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All I do is post facts that are in the public domain, and give my opinion on them. However we live in troubled economic times, and quite frankly anything could happen in the next 12 months. But whatever happens, people will still need copper, and ACU have quite a bit of it.
"There's continuing interest in the copper assets out of Asia. People are just very cautious about where they can get good, large copper deposits from in the future," Reeve told Reuters." "Reeve did not elaborate on the bidders beyond saying they were largely Asian."
"Gold and copper miner Ivanhoe Australia Ltd has received interest from up to eight bidders for stakes in its projects" "Ivanhoe Australia, with a market value of A$553 million ($551.92 million), appointed UBS AG in January to advise it stake sales in four projects, aiming to complete a deal by mid-year" Cetainly looks like there is still a lot of interest in aquiring mining assets, with up to eight bidders. With preliminary interest seen from Anglo American Plc, OZ Minerals Ltd, Vedanta Group and Indian conglomerate Aditya Birla Group, no doubt some Chinese interest also. They expect it to take six months, so it is clearly not a quick process, we are three months into our strategic review, which could be quicker, could be longer, who knows.
Not sleeping, patiently waiting for news. And waiting, and waiting.
Its OK, I never thought you where. My take on events are that looking at what recent mines have sold for, seems to suggest that ACU should be worth circa $500m (unless I am missing something) However compared with the current market cap, it seems ludicrous that we could be sold for such a huge premium. So the question remains, what will it go for? (if it goes at all) Like you I do very well indeed above 10p. Thopugh I would want to know the reasons for a sale at such a price. As I said I await with interest, now into the 3rd month of the strategic review, though I don't have the faintest clue how long it will take
What I actually said "Yet another sale that would place an indicative price for ACU of about $500m. Once again I'm not saying that's what ACU will go for, but if all the recent sales are anything to go by, it should be." I have no idea what it will go for, if it goes for the kind of prices that other mines have recently been sold for then $500m would seem to be around what it is worth. As to what price it will actually go for, I have no idea what price it will achieve, though you must remember there is about $90m of debt to come off the price, I would be happy with 13p a share, though looking at what other mines have recently been sold for, at that price the buyer would seem to be getting an absolute bargain. I watch with interest
Another 50k trade gone through, looks like something is afoot.
Looking at the trades of the last few days, there are a steady number of buys of 30k, 50k, and 60k. Is this someone mopping up free floating shares?
----China’s Gingko Energy Company has revealed plans to invest $100 million to revive production at Kilembe copper mine in western Uganda. Gingko Energy’s chairman, Lin Rui Hui revealed the investment plans to Uganda President Yoweri Museveni of the investment on Friday. Officials of the East African country’s president’s office also confirmed that the $100 million Chinese investment would span a five-year period. Uganda’s Department of Geological Survey and Mines said that the Kilembe copper mine has an estimated 4 million tonnes of ore. With 1.98 percent estimated to be pure copper and 0.17 percent cobalt. Production at Kilembe peaked in the 1970s at around 18,000 tonnes of copper cathode a year. However, the mine was abandoned in the early 1980s due to political turmoil and a fall in copper prices.--- For ACU Thakadu alone had estimated 4.715 mln tonnes. For Mowena the company said estimates included 32.85 mln tonnes grading 1.61 pct copper and 40.75 mln tonnes grading 1.41 pct copper. Yet another sale that would place an indicative price for ACU of aboput $500m. Once again I'm not saying that's what ACU will go for, but if all the recent sals are anything to go by, it should be. None of us know what ZCI will get for their share, but if they sell the lot whoever buys them will have to offer the same price to all other shareholders.
----------A subsidiary of Peruvian miner Minsur, one of the world's largest tin producers, said on Monday it had reached an agreement to buy a controlling stake in the Mina Justa copper project in central Peru for $505 million.--- Actually the $505m is only for 70% of the stake in the Mina Justa copper project CST had hired Morgan Stanley to advise on the sale on Jan 12, about 6 weeks before ZCI's strategic review. Though it is always dificult to compare like with like, it gives us an idea of the kind of timescale another company has achieved
ACU have been one of the markets most unloved shares for a long time. Partly due to some of the issues they have had, partly historical, partly due to people doubting the ZCI influence. Though it has to be said ZCI have been nothing but supportive and provided cash whenever required. I don't think you can critisise management, they have had numerous issues to overcome, and appear to have done so. I am of the opinion that even if they don't sell, then as production increases so should the SP. Though I have been of the opinion for a long while that ZCI would sell all or part of their stake. Add to this political and economic issues around Europe, there is little support in the market in general. Hopefully we will wake up one morning soon to an RNS letting us know where we all stand. For my mind, anything less than $200m would be unacceptable, even at that price it is a bargain compared to other recent sales. Though ultimately, we will have to wait and see, but the process is now two months old, can't be too much longer.
----------A subsidiary of Peruvian miner Minsur, one of the world's largest tin producers, said on Monday it had reached an agreement to buy a controlling stake in the Mina Justa copper project in central Peru for $505 million. The project is located in the coastal region of Ica and requires an investment of $750 million. It is expected to produce 60,000 tonnes of copper per year starting in 2013, according to the Ministry of Energy and Mines.------ So they are paying $505m plus invesment of $750m for a mine that won't start producing until next year. This seems to tie in with the prices paid recently for other copper mines, of $1b+ ofr mines that produce 60k tonnes p/a. ACU are looking at 30k t p/a as things stand. And are heading to the 10k p/a figure. Plus ACU also have 'three world class mineral deposits' that they have be prospecting. We continue to wait for news
Just been looking at this years production figures that are already in the public domain. ACU up to March look to have produced 7045 tonnes of Copper, which at a price of $8000 a tonne works out they should have generated $56.36m in revenue this year. They have spent quite a bit on exploring and testing other prospective areas, which according to them should lead to at least three 'world class mineral deposits'. They have also spent money dealing with bottleneck issues, so not expecting a profit as such. But in March they reached record production of 809 tonnes, as production increases costs come down, and hopefully the one off expenses on the mine improvements will end and they should start turning a profit. If they hit 10k tonnes p/a that will be revenue of $80m at $8000 a tonne. Remember they are actually looking to produce 30k tonnes p/a which would bring in revenue of $180m p/a and this is before they start on the 'three world class mineral deposits' The present market cap on ACU is riduclous (as with many AIM'ers) if someone wants to buys us out, ZCI should demand top dollar or keep ACU as it is, and we should reap some big returns as the SP increases with production and profits to where it should be which in my opinion is 10p + in the next 12 months.
You seem to have a lot of info, have you not picked up anything on the grapevine?
None of us know what will happen, I must say they keep a very tight ship. As long as I get a good return, though I would like to have some idea of timescale, looks like we will find out one morning, waking up to the news. it's like waiting for Christmas, but not knowing when Christmas is
How do you know RMB where engaged in Oct? How long is the last phase likely to take? Not sure why ACU will be suspended, if ZCI sell there stake, and an offer is then made for the whole company, there is no reason to suspend ACU. Surely the shares will just rise to the offer price.
I don't disagree, it is a very real possibility. Unless somone wants the whole thing, and is prepared to pay for the privledge. The strategic review has now een going nearly 2 months, I would love to know the likely timescale.
How do we know that? Not that I'm against the idea, it will put a value on the company, and allow us to share in any further increases in share price.
-----The world’s largest copper miner has been forced to buy from other miners and traders to meet its deliveries to customers, a rare move that underscores how the mining industry is struggling to lift output to meet demand for the red metal----
this was an update for one month, seems like he was boasting about how well they did last month. if it's worth a boasting blog post, it's worth an RNS.