrule]

jb, you got a problem and anyone else wanting to clear quick. bank will take 6 weeks to clear. time to get the auzzie bank account for the regular divvie cheques to come. nice work re marampa. this sp is stupid at these levels!

[JBmurc]

jb, you got a problem and anyone else wanting to clear quick. bank will take 6 weeks to clear. time to get the auzzie bank account for the regular divvie cheques to come. nice work re marampa. this sp is stupid at these levels!

Yep is why I'm about to place another buy order 33c cheap cheap ,think theres be a major holder selling out shoukld get a ann one day soon....
I'm not to stressed as I'll be using the 25k NZD for the new house where building as long as I have it cleared before this time next month I'll be happy

[COLIN]

JBM: I was interested to note the reference to Sundance (SDL) in the piece you have posted above. SDL shot up 25% today, after their Investor Presentation which seems to indicate that they are well recovered from that dreadful aircraft downing which wiped out the entire Board and others. Having regard to your apparent familiarity with this whole issue of iron ore mining prospects in West Africa I would be interested in any comments you might care to make re Sundance's prospects in the Congo/Cameroon (I must admit I do a bit of a shudder when I think of the political risks of operating in such territories, but the Sundance people seem to be well experienced and able to manage this side of things.)

I have had my eye on SDL for a while, but what has particularly caught my attention today is the strength of the buying interest at market close, versus the level on offer. Of course, day traders will be out in force again tomorrow, but I don't believe that is the full story.

[JBmurc]

Well I'm not up with the play with SDL but talking on west africa -Tony sage is very bullish on China wanting to invest billions to secure their own IRON ORE mine supply outside the big boys that have been pushing for higher prices from China--
Main resons I hold 322,000 CFE shares is the fact they have more than just-- prime W.A Iron ore assets --they also hold 25% of one of the world best zinc discoverys--100% high grade gold discovery-masses of Cash-20m+ in other shares-large prime land holdings

Whats SDL cash balance? to Market cap ..CFE will soon be 80-90%

[Shaneoz]

JB just a quick question, at what $ value would the cash on hand = the share price?

Not holding but curious.

Shane.

[JBmurc]

JB just a quick question, at what $ value would the cash on hand = the share price?

Not holding but curious.

Shane.

Current market values CFE at -$196mill

[soulman]

Got the cheque yesterday in Australia. So, not long to go for you lot in NZ.

[JBmurc]

Got the cheque yesterday in Australia. So, not long to go for you lot in NZ.

Yeah can,t wait so doesn't the aussie divie clear pretty much straight away ,be good to know when CFE holders have the cash available to buy more CFE

[OldRider]

Maybe our mail services are not too bad, my cheque arrived yesterday in Manukau City,
should be safely tucked away in A$ account today.

[Corporate]

Very interesting...I hope this gets off the ground!


Article Date: Jul 21 2010

Former AIM counter Cape Lambert Resources envisages an ?800 million float this year for its key African iron and coal assets.

Tony Sage, entrepreneurial executive chaiman of Aussie-listed Cape Lambert, says Kukuna in Sierra Leone and Sandenia in Guinea, with claimed combined potential for 6.5 billion tonnes of iron ore, could combine with brown coal interests in Sierra Leone to form a marketable company, in which Cape Lambert would have a significant stake through its 26.2 per cent ownership and management role in project backer PInnacle.

Sage argues China's appetite for African raw materials makes Hong Kong an appropriate market for these ventures, though he has not finally ruled out London. He is also preparing Cape Lambert's Marampa iron ore project in Sierra Leone for a trade sale and hopes to increase estimated resources there from 600 million to a billion tonnes for a possible sale value of around ?400 million.

Cape Lambert has agreed to invest ?30 million for 33 per cent of Marampa Infrastructure, set up to establish crucial rail and port facilities to take its iron ore to market. The agreement is with fellow iron ore play, controversial tycoon Frank Timis's AIM-quoted African Minerals, which has a 20 per cent stake in Cape Lambert and, suggests Sage, the infrastucture venture could eventually yield as much as ?6 million a year for moving third parties' products.

He maintains China's wish to source as much iron ore as possible from outside the giant Rio Tinto-BHP cartel bodes well for independent projects such as these and for Cape Lambert's recently acquired DMC exploration projects in the same region. Sage, who has recently spent nearly ?1.5 million buying more shares in the company, also points to gold projects in Australia and Greece and uranium in Argentina.

Cape Lambert shares trade at the equivalent of 20p Down Under, while AIM has African Minerals at 412p. Though in speculative markets, both look well placed.

[evilroyrule]

ok got my divvie cheque this morning. slightly retarded question but am assuming this is in aussie dollars? i cant tell from the cheque???

apparently encoding on bottom line means its auzzie $$$$. good day to convert hopefully.

[JBmurc]

ok got my divvie cheque this morning. slightly retarded question but am assuming this is in aussie dollars? i cant tell from the cheque???

apparently encoding on bottom line means its auzzie $$$$. good day to convert hopefully.

Yes AUD an for every $1AUD you should recieve $1.219NZD at a 1% interbank-rate going of the current rates I'm hoping it will go in are favour so in 20 odd days the rates up 1.25+ when in my case the money will clear an be exchanged to NZD's

[JBmurc]

Very interesting...I hope this gets off the ground!

Hellyeah that would get the SP moving north of $1 if they got the float done at 800mill I'm sure TS an the boys already have some large chinese interest that would take controlling stakes if CFE can prove up the tonnages

[evilroyrule]

jb, check out cvx ann. shld cheer you up a little

[JBmurc]

jb, check out cvx ann. shld cheer you up a little
Not really Evil still no real width or high grade results is why the SP is going no where may cut my losses on CVX an sell down at least half of my investment if a buyer wants them

[evilroyrule]

oh poo. ill stick with mine for now. not a huge holding so will just sock draw it. its getting a bit congested in there. tsv, cxs, bul, hzn. you know sometimes i feel like we are missing something re cfe. perhaps the market in general just lacks buyers, but this beauty with so much imo going for it cant seem to get out of first. time will tell i guess.

[JBmurc]

oh poo. ill stick with mine for now. not a huge holding so will just sock draw it. its getting a bit congested in there. tsv, cxs, bul, hzn. you know sometimes i feel like we are missing something re cfe. perhaps the market in general just lacks buyers, but this beauty with so much imo going for it cant seem to get out of first. time will tell i guess.
yeah like others have said the market never gave an value that CFE would sell Cape lambert North till they did an got 400mill same thing will happened again only this time it will be north of 600mill 3 time current market cap --crazy

LONDON (Dow Jones)--Mineral investment company Cape Lambert Resources Ltd. (CFE.AU) is conducting final resource tests for its Marampa iron ore project in Sierra Leone in preparation for putting it up for tender at the end of September, the company's executive chairman said Wednesday.

Cape Lambert finalized its purchase of Marampa from African Minerals Ltd. (AMI.LN) in 2009 and has already drawn interest from several Chinese companies including China Railway Materials Commercial Corp. and China Metallurgical Group Corp., as well as one Swiss firm, Tony Sage told Dow Jones Newswires.

African Minerals Ltd. is a major shareholder in the company with 19%.

"Our business model is different," Sage said. "I don't want to sit there and mine. We are more like a fund management."

During the past few years, junior miners have struggled to raise money for projects. Sage said Cape Lambert is one route to funding.

For Marampa, he is preparing the asset for sale later in the year.

Earlier this month, he concluded a deal with African Minerals over rail rights. For the first two years of production, which he forecasts to begin in 2012, the owner of Marampa can transport up to 2 million tons of iron ore to the nearby port by rail. That can increase to 10 million tons, he said.

Under the deal, Cape Lambert gets a 33% stake in the railway that connects the mine with the port of Pepel. African Minerals owns 57% and the Sierra Leone government 10% of the railway, Sage said.

[mamos]

Is it correct that CFE don't have a mining lease for the Marampa project and the actual DELCO mine is excluded from their exploration lease as it is part of ML02/05 for which there are historical resource estimates dating back to the 1970s.


ML02/05 is held by London Mining PLC.


What are the dynamics between London Mining PLC and Cape Lambert / African Minerals. i.e. will they be able to use the railway?


I was suspicious why African Minerals would divest this project as if it was so valuable why wouldn't they have kept it themselves.


Does anyone know the process required to obtain a mining lease in Sierra Leone?


Cheers

[mamos]

I'm answering the dynamics question.

London Mining expects to begin mining in Q1 2011 with first production and export of concentrate in Q2 2011. The main long lead item namely the Wet High Intensity Magnetic Separation (WHIMS) plant was ordered from Outotec in April and is scheduled for delivery within 25 weeks.

An audit of the planned logistics route has been completed by Sandwell Engineering who have confirmed capacity of 5Mtpa using London Mining‟s proposed solution of trucks and barges. At higher volumes the Sandwell study recommends construction of a dedicated haul road instead of using the 22km section of public road or a pipeline to the barge loading facility.
The expanded logistics route will be determined by a trade-off study to be included in the expansion prefeasibility study ("PFS") for the primary orebody to be completed in Q4 2010. A Memorandum of Understanding ("MOU") has now been signed with Louis Dreyfus Armateurs to supply barges and floating cranes with a capacity of 5 to 10Mtpa within 18 months. The longest lead item is the floating crane but in the interim London Mining expects to tranship to self-loading handymax class vessels.
Louis Dreyfus plans to use a fleet of three tugs and five barges (capable of transporting between 5,000 to 8,000t of iron ore per barge). This equipment has been calculated to work when the tide is low but tidal assistance will be considered to optimise loading sequences and ensure a loading rate of 20,000t/day. A meteorological study has determined that weather conditions will not affect loading operations more than 10 days per year.

2774

So doesnt look like they can use the rail.

http://www.londonmining.co.uk/uploads/q12010report.pdf

[JBmurc]

Is it correct that CFE don't have a mining lease for the Marampa project and the actual DELCO mine is excluded from their exploration lease as it is part of ML02/05 for which there are historical resource estimates dating back to the 1970s.


ML02/05 is held by London Mining PLC.


What are the dynamics between London Mining PLC and Cape Lambert / African Minerals. i.e. will they be able to use the railway?


I was suspicious why African Minerals would divest this project as if it was so valuable why wouldn't they have kept it themselves.


Does anyone know the process required to obtain a mining lease in Sierra Leone?


Cheers

Londan metals aren't they a major S/holding of CFE
CFE have 33% right of ownership an use of railway if they spend the 40mill+ on the repairing of the infrastructure

[mamos]

Londan metals aren't they a major S/holding of CFE
CFE have 33% right of ownership an use of railway if they spend the 40mill+ on the repairing of the infrastructure

London Metals?

If you mean London Mining I havnt seen them on the top20 shareholder list.

I know CFE can use the railway I was wondering whether London Mining could. Looks like they are using road. Much lower expenditure required (capital anyhow).

[evilroyrule]

is cfe an immovable object or irresistable force?

[evilroyrule]

excellent. bout time this fat bastard grew some legs.

[buns]

Who has there Divy cheque? Anyone in Wellington?

[evilroyrule]

me! and im in small rural town so you shld have yours buns.

[percy]

Mine was in todays' post.

[lissica]

Who has there Divy cheque? Anyone in Wellington?

Arrived yesterday in Wellington

[evilroyrule]

wow! look at todays volume. one xt trade for 10mil. plus. any bright spark know what that wld relate to???

[Snapper]

Got mine yesterday (Mt Maunganui)

[JBmurc]

Gone mine in the bank now waiting for it to clear biggest divie I've ever banked 25k NZD looking forward to next years 50k divie

[percy]

Gone mine in the bank now waiting for it to clear biggest divie I've ever banked 25k NZD looking forward to next years 50k divie

piece of cake, and thank you for your well informed posts.

[evilroyrule]

oh yeah. we cooking today. get rid of lid at 34.5 and we gangbusters. clearly we have gotten rid of the insto selling down at 33.

[buns]

Dissapointed (once large, now small) NGE holder now, just bought a heap of CFE..

Was going to do it midweek last week, seeing NGE hold-up so well on volatile days, then getting a few mill at no discount from an institutional investor, had to be a good thing? A good time to differ from selling (the rumor) before drilling results.

Great learning curve today, so not overly annoyed. Will be if I do it again. I see CFE as far more visible investment with less risk.

Here you go Sagey – get my $$ back

[evilroyrule]

we be pushing .40 this week

[Corporate]

Agreed and I just double my holding. The rumour is that there was a US distressed seller that needed to get rid of 17m shares. It looks like this is done with the crossing on friday.

Onwards and upwards with any luck :-)

[Snapper]

I've got 60,000 shares in CFE and have often thought that I should be going in there boots and all. I'm very happy with my divvie and CFE seem to going from strength to strength in terms of the quality of their assets and their investment (and divestment) process. There's just this little dickie bird in the back of my head making me a bit cautious especially when you see posters (on HotCopper mainly) talking about 'Sagey' and what a fantastic dealmaker he is, Sage for PM, etc. He'll be Dear Leader soon. Couple that with Sage's close connection with Frank Timis who has had numerous brushes with the law and regulatory authorities and it leaves me feeling that CFE, good value that it certainly is, isn't a company that I want to be overexposed to.

Like all shareholders I'll be very happy to collect their dividends and to see the share price go to a dollar but there just about seems to be a cult of the individual with CFE/Sage. It's one of those companies which, when its mentioned in the media, always mentions Tony Sage as well. Well, only the pope's infallible (so they tell me) and if things go awry, then Sage's most fervent fans will be the ones that will end up crucifying him.

I'm enjoying the CFE ride but won't be reinvesting my divvie.

[gazprom1]

Good Post Snapper, I agree with your sentiments. I bought more before the dividend but not going to reinvest the dividend. Great to have exposre but not over-exposed.

[Corporate]

Yeah good points all. Still lots of powder dry :-)

[JBmurc]

Yeah good points all. Still lots of powder dry :-)

well with 322k of CFE I've got penalty also have helped couple mates get on board with another 900k in total of shares everyones stoked with the Divie an outlook

[Corporate]

well with 322k of CFE I've got penalty also have helped couple mates get on board with another 900k in total of shares everyones stoked with the Divie an outlook

yeah i doubled up today. Thinking about another 50% tomorrow.

[JBmurc]

yeah i doubled up today. Thinking about another 50% tomorrow.

Yeah think the big seller is running out of his dreadful selling plan so should bring back a more fair value for CFE--

I see one of CFE 3.5m convert notes investment in CCC is doing very well of late CFE could excise an take a controlling stake or sell an make a tiny profit

[COLIN]

Well, if enough of you guys continue "doubling up" then the demand side figures will surge and all the T/A people will say "Ah, ha! Lets climb onboard too!" And thus the price will keep escalating. Its easy, isn't it! Certainly beats all the huffing and puffing that has been going on, as people try and tell the market "how stupid it is, not to recognise that this is the greatest share since sliced bread was invented!"

Just stirring, guys. I am a holder, but getting itchy to dump because I see juicier opportunities elsewhere.

And while I am at it, why do so many of you NZ residents covet these high dividend payouts? As far as I am concerned, because we are unable to gain any benefit whatsoever from the franking credits they just transfer value from us poor Kiwis on this side of the ditch to shareholders on the other side.

[Corporate]

Let see if it can break through 35c today. This could move to 40c in no time. DOW pointing in the right direction.

[Ish]

Well, if enough of you guys continue "doubling up" then the demand side figures will surge and all the T/A people will say "Ah, ha! Lets climb onboard too!" And thus the price will keep escalating. Its easy, isn't it! Certainly beats all the huffing and puffing that has been going on, as people try and tell the market "how stupid it is, not to recognise that this is the greatest share since sliced bread was invented!"

Just stirring, guys. I am a holder, but getting itchy to dump because I see juicier opportunities elsewhere.

And while I am at it, why do so many of you NZ residents covet these high dividend payouts? As far as I am concerned, because we are unable to gain any benefit whatsoever from the franking credits they just transfer value from us poor Kiwis on this side of the ditch to shareholders on the other side.

I have no idea why NZ residents would want to chase Aus dividends.

It's a a very tax inefficient investment.

[evilroyrule]

boo-ya. check out todays ann. if you really wanted to offload colin todays your day. why you would want to beats me. just looks better and better

[COLIN]

boo-ya. check out todays ann. if you really wanted to offload colin todays your day. why you would want to beats me. just looks better and better

Well, we shall just have to wait and see whether this announcement excites the market at all. I'm only interested in holding shares that go UP. And CFE is still significantly below its price 6 months ago.

The market rules.

[Corporate]

Well, we shall just have to wait and see whether this announcement excites the market at all. I'm only interested in holding shares that go UP. And CFE is still significantly below its price 6 months ago.

The market rules.

It might have been below the price it was 6 months ago but the market has been pretty shaky. Looks to me like the downtrend has been broken.

[float]

38 cents looks to be the next level of resistance, if we can close above that, I guess it definitely confirms a break ....

[COLIN]

It might have been below the price it was 6 months ago but the market has been pretty shaky. Looks to me like the downtrend has been broken.

S & P mid-caps & small-caps down about 5%
BHP, RIO, down about 5%
CFE down about 20%

I don't like to pour cold water on all the enthusiasm shown on this thread by CFE supporters (and remember, I also hold) but I am merely pointing out the significant relative under-performance.

Also, very little evidence of a positive reaction to the latest Marampa announcement.

[float]

I think Cape Lambert's performance has been pretty good.
Aussie investors saw a 22% return from the last dividend (given they had an average price of 45 cents & benefited from the fully franked dividend).
Post dividend, the share price was always going to reflect this returned capital by decreasing the same percentage. Sp held up well considering the selling pressure...
Hopefully the share price will bounce back in light of the great fundamentals. (not without risk of course) If future projects do come to fruition, the share price is where I see most of my return. Divi's will be spending money in the meantime ....

[Corporate]

S & P mid-caps & small-caps down about 5%
BHP, RIO, down about 5%
CFE down about 20%

I don't like to pour cold water on all the enthusiasm shown on this thread by CFE supporters (and remember, I also hold) but I am merely pointing out the significant relative under-performance.

Also, very little evidence of a positive reaction to the latest Marampa announcement.

I don't think it is a fair comparison COLIN. CFE just paid out a special dividend of 7c.

The market won't recognise the valuation on Marampa until a JORC resource is booked and then Sage locks in a buyer.

[evilroyrule]

looks to me like the venga bus might be leaving. do-do-do-do-do-dodo-do-do. the venga boys are coming.....

[Corporate]

Sage buys another 500,000 @35c

Broker issue target of 80c being the sum of all parts. Low value of marampa of $91m.

[JBmurc]

Sage buys another 500,000 @35c

Broker issue target of 80c being the sum of all parts. Low value of marampa of $91m.

LOL Tony recently said he believe they would sell it for 100mill more than the first thought 500mill so about 509mill more than the broker value still 80c late this year would make me happy.

[evilroyrule]

venga bus got a weigh on now....toot toot.

[evilroyrule]

keep posting those higher highs....

[evilroyrule]

breakdance/breakout!

[gazprom1]

breakdance/breakout!

ERR,

I am enjoying your posts.....keep it up...and the SP!!

Gaz

[Mothman]

Phaedrus could you give us a review of current CFE chart? looks interesting to me - I hold...lots

[Phaedrus]

Phaedrus could you give us a review of current CFE chart? looks interesting to me - I hold...lotsHere you are Mothman.
CFE has been in a "medium-term" downtrend since it fired off a raft of Sell signals early this year.
The chart shows 4 indicators that will provide entry signals if/when this downtrend reverses.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/CFE84.gif

[soulman]

Thanks Phaedrus. I sold my CFE (for 37.5 2 days ago) for a few reason. TS has something to do with it and also it was still in a downtrend as you pointed out.

Conversely, Sage buying buckets load is also positive to the stock.

[JBmurc]

Well I'm not selling any going be holding till at least early next year my target round $1sp

Kalos the US dollar rally being good for equities---from what I've seen just of late the USD going down has been good for Equiities as I guess when fear drives markets down an funds into the so called safer USD treasury notes ,bonds etc

I agree on CFE no T/A expert but the the 7cps divie + franking credits was the reason the SP fell to it recent lows 32c current 37.5 so quite likely without payout CFE would be trading on in the mid 40s which it will soon anyway

[mamos]

Does anyone know what the status is on MCC recieving their mining lease for Cape Lambert Project. Have they applied for it yet?

The consideration will be paid in three tranches; A$240 million or 60% at
settlement, A$80 million or 20% sixty (60) days after settlement and A$80 million or 20% on the grant of a mining lease. Importantly, the Company will receive 80% of the sale consideration, or A$320 million, within 60 days of settlement.

[JBmurc]

Think someone on HC stating in talking with Tony sage the 80mill will likely be received AUG/SEP shouldn't be far away

-----------------------------------------------------------------------------------------------------------------------------------------------------------

As President Koroma signs Mining License African Minerals to pay 25% Corporate Tax.

10/8/10 Awoko

The Minister of Mineral Resources Alhaji Alpha Kanu on Friday disclosed to the press that President Koroma has signed the Mining Agreement between African Minerals Limited (AML) and the government that will now move the company from exploration to mining.

He averred that after thorough negotiation and dotting the Is and crossing the Ts the agreement is now ready to be taken to parliament for ratification.
The minister said African Minerals will be paying 25% Corporate Tax as they were given a five percent concession. He said African minerals will be working on the biggest iron ore deposit in Africa and he is optimistic they will help develop the country in the coming years.

When asked why African Minerals didnt receive the same concession as London Mining, he said London Mining came to start operations in Sierra Leone when the global recession was on and mines in Africa and Australia were closing. "So for us to bring confidence into the mining industry and other investment in the country, we had to give them that considerable concession so they can operate."
London Mining in the next five years will be paying just 6% corporate tax with a concession of 24%, whilst African Minerals will pay 25% in the five years with just 5% concession.

The minister said all the agreements are subject to a review every five years so even if there is a change of government the agreements will never be flawed.
Alhaji Alpha Kanu told journalists that African Minerals will start export early next year and they are expected to start with three million tones as they are working round the clock to finish the train line to Pepel and also building another jetty at Tagrin.
He said by 2017, AML will be exporting 25 million tones and the government will be receiving about $1.5 billion on taxes.

The Mineral Resources minster averred that AML has agreed to frontload the government by paying some of their taxes even before the time which they are very happy for.

The Minister of Trade and Industry David Carew in his own contribution said the agreement with African Minerals is in the interest of the country as direct and indirect employment will benefit thousands of Sierra Leoneans.
He said the overall taxation that the country will receive in years to come will definitely change the country for the better.

The Logistics Manager of AML Musa Bangura in a happy mood told journalists that at present his company have employed 2,500 workers from top management positions right down to laborers. He said when production will kick off, they are expecting to employ up to 11,000 workers.
"I want to make this very clear to all that AML workers are one of the highest paid in the country and we will continue in that trend." Mr Bangura said.

He thanked the CEO Frank Timis and Morseray Fadika for their determination to help develop the country. He said on Friday more equipment were flown into the country by two cargo planes because it is faster as they are working against time to finish the train line and the jetty they are building at Tagrin Lungi.

Head of Communications of AML Anthony Navo said AML's agreement with Shandong Iron and Steel is an off take as AML is a PLC company registered in the London Stock Exchange. "We have the right to work with any company so long we do not flout the agreement and Minerals Act. We have given contracts to many companies in the country and we will continue to do so locally as well as internationally" Navo said.

[Corporate]

Well in the last week we've had a couple of nice deals wrapped up.

We've now got 100% of DMC and the Leichhardt Copper Project.

Unbelievable value here.

[JBmurc]

Well in the last week we've had a couple of nice deals wrapped up.

We've now got 100% of DMC and the Leichhardt Copper Project.

Unbelievable value here.

Yeah most resource shares are bumping along on their lows esp when you compare it to asset value interest many have worked hard to achieve with great results--the market in general believes investing in resources is a bad move as we see with low buying interest--
Is the fact of the matter many ASX share traders/investors have been selling more an buying less shares as they see it a more risky investment class unlike property which no-doubt many of the sold funds are being put into a new home or upgrade etc ---An as the resource sectors outside the big caps is mostly supported buy the smaller investor crowd-- little large retirement/managed funds interest, it's currently going to be the most undervalued area of the market ,IMHO many big an small investors mindsets will change over the mid-long term as resources take centre stage once more on the second stage of the resource Bull market as resource prices head higher on USD weakness an emerging economy demand 80% of the world population is in the emerging economys an also for the ASX on the back of much weaker housing prices in AUSSIE as their recent love affair falls on massive household debts much like it has many places here as Aussie look for a new investing affair ASX resource shares will once again take centre stage.(my pick late 2011 start)
the likes of CFE payout yet another 20% divie yield an holding more cash than their entire market cap why woukld any sane Aussie investor think he'd be better of buying a low yeild high debt investment property hoping for capital gains to make any profit

On a more positive note-- looks like the big boys see great growth in West African Iron ore

http://www.proactiveinvestors.com.au/companies/news/9550/xstrata-plc-in-takeover-offer-for-sphere-minerals-at-250-per-share-9550.html


Its not only the chinese buying up west afican assets but now the swiss many more companies will be M&A with good WA assets CFE has 3 very prime WA assets worth at the min 3 times market cap........

[JBmurc]

DJ FOCUS: Juniors Scramble For Iron Ore As Big Three Eye Africa 25/08/2010 06:25PM AEST
By David Fickling
Of DOW JONES NEWSWIRES

SYDNEY (Dow Jones)--When Cape Lambert Resources Ltd. (CFE.AU) executive chairman Tony Sage first laid eyes on the Marampa iron ore project 80 kilo-meters northeast of Sierra Leone's capital Freetown, it exemplified both the challenge and potential of the world's last great iron ore frontier.
With the world's prime iron ore producing regions all but locked up by BHP Billiton Ltd. (BHP.AU), Rio Tinto Ltd. (RIO.AU) and Vale S.A. (VALE), sites like Marampa represent the last opportunity for junior miners to leverage China's voracious demand for steel.

But the growing involvement of bigger companies in Africa means that window is fast closing for smaller companies to get involved in the region. "If you don't pick up something in the area now, the big three will have locked it up already," said Sage.

The rush to move into African iron ore was highlighted Tuesday with Xstrata PLC's (XTA.LN) $383 million recommended takeover offer for Sphere Minerals Ltd. (SPH.AU), an Australian magnetite explorer, operating in the Saharan country of Mauritania.

The offer is the Swiss-based diversified miner's first major foray into iron ore, and other major companies are racing to secure assets in the wider region.

"The world's big iron ore provinces are probably Brazil, Australia, and western Africa," said Michael Dixon, executive general manager of Australian Mineral Economics, a consultancy. "Brazil's dominated by Vale and Anglo American PLC (AAL.LN), and in Australia it's basically BHP and Rio plus Fortescue Metals Group Ltd. (FMG.AU) and some minnows."

Rio Tinto is already partnering with Aluminum Corp. of China Ltd. (ACH), or Chinalco, to develop the 95 million metric tons-per-year Simandou deposit in Guinea.

Vale also has a stake in Simandou and announced a $2.5 billion investment in Guinea in May, while BHP in June signed a $3 billion development agreement in the country.

Steelmaker ArcelorMittal (MT) hopes to start production from its operations in neighbouring Liberia next year.

With many African countries taking shaky steps towards development and amid fears of a major supply crunch for iron ore in the years ahead, political risk is now heavily discounted, said Mike Elliott, global mining and metals leader for Ernst & Young.

"Investors are prepared to take more political risk if they're able to tap into this period of expected supply shortages," he said, citing Standard Chartered research seeing an 80 million-ton global shortfall for iron ore next year.

Sage, whose 30% stake in the African Minerals Ltd. (AMI.LN)-controlled Marampa is Cape Lambert's single-biggest investment, sees China's demand for steel changing the risk equation in the region.

China accounts for around 60% of global iron ore demand and imports around 50 million tons of the commodity every month. Understandably, the country is keen to find alternative suppliers, to reduce its dependence on BHP, Vale and Rio which account for most of the world's seaborne iron ore trade.

Iron ore prices almost doubled to $186 a ton in April when the big three forced buyers to switch to quarterly price contracts, although prices have since fallen back to below $150 a ton.

Projects that can be polished up for Chinese investment are also likely to be less price-sensitive, Sage argues, given the political importance in Beijing of keeping local steel makers in production.

"In the end the Chinese investment isn't determined by the iron ore price, they just want to secure the deposits. The price motivation is a Western phenomenon," he said.

Still, the upfront investments required are considerable. Iron ore mines require extensive rail and port infrastructure, but few African countries have such infrastructure in place and in working order.

Rio Tinto has already spent $650 million on developing Simandou and this month announced a further $170 million investment - a considerable commitment in a country where risks remain relatively high.

"Many of our clients say the problem with building a large-scale operation in Africa is that you have to build the country first," says Dixon.

The infrastructure issue may in part explain Xstrata's move into magnetite, generally seen as a less profitable grade of iron ore than hematite which is favoured by global miners, said Elliott. Magnetite requires processing in a beneficiation plant to turn it into saleable ore.

Mauritania at least has a 704-km iron ore railway in place and is close to Sphere's main leases.

"Because there's better capability for getting the ore to market, you can probably take a hit in terms of beneficiation," says Elliott. "It's easier to build a beneficiation plant than a railway."

Activity in the field can be graded by risk appetite, with more cautious mining investment funds still staying out of the field.

"The corporates are prepared to take a longer-term view and see value in things that institutional investors aren't prepared to move on," said Malcolm Southwood, a commodities analyst at Goldman Sachs in Melbourne.

At the sharpest end are buccaneering smaller companies shut out of other parts of the world by the major diversified miners and prepared to take sometimes fatal risks.

It was not long ago that nearly all of the senior management of Australian explorer Sundance Resources Ltd. (SDL.AU) was killed in a light plane crash while visiting the company's Mbalam project on the borders of Cameroon and the Republic of Congo.

[buns]

Great find JBmurc

This building interest in West Africa just gives Tony a huge selling point when advertising CFE to investors.

The talk was always there, around China looking else where from the big boys, operating in these mineral mainstays. Now offers on the table like this are actually coming through in these kinds of nations, investors should see your CFE's as a less risky prospect.

Investor preso coming up - Kind of out of the blue? Any guesses to what this could about, just a BAU update, things are going well etc etc? Or something else, a change in strategy or something? Should be good

[JBmurc]

Presentation?
I did read tony wanted to have get the marampa asset sold by at least early next year so should here penalty more on the muti drilling rigs going nuts for a solid JORC I'm sure the buyers are waiting for these as they know tony wants 500mill+ so forget about the low ball bids the DMC buy-up yet another likely quick turn round asset sale for mills



"CHINA'S voracious demand for steel will keep growing for at least a decade, helping to sustain Australia's mining boom. Chinese steel demand is still low on a per capita basis and will not peak until 2024 -- if GDP grows at about 7 per cent annually -- or a few years earlier if its rate remains higher.

"The path that China takes from here will have profound implications for the global demand and supply balance," wrote Westpac economist Huw McKay, Australian Bureau of Agricultural & Resource Economics commodity analyst Yu Sheng and Australian National University associate professor Ligang Song.

[buns]

Yeah I was told by a mate in Perth that CFE shareholders have been getting invites to an investor update presentation/free drinks on Tony.

Hmm I'm assuming early next year is in his head so he can flick out another divy around the same time frame he has the last 2 years. Being a NZ resident these don't work out to well for me, and I trust Tony can better the 20% taxable yeild he gives us from reinvesting it. However, if the divy is what the insto's want, sure keep paying them to get them on board!

[JBmurc]

Yeah I was told by a mate in Perth that CFE shareholders have been getting invites to an investor update presentation/free drinks on Tony.

Hmm I'm assuming early next year is in his head so he can flick out another divy around the same time frame he has the last 2 years. Being a NZ resident these don't work out to well for me, and I trust Tony can better the 20% taxable yeild he gives us from reinvesting it. However, if the divy is what the insto's want, sure keep paying them to get them on board!

yeah in many ways we'd be better of with a capital buyback- If everything goes to plan CFE bank balance will allow both a large buyback an good divie early next year as well as alot more cash than current market value in the bank

[float]

***********Company presentation hot off the press*****************

[buns]

Hmm after a quick glance it seems very simlar to the last one with increased value at Marampa, 100% DMC less..

I'm not holding out heaps of hope for this preso to send the SP into the sky, instead todays rises should be on the back for the tidy China data. Instead I'm keen to hear what the hell we are doing with CHM??

I think Tony presented something simlar to this when Ladie Annie was at a similar stage to Marampa in the sale timeline, and stated a sale price of something like '$200m+??" - as we know that diddn't pan out (was still a nice gain), so this may have tarnished these prospective numbers going forward.

[JBmurc]

-----posted on HC by johnfort----

I attended the Perth Shareholders Meeting and will summarise opening comments made by Tony Sage and will then summarise TS's answers to questions asked. Approx 200 people attended.

*African Petroleum. Cape Lambert has decided to delist from ASX and move solely to NSX. This will save significient ASX fees. CFE is obviously unhappy with actions and attitude of ASX. Shares are trading on NSX at around 70c which caps company at approx $1B.

*Tonkolili. Will be exporting by end of next year.

* Marampa. Annual tonnage estimated at 1B. Value of Marampa is $500M.

*Railway Line. 8M of African Minerals tonnage will go on the Marampa Railway Line. This will ensure signifient ongoing income. The remaining 2M will be Marampa tonnage.

*Port Facilities. The Port will handle 85M tonnage of which 45M will come from African Minerals.

*In Tony's words the jewel in the crown of holdings is sites 4B & 4C (Marampa is site 4A). He estimates that these are much larger and are held by the Pinnicle Group of which Cape Lambert ownes 37.2%.

*DMC. Results of holes drilled will be coming out in a few weeks. TS is very happy with this acquistion.

*Sappes. Will probably be ready for sale by Christmas. Estimated value $50M (100% owned).

*Lady Loretta. Has over $20M in bank. CFE holds 25%.

*Mayoka. Valued at $100M (CFE ownes 100%).


The following comments are from questions raised.

Chameleon. Court decision is a huge win. An offer has already been made by Murchison and negotiations are proceeding. The court appeal by IPL will delay proceedings but this is the Australian legal system.

MCC. The $80M will be paid. The company has acknowledged this debt. Negotiations were delayed by the initial announcement of the Mining Tax. Payment is expected shortly.

Marampa. Proposed sale is estimated for March 2011 quarter.

Share Price. A major shareholder held 27M and retained holdings to receive recent dividend. He has since sold 16M. Negotiations are now being held regarding the remaining 11M shares.

Potential Takeover. TS acknowledged that CFE was potentially subject to a potential takeover. He indicated we have loyal major shareholders and was confident that CFE was reasonably safe from attack.

Sale of Assets. Proceeds will be applied as follows.
1. Payment of dividend to shareholders.
2. Buy back of shares to offset takeover.
3. Invest in infrastructure costs.

Leichardt. Intends to hold asset.

[evilroyrule]

hello all,

wld one of you soph. traders be able to post a graph of the t/a on this please. interested to know whether we snapped the losing streak yet and if now geared for rise. thanks in advance.

[evilroyrule]

that chart wld look better now!

[float]

The share price is nudging a recent area of resistance at 38 cents. I was glad to see it didn't go below 34 cents the other day. It will need to close above 40 cents with good volume to be convincing in my ameteur opinion.
But then I think the only way for CFE, is up ...... question is, how fast?

Here's my chart, caution: might not be correct.

I had to draw in todays closing price as I've got the free version of incrediblecharts (delayed)

[JBmurc]

CFE presentation the other day---check it out at the CFE website--http://www.capelam.com.au/irm/content/home.html


 Australian mineral investment company, listed on ASX,
 Geographically diverse portfolio of mineral assets, and interests in mining and exploration companies,
 Cash assets of A$135 million at 30 June 2010, no bank debt and fully funded,
 Cash receivable of A$80 million due in second half of 2010, plus convertible notes of A$11.6 million
maturing inside 18 months,
 Deferred consideration receivable from sale of Lady Annie A$5 million triggered by the achievement of
certain production milestones,
 Post 30 June 2010, cash outgoing of approximately A$76.4 million to fund fully franked 7cent per share
dividend and DMC Mining off-market takeover,
 Directors & management hold 6.3% of the Company,
 Track record of delivering shareholder value.
 July 2010, A$44 million fully franked special dividend.
 October 2008, A$100 million capital/dividend payment.
 October 2007, in specie distribution of Global Iron Limited (now African Petroleum Corporation
Limited), Market Cap now A$930 million.
 May 2006, in specie distribution of International Goldfields Limited (now International Petroleum
Limited), Market Cap now A$280 million.

[JBmurc]

Also with GOLD going great of late it's good to know CFE also holds some good Gold assets -Sappes high grade Gold discovery-32% CVX,30% NIP both on the ASX well worth looking at these other assets on the low side I'd say CFE would have a min 1moz of gold with their Gold holdings longer term than should well double going off drilling results so on doing some basic numbers on 1moz resource going of other new operations cost wise $800per oz sale price $1400AUD= $600 profit say give it a third in ground value or $200= 200mill asset that CFE have 0 value added to the SP

[Corporate]

Cape Lambert project unveiled: MCC
Matt Chambers From: The Australian September 04, 2010 12:00AM

CHINA Metallurgical Group (MCC) has unveiled plans for the Cape Lambert magnetite project it bought from Tony Sage's Cape Lambert Resources.

It wants to build a 25 million tonnes a year operation just outside Karratha that will cost billions of dollars.

MCC is planning to start construction on the project in 2012, with a view to first exports from the planned Port Anketell harbour in 2015, according to documents submitted to the federal Environment Department.

The Cape Lambert Magnetite project, which is just 20km outside Karratha, was bought in 2008 for $400 million.

The project, which will consist of a mine, a 300MW power station, a desalination plant and a 10km concentrate pipeline to Anketell Point, will need a building workforce of between 2000 and 2500 and a permanent workforce of 800 to 1000. MCC is planning to produce 15 million tonnes of magnetite concentrate a year at first, with the potential to ramp up to 25 million tonnes a year.

[Corporate]

Cape Lambert project unveiled: MCC
Matt Chambers From: The Australian September 04, 2010 12:00AM

CHINA Metallurgical Group (MCC) has unveiled plans for the Cape Lambert magnetite project it bought from Tony Sage's Cape Lambert Resources.

It wants to build a 25 million tonnes a year operation just outside Karratha that will cost billions of dollars.

MCC is planning to start construction on the project in 2012, with a view to first exports from the planned Port Anketell harbour in 2015, according to documents submitted to the federal Environment Department.

The Cape Lambert Magnetite project, which is just 20km outside Karratha, was bought in 2008 for $400 million.

The project, which will consist of a mine, a 300MW power station, a desalination plant and a 10km concentrate pipeline to Anketell Point, will need a building workforce of between 2000 and 2500 and a permanent workforce of 800 to 1000. MCC is planning to produce 15 million tonnes of magnetite concentrate a year at first, with the potential to ramp up to 25 million tonnes a year.


You can draw from this that CFE will be receiving the $80m very shortly. Exciting times.

[evilroyrule]

good post, thanks corp. was wondering what the go with that 80 mil was. cfe getting a bit more press these days and it sounds from the shareholders meeting in aust. recently a very definied plan is being mapped out. happy to keep holding. wldnt surpise me to see this open at .40+ on monday given the dow on sat. like you say exciting times. hopefully back to old levels of 60 before xmas.

[evilroyrule]

ding ding! all aboard.

shld be a great day for all holders OF ALL SHARES out there. been a long time between drinks. have to celebrate the good times (with the bad!):ohmy:

[geezy]

looks like signals to fire for CFE after 40 c?

[evilroyrule]

looks like signals to fire for CFE after 40 c?

looks like might close on 40 geeza. pressure building.

[JBmurc]

good to see CFE break through the 100 day Moving.Av at 38.5 now onto the 150 day at 41.5c then later this month 200&300 day 44-44.5

recent resistance 39.5c after the late june divie payout of 7cps be great to see a close above this soon.

If you add in the 7cps divie + current SP =46c

My pick 45-46c close for the month

[Corporate]

good to see CFE break through the 100 day Moving.Av at 38.5 now onto the 150 day at 41.5c then later this month 200&300 day 44-44.5

recent resistance 39.5c after the late june divie payout of 7cps be great to see a close above this soon.

If you add in the 7cps divie + current SP =46c

My pick 45-46c close for the month

I'm with you on this one JB. Also my biggest holding, followed by VMG.

Closed at 39.5c and should be well into the 40's if the DOW plays nicely over the next couple of days.

Still cheap..it's just i've already got a few to many.

[Corporate]

also, forgot to mention it looks (to my untrained eye) that we've broken out. Volume heading up, OBV turning up and closing at the days high.

[JBmurc]

I'm with you on this one JB. Also my biggest holding, followed by VMG.

Closed at 39.5c and should be well into the 40's if the DOW plays nicely over the next couple of days.

Still cheap..it's just i've already got a few to many.

yeah I'm holding a heap to as is a few of my mates don't think we will be complaining when the SP is heading towards 80c early next year hardness thing is to keep the faith to no sell out to low my first sell target is round 80c depending on the macro of the markets

[Corporate]

yeah I'm holding a heap to as is a few of my mates don't think we will be complaining when the SP is heading towards 80c early next year hardness thing is to keep the faith to no sell out to low my first sell target is round 80c depending on the macro of the markets


I'm hesitant to get mates into stocks. What happen when it goes bad?

Dow up 120pts right now and CFE should push well into the 40c range :-)

[JBmurc]

I'm hesitant to get mates into stocks. What happen when it goes bad?

Dow up 120pts right now and CFE should push well into the 40c range :-)

Well for one I don't put them into stocks I don't also invested in,an have good knowledge of,I also keep them updated on any postive or negative ongoings an tell them when or if I plan to sell or buy more....
CFE for one has a much of are funds near half a mill for good reason --Cash backing nil debt huge untap undervalued assets

[geezy]

Can any TA guys help us out on this? CFE did not manage to close at 40 and now is back below at 38? :D

[evilroyrule]

Can any TA guys help us out on this? CFE did not manage to close at 40 and now is back below at 38? :D

hey geezy, im not your t/a guy, but 40 seems to be important resistence level. not too phased by todays action, asx fell away, and bit of profit taking to be expected. will be back to test 40 soon enough

[JBmurc]

Can any TA guys help us out on this? CFE did not manage to close at 40 and now is back below at 38? :D

Well in my T/A view CFE has hit the resistance so has yet to break it could well trend back down a few cents back in the trading range so is a bearish move till it does break an close above 39.5c which will happen the Labour taking control the negative push for CFE IMHO even though CFE has most of it's assets outside AUS but hey thats how markets work TS did come out with the big anti-mining tax statement awhile back.

[geezy]

its gonna be down tmrw with dji and labour winning , and to think i got in at .39 :(

[JBmurc]

its gonna be down tmrw with dji and labour winning , and to think i got in at .39 :(

When they annouce the MCC 80mill has turned up next couple weeks Geezy your be happier as will the SP CFE will be making the news again later this year
If anything this could well be the last chance to top up sub 40c

[evilroyrule]

When they annouce the MCC 80mill has turned up next couple weeks Geezy your be happier as will the SP CFE will be making the news again later this year
If anything this could well be the last chance to top up sub 40c

well we are having to take them to court to get it (see todays ann) but doubt a full hearing will be required. pretty black and white. im with JB. just thnk of it as an opportunity to load up. (famous last words!)

[JBmurc]

Well hopefully MCC decide to pay-up before it goes to far in court don't want a drawn out fight costing millions also MCC would be the most likely buyer of Cape lambert south the SP will come under some pressure today back to the mid 30's even let's hope MCC just playing games

[evilroyrule]

i see it as a positive, but its what the market thinks that counts. sp might hold up ok? who knows. action better than inaction!

[JBmurc]

CAPE LAMBERT COMMENCES LEGAL ACTION TO RECOVER
FINAL A$80 MILLION PAYMENT FROM MCC
Australian resources and investment company, Cape Lambert Resources Limited
(“Cape Lambert” or the “Company”) (ASX: CFE) wishes to advise the market that it
has commenced legal action against MCC Australia Sanjin Mining Pty Ltd, and its
parent company Metallurgical Corporation of China Limited (collectively “MCC”) to
recover a final $80 million payment from the sale of its flagship Cape Lambert Iron Ore
Project. This follows MCC’s failure to make the final payment to Cape Lambert in
accordance with the terms of a Tenement and Related Asset Sale Novation Deed
dated on or around 9 December 2009 (“Agreement”), and which payment is
guaranteed under the terms of a Parent Company Guarantee dated on or around 9
December 2009 (“Guarantee”).
The total consideration in respect of the Agreement was A$400 million, payable in
three tranches, as follows:
• A$240 million (60%) at settlement (paid on 6 August 2008);
• A$80 million (20%) sixty (60) days after settlement (paid on 15 September
2008); and
• A$80 million (20%) on the earlier of the grant of mining approvals or within two
years (outstanding).
A total of A$320 million has been received by Cape Lambert as per the Agreement,
however, MCC has not made the final payment of A$80 million. Discussions between
Cape Lambert and MCC to try and resolve the matter have not been successful.
“It is disappointing that MCC refuses to accept that the $80 million final payment has
fallen due and so chosen not to honour the terms of the Agreement, which has meant
that we have had to take this action to ensure our shareholders are protected,” said
Cape Lambert Executive Chairman, Mr Tony Sage.
“Given the discussions between the parties have been unsuccessful we will now let the
Supreme Court decide on the matter” he went on to say.
Cape Lambert has retained the services of Mr Martin Bennett of Lavan Legal in Perth,
Western Australia, to act on its behalf.
Yours faithfully
Cape Lambert Resources Limited

[buns]

How could this be a positive???

You would rather this be drawn out in court for months/years instead of have this $80m up front where it can be invested (share buy backs, divvy, Marampa/rail road) right now? This is not good news. It’s not only distracting, this has a good chance to alter CFE’s plans in the short/medium turn. It would have planned its back half of FY11 around these cash flows.

MCC wouldn’t allow this to go to court if they didn’t back themselves a tad, so you can’t be 100% sure we will even get this $80m.

The big thing is, it just casts a shadow over CFE’s strategy.. The most important kink in there value chain, in realising/selling these assets for increased value has again (add Ladie Annie to the mess ups…) proved problematic..

Hmm, let’s hope this gets sorted nice and quick.

[evilroyrule]

was due last quarter. what would you do, nothing? how does that protect cfe shareholders? strength of defence has little to do with letting run to court. its a blip in my opinion, but in future will keep those to myself. jst in case everyone else in the world doesnt think exactly like me.

[JBmurc]

Yes this is not good news but least we know whats going on -MCC aren't happy about the new Mining Tax ---(swan -seeking to enact mining tax as Quickly as possible)

CFE should win this MCC looking at making a statement to the AUS government ??

[buns]

Sorry mate, I think you have got me wrong.

Yes of course we are doing the right thing today, and trying to get this $80m via court, and taking it to court does protect shareholders. And from the outside looking in, with little law knowledge, it seems common sense (if the $80m receivable was based on objective terms which have been met) should prevail in this one with MCC stumping up before this gets nasty.

But step back and look at this one for 2 seconds. This represents about 40% of our Market cap! And this market cap will struggle to grow if CFE can’t prove they can easily get the cash in hand from these assets for ‘fair value’.

What I’m saying is it is not positive to CFE or its shareholders that this has even got to this state! It’s also a tad annoying; that Tony seemed to state this $80m is in the bad just last Friday (quotes from people who went to the SH meeting), now less than a week later it seems far from it.

What if we look to sell West Africa assets on similar terms, and say - have $250m payable in 3 years time, hmm what will prospective shareholders think of that after this hasn’t come through on time?

[evilroyrule]

Sorry mate, I think you have got me wrong.

Yes of course we are doing the right thing today, and trying to get this $80m via court, and taking it to court does protect shareholders. And from the outside looking in, with little law knowledge, it seems common sense (if the $80m receivable was based on objective terms which have been met) should prevail in this one with MCC stumping up before this gets nasty.

But step back and look at this one for 2 seconds. This represents about 40% of our Market cap! And this market cap will struggle to grow if CFE can’t prove they can easily get the cash in hand from these assets for ‘fair value’.

What I’m saying is it is not positive to CFE or its shareholders that this has even got to this state! It’s also a tad annoying; that Tony seemed to state this $80m is in the bad just last Friday (quotes from people who went to the SH meeting), now less than a week later it seems far from it.

What if we look to sell West Africa assets on similar terms, and say - have $250m payable in 3 years time, hmm what will prospective shareholders think of that after this hasn’t come through on time?

we all know the market cap is a bit skew wiif.

but i do agree that as a strategy this leaving funds in might not be ideal. certainly it will be cause for cfre to rethink in the future. as i see it the 80mil not even reflected in market cap, yet failure to obtain adversely affects sp! also agreed market perceives as negative. back down we go!

[Stranger_Danger]

JB,

This isn't politically correct, but do you have any personal experience in dealing with Chinese receivables?

... seen this way too many times over the years. Tough going from here.

[Snapper]

... seen this way too many times over the years. Tough going from here.

I sold a boat once and left some money in...many months and a small claims court hearing later I got back half of it (two buyers, one of them went bankrupt). It was a very valuable lesson, buyers will find all sorts of excuses for not paying. Next time they sell something with a delayed settlement they should stick in a repossession clause if payment has been unreasonably withheld. That would stop all this sort of BS.

[Stranger_Danger]

Even a repossession clause isn't a silver bullet - you can still end up with months/years of mucking around.

Cash upfront is the only way.

[Corporate]

Legal action over $3b Pilbara project September 8, 2010 - 11:52AM
.Iron ore explorer Cape Lambert Resources has begun legal action it says could stall a multi-billion dollar magnetite operation in Western Australias Pilbara region.

Cape Lambert executive chairman Tony Sage said his company commenced legal action on Tuesday night in the WA Supreme Court to recover money it says it is owed by China Metallurgical Group Corporation (MCC).

The explorer sold MCC its flagship project near Karratha in June 2008 for $400 million.So far it has been paid $320 million, with the final $80 million due at the end of this month, Mr Sage said today.

He said MCC had told him its Australian operations had cashflow problems, and could not immediately pay the outstanding amount.

But Mr Sage said he believed the Chinese state-owned company was playing games in negotiations, because on Monday it lodged plans to start construction on the site in mid-2012.

He said that internally the Chinese company had told him the project, which is planned to ultimately produce 25 million tonnes per annum (mtpa) of concentrate, would cost $3 billion.

Compared with the cost of the overall project, the $80 million his company was owed was a drop in the ocean, Mr Sage said.

I think it is just treating the Australian entities with a bit of contempt, he said.

Mr Sage said his company still had all rights to the Cape Lambert project until final settlement.

The only way to hurt them is to put brakes on their project, Mr Sage said. We can injunct the thing so no work is done on the ground, because they havent paid for it.

He said because he originally thought the Chinese group was strapped for cash his company was willing to accept a payment plan whereby they would be paid half of the outstanding money at the end of this year, with the balance within another six months.

But Mr Sage said he saw red after he called up the MCC negotiator on Monday, when news the project planned to go-ahead was unveiled, only to find out he was out on holidays and could not be contacted.

I think they are going to be in for a rude shock when they wake up this morning, he said.

In midday trade, shares in Cape Lambert Resources were down 1 cent at 37 cents.

[bung5]

Seems to me they will be paying up very quickly if they want their project to get underway

[shasta]

Seems to me they will be paying up very quickly if they want their project to get underway

Got to wonder whether taking legal action was the right way to go about it. CFE will get there money but they won't want a reputation for taking litigation against the very people they are dealing with.

I don't know what the background is, & would hope they tried to mediate things first in a more civil manner.

CFE are pretty flush with cash, so i don't see the urgency in which the legal action was taken.

[Corporate]

Got to wonder whether taking legal action was the right way to go about it. CFE will get there money but they won't want a reputation for taking litigation against the very people they are dealing with.

I don't know what the background is, & would hope they tried to mediate things first in a more civil manner.

CFE are pretty flush with cash, so i don't see the urgency in which the legal action was taken.

Shasta, I think your questions will be answered by listing to this interview

http://mpegmedia.abc.net.au/rural/resource/201009/r635916_4369633.mp3

[corporateraider]

Shasta
I think that you are right on this one. I listened to the sound clip and I took it that Sage had a paddy because he thought he had been misled. The result was litigation.
As you say, what of the relationship going forward? CFE still has Cape Lambert Sth and if they are to sell it then MCC seems the most logical buyer.

[percy]

MCC will learn to their cost you do not sign contracts you can not or will not fullfill in Australia .Court case will focus their attention to the matter.Can not see it affecting any future dealings.Sage is only helping them to realise a contract in Australia is legaly enforceable,and would expect CFE will be awarded costs.Sage has tried to help them by giving them extended terms.Trust MCC negotiator comes back from holiday fully refreshed !!

[Corporate]

Got to wonder whether taking legal action was the right way to go about it. CFE will get there money but they won't want a reputation for taking litigation against the very people they are dealing with.

I don't know what the background is, & would hope they tried to mediate things first in a more civil manner.

CFE are pretty flush with cash, so i don't see the urgency in which the legal action was taken.

I think legal action is the right move. MCC have a contractual obligation to pay CFE $80m and have since been mucking around (according to TS). I don't think TS would have commenced legal action if there was another deal pending with MCC.

[evilroyrule]

check out todays ann on the asx! we will be over 40 today. good times!!!

poo. where did those 2 million shares come from?

[bung5]

check out todays ann on the asx! we will be over 40 today. good times!!!

poo. where did those 2 million shares come from?


is it right in saying that from that annoucement they are tyring to hint that it could be worth 600 million?

[evilroyrule]

:ohmy:i wld be grateful if one of the t/a guys cld look at the below:

38.5 67 13:34
38 19 13:34
38 4,098 13:33
38 156 13:33
38 154 13:29
38.5 33,000 13:28 XT
38 18 13:27
38 146 13:27
38 28 13:25
38 7,149 13:24
38 232 13:24
38 301 13:21
38.5 26,000 13:20
38.5 267 13:19
38.5 31,272 13:19

what does it indicate if anything? how can you tell when there is a bot trading what way it is keeping the sp, up or down, or is it impossible to tell. this question is not specific to cfe, broader issue is what to make of bot action (if anything at all!)

[geezy]

we need to cross 40! i hope its tmrw? :D

[JBmurc]

LATIN RESOURCES

At the height of the mining industry's battle to have the government's super profits tax over-turned, companies of all sorts were threatening to take their exploration and development dollars offshore. One destination that kept popping up was Peru. That got Garimpeiro wondering just what was on offer there apart from the tourist route mix of alpacas, llamas and Machu Picchu.

You learn something new everyday that way. So it was with Peru. Ranked No. 1 in Latin America for ''mining potential'' by the Fraser Institute of Canada last year, Peru has long been the world's top ranked silver producer, the No. 2 copper and zinc producer, No. 4 biggest lead producer, No. 5 in gold and No. 17 in iron. And it is considered to have given up only a small portion of its mineral wealth.

But exposure to the Peruvian mining scene and its exploration upside is not exactly in abundant supply on the Australian Securities Exchange. But that is changing; a $5 million float of a Peruvian specialist, Latin Resources, is under way.

Melbourne Capital is manager for the float. Latin has been active in Peru for nearly two years, with early financial support coming from Tony Sage's Cape Lambert. Part of the proceeds of the float ($2.2 million) will be used to fully repay a convertible note held by Cape Lambert. The rest will go to chasing Latin's advanced (coastal) iron ore projects and its emerging gold projects.

[JBmurc]

Paid 46mill sold ??? 100mill+


The West Australian 11th Sept


" Word has reached the Bull that BC Iron's exuberant boss Mike Young is eyeing a new venture.
Not surprisingly , it's in iron ore although Young appears to have swapped Australia in favour of Africa in part because of Gillard's mining tax. Young , one of the most vocal critics of the tax , was non-committal when contacted by the Bull yesterday other than to say he remains focused on getting BC's half owned Nullagine Pilbara WA project into production in the next few months. FMG owns the other half.
The Bull has always wondered what Young and BC would do now that its only asset is almost up and running.
One of the iron ore assets that has captured Young's attention is Mayoko in the Rep. of Congo , which Tony Sage's Cape Lambert Resources picked up from DMC Mining for $46 million.
Young says Mayoko could fit the bill but he won't say much more - for now."

[JBmurc]

Clip on Cape lambert overview

http://www.youtube.com/watch?v=KrSbxEHXiak

Tony's got one hot P.A

[evilroyrule]

thank you JB. I have now placed a sell order for my CFE. I cannot hold shares in a co. where the CEO wears a t-shirt under a suit jacket. perhaps that explains the supressed SP

[JBmurc]

thank you JB. I have now placed a sell order for my CFE. I cannot hold shares in a co. where the CEO wears a t-shirt under a suit jacket. perhaps that explains the supressed SP

your joking right

[evilroyrule]

yes. but he looks like a bloody wide boy in that get up. time for a holiday.

[JBmurc]

yes. but he looks like a bloody wide boy in that get up. time for a holiday.

I'm sure he will after he's got the Africa Iron ore assets tidied up an sold for a mint ,I think we all will be having a holiday then when 600mill+ comes in 80cps min shouldn't have to wait to long into the new year

[percy]

thank you JB. I have now placed a sell order for my CFE. I cannot hold shares in a co. where the CEO wears a t-shirt under a suit jacket. perhaps that explains the supressed SP

I am off down to the shops to buy a few T-shirts.I just loved the pretty birds. Will use my CFE divie.

[Corporate]

FEL not affected by Cape Lambert litigation - Sage
0 COMMENTS | COMMENT PRINT EMAIL |

By: Esmarie Swanepoel
24th September 2010
TEXT SIZE
PERTH (miningweekly.com) – Mining personality Tony Sage on Friday brushed off speculation that ASX-listed FE Limited (FEL) would have difficulty arranging iron-ore offtake agreements with the Chinese market.

Sage, who is the nonexecutive chairperson of FEL, was responding to comments made yesterday by takeover target Padbury Mining’s chairperson John Saunders, who said that litigation initiated by Sage against a major Chinese State-owned enterprise could adversely affect FEL’s ability to arrange offtake agreements with that country.

Earlier this month, Sage, through ASX-listed Cape Lambert, filed legal action against Metallurgical Corporation of China to recover a A$80-million payment from an iron-ore asset sale.

However, Sage told Mining Weekly Online on Friday that he was currently in negotiations with three separate Chinese firms, relating to deals with companies in which he was involved.

“It makes no difference,” he said.

Meanwhile, Sage noted that FEL would continue to pursue its takeover of Padbury Mining, and would perhaps look to raise its offer for that company, subject to board approval.

Padbury Mining on Thursday advised shareholders to reject the FEL offer, saying that FEL was seeking to gain control of the company without paying a premium.

“On a number of methods, the implied value of the FEL offer is at a discount to Padbury’s share price, and FEL should not be permitted to gain control of your company without paying a premium for control,” Saunders told shareholders.

FEL was currently offering one of its own shares, along with 1c in cash, for every 13 Padbury shares held.

[Corporate]

However, Sage told Mining Weekly Online on Friday that he was currently in negotiations with three separate Chinese firms, relating to deals with companies in which he was involved.


I wonder what company that is? One day soon, we will get a trading halt and Marampa will be sold for $500m. I hope they don't let Mayoko go too cheaply!

[COLIN]

Well I hope that something good happens very soon, otherwise I will have to have a serious talk with myself and ask why I should continue to hold CFE which have gone nowhere for quite some time, when I could have switched my cash to much more lucrative plays. There are certainly plenty of these on the boil, at the moment.

[corporateraider]

I suspect that the 500 for Marampa will look very like the 300 that Sage was looking at for Lady Annie.

[steamroller]

Interesting undervalued stock, can anyone provide some TA on the current situation? Just looking for the right time to jump in...

Cheers

[Phaedrus]

Can anyone provide some TA on the current situation? Just looking for the right time to jump in....
It has already been done, Steamroller. Click here (http://www.sharetrader.co.nz/showthread.php?6373-CAPE-LAMBERT-(CFE)-50-capital-return&p=313939&highlight=#post313939)to see the chart posted a few weeks ago on page 44 of this thread. If you are unable to update this chart, cannot draw trendlines or do not have the means of generating a 90 day simple moving average just say and I will post them here for you.

[steamroller]

SSO and MA look positive I think... what charting tool do you use Phaedrus?

[Lego_Man]

Incredible Charts is free and good enough for your Joe Average TA acolyte.

[steamroller]

I've been using that for a few days, but some of the indicators are pretty hard to figure out!

[soulman]

Incredible Charts is free and good enough for your Joe Average TA acolyte.

I thought IC are free trials for a month and then they want some cash for the service.

[Lego_Man]

Maybe, but mine still functions and i havent given them anything. I think full functionality is nerfed under the trial, when you subscribe you get all the bells and whistles/live data etc.

[Phaedrus]

I use MetaStock software but there are several free charting options available to you. For example, this one is from FTcharts :- http://markets.ft.com/markets/interactiveChart.asp There are 4 buy signals here.
(1) Trendline break.
(2) Break of SMA90.
(3) Slow Stochastic oscillator (100,3) breaking above 50.
(4) OBV making a new high.

http://i602.photobucket.com/albums/tt102/PhaedrusPB/CFEftcharts.gif

Did you go back and look at the chart on page 44 of this thread? You can see that indicators set up then triggered buy signals a couple of months ago and these are now well in profit. That was "the time to jump in."

[STRAT]

I thought IC are free trials for a month and then they want some cash for the service.No Soulman. I use their free version. The pay version has a few more bells and toys and the data is more up to date. ( free version updates the following day )

[Lego_Man]

The free version has data updated to t+2 hours i think?

[Phaedrus]

The free version has data updated to t+2 hours i think?'Fraid not LM.
Today, Australian stocks were "updated" with yesterdays data about an hour before the market closed.
Right now,the "latest" results showing for NZ stocks are from 2 days ago!

[Lego_Man]

Cant be...i'm looking at GBE right now mousing over the latest candlestick, shows exactly the date, volume, price range (today's) as i get on ASB securities...

[Phaedrus]

Well, its nearly 10pm and there is still no candle for today for GBE when I look. Have you registered only recently? I think you get their Premium "live" data free for a little while.
Incrediblecharts themselves say that their free data is delayed by 8 hours.....

[Lego_Man]

Well, its nearly 10pm and there is still no candle for today for GBE when I look. Have you registered only recently? I think you get their Premium "live" data free for a little while.
Incrediblecharts themselves say that their free data is delayed by 8 hours.....

I got a new computer recently and just reinstalled it, that probably explains it...

[buns]

Guys this is a CFE page.. Not a TA software yarn

[bung5]

Share buyback announced. This should get the share price going

[geezy]

CFE passes 40, shud be a buy now , no?

[Corporate]

Fantastic move by Tony and the CFE board. The announcement was late in the piece, so tomorrow should be a cracker.

Tony doesn't muck around, and this is why I doubled my holding at 35c.

No shares have been bought back and the price jumped 40c...show's that someone was playing games.

[percy]

The share buy back is positive.The issue of 8mil unlisted options exerciseable at 45cents on 30/9/2011 is very positive for those receiving them,but is it positive for shareholders?

[Corporate]

The share buy back is positive.The issue of 8mil unlisted options exerciseable at 45cents on 30/9/2011 is very positive for those receiving them,but is it positive for shareholders?

I'm okay with this. The board is doing a good job, even though it is not yet reflected in the share price. The directors still have to pay the exercise price.

[geezy]

buy back only starts on the 22nd , pity NZO didnt have such a huge volume and jump as CFE when they announced.

[buns]

A huge vote of confidence cash is not an issue with these guys. They have just been hit with $80m coming in later (or maybe not at all), then they announce this - Or does this mean the MCC thing is a shoe in.

Oh there is a possibility for a stream of announcments now, so many projects due to report back, chm,mcc, any other new M&A. If we get this, and the dow carrys on as it is. We could be back into the 60's come xmas.

Good times with CFE

[percy]

Small article in www.theaustralian.com.au/business city beat "Cape Lambert shares soar on buy back."

[JBmurc]

They wouldn't be announcing a Cap buy back of upto 10% of outstanding shares if they didn't have major confindence of some more good asset sales
-43c SP an not one share brought back ----$1+ SP is coming IMHO it's only a matter of time.... 80mill payment sorted> the Marampa JORC ( due in around 1-2 weeks )> potential Mayoko IPO or trade sale > Sappes Gold asset sale will be the key drivers to hit $1sp the buy back a good soaker for the fool sellers that can't do the numbers

[Corporate]

They wouldn't be announcing a Cap buy back of upto 10% of outstanding shares if they didn't have major confindence of some more good asset sales
-43c SP an not one share brought back ----$1+ SP is coming IMHO it's only a matter of time.... 80mill payment sorted> the Marampa JORC ( due in around 1-2 weeks )> potential Mayoko IPO or trade sale > Sappes Gold asset sale will be the key drivers to hit $1sp the buy back a good soaker for the fool sellers that can't do the numbers

Well put JB. I'm holding mine tight and am tempted to get really donkey deep. I'm at about 20% of my portfolio at the moment.

[JBmurc]

I'm round 30% an in my mates it's 40% thats how confindent I'm on CFE future

[COLIN]

I'm round 30% an in my mates it's 40% thats how confindent I'm on CFE future

JB: I'm also tempted to add to my CFE holding (which may seem surprising, after my expressions of impatience, a month or two ago). However, I certainly won't be as "daring" as you. I think 10% of my portfolio would be the max I would be prepared to go with any individual share, at any time, having regard to the fact that there is no such thing as a "dead cert" - as you would acknowledge, of course.

Anyway, may good fortune rain on you.

Cheers.

[gazprom1]

I'm round 30% an in my mates it's 40% thats how confindent I'm on CFE future

Hi JB,

Missed your posts the past week or so. CFE at 16.65% of my portfolio. Will probably not add unless it falls back dramatically. 2nd largest holdng. There has been some negativity surrounding the performance of the stock but it owes me, after the capital return, 28.5 cents.....more than 50% up and I am not complaining. Some news flow is now key for it to move forward.

Silver JB - it is a good thing. Bullion has been an incredible performer. Sitting at US$23.19 on friday....is $30 on the cards by Xmas??? Would not be betting against it especially with the fragility of the currency markets. The chinese must be buying truckloads.

Keep the house news coming.

Gazprom

[Corporate]

We are onto a good thing here...there are those that know (and those that don't) about Marampa, Mayoko, Sappes, the MCC $80m...but I think Pinnacle may turn out to be a real treasure!

Tony is the ultimate deal maker and what a display of faith - first he loads up another 4-5m shares himself and now a buy back. He wouldn't buy back shares if he new he'd only make 10% on it. He goes for the game changer and is pointing out to everyone that CFE is worth much more than 40c.

When all of these deals crystallise we will really see the benefit of this buy back.

[geezy]

Has the 80m been recovered? last i read it was just goin to court. was there any news?

[JBmurc]

Has the 80m been recovered? last i read it was just goin to court. was there any news?

I'd say we will here something this week, I'm confindent with the buy-back news that tony is also on the 80mill coming through
- the JORC on Marampa will get some market an buyers attention will it be a 300mill or 600mill asset to CFE the 10% buy-back will bring the Shares outstanding back to the 570-580mill
-the next 6 months will be best of CFE history IMHO $1-$2 SP range for 2010 too much money too many assets not to be

[JBmurc]

Tony did say he would do a buyback once Marampa was sold , so we have the Buy back starting after the 22nd OCT now we all know Tony an the boys know a good buy from their history (like NIP returning 100%+ in the short term ) Now they think buying their own shares is a even better investment as a company making deal is coming together as planned ? buy before everyone else is fighting to get a piece

Like I said many many weeks ago CFE will command a billion dollar market cap one day soon

[geezy]

a billion sounds a bit far fetched yet at the moment but nothing is impossible. beter load up then :) looking forward to the 80 million news .

[JBmurc]

I think it's more than likely if what assets CFE have an what prices this assets have been sold for -Marampa iron ore- alone could reach a 600mill sale price yes 1 billion as a market cap or round a 1.80sp sounds abit over top today but numbers are numbers if a company proves time n time again it has a great investment style a makes large profits time after time the market cannot but listen this time next year CFE could well have a mountain of cash at the bank 500mill+ an assets that will finally be priced closer to their fair value

[COLIN]

I think it's more than likely if what assets CFE have an what prices this assets have been sold for -Marampa iron ore- alone could reach a 600mill sale price yes 1 billion as a market cap or round a 1.80sp sounds abit over top today but numbers are numbers if a company proves time n time again it has a great investment style a makes large profits time after time the market cannot but listen this time next year CFE could well have a mountain of cash at the bank 500mill+ an assets that will finally be priced closer to their fair value

But if the prospects are so compelling, why isn't the market reflecting it? I'm perplexed.

[JBmurc]

I don't think the market really understands CFE all at well an gives no goodwill to it's history or future-- remember Lion select group they much like CFE would invest into jnr mines an help them get into production, JORC etc then sell out for a tidy profit they also use to trade very cheap to NTA I don't know of any other company like CFE that don't want to operate a mine but rather buy an sell them & find new discoveries then on sell so I guess it does look to many like a gamble play (IMHO I think It's bloody great idea)
Now if CFE only owned the iron ore discoveries in Africa an was going to be a producer the market would have other Iron ore miners&iron ore prices to price off an get some kind of fair value
-The market seems to only value CFE once a deal has been done an not give much value to assets held ,I do think the market will value closer to fair value as the deals increase an the market understands CFE style isn't as risky as it first may seem-

[geezy]

JB, i like the idea how CFE manages to pick the best assets to purchase and dispose at a tidy profit, but i think the market does not really warm up tho that idea for a miner who operates this way. I believe a steady production coupled with healthy reserves is currently what the market looks at.

nonetheless , i still like CFE , with the money returned to shareholders (50%) so far and with a share buy back.


i just hope all the millions in valuations are correct! :)

[JBmurc]

Yes an thats why it's such a great buy it's not well understood but really when you think about it has a clear path to growth though capital growth of assets without the risk of going into production staffing etc
-
maybe at some time in the future they'll decide to keep royalties on assets sold to give them a ongoing cash-flows once the discoveries are gone into production

There like a developer of resources



i just hope all the millions in valuations are correct! :)[/QUOTE]

[buns]

I don't know if CFE's model will allow them to ever trade at full value unless they get into production, or there a lots of similar asset sales all around them. And this just isn't going to happen in SA and Congo..

I understand Tony, in how he see's the most value being added in the early stages of these projects, but the fact there is still more value (over a longer period of time) to be had in production makes me wonder if this is the way to go. CFE then becomes a much safer company in invest in, people understand the business, and it's future looks more rosey.

The buy and sell theory is risky, what if key management at CFE leave, people who do these deals? What if CFE gets a bad rep (MCC, oil/death story in congo) , how about if the deals try up? CFE really needs another Marampa on the go as soon as it's sold this one, then again and again and again, otherwise they will get to the point where they are just holding lots of cash, or even worse, fetching for asset sales which aren't quite worth it. West Africa is new right? Surely if these sales come off, going forward profits from sales will fall with time as West Africa gets more developed (more asset buyers)..

I'm not sure, how to get around this? Turn CFE into an all in one shop? Sell to a seperate closely held company who can do all of this?


CFE is my fav stock, but it's future in the long term, actually even medium worries me. In the short term, even if it trades at 70% of it's full value i'll be happy.

Who here would hold CFE post Marampa/Makyo and the dividends to follow if they did not get any new assets, and the current ones(sapes,pinnacle etc etc) were not show in the SP, i.e it traded at cash/rec's?

[JBmurc]

I'd for sure still be holding after a Marampa/Makyo sale which could well be details annouced late this year on the buyers I have great faith that CFE management to be smart with their funds held they have shown this to this point just like they have proved to look after Shareholders with capital payouts, Buyback if they make a decision I'd don't like say buying a hotel in Congo selling all their assets far to cheap etc then I'll drop them quick smart till then CFE is much more than just a nice cash balance an if don't trust management to carry on doing a good job It's best to sell out personal I can't wait to the sell out of Marampa/Makyo I'd be alot happier to see CFE 500mill+ in the bank an for CFE to look more into U308,Silver investments another one should remember is all of the jnr resource shares CFE have holdings or loans with in LRS,CVX,VWM etc if say one of these find the mother lode Guess who will first to takeover an get full value on the asset

[JBmurc]

CFE -Buyback can start from today some 10% of shares outstanding or 54,059,653 shares over the next 12 months now as CFE mangerment knows how much good assets CFE holds I'm sure the bulk of these will be brought sooner rather than later...should well happy CFE break out on good news even harder so new 6 month highs on the card for 2010 an with 2011 the year of the real re-rate towards $1+

[bung5]

The investor presentation that came out yesterday for marampa looks very promosoing. Especially if they do a trade sale with retention of a production royalty .

[Xerof]

Trouble with buybacks is they remain optional, not compulsory, and front-runners usually end up being impatient sellers

I still hold a small parcel of these, after selling the bulk at 60, and am happy to have done so.

[evilroyrule]

praise be to jeebers. never thought this bastard was going to move. whats on the board miss ford?

[geezy]

big jump today on bigger volume, maybe they are wiping out those under 500s as they claimed . :)

DISC , hold and will add more

[bung5]

Could be annoucment about Marampa about to come out. Also some other buy outs in the region that getting people interested

[steamroller]

Marampa JORC update soon?

[JBmurc]

Hey fellas, over half my holdings are in this baby:t_up:. Ive been watching charts and was expecting a bounce upwards. (I look at Incredible Charts once a month). If you look at ASB Securities basic charts on the RSI, slow Stoch and fast Stoch, it was appearing a higher low was happening this week then upwards again. My personal opinion is high 40s then SP relaxing to mid 40s.
As soon as this share gets over a dollar, I will be selling some to get my super fast bad arse V8:t_up:

Yeah you shouldn't wait long before getting a good Xr8 karlos personal if CFE hit $1 I'll be upgrading my 4wd terrano 200kms on the clock to a near new AWD terriotory an spend a few dollars on new parts for the XR8