Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
You can acutally get 2.87 to sell, just did a dummy trade. hopefully the start of good things to come.
Mining deals are accelerating as companies struggle to replace depleting deposits and China's industrial growth stokes demand for metals. More than $27 billion was spent globally on copper deals in the last 12 months, according to data compiled by Bloomberg,
If you look at the prices paid for Copper companies that have been sold recently, they seem to go for billions rather than millions. I know it is bigger than ACU, and it is difficult to compare apples and oranges, but it shows the current sp to be utterly ridiculous. As things stand, even with the debt, the sp should be 10p+
"(2.2 billion euro, $2.9 billion) or 9.15 billion zlotys and decided to rename the unit to KGHM International, the company said in a market filing. KGHM also decided to delist the Canada-based company, in line with prior declarations. The agreed purchase price is down from an original 3.5 billion Canadian dollars price tag, KGHM said on its website. The acquisition will allow KGHM to increase production by 25 percent - the equivalent of 100,000 tons of copper - this year, KGHM said." "KGHM maintains its plans for more takeovers as the group needs at least one more acquisition to meet its production target of at least 700,00 tons of copper, CEO Herbert Wirth told a news conference"
The above is why ZCI should demand a good price for ACU. Copper demand is outstripping supply, this will underpin prices, and make ACU a valuable asset for somebody. I personaly would find it incredible if ZCI let ACU go for less than 6p a share. Even at those prices it is an absolute give away, if they demand fair value we would be talking well over 10p. Strange as it may seem with the sp languishing at 2.5pish, I have seen stranger things happen. ACU is the most unloved share on the entire AIM, and has been for a number of years, hopefully we are nearing a point where those with patience will be rewarded.
"Mitsui & Co., holding a record $17 billion in cash, wants to buy mining stakes and expand operations to triple copper output and more than double coal production, easing its reliance on iron ore sales" "Globally, copper consumption will outpace supply by 376,000 tons this year and there will be another shortage in 2013, Barclays said in a Feb. 29 report."
"Major producers such as Tongling Nonferrous and Jiangxi Copper, said this week that they expect Chinese consumption to grow some 6-7 percent this year, as construction of power lines and millions of subsidised homes would keep demand for the red metal healthy"
Well it's been two weeks since they anounced that ACU is effectively up for sale. So far the sp has been eratic, but we live in eratic times. Don't know how long the process takes, but hopefully they have had a few siffs of interest.
Not sure to be honest, I just went trawling through RNS's issued in the past. have you heard any whispers on a timescale for the sale? Pity we don't have a local contact who could keep an eye out for limo's full of Chinese people.
there is quite a bit of info in the public domain, that gives us some idea. "Copper produced in concentrate in the first half increased by 95 percent compared to the same period last year and by 48 per cent compared to the second six months of the last fiscal year to 31 March 2011." This is prior to the "plant upgrades are in progress and are expected to be completed by the year end" Surely ZCI haven't been through all this to let ACU go on the cheap!! Interesting times,
Taken from an RNS in 2004 "ACA Howe, as independent geological and mining consultants, have put a fair market value for Dukwe and Matsitama in the range of $128 million to $142 million, (approximately #70-78m @ $1.84/#), using a copper price of $1.00 per pound" $142m at $1.00 per pound, against a current price of $3.7 per pound equates to $525.4m!!!
"We anticipate being able to maintain production above 30,000 tonnes of copper per year beyond 2012 by integrating an underground mine into Mowana," chief executive Joe Hamilton said" So they reckon they can get 30k tonnes per year just from Mowena. Again things have changed since these figures where published, but the Copper is still there!!
Taken from an RNS in 2008 "African Copper PLC said it expects production at its Mowana mine in Botswana to grow to 29,000 tonnes of copper in 2012 from 5,500 tonnes in 2008 after reviewing the operating parameters" Now obviously they are behind schedule, but this has been due to the issues they have addressed, and continue to do so. However it shows the potential, they will be mining 29,000 tonnes from Mowena alone, at some point, 29,000 x £8.500 per tonne is a huge amount of money. (£246m p/a!!! With costs dropping "it expects the cash costs of production to drop to 1.49 usd/lb from 2.48 usd/lb in the period to 2012." Obviously these are historical figures, and some things have changed, but it does shows the massive potential of ACU, and if ZCI don't get good value, which in my book should be a bare minimum of $200m, they should keep ACU until they are offered a satisfactory figure.
Taken from an RNS in 2007 African Copper PLC said its Thakadu copper-silver project in Botswana has an estimated indicated resource of 178.7 mln pounds of copper, according to an independent estimate. Which works out at £679m!! Obviously minus minig costs The project has an indicated resource of 4.715 mln tonnes grading 1.72 pct copper, and an inferred resource of 0.961 mln tonnes grading 1.29 pct copper (27.37 mln pounds of copper). It also holds an indicated 1.88 mln ounces Which at $34.18 oz works out at $64.25m remember this doesn't include Mowena, or any other resources discovered. If ZCI don't get a good price for ACU I am more than happy to wait for production to make a profit, which could be next set of results, as the profits will be huge.
Copper stocks continue to fall, if they keep going at this rate they will be down 50% in six months. If stocks fall, prices will remain very strong, which will make ACU an even more attractive proposition. Aside from any financial interest I am fascinated to see what price ACU, as it will give us a benchmark price for other copper stocks.
if they get $300m+ for ACU I think we will all be ZCI fans. Fingers crossed
I think it shows the kind of investment needed to get it froma hole in the ground, to a fully functioning copper mine. Maybe ZCI realise what is needed, and also realise what they can get for ACU as things stand, and decided a few hundred million in the hand is better had than not.
I think they expect to produce 20k toones p/a from Mowena alone over the next five years. Add Thakuda to that and that should give another 10k. Plus deep mining and other prospective areas, if Anvil that would make us worth $600m. I am not saying we will get $600m, (though you never know) just that it should be a huge premium to the current sp. (hopefully)
I am sure I read a long while ago that ACU would like to mine 30k tonnes p/a which would make us half the size of Anvil. But i would be very happy with anything near those kind of figures. Certainly shows the 20m to be a very silly market cap
With a sale in the offing, and copper prices srtong, it is difficult to see much downside from here. Like most AIM companies at the moment the sp is depressed, however I would suspect the sp will drift back up to 4p, as people buy in prior to the sale. The only way to release value for AIM companies now a days is through a sale. Then hopefully ZCI get a good price and at least you could at least then buy a top end copper coloured pushbike