CAPE LAMBERT (CFE) 50% capital return

[JBmurc]

CFE - Settlement of Sale of Lady Loretta Interest

http://stocknessmonster.com/news-item?S=CFE&E=ASX&N=535777

Intereting comments from TS


the Company has close to $220 million in liquid assets and receivables, which places us in a very strong position to develop our three iron ore assets in West Africa

very nice add in the MCC payment ..(or is this already added in? )

got off HC... MCC know they have to pay....just timeframe the prob...not in the bag but if the judge doesn't tell MCC to sort their s**t out quick smart and pay CFE I'll be selling all my shares in disgust

September 8 2010.

>>>>Iron Ore miner Cape Lambert Resources Limited is taking legal action against a Chinese mining company to recover $80 million.

Cape Lambert has commenced legal action against MCC Australia Sanjin Mining, and its parent company the Metallurgical Corporation of China to recover the money,

It is the final payment as part of a $400 million deal for the sale of the Cape Lambert Iron Ore project.

Cape Lambert executive chairman Tony Sage says the company tried for months to resolve the issue but negotiations were unsuccessful.

He says the companies were unable to agree on a timeline.

"When MCC said they would rather pay us in instalments," he said.

"We started negotiating on that basis so their offer was $20 million, $10 million, $10 million, $10 million and $10 million, and a $40 million over the next 12 months.

"We disagreed with that slightly, we wanted $40 million and the ten instalments paid before Christmas."<<<<<

Link- http://www.abc.net.au/news/stories/2010/09/08/3006197.htm?site=northwestwa&source=rss

[buns]

Well how this share trader favourite has fallen..

Anyone have any thoughts on Tony's constant buying?

He's done a number of very small on market purchases, all over a few weeks. It's like he watch's the SP and thinks a small purchase here and there will stop it falling or turn it upwards. Why else would he be doing so many small transactions?

Hints of desperation I think.

In my books Tony is quickly losing investor confidence, crucial for all companies but more so in a company like CFE where investor returns are determined at the board/trading table, instead of what they extract from the ground.

[JBmurc]

Well how this share trader favourite has fallen..

Anyone have any thoughts on Tony's constant buying?

He's done a number of very small on market purchases, all over a few weeks. It's like he watch's the SP and thinks a small purchase here and there will stop it falling or turn it upwards. Why else would he be doing so many small transactions?

Hints of desperation I think.

In my books Tony is quickly losing investor confidence, crucial for all companies but more so in a company like CFE where investor returns are determined at the board/trading table, instead of what they extract from the ground.

Yeah or he's very confindent on deal to go through on Marampa etc soon I certainly hope so have sold some of my holding at 63 still holding a few long termer am getting sick of the wait though..so many projects so much upside..but very little action of late

[Corporate]

CFE is getting back to buy territory when the tide turns.

I place a conservative minimum value of 41.5c to CFE. I calculate this by taking the $780m in the latest presentation less $80m receivable in dispute, reduce the value of marampa by $350m (I don't rate the project), and then apply a 20% discount to the remaining value for market sentiment, discount to NTA etc.

[buns]

Ha he has had another wee stab today - $72k worth

His 6th since the start of March I think, and from memory he has always bought on down days..

[buns]

I was just trying to get my head around why he has been buying lots of small packets over a very short period of time, on days CFE goes down. Sinking ship or not, why buy in this fashion?

I’ve built a theory that TS has a short sighted strategy, hence got the idea that he is doing these buys to quickly try and reverse the current falling share price.

I still hold a small portion of these (regrettably), after selling nearly all my holdings after the buyback debacle.

Good luck with PEN

[Corporate]

Tony has built a pretty impressive fortune. I don't think he's done that through being short sighted!!

[Corporate]

I think the tide is turning & got in yesterday at 48c.

[Snapper]

I think the tide is turning & got in yesterday at 48c.

Great timing, up a few cents today after yesterday's news. I've been holding during the ups and downs but would love to develop a better sense of timing...oh well...

[ratkin]

Think rise has more to do with insider trader website picking it as stock of the week . They always shoot
up on the day of pick , must be easy money for those who know the pick in advance

[Corporate]

Great timing, up a few cents today after yesterday's news. I've been holding during the ups and downs but would love to develop a better sense of timing...oh well...

Yeah I rode CFE from 35c and 40c up to 72c, and sold at 68c.

[bung5]

any reason it was stock pick of the week?

[JBmurc]

any reason it was stock pick of the week?

I'd say the buying from TS would have helped
get e-mail's from the inside trader now and again they always like mgmt buying up their own shares

[Corporate]

good story for those interested

http://www.theaustralian.com.au/business/mining-energy/cape-lambert-targets-west-african-iron-ore/story-e6frg9df-1226059224588

[JBmurc]

good story for those interested

http://www.theaustralian.com.au/business/mining-energy/cape-lambert-targets-west-african-iron-ore/story-e6frg9df-1226059224588

Yeah CFE becoming a major Iron ore player in West Africa lets hope they can get good JORC up for both their major Iron ore projects too get good sale price well before 2013 -BHP RIO both believe Iron ore price will stay high till 2013 at the earliest

-http://www.reuters.com/article/2011/02/19/us-bhpbilliton-idUSTRE71I3YK20110219


brought more at 48c target still $1+ est 1yr hold

[JBmurc]

West Africa is the 'new Pilbara'.

Brendan Ryan | Fri, 03 Jun 2011

[miningmx.com] -- WEST Africa is shaping up as the next Pilbara in terms of the iron ore business according to Tony Sage, executive chairperson of ASX-listed mineral investment company Cape Lambert Resources (Cape Lambert).

Cape Lambert's strategy is to identify and acquire projects it considers promising, and then take them to the feasibility stage before selling them on to other parties for development.

"We don't do mining. We either sell the project or spin it out. It is a completely different business model to the conventional mining development approach," Sage said.

The company is currently working on three iron ore projects in West Africa - a region which Sage said had become a "battleground" between the Chinese and the major Western diversified mining groups.

He said: "You now have the three major iron ore producers - Rio Tinto, BHP Billiton and Vale - in there plus Xstrata, which is looking to get into the iron ore business".

"They are all competing against the four major Chinese mining groups who want to establish iron ore mines in the region, because China is extremely unhappy with the extent of the control exerted over the iron ore market by Rio Tinto, BHP Billiton and Vale".

"But those three groups still have some 150 years of life left in their operations in Brazil and the Pilbara, so you have to ask the question: why are they spending around $30bn on iron ore assets in West Africa?"

According to Sage, the answers are that the mining environment in Australia is becoming less attractive while the resource heavyweights have realised they cannot allow Chinese mining groups to become well established in West Africa.

"In Australia wage costs are becoming prohibitive, while the lack of skilled staff and the introduction of new taxes are all making the country less attractive as a mining destination."

"So far a total resource of around 200 billion tonnes (bn t) of iron ore has been identified in West Africa, of which around 80 bn t is JORC compliant. If the Chinese manage to pick up a lot of that, then in 20 to 25 years they will not be importing iron ore from Western Australia or Brazil."

Sage acknowledged the risks inherent in operating in West Africa, and commented that the key factor for success in the region was access to rail and port infrastructure to be able to export the iron ore.

"Those projects without an infrastructural solution or which are not close to the coast will struggle," he said.

http://www.miningmx.com/news/ferrous_metals/west-africa-is-the-new-pilbara.htm

[Beagle]

I also got out at 68 cents recently which with the benifet of hindsight was brilliant timing. Not trying to rub salt into the wound of current holders or people who have recently bought back in but I brought up the chart today and its looks bad from a technical perspective. 45 cents and a clear trend down, under both 30 and well under 100 day moving averages, we are still waiting on the long awaited $80 million settlement and really in this latest risk off environment I can't see any hurry to get back in yet. Is there something I'm missing ?

[JBmurc]

market cap is only 266mill do any study on Iron ore at the moment look at CFE assets JORC on marampa to be out very soon CFE stated a sale value 300mill-500mill for Marampa depending on I.O prices JORC--- CFE now has three major Iron ore projects Marampa is only one add in their cash pile + listed shares etc

[Beagle]

Thanks for that. I agree there's value there but struggle to get my head around the buy-back execution, perhaps I just need to move on from the questionable execution of that stratagy ?
Quite aside from the present risk-off environment currently prevailing in world markets which looks set to linger a bit from where I sit the other question in my mind is do we need to see a considerable period of more political "stability" and I use the word loosly, in the African continent before any value can be crystalized from that region after all they have been marketing that project in a fairly robust manner. Appreciate your thoughts.

[JBmurc]

Thanks for that. I agree there's value there but struggle to get my head around the buy-back execution, perhaps I just need to move on from the questionable execution of that stratagy ?
Quite aside from the present risk-off environment currently prevailing in world markets which looks set to linger a bit from where I sit the other question in my mind is do we need to see a considerable period of more political "stability" and I use the word loosly, in the African continent before any value can be crystalized from that region after all they have been marketing that project in a fairly robust manner. Appreciate your thoughts.

Yes there certainly is risks involved investing in Africa ,but do much study on Iron ore going forward puts the area a core target for the major consumers of Iron ore being mainly China(some 50%+).. then look at the major producers Vale,BHP,RIO It's well known the major consumers aren't happy with the big 3's control of the Iron ore price and need to secure major discovery to feed their own consumers (where talking the next 50yrs+) currently you have both the consumers an producers starting to invest in major discoveries in Africa(which to the last few years has been untapped)---CFE are very well placed to do well in the fight to gain control of the best areas...

[Huang Chung]

Thanks for that. I agree there's value there but struggle to get my head around the buy-back execution, perhaps I just need to move on from the questionable execution of that stratagy ?
Quite aside from the present risk-off environment currently prevailing in world markets which looks set to linger a bit from where I sit the other question in my mind is do we need to see a considerable period of more political "stability" and I use the word loosly, in the African continent before any value can be crystalized from that region after all they have been marketing that project in a fairly robust manner. Appreciate your thoughts.

The African continent is a very diverse place.

Black empowerment and nationalisation issues in the south and south east. Regular civil wars and rebel factions in the east, and the current power struggles in the north. I don't think the power struggles in places like Egypt, Syria, Yemmen etc have much to do with places like Camaroon, or the Congo.

[Beagle]

Thank you gentlemen, I appreciate you sharing your thoughts. As far as I'm concerned its not a question of "if" I re-invest in this company but when. At the minute the market seems to be saying there doesn't seem to be any hurry, I acknowledge this could change rapidly if there was a major announcement but from a technical perspective the chart looks like there's some more pain to be had in the near future. I can't be bothered catching a falling knife untill there's more stability.

I also believe the methodology by which the buy-back was executed was highly questionable and the directors credibility must be impacted at least to some degree by same. The market seems to be expressing its disappointment with same and in the lack of closure of the $80 million matter and any news on crystalization of value elsewhere. Having said all that its definitly on watch-list to re-invest.

[Beagle]

hmmm 39.5 cents down from 45 cents when i last checked 10 days ago. Theories anyone ? or is this just a case of risk off pending the imminent Greece collapse and small miners and their ilk are not flavour of the month ?

Must be time to start buying sometime soon ?

[JBmurc]

hmmm 39.5 cents down from 45 cents when i last checked 10 days ago. Theories anyone ? or is this just a case of risk off pending the imminent Greece collapse and small miners and their ilk are not flavour of the month ?

Must be time to start buying sometime soon ?

Tax loss selling + Fear +sick of waiting on good news holders=39.5c crazy times on the ASX doesn't seem to matter if the US market are up or down ASX just keeps ticking down the bottom in the CFE SP who knows I really didn't think we'd see the 30's again but here we are.

[JBmurc]

PERTH (Dow Jones)--Australia's Cape Lambert Resources Ltd. (CFE.AU) said it will start a sales process this month for its key Sierra Leone iron ore asset, which could
lead to a A$700 million initial public offering in London by October.

Cape Lambert plans to offer a cornerstone stake in the IPO to one of several industry groups that have expressed interest in the company's Marampa iron ore project, Executive Chairman Tony Sage told Dow Jones Newswires in an interview.

Formal discussions with interested parties, including Chinese and South Korean steel mills, and "two Eastern European groups", will begin later this month once Cape
Lambert releases an upgraded resource estimate for Marampa, Sage said.

Bedding down the IPO will likely take three or four months, and Cape Lambert is targeting an October listing on London's AIM market, Sage said. The company plans a "full marketing tilt" for the IPO, including a
prospectus, in the second week of September, he said.

Cape Lambert may retain a 25% stake in the IPO, with the cornerstone investor taking 30-40%, Sage added.

The new company could be valued at A$500 million to A$700 million, based on recent deals in the emerging iron-ore region of West Africa, he said.

In February, Cape Lambert flagged the sale of Marampa by June, but the process has been delayed by a longer-than-expected drilling program on Marampa, Sage said.

At that stage, Cape Lambert was considering either a trade sale or IPO, but it now believes better value will be realized from a new listing.

Cape Lambert believes Marampa is capable of exporting 5 million metric tons a year of iron ore from 2013, based on a US$655 million mining development that would access nearby rail and port facilities operated by African Minerals Ltd.

The latest sale plan will test the market's appetite for undeveloped mining assets after another IPO recently fell through.

Resourcehouse Ltd., controlled by Australian billionaire Clive Palmer, pulled its US$3.6 billion Hong Kong IPO earlier this month, citing weak global market conditions.

"It all depends on market conditions; if there is no way for a float to go forward, we'll just put it into production ourselves," Sage said.

Sierra Leone is one of several West African countries trying to establish a major iron ore export industry, following recent investments in the region by Chinese groups and global diversified miners Rio Tinto PLC (RIO), BHP Billiton Ltd. (BHP.AU) and Brazil's Vale SA (VALE).

[Beagle]

^^^ Interesting, thanks for that. I see CFE has started advertising itself as a company on channell 95 CNBC. Not sure how paying cold hard cash just to make the market aware of you as a company is consistent with boosting shareholder's funds ?

[buns]

Bang on Rodge - Pretty much CFE has paid a sum of money to sit on TV and tell the whole world it does not understand how to create shareholder value.

I sold the remainding portion of my CFE's around 44c - I'm declaring that as one of the best trades I've ever done.

[Huang Chung]

Oh God...saw the last few seconds of the commercial. Have to agree with your sentiment Roger.

Quite surprising in my view, given the already high profile of TS in the Perth business community.

[asc4]

The last company advert I saw on cnbc was Navigator Resources, could be a great sell indicator.

[Entrep]

And CCC... definite sell indicator!!!

[Beagle]

Thanks Guys. Of course said advertising couldn't possibly have anything to do with the fact that Tony has a whole bunch of options coming up for excercise in October ? from memory. Excercise price is 45 cents, a blatant attempt to raise awareness of the company and create value for himself ? or am I being just a little too cynical ?
How many market "presentations" has he held now for stockbrokers, sorry i've run out of fingers and toes :)
I for one am not convinced its possible to monetise value out of Africa at present with the incredible political instability in that region. How easy for instance would it be for the region's to have a change of control and simply nationalize assets ? Buyers arn't stupid, there's an incredibly large risk premium in the market now for extreme risk political area's and if any asset can be sold in that region it'll be at a real bargain price. That's why the shares are where they are IMO.

[JBmurc]

yes fair enough point Roger, fact is Tony has brought many millions dollars worth of CFE shares at much higher that 45c

I think your find their has been many billions of dollars invested in Africa resource projects in recent times

yes CFE has been sold down on it very poor performance on expectations many held which were very high in many cases

CFE will not be going broke any time soon ...like many other shares CFE willbe getting hit by Tax loss sellling ,even though without some good news Jorc ,sale of more assets etc CFE will stay below 50c

[bung5]

Things can change very quickly if the 80 million court case comes thru. Considering that is 1/3 of CFE market cap and seems it has been completely written off by the market.

[Beagle]

No I don't think so bung5 I think the market is calling Tony's theoretical "sales bluff" so-called valuation for African assets B.S.

[bung5]

No I don't think so bung5 I think the market is calling Tony's theoretical "sales bluff" so-called valuation for African assets B.S.

The market has no value on these assets either. not even the valued payed for them.

[JBmurc]

 Follow on Marampa metallurgical test work program in progress, aimed at amongst other things, reducing processing costs.
 Metallurgical test program is being supervised by independent, engineering group, Bateman Engineering Pty Ltd.
 Modelling by JK Tech Pty Ltd indicates a reduction of up to 75% of grinding power by adopting conventional crushing and screening, and ball milling.
 Iron recovery to concentrate increased to 93-94% (compares to 84- 85% in Scoping Study), whilst maintaining high mass recoveries (42-46%) and concentrate iron grades (63-65% Fe).
 The improved mass and iron recoveries and decreased grinding power will translate into lower concentrate production costs.
 Release of Marampa resource update scheduled for the first week of July whilst the independent geological consultant finalises the resource estimate.
Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (“Cape Lambert” or the “Company”) is pleased to update the market on improved metallurgical test results from its 100% owned Marampa Iron Ore Project located in Sierra Leone, West Africa (“Marampa Project” or “Marampa”) (refer Figure 1).
On 18 March 2011, the Company announced the results of the Marampa Scoping Study (“Scoping Study”). The Scoping Study was prepared by independent engineering group, Bateman Engineering Pty Ltd (“Bateman”).
Since the completion of the Scoping Study, Bateman has continued to manage a follow on metallurgical test work program, which amongst other things is aimed at reducing power requirements and optimising concentrate iron grade and recovery.
Test results to-date indicate that grinding power requirements are likely to be 75% less than assumed in the Scoping Study. This will result in a reduction in processing operating costs. Comminution modelling carried out by JK Tech Pty Ltd on the primary ore types suggests that optimally, the crushing and grinding circuit should consist of a typical three stage crushing and screening plant, which will feed smaller ball mills instead of larger and higher power consuming SAG mills, as assumed in the Scoping Study.
In addition, samples of the higher grade primary ore, which are representative of each of the Matukia and Gafal West deposits have been subject to wet, high intensity magnetic separation (WHIMS) “Locked Cycle Testing” in accordance with the process flowsheet developed in the Scoping Study (“LCT Testing”)

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

EQUATORIAL RESOURCES JOINS CAPE LAMBERT RESOURCES AS MAJOR SHAREHOLDERS OF AFRICAN IRON LIMITED
Australian resources and investment company, Cape Lambert Resources Limited (ASX:CFE) ("Cape Lambert" or "the Company") notes with interest the ASX announcement released by Equatorial Resources Limited (ASX:EQX) ("Equatorial") this morning in which Equatorial advised that it has acquired a stake of 19.9% in African Iron Limited (ASX:AKI) ("African Iron").
Equatorial advised that it acquired this stake in African Iron via off-market transactions at an average price of approximately 30 cents per African Iron share. This represents a 40% premium to the 5 day volume weighted average price of 21.04 cents per African Iron share.
Cape Lambert currently has a 25% interest in African Iron.
African Iron holds an 80% interest in the Mayoko Iron Ore Project ("Mayoko") in the Republic of Congo, West Africa.
Mayoko comprises a 1,000km2 exploration licence located approximately 300km north east of the Atlantic sea port city of Pointe Noire. African Iron has access to a heavy haulage mineral railway (within 2km of the project), port facilities and stockpile areas at Pointe Noire providing a significant capital expenditure advantage compared against its peers.
African Iron’s strategy is to move into initial production from the Mayoko Project with a planned steady state 5 Million tonnes per annum (“Mtpa”) direct shipping ore ('DSO') by mid-2013 (potential increase to 10Mtpa) over a +10 year mine life. This is complemented by "beneficiable" DSO (“bDSO”) with a substantial maganetite mine life thereafter.
Equatorial holds a project in the vicinity of Mayoko, the Mayoko-Moussondi Iron Ore Project, which is only in the grassroots exploration stage.
Commenting on the Equatorial announcement, Cape Lambert Executive Chairman Tony Sage said, "The Cape Lambert investment model is to acquire substantial stakes in companies or assets that over time can be realised in a manner that achieves maximum value to the Company and its shareholders.
"The investment in African Iron represents a strategic investment for the Company, one which will realise significant value to the Company as the Mayoko Project evolves and achieves its production targets.
"While we acknowledge that Equatorial has acquired a major stake in African Iron, we would like to reiterate our long-term commitment to the board and shareholders of African Iron.

[Beagle]

JBmurc - thanks for that. Interestingly I noticed CFE has just ticked over the 30 day moving average line last week which could be a buy signal, on the other hand it could be just that small mining stocks have got caught up in a wave of optimism surrounding the Greek resolution last week with a very surprising lift in U.S. stocks last week dragging up world markets in a new wave of "risk on" investing.

Would be good to see Tony buying more, that might be the further signal the market is looking for.

[JBmurc]

JBmurc - thanks for that. Interestingly I noticed CFE has just ticked over the 30 day moving average line last week which could be a buy signal, on the other hand it could be just that small mining stocks have got caught up in a wave of optimism surrounding the Greek resolution last week with a very surprising lift in U.S. stocks last week dragging up world markets in a new wave of "risk on" investing.

Would be good to see Tony buying more, that might be the further signal the market is looking for.

yes the buyers of late will be happy camper 47c bids ,yet another tax loss selling bargin buy might sell a few once above 60c

[JBmurc]

Marampa now JORC upgraded by 245% to 680mt!!!

www.capelam.com.au/IRM/Company/ShowPage.aspx/PDFs/2216-86168961/MarampaHematiteResourceIncreased24

[Beagle]

Yes JBmurc I was just looking at it and popped in here to see your thoughts.
680mt does look impressive but can they monetise it in the current highly unstable political environment prevailing in Africa ??????? That's the real question.

[JBmurc]

Yes JBmurc I was just looking at it and popped in here to see your thoughts.
680mt does look impressive but can they monetise it in the current highly unstable political environment prevailing in Africa ??????? That's the real question.
yes I'd much rather see CFE sell it for 250-300mill now than 500mill maybe next year ,I do think there will be a buyer but at what price an what conditions

[Corporate]

I like this,


The updated Mineral Resource for Marampa provides a mineral inventory that can support a production profile of 10Mt per annum of hematite concentrate for more than 20 years.

and this,


The resource definition drilling completed to the end of May 2011 covers approximately 60% of the known mineralised strike area at the Marampa Project with considerable exploration upside remaining for further resource growth at prospects in the north and south and at the Mafuri prospect, which is open to the west.

and then this


thereby enabling Cape Lambert to move forward with its plan to sell down its interest and raise money for the project to be further developed”.

[Beagle]

I'm somewhat surprised at the fairly muted market reaction to this significant resource upgrade. I would have thought we would have seen a more healthy kick-up on this news. Clearly the market is taking a very conservative view of CFE's ability to monetise this.

[Corporate]

Cape Lambert Resources plans to list its Marampa iron ore asset in Sierra Leone on the London Stock Exchange.

The company says the initial public offer is expected to raise about $500 million.

The listing plans were put into train after Cape Lambert confirmed a 680 million tonne (Mt) resource at Marampa, a much higher amount than the 500 Mt minimum required by the company for a float.

Chairman Tony Sage says a trade sale is still a possibility but the London listing is the preferred option.

Mr Sage is travelling to London next week to meet brokers, with a view to selecting two to run the listing, one of which will be North American to provide exposure to that investment market.

"The London market has only got two west African iron ore players whereas the Australian market probably has got four or five, so we think it would work better in that (London) market," Mr Sage told AAP.

A name for the spin-off company would be decided after consultation with the Sierra Leone mines minister, who would make his first visit to Perth soon to meet Cape Lambert, Mr Sage said.

Shares in Cape Lambert finished up one cent, or 2.2 per cent, at 46.5 cents on Thursday.

http://www.businessspectator.com.au/bs.nsf/Article/Cape-Lambert-plans-London-bourse-spin-off-JJD4Z?OpenDocument&src=hp6

[Beagle]

Thanks for posting that Corporate. A general rise in most base metals in the last few days hasn't gone un-noticed by me. Starting to think about getting interested again, especially if they start one of their "brilliant" buy-backs later in the year :)

[JBmurc]

Fosterstockbroking morningsheet 8thJuly

Cape Lambert Resources Ltd (CFE.ASX, $0.47/sh, Mkt Cap $295m, Cash $71m +~$70m in mark-to-market equities) ? Marampa Hematite Resources more than double to 680mt. SPEC BUY (PT $0.80/sh)

JORC mineral resources increase 245% to 680mt grading 28.2% Fe. This increase builds on the maiden resource announced last year of 197mt grading 28.5% Fe. The resource is just shy of the lower bound of the stated 0.7-1.0Bt exploration target, however, only 60% of the known mineralised strike has been explored and the potential for increasing the resource again and surpassing the upper bound of the target is high.

? The resource can now underwrite a 10mtpa project spanning 20 years. A previous scoping study at Marampa was conducted on a 5mtpa 12-year project showing robust economics. The expanded resources also include 42mt of shallow, soft oxide mineralisation that can provide the company with a starter lower cost ore feed.

CFE is looking very cheap at these levels. On the expanded resource, the contained Fe at Marampa amounts to 192mt. On current EV metrics, this works out to $0.80/t cont. Fe. This represents a deep discount (nearly 60%) to current average EV$/cont. Fe for West African iron ore explorers (all of which have ore resources or potential of similar attributes to CFE requiring beneficiation) of $1.86/t cont. Fe. If we apply this multiple to CFE?s expanded resource base, we get an un-risked EV of $357m, or $0.79/sh. This figure does not consider any of the exploration upside that exists at Marampa.

? Additional newsflow will aid in an upward price re-rating. As we mentioned in our note last week, CFE is keen to start a sales process for the Marampa project, which could lead to an IPO in London by October. The company will retain a 25% stake in the project and the new company will be valued between A$500 and A$700m based on recent West African comparables. The partial sell down of the project might also be achieved by a direct investment by a larger steel producer. Whichever route is taken, we expect there will be great interest in the project given regional iron ore activities are heating up.

We rate CFE a SPEC BUY with a Price Target of $0.80/sh as the company continues development of Marampa.

[shasta]

Fosterstockbroking morningsheet 8thJuly

Cape Lambert Resources Ltd (CFE.ASX, $0.47/sh, Mkt Cap $295m, Cash $71m +~$70m in mark-to-market equities) ? Marampa Hematite Resources more than double to 680mt. SPEC BUY (PT $0.80/sh)

JORC mineral resources increase 245% to 680mt grading 28.2% Fe. This increase builds on the maiden resource announced last year of 197mt grading 28.5% Fe. The resource is just shy of the lower bound of the stated 0.7-1.0Bt exploration target, however, only 60% of the known mineralised strike has been explored and the potential for increasing the resource again and surpassing the upper bound of the target is high.

? The resource can now underwrite a 10mtpa project spanning 20 years. A previous scoping study at Marampa was conducted on a 5mtpa 12-year project showing robust economics. The expanded resources also include 42mt of shallow, soft oxide mineralisation that can provide the company with a starter lower cost ore feed.

CFE is looking very cheap at these levels. On the expanded resource, the contained Fe at Marampa amounts to 192mt. On current EV metrics, this works out to $0.80/t cont. Fe. This represents a deep discount (nearly 60%) to current average EV$/cont. Fe for West African iron ore explorers (all of which have ore resources or potential of similar attributes to CFE requiring beneficiation) of $1.86/t cont. Fe. If we apply this multiple to CFE?s expanded resource base, we get an un-risked EV of $357m, or $0.79/sh. This figure does not consider any of the exploration upside that exists at Marampa.

? Additional newsflow will aid in an upward price re-rating. As we mentioned in our note last week, CFE is keen to start a sales process for the Marampa project, which could lead to an IPO in London by October. The company will retain a 25% stake in the project and the new company will be valued between A$500 and A$700m based on recent West African comparables. The partial sell down of the project might also be achieved by a direct investment by a larger steel producer. Whichever route is taken, we expect there will be great interest in the project given regional iron ore activities are heating up.

We rate CFE a SPEC BUY with a Price Target of $0.80/sh as the company continues development of Marampa.

No mention of the $80m?

Needs BFS to firm up the capex costs as well, so still a few hurdles to jump thru, it would seem.

[JBmurc]

yeah for sure ,MCC has a ton of cash they should just takeover CFE an keep the 80mill

[JBmurc]

By Francesca Freeman

Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--Australian mineral investment company Cape Lambert Resources Ltd. (CFE.AU) has begun formal discussions with 18 parties interested in an October listing of its Sierra Leone Marampa iron ore project, following an more-than-threefold increase in the project's mineral resource estimate.

"The Marampa project is effectively complete and it is time to spin it out," Executive Chairman Tony Sage told Dow Jones Newswires in an interview.

Although unwilling to identify prospective investors, Sage said Cape Lambert had showed 18 groups around the Marampa project, all of whom expressed an interest. Having revised the company's resource outlook for the site to 680 million metric tons last week from 197 million metric tons, Cape Lambert has now written to all interested parties and opened up a virtual data room to prepare for Marampa's initial public offering on the London AIM market, expected in October.

"We didn't want to talk to people until we were ready, but having upsized our resource to almost 700 million tons, the project is now economic to develop," said Sage.

Cape Lambert expects Marampa to be valued at least A$500 million, with annual iron ore exports of five million tons, based on a $655 million mining development that would access nearby rail and port facilities operated by African Minerals Ltd.

However, an upgrade study is currently in progress investigating strategies to increase output to 10 million tons per year, a move that could bump up the company's value to as much as $1.5 billion, said Sage.

In February, Cape Lambert flagged the sale of Marampa by June, but the process has been delayed by a longer-than-expected drilling program on Marampa.

At that stage, Cape Lambert was considering either a trade sale or IPO, but it now believes better value will be realized from a new listing.

"If we spin it out, we keep a portion and take royalties, which is much better for our shareholders," said Sage.

Sierra Leone is one of several West African countries trying to establish a major iron ore export industry, following recent investments in the region by Chinese groups and global diversified miners Rio Tinto PLC (RIO), BHP Billiton Ltd. (BHP.AU) and Brazil's Vale SA (VALE).


-By Francesca Freeman, Dow Jones Newswires; +44 (0)20 7842 9412; francesca.freeman@dowjones.com

[Mothman]

Where there is smoke there is fire

[Corporate]

Yeah finally the market realises that 1 of the 18 parties if probably looking to flag the IPO or trade sales and just straight out take over CFE. Tony Sage will be looking to cash in his retirement fund at some point...

[Snapper]

With the Chinese making a play for Sundance it looks like the market has woken up to the fact that maybe those Fe resources in West Africa are actually worth something.

[Beagle]

With the Chinese making a play for Sundance it looks like the market has woken up to the fact that maybe those Fe resources in West Africa are actually worth something.
I'm inclined to agree. Seeing as there are 18 interested parties there must be a strong liklihood of a sale / decent float price. I hate chasing a stock after such a strong run-up but felt oblidged to dip my toe in the water today. If they fall back a bit on profit taking in the next week or three I'm inclined to put some decent weight on the buy order next time.

[Corporate]

Nice to see CFE push higher again today. The volume has increased substantially over the last few days and the share price has taken off! Well done holders.

[lawrence]

Is anyone here offloading any shares above .60c?

[Corporate]

Is anyone here offloading any shares above .60c?

I will sell when the chart says so. However, at the moment the fundamentals say this is a buy and the technical's say hold until further notice.

I don't have any baggage with CFE. I purchased at 35c and 40c, took at 5c dividend and then sold at 68.5c on the way back down. I have since repurchased at 48c.

[lawrence]

I will sell when the chart says so. However, at the moment the fundamentals say this is a buy and the technical's say hold until further notice.

I don't have any baggage with CFE. I purchased at 35c and 40c, took at 5c dividend and then sold at 68.5c on the way back down. I have since repurchased at 48c.

Well done Corporate you have traded it to a tee lets see how high it can go

[Beagle]

I will sell when the chart says so. However, at the moment the fundamentals say this is a buy and the technical's say hold until further notice.
I don't have any baggage with CFE. I purchased at 35c and 40c, took at 5c dividend and then sold at 68.5c on the way back down. I have since repurchased at 48c.

You're as cunning as.....I agree, its crossed above its 100 day moving average line and its a Buy until further notice, and all without the artificial support of a buy-back. Imagine if they get that float away at a good price, collect the $80m and initiate another buy-back programme this summer...off to the races :)

[JBmurc]

I will sell when the chart says so. However, at the moment the fundamentals say this is a buy and the technical's say hold until further notice.

I don't have any baggage with CFE. I purchased at 35c and 40c, took at 5c dividend and then sold at 68.5c on the way back down. I have since repurchased at 48c.

Very good corp I also sold some in the low 60's brought more high then low 40's the volume/price action booms of good news or takeover of asset/of CFE in the wind wouldn't sell any till more is known 60's next week could have loaded up sub 40c only weeks ago....can't bet investing into strong fundanmental's
CFE could well command $1 SP on the right ann.

[Corporate]

Nice work JB. Increasing volume bodes well :-)

[Beagle]

Latest quarterly report is just out thoughts anyone ?

Seemed quite positive to me although I see we are still waiting on the Au Supreme court to decide if it has jurisdiction to rule on the $80m matter in dispute.

Broken through 60 cents in a convincing manner today, looking good :)

[JBmurc]

Yes Roger should have been loading up more in the low 40's nice short term 50% return ..

Yes hopefully the 80mill dispute will be sorted this year...is a joke how long it's taking

todays ann.

African Minerals announced that it had executed various agreements with Shandong Iron & Steel Group Co. Ltd (“Shandong”) to invest US$1.5 billion in return for a 25% shareholding in the Tonkolili Project. The agreement with Shandong also includes certain discounted off-take arrangements in respect of iron ore produced from Tonkolili.

Cape Lambert has an agreement with African Minerals whereby African Minerals will provide third party access rights on commercial terms to transport up to 2 million tonnes per annum (“Mtpa”) of iron ore production from the Marampa Project on the existing Marampa railway via Pepel Port. Cape Lambert has a right to increase this transport capacity to 5Mtpa once the Tonkolili Railway and Tagrin port are in full operation.

[Beagle]

Yes Roger should have been loading up more in the low 40's nice short term 50% return ...

"Thanks" for reminding me of that.

[JBmurc]

A$46.5 MILLION SALE OF SAPPES GOLD PROJECT
Key Points: ?h Cape Lambert to sell the Sappes Gold Project to Glory Resources Limited for a total consideration of A$46.5 million. ?h Completion is conditional on, amongst other things, Glory Resources raising A$42.5 million, re-complying with Chapters 1 and 2 of the ASX Listing Rules and obtaining its shareholders approval. ?h On successful completion, the sale of Sappes will result in Cape Lambert having received approximately A$250 million from asset sales in the past 24 months.
Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (??Cape Lambert?? or the ??Company??) has signed a binding heads of agreement with Glory Resources Limited (ASX: GLY) (??Glory Resources??) for the sale of the Sappes Gold Project (??Sappes Project??) for a total consideration A$46.5million (??Heads of Agreement??).
Pursuant to the terms of the Heads of Agreement, Glory Resources will satisfy the consideration as follows:
(a) A$32,500,000 in cash on completion of the acquisition;
(b) 16,000,000 shares in Glory Resources (??Glory Resources Shares??) on completion of the acquisition;
(c) A$5,000,000 in cash or Glory Resources Shares, at the election of Glory Resources, on the granting of an operating permit (or equivalent) in respect of the Sappes Project; and
(d) A$5,000,000 in cash or Glory Resources Shares, at the election of Glory Resources, upon the sale of the first 1,000oz of gold (or gold equivalent in the case of copper concentrate and/or silver metal) from the Sappes Project.
The acquisition of the Sappes Project by Glory Resources is subject to a number of conditions including governmental approvals and Glory Resources obtaining its shareholders?? approval for the acquisition, re-complying with Chapters 1 and 2 of the ASX Listing Rules and completing a capital raising
A$42,500,000. All conditions must be satisfied or waived by 31 December 2011 with completion of the acquisition to take place 5 business days thereafter.
The Sappes Project is a gold development project located on a granted mining lease in north eastern Greece approximately 30km northwest of the Aegean Sea port city of Alexandropoulos. The Project has recently submitted its preliminary environmental impact study to the Ministry of Environment, Energy and Climate Change as a first step to securing an operating permit and commencing construction.
Cape Lambert acquired the Sappes Project as part of its successful A$135million bid for the assets of CopperCo Limited in June 2009. On completion of the sale of the Sappes Project, Cape Lambert will have realised approximately A$250 million from CopperCo asset sales in the past 24 months.
Cape Lambert Executive Chairman, Mr Tony Sage said ??Cape Lambert??s focus is on iron ore and base metals, and this sale provides the best outcome for the delivery of value to our shareholders and an operating gold project to the benefit of stakeholders and our host, the Greek government whilst still keeping a stake in the significant upside this project can deliver over the coming years.??
Yours faithfully
Cape Lambert Resources Limited

[bung5]

http://www.theaustralian.com.au/business/mining-energy/cape-lambert-resources-readies-london-ipo-of-sierra-leone-iron-ore-asset/story-e6frg9df-1226128121049

CAPE Lambert Resources says it expects to issue a prospectus later this month ahead of a proposed initial public offering of its Sierra Leone iron ore asset in London.

Tony Sage, executive chairman of the Perth-based Cape Lambert, said the IPO of its Marampa project in Sierra Leone would seek to secure up to $430 million from investors, despite the recent market volatility.

The jitters haven't affected the IPO timetable and there is "plenty of cash" available for investing in quality West African iron ore ventures such as Marampa, Mr Sage told reporters.

"We will have a full prospectus finished by the end of September, and the roadshow is planned for London in the last week of October to raise the funds," he said.

Cape Lambert plans to retain 25 per cent of the IPO, which Mr Sage hopes will be listed by late November.

The company has received "several expressions of interest" from potential cornerstone investors, including Chinese parties, Mr Sage said.

A final "scoping study" on Marampa, which has estimated resources of 680 million tonnes of iron ore, is due for release next week, Mr Sage said.

The company has said previously that a $US655m ($516m) stage one development would be capable of exporting 5 million tonnes a year of iron ore from 2013.

Rapid industrialisation in China and India is boosting demand for iron ore, a key ingredient used in making steel.

Rio Tinto predicted yesterday the mining industry would need to produce at least another 100 million tonnes of iron ore annually over the next eight years just to meet demand growth.

Sierra Leone is one of several West African countries trying to establish a major iron ore export industry, following recent investments in the region by Chinese groups and global miners Rio Tinto, BHP Billiton and Brazil's Vale.

[bung5]

Would of thought it would be a hard sell once investors do there research and find out cape lambert only worth 300 odd million itself. Maybe will be good for its share price either way..

[JBmurc]

Would of thought it would be a hard sell once investors do there research and find out cape lambert only worth 300 odd million itself. Maybe will be good for its share price either way..

Yes going be interesting see how it plays out could go so many ways
-IPO goes to plan ....
-A buyer could come out of the blue an offer CFE an outright price-
-A predator goes for the whole shop makes an offer 80c+ etc
-Market pukes it-self CFE pulls the pin
-IPO falls short ...

I'm happy to hold ,still rather see an out-right sale...even if it's only 200-300mill + % ownership/royality to cfe

[JBmurc]

CAPE LAMBERT TO INCREASE PINNACLE INTEREST TO 100%
Key Points:
 Cape Lambert to increase its interest in Pinnacle Group Assets Limited (“Pinnacle”) to 100%;
 Pinnacle’s key assets are the Kukuna iron ore project located in Sierra Leone and the Sandenia iron ore project, located in the Republic of Guinea;
 Consideration for the remaining 9.8% of Pinnacle will comprise of A$5million in cash and the issue of 20,672,189 Cape Lambert shares at a deemed issue price of A$0.53, which is a premium of 9% to the closing share price on 8 September 2011 of A$0.485.

[bung5]

Values the pinnacle assets at around 150mil at current value. Will increase significantly when they get a substantial JORC resource that makes Marampa look small ( hopefully after its sold for a decent amount )

Estimate of Current Assets ( current market cap 318mil )

Cash 80 mil ( incl sale of sappes )
Receivables 80 mil ( court case pending)
conver note 8 mil
ASX shares 80 mil (15th august )
Marampa 500m ( asking price)
Sappes 12m (after sale shareholding)
Pinnacle 150 mil ( valued from latest purchase of remaining shares)
Leichhardt ?
Australis ?
Cape Lam sth ?
Rokel ?

= 910mil

Gives an NTA shareprice value of around $1.50 per share or 910 million plus the other assets with no valuation .

[Beagle]

http://www.asx.com.au/asxpdf/20110920/pdf/42163tvr3ymz96.pdf
Updated scoping study puts NPV of Marampa of $1 billion at 10% dscount rate.
Float plans confirmed for late this year. Looks good.

[Corporate]

I don't like the 10% WACC, it should be 12.5% minimum which would also be consistent with the post-tax WACC used by SDL. It could be argued that a higher WACC is more appropriate for CFE as the product is much lower quality and the operating costs are higher.

It also makes a mockery of the initial scoping study which used a pre-tax WACC of 8%.

[bung5]

I don't like the 10% WACC, it should be 12.5% minimum which would also be consistent with the post-tax WACC used by SDL. It could be argued that a higher WACC is more appropriate for CFE as the product is much lower quality and the operating costs are higher.

It also makes a mockery of the initial scoping study which used a pre-tax WACC of 8%.

Is a cracker of a scoping study compared to the last one. Also has the 2 phase design built in that will allow it to be expanded with cashflow from phase one which is great news.
Also have to remember that the calculations were done un-geared. So the return will likley be better if some good finance is secured in a couple of years when things are progressing for marampa.

[Corporate]

Is a cracker of a scoping study compared to the last one. Also has the 2 phase design built in that will allow it to be expanded with cashflow from phase one which is great news.
Also have to remember that the calculations were done un-geared. So the return will likley be better if some good finance is secured in a couple of years when things are progressing for marampa.

I'm not sure on the ungeared comment in the scoping study. Surely the WACC calculation factors in the cost of debt and a certain leverage ratio. May be they didn't go into a lot of detail to determine the WACC.

[bung5]

You could be right. I was assuming since the NPV calcuations were un-geared. Not sure what the reality of having it listed on the AIM by the end of this year is but if that eventuates we are going to have a big shareprice revaluation coming up.
80 mil court case could be settled very shortly as well.

[Beagle]

OMG 36 cents !!!!!!!!!!!!!!!!!!!! FFS what's going on ????????????????????????????

[drillfix]

Hi Roger,

It doesn't take much to work it out really. Just look around and you will see many stocks battered and bruised from such falls today.

Take caution in your positions and dont forget to protect your capitol. (sorry for the defensive views but thats the market atm).

[Beagle]

Yeah, I've been busy at work today, you know just the usual, running flat out to go backwards, and just noticed the fall and subsequently noticed the Australian small company index as a whole down a whopping 5% today. Silver down another 12% after a similar fall on Friday last week.
So much for the theory of diversification which simply doesn't seem to work at the moment, doesn't seem to matter what market in the world you're in, what sector, precious metal or whatever, the only thing going up is CASH, opps no wait, the N.Z. dollar is also falling out of bed, end of depressed rant.

[JBmurc]

yeah crazy times I see Tony sage has been buying more today taking his holding to 38mill shares...you wouldn't do this if you though the company was going nowhere..

India's steel demand is likely to jump by over 70% to 113 million tonnes by the end of the next Five Year Plan, with the infrastructure sector projected to witness investments worth USD 1 trillion. A panel, appointed by the Indian steel ministry to assess demand and supply of steel in the 12th Five Year Plan (2012-17), has estimated that steel demand would grow by 36 Mt during the period to 113 Mt in its final year. India's total steel demand stood at 65.61 Mt last fiscal year.

[Beagle]

Interesting you say that as I was listening to a CNBC interview this morning with Brazil's richest man, sorry can't remember his name and he was saying the Iron ore price hasn't come down and they're seeing steady growing demand in Asia / China. He didn't see any let-up in demand for the forseeable future and yes, its good to see Tony Sage putting his money where his mouth is and CFE is far from the only small miner to have been beaten down lately.

"Fortune favours the brave" Buy in gloom, sell in boom and similar other cliche's come to mind...as long as you have the stomach for it that is. Fortunatly silver bounced back overnight so that's one investment I'm not underwater on :)

[Corporate]

Back in for some more CFE today :-)

[bung5]

Same here :P

[Corporate]

Same here :P

Great! The sell side is looking very vulnerable..

[bung5]

Tony Sage sees Cape Lambert as infrastructure play in West Africa

by: Sarah-Jane Tasker
From: The Australian
October 27, 2011 1:34PM

CAPE Lambert Resources plans to be a West African infrastructure play in two years to cash-in on the rapid interest in the emerging region.

Perth businessman Tony Sage wants his investment vehicle to be generating about $US250 million ($240.5m) each year from its iron ore assets, and is targeting a railway line from the group’s Sierra Leone project as the main revenue driver.

[bung5]

THE Tony Sage-chaired Cape Lambert Resources is looking to become a key infrastructure provider in west Africa within three years by developing a railway line to exploit its iron ore assets, a move which could yield up to $A270 million a year in value.

Speaking to delegates at the Mining 2011 Resources Convention, Sage said the company would soon have sufficient cash reserves to bankroll the $160 million rail line in Sierra Leone, based on a cost of $2 million per km over an 80km length.

“We have $40 million in the bank, we just sold our gold asset, which brings in another $30 million, we’ve got the $80 million debt owed to us by the Chinese and then we’ve got the impending sale of Marampa,” he said.

Still keen to float Marampa into a separate $500 million IPO, Sage said based on a rate of 10Mtpa and a $1/t royalty, Marampa had potential to generate $10 million annually, with a further $1/t royalty to kick in from the sale of African Iron, while its Kukuna iron ore deposit, which has the potential to deliver up to 50Mtpa, could yield $250 million each year based on shipping rates of $5/t.

With a current JORC compliant resource at Marampa of 700Mt, as well as an agreement providing it with access to a railway and port, a $500 million IPO is proposed with Cape Lambert to retain 75% in the form of cash and the balance in project equity.

Sage said several potential Marampa customers were currently looking at the data for the project, a process that would continue until the end of November.

The next asset in the company’s pipeline is Kukuna, located 80km from a new port being built by African Minerals, which coincidently also owns a 20% stake in Cape Lambert.

“We estimate Kukuna has the potential to host an exploration target of between 1 and 2 billion tonnes of iron ore based on mapping undertaken by SRK Consulting and we are drilling that now and expect to release a resource in nine months,” Sage said.

“We’ve done all the metallurgical work and that also shows that it is exactly the same type of orebody as Marampa, so will upgrade to a hematite grade of 66% iron.”

Across the border in Guinea, its Sandenia property is strategically located 40km north of Bellzone’s massive 6.16Bt Kalia magnetite play and adjacent to its proposed Kalia-Matakang railway line.

Yet to be drilled, based on soil sampling and aeromagnetic surveys, Sage believes it could potentially host an exploration target between 3-3.5Bt of ore.

Describing west Africa as the next Pilbara, the region has already attracted heavy hitters such as BHP Billiton, Rio Tinto and Vale, not to mention the Chinese and more recently Xstrata.

[Beagle]

Thanks Bung. Noted 25 million shares changed hands on Friday last week @ 42 cents, overhang removed from the market ?
SP up strongly today.

[bung5]

Looks like it was capital group companies a US based company that has a range of companys that runs managed funds etc

bought up 31 million shares in the last 4 months . or over 5% of the company to a holding of 8%.

Shareprice still rising strong. Interview with Tony Sage said he expects to return another 100million or around 15c per share to shareholders in the next 12 months. 33% divie at current prices would be well received :)

[Beagle]

Hi Bung, Not a huge fan of divvy's from Australian compaies for tax reasons but another crazy buy-back might provide another opportunity :)

Wonder who the seller was of that 25m stake the other day, guess we'll find out soon enough through disclosure notification.

[bung5]

You are right... but with a divvy of 33% we can see the shareprice rise before and sell, then buy back in after it drops to reflect the capital pay out. ( or just pocket the money of course :) )

[bung5]

Still rising very strong on large volume. This has to be more than the news of the equity manager doubling its stake. Could be a big deal in the making...

[drillfix]

When does this stock go ex div?

[Xerof]

sometime in the next twelve months.......

[drillfix]

sometime in the next twelve months.......

Only on a Wednesday afternoon for some reason ehhh :P

[bung5]

CAPE Lambert Resources managing director Tony Sage says the company is making headway on a possible $500 million sale of its Marampa iron ore project in Sierra Leone, with a data room attracting healthy interest from Chinese and other companies.
The Perth mining entrepreneur said the company could also spin off the asset on London's AIM exchange early next year.

Visiting Hong Kong last week, Mr Sage declared Marampa was "ready for sale".

"We've got at least three or four Chinese companies in the data room, as well as corporates much bigger than us in the data room as well," he said. "We expect this thing to go as soon as the market has recovered a little bit."

Marampa contains 680 million tonnes of ore grading a comparatively low 28.2 per cent iron ore, but Mr Sage said test work has proven the ore can be upgraded to about 65 per cent iron ore through simple grinding and separation.

...Mr Sage's expectations of the project's worth contrast with the market's assessment of Cape Lambert, with the group - which holds stakes in about a dozen projects and listed companies - capitalised at more than $313m.

But, he said, four brokers bidding to manage the asset's London spin-off had valued the project at $1 billion or more, with mining industry consultancy Bateman independently valuing it at $1.9bn.

Mr Sage also has high hopes for another of Cape Lambert's African iron ore investments, its 25.3 per cent stake in African Iron.

He said he expected African Iron, which was exploring the Mayoko project in Republic of Congo, would receive a takeover offer in coming months following changes to its register.

ASX-listed Equatorial Resources, which owns an iron ore project to the west of Mayoko, has bought a 19.9 per cent stake in African Iron after a share swap with institutions.

Equatorial had not requested a seat on African Iron's board, raising suspicions about Equatorial's intentions, Mr Sage said.

In addition, a number of institutions that had swapped their African Iron stakes for shares in Equatorial had since bought back into African Iron, increasing the number of common shareholders in the two companies.

"Equatorial so far hasn't asked for a board seat, so that means one thing: there's some corporate activity that's going to happen, and I wouldn't be surprised if there's a takeover of that company in the next couple of months," he said.

"It makes sense, and the fund managers want it to happen because they're in both stocks."

Elsewhere, Mr Sage said, Cape Lambert had already lined up another buyer for its Greek gold assets if the existing bidder is unable to secure the cash needed to complete the deal.

Perth-based Glory Resources struck a deal to acquire the Sapes gold project in Greece from Cape Lambert back in August for $32.5m in upfront payments, $4m in shares and up to $10m in milestone payments.

http://www.theaustralian.com.au/business/mining-energy/african-sale-likely-for-cape-lambert/story-e6frg9df-1226213609561

[bung5]

looks like an annoucement has been leaked . up big on opening on big volume

.... just had a look and AKI is in trading halt ( CFE 26% interest)

[bung5]

tp://www.theaustralian.com.au/business/wall-street-journal/exxaro-poised-to-buy-african-iron-valuing-african-at-more-than-300m/story-fnay3vxj-1226240438263

EXXARO Resources is in advanced talks to buy African Iron in a deal that could value the Republic of Congo-focused iron ore miner at more than $300 million, two people familiar with the matter said Monday.

.

[soulman]

So suprise when AKI was in TH, CFE wasn't.

Also, judging by AKI price and volume action, quite a bit of insider action going on since Jan 4th. T Sage doesn't walk around with 4 to 5 beautiful girls for no reason. The man is a finance/mining engineer, gives inside tips to his girlfriends and gets lots of action in the social scene in Perth WA. No reason why girls wouldn't want to hang around a very wealthy man. Kind of like Bruce Wayne.

[drillfix]

So suprise when AKI was in TH, CFE wasn't.

Also, judging by AKI price and volume action, quite a bit of insider action going on since Jan 4th. T Sage doesn't walk around with 4 to 5 beautiful girls for no reason. The man is a finance/mining engineer, gives inside tips to his girlfriends and gets lots of action in the social scene in Perth WA. No reason why girls wouldn't want to hang around a very wealthy man. Kind of like Bruce Wayne.


LOL, Yes souly, Bruce Wayne is good example indeed. The new type of so called Rock Star. (mining star)

All those dressed up scaggs will do anything for money, and who more for than a playboy of mining companies ehh~!

[bung5]

So suprise when AKI was in TH, CFE wasn't.

Also, judging by AKI price and volume action, quite a bit of insider action going on since Jan 4th. T Sage doesn't walk around with 4 to 5 beautiful girls for no reason. The man is a finance/mining engineer, gives inside tips to his girlfriends and gets lots of action in the social scene in Perth WA. No reason why girls wouldn't want to hang around a very wealthy man. Kind of like Bruce Wayne.

That is a bit rough.. Tony Sage released this information to the media on the 6th of december , not just the pretty girls :P



http://exclusivepress.net/app/index.php?option=com_content&task=view&id=5324&Itemid=1

"Mr Sage also has high hopes for another of Cape Lambert's African iron ore investments, its 25.3 per cent stake in African Iron.
He said he expected African Iron, which was exploring the Mayoko project in Republic of Congo, would receive a takeover offer in coming months following changes to its register.


ASX-listed Equatorial Resources, which owns an iron ore project to the west of Mayoko, has bought a 19.9 per cent stake in African Iron after a share swap with institutions.
Equatorial had not requested a seat on African Iron's board, raising suspicions about Equatorial's intentions, Mr Sage said.
In addition, a number of institutions that had swapped their African Iron stakes for shares in Equatorial had since bought back into African Iron, increasing the number of common shareholders in the two companies.
"Equatorial so far hasn't asked for a board seat, so that means one thing: there's some corporate activity that's going to happen, and I wouldn't be surprised if there's a takeover of that company in the next couple of months," he said.


"It makes sense, and the fund managers want it to happen because they're in both stocks."
Elsewhere, Mr Sage said, Cape Lambert had already lined up another buyer for its Greek gold assets if the existing bidder is unable to secure the cash needed to complete the deal."



Perth-based Glory Resources struck a deal to acquire the Sapes gold project in Greece from Cape Lambert back in August for $32.5m in upfront payments, $4m in shares and up to $10m in milestone payments.

[soulman]

The soccer Perth Glory owner (Glory Resources) T Sage.

A bit harsh bung5 but I am sure he doesn't mind being Bruce Wayne. We all like to be Bruce Wayne. Rich man by day and crime fighter by night. Maybe those beautiful girls are his daughters.

Drill, T Sage, a self proclaim Macquarie of the mining sector, basically buy asset, re-package them and hopefully sell the same thing again for profits. I am sure it has been pointed out earlier in this thread. So far the business model is sustainable and proven so CFE shareholders aren't doing too bad. The man is not a bad looking bloke either.

[drillfix]

The soccer Perth Glory owner (Glory Resources) T Sage.

basically buy asset, re-package them and hopefully sell the same thing again for profits. I am sure it has been pointed out earlier in this thread


Ahh, so you mean he is a used car salesman...lol :)

Cant be that bad of a bloke if he owns the the Perth Glory though~!

[soulman]

Yep Drill but CFE make higher margins and bigload of cash when they do strike it.

The gold project in Greece might help Greece ailing economy. Why are Greece struggling and who has all the money. You guess it.....the people that runs the country, The Politician.

[drillfix]

I think if invested in CFE regarding how they do business, then I think a concern or main question I would have would be what would the company do should the global economic conditions suddenly deteriorate. (but then what would any company do)

Its like getting caught with your pants down.

Meaning, if thats the way CFE make their money continually, then should the above happen, then you would have wanted to buy this stock on the low so there would be room for exit or in other words, if things fall to pieces globally, then their projects are just not going to sell the same as the climate is different surely, so discounting or trying to cut losses in that sort of environment should it present itself can be troublesome for the both the company and shareholders.

[soulman]

They have offload quite a few asset so plenty of cash in the bank. Hence, CFE are OK for now.

[bung5]

I think if invested in CFE regarding how they do business, then I think a concern or main question I would have would be what would the company do should the global economic conditions suddenly deteriorate. (but then what would any company do)

Its like getting caught with your pants down.

Meaning, if thats the way CFE make their money continually, then should the above happen, then you would have wanted to buy this stock on the low so there would be room for exit or in other words, if things fall to pieces globally, then their projects are just not going to sell the same as the climate is different surely, so discounting or trying to cut losses in that sort of environment should it present itself can be troublesome for the both the company and shareholders.


Drillfix - If the climate turns for the worst it is good for CFE as well as they are cashed up ( around 230million in cash , receivables and liquid assets) and will be buying the cheap assets. They manged to offload the flagship project in the middle of the GFC for 400 million. They have continued to buy and sell thru the last 4 years.

They have royalty in place from the the lastest sale of $1 per tonne. That will provide 10million no effort profit a year if or when that goes into production.

[soulman]

The $80 mil out of the $230 mil is from the current litigation against a Chinese coy. I supposed that's from the receivables part.

[shasta]

The $80 mil out of the $230 mil is from the current litigation against a Chinese coy. I supposed that's from the receivables part.

You would've thought by now the $80m would have been sorted out, wasn't exactly an onerous or difficult legal document, so why haven't CFE really pushed for it?????

CFE may well be an asset stripper, but to my mind too much of the company is tiered to Tony Sage "wheeling & dealing", so any mention of activity might spark some interest, but until the cash is in the cashflow statment/bank account, it's only speculation.

Disc: Ex holder

[Mothman]

CFE in a trading Halt. Looks like 10% of its share have been sold from one big shareholder to a group of fund managers in the UK.

Hopefully at a premium to the current price.

[Beagle]

CFE in a trading Halt. Looks like 10% of its share have been sold from one big shareholder to a group of fund managers in the UK.
Hopefully at a premium to the current price.

Seems a little OTT to lock up a company on a trading halt for two days over that. Removing the stock overhang obviously really mattered to the Directors, enough said.

[bung5]

All has gone quiet with CFE. Potentially less than 3 months out from the Marampa IPO . Would of thought the 80mil settlement would of been wrapped up by now.

could see back to back announcements when TS gets back to buisness

[Beagle]

Too quiet. Would have thought the $80m would have been sorted, court for such a long time now and they've been in adjudication talks...yet still no outcome...

Trade Sale - Float of Marampa drags on too. Patience is wearing thin with this stock. Time for another buy-back we can sell into :)

[bung5]

patients Roger, we should be on our way before the end of june! and more clarity around a dividend shortly after these pending annoucments

[Beagle]

Looks like you and I are the only ones still holding on here bung5. I see CFE are in talks today surrounding the $80m matter. Lets hope there's a good outcome followed by a float of Marampa, followed by a buy-back.

[cloggs]

No, we're all still there with you Roger, waiting with baited breath for the outcome of the legal action/mediation. 80 Million is not a small amount of money and it makes you wonder why the other party is not paying up.

[bung5]

Could we finally be there? lets hope so

[bung5]

update on a tax audit. how boring.

[soulman]

Could be bad bung.......

[Penfold]

I would be surprised if it wasn't bad news... still they have plenty of cash in the bank to pay big tax bill.

[bung5]

I would be surprised if it wasn't bad news... still they have plenty of cash in the bank to pay big tax bill.

awwf yeah not good at all. close to 100mil tax bill. I will be buying up large when it finally comes out trading halt.. hopefully in the low 30's

[JBmurc]

awwf yeah not good at all. close to 100mil tax bill. I will be buying up large when it finally comes out trading halt.. hopefully in the low 30's

So glad to have got my mate to sell down his 500k position to 300k in the 50's was so close to telling him to sell the lot....damm it

Sold my lot long ago lost my interest in the Iron ore sell-off potential ..

[Penfold]

Sold down half my holding in Feb 11 @ 62.5. I feel I am about to learn a valuable lesson about greed. Should have flicked them all off...

On the bright side for CFE, the tax was payable in any case. As long as they get the taxman to drop the 25mio in penalties and delay the tax on the MCC payment, the downside shouldn't be that bad. They seem to have a reasonable case. Fingers crossed.

[cloggs]

The way I read the announcement of 18 May worst case scenario was having to pay 25 million, but the share price drop comes to about 82 million. Did I misunderstand the announcement?

[gazprom1]

The way I read the announcement of 18 May worst case scenario was having to pay 25 million, but the share price drop comes to about 82 million. Did I misunderstand the announcement?

Hey Cloggs,

I am not sure that $25 million would be the cap if discussions could not be resolved with the ATO. If it went to a hearing and CFE lost, I would assume that the penalties would apply up to a certain date which are significant. Markets hate uncertainity so SP has been marked down to reflect that IMHO. At some point CFE becomes a screaming buy.

Gazprom

[NoVice]

plus the market has had a gutsful of Sage not delivering anything but hot air when it comes to Marampa.

[soulman]

It's been a bad year for TS. First, his beloved team loss in the A league soccer grand final by controversy and now this......

[soulman]

Off course TS will dig into his wallet and buy a bunch of shares in CFE. That's heart and commitment right there. And boost the shares as well.

[JBmurc]

Off course TS will dig into his wallet and buy a bunch of shares in CFE. That's heart and commitment right there. And boost the shares as well.

Yes he's done that many times before doesn't really mean much as I never seen any major positive anns come out after his purchase ..

mate sold his last today....re-investing in ADX,PGI

[bung5]

He might of sold a bit too early there JBmurc. CFE heading up

[JBmurc]

yeah maybe sold 33c & 36.5c and the other half of the 500k holding 53.5-54.5c so I guess average mid 40's paid low 40's got a good divvie
...

[soulman]

CFE heading down in a don't touch zone. Only the brave would want to catch this bounce.

[Entrep]

Saw the notice yesterday and haven't been following it - what's the cause! Crazy. Remember it was 70c or so a year or just over ago.

[bung5]

CFE heading down in a don't touch zone. Only the brave would want to catch this bounce.


I have no worries buying shares at this price. Just waiting for it to go a bit lower.

[Corporate]

I have no worries buying shares at this price. Just waiting for it to go a bit lower.

To much uncertainty with the ATO for me. Plus TS has waxed lyrical about selling Marampa and nothing has happened!

[cloggs]

CFE is going lower and lower on new news, Anyone have an opinion on why that is? (other than that is what the market thinks its worth).

[cloggs]

Sorry, mean NO news.

[bung5]

It has been reported that Tony Sage is winding down his investments. From the recent announcement from CFE saying they are looking at doing the same , CFE is looking like a good short term investment. The market cap is at 130 million and with cash and listed investments well above that and on top unlisted assets, CFE could easy return 200% to shareholders over the next year.

[Beagle]

Well market cap is now circa $100m...any other poor buggers still stuck holding this flea ridden dog that would like to express their view of the future ?

I can't sell at this price and might as well ride this out. ATO thing appears to have been a savage blow to the company. Marampa looks almost un-sellable for reasons unknown, probably to do with sovreign risk of where the mine is located, who knows ??

What does the future hold ? Is the business model effectivly broken as some have been reported as claiming ?

Wound runs pretty deep with this DOG of a stock. 15 cents with a stock buy-back going FFS !!!!

[bung5]

For me , I fee confident in the company's prospects in the near term . The share price is a worry. If the SP was above 30c all would seem normal. Been in the market long enough to know the SP means nothing on the small cap miners.

[Snapper]

yes, Tony Sage seems to have gone from hero to zero fairly quickly in the eyes of his shareholders. Still kicking myself that I didn't trim my holdings when it was over 70c. Apart from the ATO thing and lower demand for iron ore, nothing much has changed and I still see it as having good prospects.

[soulman]

Well market cap is now circa $100m...any other poor buggers still stuck holding this flea ridden dog that would like to express their view of the future ?

I can't sell at this price and might as well ride this out. ATO thing appears to have been a savage blow to the company. Marampa looks almost un-sellable for reasons unknown, probably to do with sovreign risk of where the mine is located, who knows ??

What does the future hold ? Is the business model effectivly broken as some have been reported as claiming ?

Wound runs pretty deep with this DOG of a stock. 15 cents with a stock buy-back going FFS !!!!

The future for CFE looks pretty bleak. As the mining sector is gradually getting cold, CFE is a candidate for a melt down. Zero is possible.

Their financial model is based on BNB and Allco but all in the mining sector. BNB and Allco collapsed in the financial crisis. CFE will probably collapsed in the mining crisis. I see tem joining the other 2 in the future.

[bung5]

The future for CFE looks pretty bleak. As the mining sector is gradually getting cold, CFE is a candidate for a melt down. Zero is possible.

Their financial model is based on BNB and Allco but all in the mining sector. BNB and Allco collapsed in the financial crisis. CFE will probably collapsed in the mining crisis. I see tem joining the other 2 in the future.



Don't see how that is possible when they they will have 40 mil cash in the bank end of the month, A royalty that will bring in up to 10 mil a year or one off lump sum of around between 50-100mil if sold this year and contingent 80mil receivable .plus huge portfolio of assets and no debt..

The only liability you could suggest is a potential 50mil tax bill .

Don't see how it looks bleak or they could go bust? Please enlighten us.

[soulman]

Don't see how that is possible when they they will have 40 mil cash in the bank end of the month, A royalty that will bring in up to 10 mil a year or one off lump sum of around between 50-100mil if sold this year and contingent 80mil receivable .plus huge portfolio of assets and no debt..

The only liability you could suggest is a potential 50mil tax bill .

Don't see how it looks bleak or they could go bust? Please enlighten us.

You said it re: the potential tax bill. All other mining asset are deem worthless in a mining bust.

Tony Sage is buying shares on-market but he has been a buyer in the 30's, 20's. As it illustrated, it's dangerous to average down.

I suggest another 50% off from here possible. This is not a reco to sell. I am only predicting.

The market right now is running hot but all in the top 20 coy, coy with earnings and dividends. All specs are getting the good old rogering. KW is definitely enjoying his early retirement.

[Beagle]

Thanks for your opinions guys. They've already paid half the tax bill as per the contested arrangements that exist in the Australian Tax jurisdiction.

I believe the failure to resolve the $80m receivable has worn the patience of many investors ragged.
I can't sell at this level and won't. Every bit of bad news is basically already in the stock and any good news on extracting value from the proposed sale of the royalty, recovery of the $80 million receivable, sale of Marampa or any other realisation means there's far more potential upside than downside in my opinion.

They're also having the ruler run over them by independent consultants in terms of a strategic review of operations and assets which is probably a good idea as the directors seem to have lost their way a bit. I would have thought the company would have already taken steps to stop cash burn given their modest cash position at present.

[Beagle]

Well, less than a week later after my last post they've gone from 13.5 cents to 17 cents, up a whopping 25%, (sarcasm intended), all they need to do is go up another 200% and I'll break even LOL.
Crickey, you need a sense of humour with these small cap miners, that's for sure !!

[bung5]

Ouch! You never know thou , even thou TS has been saying it the last 2 years, the sale of Marampa could see it up 200% overnight :)

[JBmurc]

Brought a few @ 14c looking for a good short term trade be happy with 17-18c exit

With 35mill in cash $5.6million of environmental and cash
bonds returned to it over the next month plus transitional funding associated
with the Leichhardt Project from 1 May 2013 until completion.......

Cape Lambert appoints Deutsche Bank AG to sell Mayoko royalty "Global investment bank Deutsche Bank AG mandated to manage
sale of royalty for Mayoko Iron Ore Project in Republic of Congo.... Internal valuation on royalty for the Mayoko Project of between
A$55-114M."!!

MCC funds ?? you never know

settlement of the long running ATO dispute....New government ?

CFE could well be well cashed up still with some assets and a resource sector filled with bargains 4632

[bung5]

Brought a few @ 14c looking for a good short term trade be happy with 17-18c exit

4632


Nice trade JBmurc. You cashed out now or tempted to see the ride higher?...

[JBmurc]

Yeah sold my lot 16c took a nice $1400 profit after costs today ...now trying to buy more OXX @ 38c

[gazprom1]

Good Trade JBM. I am in it for a bit longer yet. Limited downside and good upside....would take very little to see it back in the low 20's.

[JBmurc]

Good Trade JBM. I am in it for a bit longer yet. Limited downside and good upside....would take very little to see it back in the low 20's.

Yeah my original target was 17.5c ....but needed to free up some cash to pay companies loan commitments and buy more OXX before the deeper target is reached or Palta is announced

[JBmurc]

Well looks like I should have keeped my 17.5 offer in place ....did buy some OXX from sale to then sell within 30-40mins for $200 profit
(brought 38c sold 39.5c) ......now funds have found home at ELM 49c....think you may well get your 20c gaz .....
now playing it safe with ELM having 66c offer on the table

[gazprom1]

Well looks like I should have keeped my 17.5 offer in place ....did buy some OXX from sale to then sell within 30-40mins for $200 profit
(brought 38c sold 39.5c) ......now funds have found home at ELM 49c....think you may well get your 20c gaz .....
now playing it safe with ELM having 66c offer on the table

It is looking ok JBM. Amazing how these markets turned on a dime after 30 June. It has been an excellent 3 weeks across the board.

Sitting on a lovely trade in NDO at the moment. Bids have really come up and taken out all the sellers through to 3.3 cents. Bought more OEL at 8.7 cents today.....Duhat is due to spud before the end of the month!!!!

Keep up the good work with OXX.

[JBmurc]

[QUOTE=gazprom1;417981]It is looking ok JBM. Amazing how these markets turned on a dime after 30 June. It has been an excellent 3 weeks across the board.

yeah and it just about happen's every year sometimes earlier in late april ..but so often good companies get smashed in may to rebound 20-40% in july......tax loss selling madness ...

[JBmurc]

well got my 13c Bid on order hope to get my fill ..too many assets not to be worth more than 13c happy to sell again for a 20% etc profit trade.....a company that could well double overnight on the right ann....

[gazprom1]

Bought more CFE today at 13 cents....mkt cap around $80 million. Could be an interesting play if Marampa comes in and/ or any of the other irons in the fire. I think that JPM must be still selling....they had over 32 million shares still to go as of last notice. No longer a substantial holder so will not be able to see their sell downs any longer.

[Well Endowed]

got a small parcel of CFE round the end of July. I agree with you, once the JPM overhang is soaked up (hopefully the buy-back can snaffle a decent chunk) I'm hoping for a 20c+ exit.

[JBmurc]

Bought more CFE today at 13 cents....mkt cap around $80 million. Could be an interesting play if Marampa comes in and/ or any of the other irons in the fire. I think that JPM must be still selling....they had over 32 million shares still to go as of last notice. No longer a substantial holder so will not be able to see their sell downs any longer.


Yes at current SP round 4million dollars worth yet to be sold .......hopefully not much longer ...be a great slap in the face if CFE announce a major sale or deal etc 20c+ SP right after JPM have sold all out for peanuts

[JBmurc]

Think the selling pressure has finally eased on CFE ....JPM done selling ? bids upto 13.5c after trading down to 12.5c in recent days.......still got my 14c sell order in from weeks ago for $900 profit might well get it before the close

[JBmurc]

Well pretty flat trading pulled my sell order think more so will
Be a mid term trade ...happy to build a sizeable holding at 12.5c
Iron ore prices trading back at higher levels ...

if all goes to plan I could see a 40c+ cash backing (includes all investments sold low-fair value)wouldn't surprise me later 2014 ...
To see CFE trade a much higher sp ....don,t think this will be a steady slow climb but more so sudden spikes 20-30% on good news ..MCC 80-100mill ...ato sorted as to why I pulled sell order

[gazprom1]

I see that the company started buying back shares again...I wonder whether or not they can see that JPM have disposed of the remainder of their shares. Good to see it solid at 13 cents. More news re MCC settlement would be good.

Gaz

[JBmurc]

I see that the company started buying back shares again...I wonder whether or not they can see that JPM have disposed of the remainder of their shares. Good to see it solid at 13 cents. More news re MCC settlement would be good.

Gaz

Yes always good to see the SP above buy price>>so many anns to come ,,,if there positive no reason why we can make 100% by Xmas

[JBmurc]

CFE booming on open up 11% good news coming ???

[JBmurc]

now 15% speeding ticket coming insiders must know something MCC money ??
No make that 20% !!!! 15.5c something big coming out

[gazprom1]

now 15% speeding ticket coming insiders must know something MCC money ??
No make that 20% !!!! 15.5c something big coming out

great to see it moving up. Close at 14.5 or above would make me happy. Must be the MCC money deposited.....cant really see anything else moving it. Can't imagine it would be Marampa. Maybe a royalty deal???

Gaz

[bung5]

great to see it moving up. Close at 14.5 or above would make me happy. Must be the MCC money deposited.....cant really see anything else moving it. Can't imagine it would be Marampa. Maybe a royalty deal???

Gaz


Most likley the MCC money .. can't see why this is unexpected however, unless it actually won the court case of the the MCC money !

[JBmurc]

Most likley the MCC money .. can't see why this is unexpected however, unless it actually won the court case of the the MCC money !

Maybe not unexpected but still a big deal and one step closer to getting the 80-100mill but wouldn't count out news on Iron ore asset deal
....Sellers certainly didn't want too join in ...as over the last few month the SP just hasn't moved even under 9mill in volume churn 1c here 1c there ....but in 1hr 1.2mill vol moved it up 20% >>>

[Corporate]

Well done guys!

[JBmurc]

Well done guys!

Yeah lets hope it for good reason maybe tomorrow we might get something ..T/A wise great to close at 15c should well trade in the upper 15-18c trading range ..stoked to have backed myself with 180k brought av 13.2c esp if I'm right and we see mid-high 20's before Xmas

[JBmurc]

Further to the announcements made by Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) on 6 and 11 September 2013, the Company advises that the independent solicitor, being a solicitor practicing in Singapore, appointed to open the escrow account into which the Metallurgical Corporation of China Limited (MCC) must deposit the disputed amount of A$80 million, was unable to open the account as required with the National Australia Bank in Australia, and resigned from his appointment.
The Company has taken immediate steps to identify a replacement escrow agent in Western Australia to open the account and expects that he will be formally appointed as escrow agent by the President of the Law Society of Western Australia imminently.
Upon his formal appointment, the replacement escrow agent will be asked to take steps to open the escrow account and require that MCC deposit the sum of A$80 million into the account.
There has been no change to the Partial Award made by the Arbitrator in the Arbitration Proceedings and MCC remains obliged to make payment of the disputed amount of A$80 million into escrow.
Yours faithfully Cape Lambert Resources Limited

[Corporate]

This saga has been going on way to long!

[JBmurc]

This saga has been going on way to long!

Yeah quite a Joke a solicitor can't even open a bank account ?? whats the bet MCC are being A-holes even pressurizing the guy to resigned from doing a simple job .....surely be fixed immediately forcing MCC once in for all to stump up the owned money ...IMHO they should also have to pay interest & legal costs incurred by CFE est another 10-20mill

[Bobcat.]

New Arbitrator has instructed Metalurgical Corp of China to deposit the $80m owed Cape Lambert into their bank account by 19 Nov. If that's done (and that's not by all means certain given the scullduggery that MCC has demonstrated to date), but if and when that is confirmed, expect the sp of CFE to climb rapidly.

Their Buy back should also be having an effect on perceived value. 16m of an intended 53m have to date been bought back. 675m shares are on issue, and so this BuyBack is fairly substantial (approx 8% by my reckoning - can anybody confirm?).

Even so, once the $80m is banked I'm expecting, a hike in price by a lot more than 8%.

BC

[JBmurc]

New Arbitrator has instructed Metalurgical Corp of China to deposit the $80m owed Cape Lambert into their bank account by 19 Nov. If that's done (and that's not by all means certain given the scullduggery that MCC has demonstrated to date), but if and when that is confirmed, expect the sp of CFE to climb rapidly.

Their Buy back should also be having an effect on perceived value. 16m of an intended 53m have to date been bought back. 675m shares are on issue, and so this BuyBack is fairly substantial (approx 8% by my reckoning - can anybody confirm?).

Even so, once the $80m is banked I'm expecting, a hike in price by a lot more than 8%.

BC


Yeah hope so portfolio needs to get into gear ..would see CFE over 20c quick smart currently 13c ...should have a large cash backing with other assets sales in motion of late ....MCC have completely taken the piss on the whole matter ,I understood the contract stated that had MCC not paid the owned funds long ago CFE could have received back the said asset sold -Cape lambert North Iron ore resource

[bung5]

New Arbitrator has instructed Metalurgical Corp of China to deposit the $80m owed Cape Lambert into their bank account by 19 Nov. If that's done (and that's not by all means certain given the scullduggery that MCC has demonstrated to date), but if and when that is confirmed, expect the sp of CFE to climb rapidly.

Their Buy back should also be having an effect on perceived value. 16m of an intended 53m have to date been bought back. 675m shares are on issue, and so this BuyBack is fairly substantial (approx 8% by my reckoning - can anybody confirm?).

Even so, once the $80m is banked I'm expecting, a hike in price by a lot more than 8%.

BC


I'm hoping that once the money has been deposited into the escrow account they will give up the legal battle as effectively they are not earning the interest on the 80 mil and it must be costing a fair bit on legal fees to keep going.

Perhaps we see a settlement by the end of the month.

Would see CFE with close to 140 million in the bank by the end of the year.

Iron ore prices high at the moment so it could all happen very fast with the sale of Marampa. ( however I have been thinking that for 3 years )

I nearly forgot about the other royalty that is up for sale. The alternative to not selling it , is to start receiving the royalty's on it very soon. not all bad

[Beagle]

MCC are clearly being as obstructive and obstinant as possible and I think you can take it as a given that their influence was used on the former solicitor in some way shape or form. I wouldn't hold my breath hoping for a quick resolution and wouldn't rule out another legal challange from MCC. They must be seriously aggrivated having paid $320m for something that's still undeveloped. The ATO tax matter needs to be litigated urgently to clear that our of the way and the fact that it hasn't has caused me to lose confidence in management but having paid 50 cents for this dog I've basically written it off in my head. I'd like to think the only way is up from here, certainly cannot and will not sell at 13 cents.

[JBmurc]

MCC are clearly being as obstructive and obstinant as possible and I think you can take it as a given that their influence was used on the former solicitor in some way shape or form. I wouldn't hold my breath hoping for a quick resolution and wouldn't rule out another legal challange from MCC. They must be seriously aggrivated having paid $320m for something that's still undeveloped. The ATO tax matter needs to be litigated urgently to clear that our of the way and the fact that it hasn't has caused me to lose confidence in management but having paid 50 cents for this dog I've basically written it off in my head. I'd like to think the only way is up from here, certainly cannot and will not sell at 13 cents.

Yes I really don't understand the whole MCC saga as the costs would have been huge on both companies ,,everything now points to CFE getting the 80mill but who knows if MCC will give up the fight ....I understand once the MCC matter is sorted so will the ATO as issues round the payment tax bah bah is all inter-linked .....will CFE ever make 50c unlikely anytime soon but wouldn't count it out on the above issues being sorted New Aussie Gov may well help etc .....Iron ore $130 sell of the ll of the CFE I.O interest be worth a fair wack ,,,,

[JBmurc]

Going from the last announcement the MCC money should be deposited by now ??? but going from recent times it's anyones guess when it will turn up no doubt be another delay .....Is a F,N Joke how MCC can get away with break the contract and take forever fight tooth and nail to put off paying what is owned ...

[Beagle]

You're correct the MCC money should have been deposited by yesterday but as previously indicated I believe that MCC are on maximum attack in terms of being obstructive and Mr Market at 12 cents clearly thinks there's going to be a further long and bitter battle for this $80M, as do I.
At 12 cents its so cheap I can't bring myself to sell despite knowing there are some profoundly good reasons its very cheap, not just this issue above. How long have they had Marampa on the market now ?
Some would go further and say that with their failure to execute in recent times and relativly weak financial position an argumment could be made that their business model is broken.

[JBmurc]

Yes me being one think the business mode has hit the wall to what we all expected ...I did say long ago when SP 50c+ I just wanted to see Marampa sold even if just a quick 100mill profit ..but here we are in groundhog day waiting

[JBmurc]

MCC TRANSFERS A$80MILLION INTO ESCROW ACCOUNT
Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) is pleased to advise that Metallurgical Corporation of China Limited (MCC) has now transferred the disputed sum of A$80 million into an escrow account held with the National Australia Bank (NAB), as directed by the arbitrator.
As previously announced, in September 2010 the Company commenced legal action in the Supreme Court of Western Australia (Court) against MCC to recover the final A$80 million payment from the sale of the Cape Lambert magnetite iron ore project in mid-2008 pursuant to an agreement between the parties (MCC Agreement). In accordance with the terms of the MCC Agreement, Cape Lambert received payments totalling A$320 million in 2008, with the final payment of A$80 million due in accordance with the terms of the MCC Agreement. Cape Lambert contends MCC are in breach of the MCC Agreement by failing to make the final payment.
In March 2013, the Court made orders referring the dispute to arbitration in Singapore and for the dispute between the Company and MCC in respect to the payment of A$80million into an escrow account pending determination of the primary dispute (Escrow Dispute) be heard and determined by the arbitrator prior to the hearing of the substantive dispute between the Company and MCC subsidiary MCC Australia Sanjin Mining Pty Ltd.
The Company referred the dispute to arbitration in Singapore and in June 2013 a hearing was held by the Arbitrator to determine the Escrow Dispute.
The Arbitrator ordered that MCC (which has signed a guarantee in respect of MCC Australia Sanjin Mining Pty Ltd’s obligations under the MCC Agreement) pay the disputed amount of A$80 million into an escrow account in the joint names of the Company and MCC pending the determination of the substantive dispute. This amount was paid into the escrow account on 25 November 2013.
Commenting on the matter, Cape Lambert Resources Executive Chairman, Mr Tony Sage said, “While not an outcome of the substantive legal dispute, we believe the fact MCC has now complied with the order from the Arbitrator and deposited A$80 million into an externally controlled escrow account in Australia, pending the outcome of the legal action, is important and may see a resolution to this matter in a more expedited fashion.”
Yours faithfully Cape Lambert Resources Limited

[Snapper]

Must say I thought that there would be more volume and a bit more of a jump today. First thing that's gone right in about 2 years!

[Bobcat.]

Must say I thought that there would be more volume and a bit more of a jump today. First thing that's gone right in about 2 years!

It's jumped 13%...that's not bad...and I think we'll find this is a momentum shift to the upside. Unless the ruling runs against them, which is later, I'm confident an upward trendline will establish.

Discl: Holding but only a small parcel and only since October. Looking at the charts, I'm going to target 18c.

[Beagle]

Its good to see this money finally deposited and now effectivly ender the control of the Australian Supreme courts future ruling.

and may see a resolution to this matter in a more expedited fashion.”
I suspect a deal may be possible on the basis that each party pays their own costs and there's no penalty interest charged by Cape Lambert on the $80M.

Otherwise if this is litigated further and Cape Lambert Win they'll get legal costs which must have run to several million dollars by now and interest for late payment which could run to significantly more.

[JBmurc]

Also recently Cape Lambert Lodges Mining Licence Application for Marampa Iron Ore Project
Key Points:
 Large Scale Mining Licence Application lodged for Marampa Project.
 Mining Licence is the final key step in the permitting process for the development of the Marampa Project.
 Achieving the Mining Licence milestone will significantly de-risk the Marampa Project and add value for potential investors into the project.

Marampa Value 100-300mill ??

then the 80mill is looking very positive to be in the bank soon >>>that should lead on to a final deal to keep the ATO happy

Also the GLY takeover will fill CFE balance with another 12.7mill

Overall 2014 should well be a massive year for CFE .....no reason why we could have well over 100mill in the bank the ATO of our backs and a deal on Marampa
also not forget the many other investments still held that could surprise i.e Iron ore-- Mayoko Royalty worth least 50mill

Current Cash must still be over 20mil >>>other investments other than the above least another 20mill >>>market current value of the lot 77mill

[Beagle]

Also recently Cape Lambert Lodges Mining Licence Application for Marampa Iron Ore Project
Key Points:
 Large Scale Mining Licence Application lodged for Marampa Project.
 Mining Licence is the final key step in the permitting process for the development of the Marampa Project.
 Achieving the Mining Licence milestone will significantly de-risk the Marampa Project and add value for potential investors into the project.

Marampa Value 100-300mill ??

then the 80mill is looking very positive to be in the bank soon >>>that should lead on to a final deal to keep the ATO happy

Also the GLY takeover will fill CFE balance with another 12.7mill

Overall 2014 should well be a massive year for CFE .....no reason why we could have well over 100mill in the bank the ATO of our backs and a deal on Marampa
also not forget the many other investments still held that could surprise i.e Iron ore-- Mayoko Royalty worth least 50mill

Current Cash must still be over 20mil >>>other investments other than the above least another 20mill >>>market current value of the lot 77mill

Good post mate. I need some hope, its been a long time between drinks riding this horse.

[JBmurc]

Good post mate. I need some hope, its been a long time between drinks riding this horse.

Yeah for sure I,m guessing you average price is pretty high ..ever thought about averaging
Down I know you prob only want you money back ASAP but I really do think the 30,s likely
In 2014 ..worth checking out the latest analyst report on CFE website they also give a 35c
Target ...the 80mill payment a big de-risk at these levels imho

[JBmurc]

5196

Well someones keen on CFE stock the depth really turned round on friday from during the week having trading 12.5-13c with some selling pressure holding at those levels to friday buyers wanting in and sellers retreating low volume offers ...as we can see from the depth table not going take much to get to the 20's

[Well Endowed]

topped up today, a bit of activity in the buyback the past couple days. could possibly be bottoming out?

[Bobcat.]

topped up today, a bit of activity in the buyback the past couple days. could possibly be bottoming out?

Yes, a bit more volume these past couple of days. I'd also like to think it has good support around 11c, but this stock has just gone sideways for 6 months, and so may not lift far for long. It's got potential but needs a rocket.

BC

[JBmurc]

Yes, a bit more volume these past couple of days. I'd also like to think it has good support around 11c, but this stock has just gone sideways for 6 months, and so may not lift far for long. It's got potential but needs a rocket.

BC

Well that Rocket is coming IMHO ....

http://www.proactiveinvestors.com.au/companies/news/52567/cape-lambert-resources-to-bank-royalties-from-mayoko-h2-2014-52567.html

“It is great news that Exxaro will commence mining operations at the Mayoko Iron Ore Project in the coming months, not only for Exxaro and the people of the Republic of Congo, but also for Cape Lambert and its shareholders who will receive significant royalty income for many years to come,” executive chairman Tony Sage said.

[JBmurc]

Cape Lambert Resources Pledges Jobs in Sierra Leone

Cape Lambert Resources will be hiring soon. The company “said it expects to start construction on its flagship Marampa iron ore project in Sierra Leone this year, pledging to employ locals and fund services in the post-conflict African state,” reports Reuters.

“The firm, which late last year lodged its mining license application for Marampa, joins the likes of resource firms London Mining and African Minerals in tapping into the iron ore mining boom in Sierra Leone.”

“‘We’ve asked for the same license agreement as London Mining and African Minerals and don’t expect any difficulties. The government doesn’t want different companies in the same industry on different contracts,’ Cape Lambert executive chairman Tony Sage said in an interview with Reuters.”

“He added it would take 18 months to reach full production, which will start at 2 million tonnes per year, but could go up to 5 million tonnes as African Minerals has expressed interest in buying an annual 3 million tonnes from Cape Lambert.”

In metal price news for steel…

On Monday, February 3, the spot price of the US HRC futures contract fell by 2.8 percent, landing at $655.00 per short ton and making it the day’s biggest mover. The 3-month price of the US HRC futures contract showed little movement on Monday, hovering around $629.00 per short ton.

* Get the complete prices every day on the MetalMiner IndX?

Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC continues to hover for the fifth day in a row. The price of Chinese coking coal saw essentially no change for the fifth day in a row.

The steel billet cash price remained essentially flat at $365.00 per metric ton on the LME. The steel billet 3-month price was unchanged on the LME at $360.00 per metric ton.

[Well Endowed]

nice cash pile building, market still valuing the iron assets as next to worthless!

price action of the past week looks like 11c might hold for awhile, with the buy-back sitting dormant and 11.5c being chipped away at daily.

[JBmurc]

nice cash pile building, market still valuing the iron assets as next to worthless!

price action of the past week looks like 11c might hold for awhile, with the buy-back sitting dormant and 11.5c being chipped away at daily.

Yes New Buy-back should add good support to current prices ..I'm so Bullish CFE now I just sold the rest of my ROC position to take my CFE holding to 361k confident in CFE going forward will release a string of great ann's ....35c my target sale price will reap me $81,000Aud profit at my new 12.3c av ....timeframe 1-2yrs so Short term ....the drivers in SP going forward IMHO

-Enviro bonds cash return
-Glory sale cash
-mining license for Marampa
-MCC payment
-ATO Tax issues sorted

[Bobcat.]

Yes, we are thinking alike with this one, JB. I have also topped up. There is plenty of good news ahead of us with Cape Lambert, IMO.

[Well Endowed]

nice JB - decent position that! I only have around a 1/3 of your holding (at the moment) with an average of 11.5c

35c target would definitely hit the spot :t_up: , definitely not out of the question if a few of the bigger issues are resolved with favourable outcomes.

[JBmurc]

Yeah only wish more shareholders had some faith in CFE future as all sellers of late will be exiting with major losses .... Which seems crazy when you put all the assets and market in Iron ore ...73.5mill market value is a joke

One if the reasons that swayed me to buying more was the move to start mining at Marampa which is CFE biggest asset (recent analyst valued 160mill) think we will see J.V partner deal come out soon enough ...

[Corporate]

Cape Lambert Resources Pledges Jobs in Sierra Leone

Cape Lambert Resources will be hiring soon. The company “said it expects to start construction on its flagship Marampa iron ore project in Sierra Leone this year, pledging to employ locals and fund services in the post-conflict African state,” reports Reuters.

“The firm, which late last year lodged its mining license application for Marampa, joins the likes of resource firms London Mining and African Minerals in tapping into the iron ore mining boom in Sierra Leone.”

“‘We’ve asked for the same license agreement as London Mining and African Minerals and don’t expect any difficulties. The government doesn’t want different companies in the same industry on different contracts,’ Cape Lambert executive chairman Tony Sage said in an interview with Reuters.”

“He added it would take 18 months to reach full production, which will start at 2 million tonnes per year, but could go up to 5 million tonnes as African Minerals has expressed interest in buying an annual 3 million tonnes from Cape Lambert.”

In metal price news for steel…

On Monday, February 3, the spot price of the US HRC futures contract fell by 2.8 percent, landing at $655.00 per short ton and making it the day’s biggest mover. The 3-month price of the US HRC futures contract showed little movement on Monday, hovering around $629.00 per short ton.

* Get the complete prices every day on the MetalMiner IndX?

Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC continues to hover for the fifth day in a row. The price of Chinese coking coal saw essentially no change for the fifth day in a row.

The steel billet cash price remained essentially flat at $365.00 per metric ton on the LME. The steel billet 3-month price was unchanged on the LME at $360.00 per metric ton.

JB - wondering where you found this article...do you have a link? I've always been fond of CFE and now might be the time to consider an re-entry.

[Corporate]

Cape Lambert Resources Pledges Jobs in Sierra Leone

Cape Lambert Resources will be hiring soon. The company “said it expects to start construction on its flagship Marampa iron ore project in Sierra Leone this year, pledging to employ locals and fund services in the post-conflict African state,” reports Reuters.

“The firm, which late last year lodged its mining license application for Marampa, joins the likes of resource firms London Mining and African Minerals in tapping into the iron ore mining boom in Sierra Leone.”

“‘We’ve asked for the same license agreement as London Mining and African Minerals and don’t expect any difficulties. The government doesn’t want different companies in the same industry on different contracts,’ Cape Lambert executive chairman Tony Sage said in an interview with Reuters.”

“He added it would take 18 months to reach full production, which will start at 2 million tonnes per year, but could go up to 5 million tonnes as African Minerals has expressed interest in buying an annual 3 million tonnes from Cape Lambert.”

In metal price news for steel…

On Monday, February 3, the spot price of the US HRC futures contract fell by 2.8 percent, landing at $655.00 per short ton and making it the day’s biggest mover. The 3-month price of the US HRC futures contract showed little movement on Monday, hovering around $629.00 per short ton.

* Get the complete prices every day on the MetalMiner IndX?

Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC continues to hover for the fifth day in a row. The price of Chinese coking coal saw essentially no change for the fifth day in a row.

The steel billet cash price remained essentially flat at $365.00 per metric ton on the LME. The steel billet 3-month price was unchanged on the LME at $360.00 per metric ton.

JB - wondering where you found this article...do you have a link? I've always been fond of CFE and now might be the time to consider an re-entry.

[JBmurc]

JB - wondering where you found this article...do you have a link? I've always been fond of CFE and now might be the time to consider an re-entry.

Got it off HC pretty sure it was from pro-investor

[Entrep]

Google is your friend

http://www.cnbc.com/id/101383944

[Corporate]

Thanks.

Cfe aren't miners and if they moved towards production they would need to take on some qualified people.

[JBmurc]

Yes I understand that would be the plan .. Sounds like tony sage is currently over in South Africa
Could well be working on a J.v deal from a company with Iron ore mining experience ,,, also I,m
Sure Tony wouldn't have trouble mining mgmt

[Bobcat.]

Price is still slipping (with ASX resource sector and general Equities both up). I wonder who's selling - they must have a bundle. There's been a price cap on this stock for several months now.

[Well Endowed]

I wonder if African Minerals might look at a CFE play - as AML already holds around 18% (122m shares)?

Seems like it would complement existing operations and rail network well, especially as Tony outlined they would be looking at offloading 3mil t/pa to AML once production ramped up?

Either that or a similiar arrangement with Tianjin (who bought 17% for $990m, of African Mineral's Tonkolili mine) late last year.

Just thoughts...

[JBmurc]

From HC poster kasper- me thinks if your keen on CFE buy now

Tri,

I spoke to the company directly last month on these exact matters and got some answers and would advise others to do the same but I think theres a lot happening in this space ATM.

I know MCC had a new CEO last year and he's been in contact with CFE and seems much keener to get things sorted. Also I'm aware there is meant to be another major meeting between CFE and MCC in about a weeks time. The discussions have been ongoing for many months but i think the meeting coming up might be a significant one (maybe it's my wishful thinking but can only hope it will result in an outcome).

Also good to note the GLY completion around the same time so cash reserves will be back above $30 million in a week or so....

Kaspar

[JBmurc]

Latest Analyst report on CFE

http://cfe2.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/3153-17789083/CanaccordMayokoRoyaltyGetsCloser



Another of Cape Lambert Resources’ (CFE) investments is progressing
to maturity with the granting of the Mining Convention for the Mayoko $0.0m Iron ore project in the Republic of Congo (aka Congo Brazzaville). CFE owns a US$1/t royalty on the project which could be producing 5Mtpa as early as 2H’15. CFE has made no secret of its intention to sell the18% royalty, which could inject US$30-US$50m. CFE is also set to receive an A$13m payment from the takeover of Glory Resources (ASX:GLY| not rated), a $6.5m payment for the sale of the Leichhardt copper project, and it continues its recovery actions of the final A$80m payment relating to the sale of the Cape Lambert project in 2008. Adding the above cash receipts to the possible sale of the Marampa Iron ore project and CFE has the potential to have multiples of its market capitalisation in cash. We maintain our SPECULATIVE BUY rating--Target price 35c

[Well Endowed]

a little more action on open today, 11/11.5c, with $88k turnover. No buyback for several days now... strange...

[JBmurc]

a little more action on open today, 11/11.5c, with $88k turnover. No buyback for several days now... strange...

Yes would think it be a prime time to soak up a few million shares .... Can,t be far away from coming to a MCC deal 80mill etc would certainly add to the buying interests ... Maybe we are very close to major announcement ,,, not sure on rules on buy backs and major Ann,s ...... I know mgmt can,t go buy shares days before major Ann,s

[Well Endowed]

Yeah good point on the buyback JB. Doesn't make sense they aren't accumulating at this level.
Perhaps news is imminent, preventing them from doing so..?

[JBmurc]

Also doesn,t make sense on the selling pressure @11c worse case I can see CFE will have round 17c per share in cash before the year is out upside target 35c+ per share in cash

CFE will still of course have shares / assets worth min 5c ps

Well worth looking at some of their asx investments some really beaten down micro
Investments LRS, KPR ,GSZ ,IGS ...all been smashed worst case CFE could pick up their asset for a song

[JBmurc]

UPDATE ON TAX ASSESSMENT
Australian resources company Cape Lambert Resources Limited (ASX: CFE) (Cape Lambert or the Company) wishes to update shareholders in respect of the Notice of Amended Assessment received by the Company from the Australian Taxation Office (ATO) together with an associated penalty notice (Amended Assessment) (refer ASX Announcements dated 18 May 2012, 31 May 2012 and 11 December 2012).
In December 2012, the Company entered into an Arrangement for Payment (Arrangement) with the ATO to pay half the primary tax and shortfall interest charge in dispute pending the outcome of the objections lodged by the Company. Under this Arrangement, a total of approximately A$33.4 million has been paid to the ATO by the Company.
The Arrangement provided that collection action for the balance of the disputed amount would not be commenced by the ATO before the dispute is resolved.
The Company has been notified that the objections lodged with the ATO in relation to the Amended Assessment have been disallowed. The Company intends to appeal the objection decisions in the Federal Court of Australia. The Company expects to lodge appeal notices with the Federal Court of Australia by 28 April 2014. The appeal process could take some time.
Before an outcome on this appeal is known the Company should not be subject to recovery action of the disputed amount.
Cape Lambert’s Executive Chairman Mr Tony Sage said “The Company remains confident that its appeals should be determined favourably, even though it may take some time before the final outcome is known.”
“At this time, the Company does not need to outlay additional cash in respect of the balance of the disputed amount.”
Yours faithfully Cape Lambert Resources Limited
Tony Sage
Executive Chairman

[Well Endowed]

Hi JB,

I’m just trying to make sense of this, so hopefully I have the numbers right...

so $66.9m originally owed, of which $33.4m was paid by CFE.

$66.9m
broken down:
$41.2 - Lady Annie
$16.4 - MCC related
$9.3 - Shortfall Interest charge

looking at that, the $16.4m would only be payable should they recover the $80m from MCC. I assume a portion of the interest component - roughly ~40% might apply to the $16.4m from MCC. Recovering MCC cash would be the magic bullet so best to just focus on what they might actually owe relating to monies they have actually received in the past.

$41.2m Lady Annie
$5.6m Interest (assuming this interest component is proportionately attributable to amounts owed)
---------
$46.8m owed of which CFE has paid $33.4m to the ATO already.



Likely Scenarios:
- Lose tax case, MCC pay up, CFE have to pay a further $33.5m, out of the +$80m received + any associated legal expenses MCC has to pay (net +$44.5m)
- Lose tax case, MCC don't pay, CFE have to pay a further $13.4m (out of cash reserves of ~$30m). Still have enough to cover the buyback + Marampa + Royalty etc.

Unlikely Scenario:
- Win tax case, receive $34.4m back, win against MCC & receive $80m + costs (net +~$114.4m)


Please correct me if I'm wrong or understating things? but seems to me the downside is firmly capped (assuming you write-off the sunk cost of 34.4m already paid, which the market seems to have done any way.) The upside here is that CFE could win either the ATO or MCC case.

Not sure why the market is running scared. Will be interesting to see how it opens up today.


(above taken from appendix and previous News Releases, please correct me if I have any of this wrong!)

[Bobcat.]

Your breakdown looks fine to me, W.E. - thanks. I'll be continuing to hold.

[JBmurc]

Now it goes to court ATO has a history of being proved wrong in the court system

http://finance.ninemsn.com.au/newsbusiness/aap/8800871/murdochs-880m-ato-payday-blows-budget

I can't see how ATO can state CFE must pay tax on the MCC 80mill payment when it's banked in a escrow account with NAB waiting on a legal outcome.... then ATO added on penalty's for the tax not paid on said money not received.....it's just the usual stupidly your'd expect


Looks like this news was well known before today as very little new selling coming to market ....looking forward to the inside buying

[Well Endowed]

it me or is CFE in price sensitive trading halt? I'm seeing 10c bid/ask, yet don't see any further announcements since the sharebuyback preopen this morning...?

[Well Endowed]

after about 20mins seems to have updated. Probably just ASB issues. False alarm!

Looks like it might be topup time (again) soon as is dicing with 9c level..crazy

[Bobcat.]

2013 financial report is published.

http://www.asx.com.au/asxpdf/20140306/pdf/42n70qcy892f7q.pdf

Nice enough profit (0.34 eps). Looks to be a decent turnaround after its disastrous 2012 performance but let's see how the market reacts tomorrow. Favourably I trust (and it's about time). If not, I'll be buying on the dip.

BC

Discl: still holding.

[Well Endowed]

borrowing a snippet from hotcopper/half year report:

"Consistent with the Company’s business model, the Company continues to respond to interest from third parties for the divestment of Marampa. Based on the stage of current negotiations, at 31 December 2013 the Directors consider such a transaction to be highly probable."

also, upbeat financials from London Mining (close neighbour to CFE in Sierre Leone):
http://www.proactiveinvestors.co.uk/companies/news/66435/london-mining-shares-advance-on-upbeat-financials-66435.html

looks like things are improving. I was certain it was going to dip below 10c, but additional buyers materialised, combined with the increase in the buyback at the 10c level has seen it firm up.

could be an interesting couple months I think

[JBmurc]

borrowing a snippet from hotcopper/half year report:

"Consistent with the Company’s business model, the Company continues to respond to interest from third parties for the divestment of Marampa. Based on the stage of current negotiations, at 31 December 2013 the Directors consider such a transaction to be highly probable."

also, upbeat financials from London Mining (close neighbour to CFE in Sierre Leone):
http://www.proactiveinvestors.co.uk/companies/news/66435/london-mining-shares-advance-on-upbeat-financials-66435.html

looks like things are improving. I was certain it was going to dip below 10c, but additional buyers materialised, combined with the increase in the buyback at the 10c level has seen it firm up.

could be an interesting couple months I think


Yeah so much potential but it's all about getting the results just look at CFE -total assets =247 mill Net assets 237 mill !!! with a great history is getting higher values from sales of assets .....
IMHO marampa does have a Buyer/s but it's all about the details i.e price /conditions likely TS has been offered many a low ball price say 100mill ....not sure on exact costs to CFE but they would have spent many millions ...I'm thinking round that 100m mark so TS wants to make a profit maybe we finally have a better Bid price for the Marampa asset but first we must get the mining license before
final deal is done...

[JBmurc]

2010-history -
CFE suspended exploration at its Cape Lambert south iron ore project in the Pilbara region after the government proposed a 40 percent mining tax....

Also wasn't one of the major issues with MCC round the mining tax ?...

And now looks likely the mining tax will be axed ???

http://www.theaustralian.com.au/national-affairs/policy/tiny-take-sounds-mrrts-swansong/story-fn59nsif-1226848631249#

Likely this will be a positive development going forward for CFE....

Maybe can work a deal with MCC to take cape lambert south for a quick 120mill sentiment on the whole issue ?

[Well Endowed]

bid-side volume has returned today. 10.5c taken out, almost get the feeling that the last push towards the 9s was the last hurrah by the persistent seller that has plagued the SP for the past 12mths+.
It Seems like the bot-games of constantly hitting the bid with small parcels (less than brokerage cost) to keep the last traded price low has ceased too.

[Bobcat.]

We are finally starting to get some traction on this stock. Solid support post announcement at 10c, and has been trading all day at 10.5c with nice volume. Break-even for me is 12c, and I would be buying more on the way up if I didn't have so much already.

My pick (call it wishful thinking) is 13c by month-end. Anybody else care to take a punt?

[Well Endowed]

Hi BC, yeah looking better today, VWAP 10.5c and good volume. I think that if it breaks that 12c level it could test 15c again. I get the feeling that those selling/ possibly shorting might feel the tide has turned.

Prediction: March month-end 11c, April month end 15c.

[JBmurc]

Hi BC, yeah looking better today, VWAP 10.5c and good volume. I think that if it breaks that 12c level it could test 15c again. I get the feeling that those selling/ possibly shorting might feel the tide has turned.

Prediction: March month-end 11c, April month end 15c.

Sounds good to me the sell depth doesn't look at all as stacked as it was........get some decent news and I agree 15c shouldn't be to hard to achieve ......

[Bobcat.]

Just confirmed by CFE is cash assets of $33m, with no debt.

With 665m shares issued, this $33m equates to 5cps - i.e. half its current sp.

When its total assets worth $237m are taken into account, there's definitely good value here and eventually we WILL see the share price climb.

Discl; holding (quite enough).

Buyers like the announcement, with support now building at 10.5c.

[gazprom1]

CFE has just received another $6.5m from the sale GLY shares. Healthy cash balance - $28m. MCap is $65m. Once would think if they get any portion of the MCC cash that the SP should move up. Mr Market is pricing in a zero recovery.

[JBmurc]

Yes need some of the bigger deals to come through to really get the SP moving
-Marampa $150mill ?
-MCC $80mill
-iron ore royalty sale 40-60mill

Get all three and we will be very happy holders

[Well Endowed]

yep, patience will be rewarded here, just a matter of time I think.

[JBmurc]

I,m guessing the cash receivables is the enviro bonds ? Wonder when we get them

[Bobcat.]

Also, management have announced another buyback of up to 67m shares (10%) over the next 12 months. This will support the share price, IMO effectively making 10cps a solid floor, mitigating the risk of any potential losses related to dropping iron ore prices, disappointing delays in ATO and MCC settlements, etc.

The Contrarian in me likes to buy when a company's products are highly out of favour:

http://www.kitco.com/news/2014-03-18/Barclays-Market-Participants-Worried-About-China-Emerging-Markets-Growth.html

In spite of growing concerns about China's growth, demand for rebar, demand for iron-ore, etc...it's time to climb aboard this rocket before she leaves the launch pad.

Discl: holding quite a few, with a new bid in today at 10.5c to buy more on the way up.

[Well Endowed]

the buy back has upped the anti over the past couple weeks, seemingly more than happy to take all that is on offer around the 10c mark. Some on other forums have likened it to 'defending the level' however it seems to me more likely that they believe this to be the point in which the buyback is good value to CFE holders.

before yesterday: buyback $1.018m, + yesterday $581.6k, on a 65mil market cap, they are starting to accumulate a decent chunk at a reasonable level.


discl, still hold a reasonable amount, thinking of topping up again...hmm

[JBmurc]

Yes let,s hope they are buying as we have another major sale coming up or the MCC deal conclusion ... And not just buying to bail out institution holder

[Beagle]

Woof, woof, this really is a dog with fleas...just waiting for a few of the fleas to be flicked off by the dog itself and then I'm happy to bark up a different tree. Fair to say I'm a very disgruntled holder.

[JBmurc]

Woof, woof, this really is a dog with fleas...just waiting for a few of the fleas to be flicked off by the dog itself and then I'm happy to bark up a different tree. Fair to say I'm a very disgruntled holder.

Yes one of many I seem to hold of late .....Sounds like end of july early August to MCC outcome

[Well Endowed]

Volume still increasing $240k thru in the first 30mins on open and there has been a few non-buyback bites out of 10.5c to start the past few days.

I might have it completely wrong, and not being a wary LT holder like roger I'm looking at it differently, however seems like there is now significant more upside than downside...?

[bung5]

I would like to think once(if) marampa is sold they will start the process of winding up the company and liquidating assets and return 500 mil in cash to all the shareholders.

Reality probably nothing happens.

[JBmurc]

I would like to think once(if) marampa is sold they will start the process of winding up the company and liquidating assets and return 500 mil in cash to all the shareholders.

Reality probably nothing happens.

Going from past actions most likely major Capital returns ////but first we need to see the likes of marampa sold and going from the past
it isn't going to happen overnight .... major positive with CFE has been TS buying many shares over the years to from memory 5-6% ,,the buyback is slowly increasing all of are interests in CFE assets ...

large vol today top20 moving / buyback ?

[Well Endowed]

CFE looking better today, 10.5c cleared out. last traded 11c, could the relentless seller have finally called it a day?

[Bobcat.]

Yes, onward and upward...and that's in spite of some of their stock holdings faring badly of late (e.g. IGS, KPR, LRS, etc).

[Well Endowed]

I did a quick calc of their listed equities (excluding convertible notes)
Cauldron 22.6% = $4.03m
Int Goldfields 26% = $0.168m
FE limited 57.9% = $3.43m
Kupang Res 12.2% = $1.47m
Latres 11% = $1.30m
Global Strat Met 34.9% = $1.59m

Total= $11.99m

all holdings are pretty much at 52week lows, with the exception of FE (0.02/0.027 bid ask, year high 3c) which CFE looks to be on the way to a full takeover by converting notes over the past few months....

[JBmurc]

11c close depth looking much more bullish >>good anns coming/big seller finished ....hope so

[Well Endowed]

Still no seller hammering the px back on open. I added to my position late yesterday, hoping recent iron px consolidation around $115 mark and acquistions in Brazil add to the improving sentiment in the sector

[Well Endowed]

asx MCC dispute hearing Jul14. good volume today @ 11c

http://www.asx.com.au/asxpdf/20140416/pdf/42p1d9vm7m7j3l.pdf

[JBmurc]

asx MCC dispute hearing Jul14. good volume today @ 11c

http://www.asx.com.au/asxpdf/20140416/pdf/42p1d9vm7m7j3l.pdf

Sold my lot ..... be back in time maybe even as early as july ....but with the likes of ELM on the verge of a massive move I've jumped ship..

[gazprom1]

July is nearly upon us so ran the ruler over CFE again and decided to buy a few more the past couple of days. Value of cash and listed securities equals its MCap so all its other assets are valued near zero. The MCC case is set for July although no firm date as far as I can see from announcements. A win would be $80m plus interest of around $1.5m. That cash is nearly double CFE's MCap. CFE have stopped the share buyback at the moment which has caused the price to slide. Not sure whether they are conserving cash or a deal is in the wind.

The next couple of months will be interesting.

Gazprom

[JBmurc]

Yes end of TAX loss selling should see a bounce here ....would certainly be buying back in at these levels if I had some spare funds ....just checkout CXU FEL two of their major ASX holdings be booming of late 100%-300%+...most likely CFE will takeover FEL once MCC / Tax issues are sorted.....

[Corporate]

Careful guys. It looks like that royalty isn't going to be worth much if Mayoko doesn't get off the ground: http://www.exxaro.com/index.php/cautionary-announcement-and-trading-statement-for-the-six-month-period-ending-30-june-2014/

It looks like they are writing off the full value of the project which doesn't bode well.

Further, if the $80m is received from MCC this will crystalise the associated tax liability!

[gazprom1]

Careful guys. It looks like that royalty isn't going to be worth much if Mayoko doesn't get off the ground: http://www.exxaro.com/index.php/cautionary-announcement-and-trading-statement-for-the-six-month-period-ending-30-june-2014/

It looks like they are writing off the full value of the project which doesn't bode well.

Further, if the $80m is received from MCC this will crystalise the associated tax liability!

Hi Corporate,

Thanks for the heads up. I didn't place any value on the royalty despite AS believing it was worth $50m+ going forward. My understanding re the ATO claim is that CFE has paid $33m and there would be another $33m owing should they be liable. MCC claim is for $80m plus interest. Current MCap of CFE is $49m of which all is currently covered by listed investments (approx. $25m) and cash ($27m as at last quarter).

Yes there is risk but any sale of an asset or successful MCC claim should result in an increase in SP>

Cheers
Gaz

[tricha]

The winds of change are sweeping across Australia, only the strong will survive.

http://www.businessspectator.com.au/article/2014/6/20/australian-news/why-chinese-investment-matters-australia
This is already weighing on margins across Australia’s resource sector and as The Australian reported (http://www.theaustralian.com.au/business/mining-energy/iron-ore-price-slump-claims-first-victim/story-e6frg9df-1226959724124) yesterday, it has already claimed its first victim: the Cairn Hill iron ore project in South Australia. Fortescue remains at risk, with high levels of debt and a relatively high break-even of $72 per tonne (Fortescue gets another wake-up call (http://www.businessspectator.com.au/article/2014/6/17/resources-and-energy/fortescue-gets-another-wake-call), June 17).
Urbanisation will continue to drive demand for infrastructure investment in China but we shouldn't ignore the effects of population growth and the declining rate of urbanisation. Both will weigh on growth in the medium-term.
Of more immediate concern, however, is the excess capacity resulting from past investment. This points to softer demand for iron ore and coking coal and may result in commodity prices falling even further. This presents a near-term risk for the Australian economy, not just in the broadest sense but with regards to individual iron ore producers.

[Okebw]

We should hopefully get the results of the MCC dispute tomorrow. I've picked up some more last week and intend to get more again tomorrow morning provided they aren't put into a trading halt.

Worst case scenario they're a well managed company who's shares are only currently valued at the value of their cash and marketable securities and best case their NTA will be roughly 250% of the current share price even after the tax obligation is fulfilled.

[Okebw]

CFE to receive $51,600,000 AUD from the MCC settlemet.

Excellent result!

http://www.asx.com.au/asxpdf/20140714/pdf/42qt774j2cq5l1.pdf