Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Thanks for the info. How solid is your price of not less than 8p? I would be very happy at 8p
interesting. Do you have any idea how far advanced the sale process is? Or any kind of price?
just looking at the information out there, to show ACU is not some kind of basket case. It is a company that is mining increasing amount of copper, and a wisker away from being highly profitable. ZCI can ask for a good price, and I see no reason the shouldn't get it.
For the six month period ended 30 September 2011 we produced copper in concentrate of 3,486 Mt, 95 per cent higher than the corresponding period from last year, and we achieved record production levels in August 2011. This progress reflects an overall increase in mining flexibility as a result of having two available open-pit operations, Mowana and Thakadu, and a number of specific factors: increased grade of ore delivered to the plant as a result of higher production at Thakadu, successful maintenance strategies at the secondary and tertiary crushers, higher availability of the mill, and efficiency improvements at the filtration plant. Although this momentum is highly positive, it nevertheless fell short of our original projections. We anticipate addressing this shortfall through a program of focused plant upgrades, currently in progress. We completed the installation and commissioning of a new tertiary crusher in November and of a new secondary crusher in early December. In combination, we expect these crushers to increase operational efficiency and to increase the throughput to the mill. So if the tertiary and secondary crushers are now functioning, this should be another boost to production.
Let us remember that in Jan 2008 MRI Trading invested US$10 million in a 5% holding in African Copper. Now MRI know their copper, and that was long before the mines where producing. Let us also remember this from the half year results. "Copper produced in concentrate in the first half of the current fiscal year increased by 95 per cent 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. In August 2011, we achieved record production levels." Also from the half year results. "Further increases in recoveries are anticipated in the second half of the current fiscal year as mining operations at Thakadu progressively move towards sulphide mineralisation and mining operations at Mowana progressively increase and move towards more supergene rich areas" The Group reports revenue of US$23.1 million, as opposed to US$8.1 million in 2010, this figure should increase substantially as production increases, especially as copper prices are very srtong again. Operating costs per tonne processed are expected to decrease in the next fiscal year from a combination of the following factors: 1) the new secondary and tertiary crushers will provide greater throughput and will be less expensive to operate and maintain 2) expenditures on flotation chemicals will decline as Thakadu operation move towards more sulphide rich areas 3)the Larox filter will increase filtration efficiency, allowing higher throughput of concentrate with a lower moisture content thereby improving concentrate handling during filtration as a result of higher density and reducing trucking and labour costs 4) the new column cells are expected to reduce impurities and increase concentrate grade thereby reducing penalty and trucking costs. The labour complement on the mine is also expected to be reduced with improved efficiencies realized from plant improvements. Significant temporary labour costs have been incurred in the past to address problems encountered with the secondary and tertiary crushing circuit and the concentrate filtration section of the operation. One of the reasons they have been making a loss, is due to the investment they have made in the mines, these investments should now be starting to pay off as new now have reducing costs, and increased production. The main point I am trying to make with all the above information, is that ACU is far from the lame duck some people have tried to make out. It is a fantastic resource, where the owners have done a huge amount of work rectifying issues as they come accross them. It seems to me the owners now want to release some or all of the value within ACU, but this is far from a a fire sale, and they will only sell if they get a good price. A price that may well surprise us all.
I would have thought a number of companies would be interested in ACU, including the Chinese. Copper stocks are low and the price is high. The price they will get will depend on how much they have increased production, and how much someone wants 30k tonnes p/a of copper at $8600 per tonne at todays prices. I think we are at last going to have some exciting times in ACU
Plenty of trades gone through today. At least it has provoked some interest. Still lots of rumour left in this zcifan. Who is going to buy us? How much are they going to pay?? Certainly can't see anything like the current sp
I have always thought ZCI would sell all or part of their stake at some point. This is why they never took over ACU outright, they could have done for peanuts anytime over the last couple of years. Now looks like they have decided to cash in, you would presume they would think they could get a decent price, as stocks are low, and prices are high. They may yet surprise us
Won't let me access it, any chance you could paste the text onto here. Thanks
Any kind of timescale you are aware of for next anouncement? Do they have a buyer in mind?
His post disapeared. Pozz, Whi will be interested? China!! Amongst others i would suspect. hope the review doesn't take too long.
"Try to answer : Are they going to sell so easyly a mine closed for care and maintenance ??? " The mine is in production, and increasing production at that! At least get your facts right.
8p should be the minimum. Where does your info come from?
If this goes for 4p or less i would be very surprised. i would hope for nearer 10p, which would still be cheap in my book
i am not interested what the market thinks. it is an irrational beast on the best of days. this is falling on uncertainty. I am interested in what ACU is worth, and what someone is prepared to pay for it. ZCI are not a distressed seller, copper demand is very strong, as is the price, so no reason for them to accept a low ball offer. I would be happy with a full sale, if they get a good price, or a partial sale if it meant ZCI reducing their stake significantly, as we could then share in any gains. ACU do have a lot of copper, and are increasing production, I would have thought the Chinese would be very interested.
Because ACU falls on any news, good or bad. Just as they where begining to ramp up production. i would think the ideal scenario would be for ZCI to significantly reduce their holding. Though we shall have to wait and see
Wonder if they have spoken to the Chinese, who are allways in the market for raw materials. And usually pay a good price.
Pozz, They made the loss because they where investing in the mine. This will help increase production, as production goes up, costs come down. Might not be as fast as we would like, but they are moving in the right direction, and they are doing things properly, which always takes a bit longer, but is better in the long term. I personally think ZCI have proven to have the best interests of ACU in mind with what they have done. I also think they want to keep ACU a seperate entity, otherwsie they would have bought it up by now. They have also proven to be willing to put their money where their mouth is. How many AIM companies would like access to the funding that ACU has had over the last few years. They have proved willing to invest in the infrastructure of the asset, what more can you ask of a majotiry shareholder. ACU will probably end up having $50m+ revenue for the full year, as production increases, how much next year, $70 to $100m? I have a personaly believe that when the profits do start rolling, they will be big profits, I can see all the improvements coming together in one big surge. In some ways I am happy the price is staying low, gives me the chance to top up at bargain prices. I have said before, and I stand by it, this comany will be a £200m+ company eventualy. At the moment it is £15M! I intend to fill my boots while the price is so low.
In Jan 2008 MRI Trading invested US$10 million in a 5% holding in African Copper. Which at that time placed a value of $200m on ACU. MRI know their copper, it is their business and they have a lot of experience and expertise, they will have a good as an idea of anyone of what ACU is worth. Also remember this "Thakadu is the richest find within the basket of African Copper finds, with 5 million tones copper resource at two percent compared to Mowana mine, whose average copper grade is at 0.71 percent"
I wouldn't waste good ACU shares on her! In the end I have opted to go with a spreadbet, more bang for your bucks. Though I usually like to own actual shares, but sometimes needs must. I'm comfortable that they should only go one way from here. We already know that prdoction has increased 176 per cent and 53 per cent higher than the respective quarters from last year. Which if you average the price at $9000 a tonne works out they earned $29m (Very rough figures). And with other improvements coming to fruition this month, we have interesting times ahead. I have said over the years that this is the most unloved share on AIM, though they ultimately won't be able to ignore the figures involved. It's those that get in early that earn the money, and we have a bargain price at the moment.