Member Info for Renegade

JV or TO must be the only option?

£2.43m MAD!

Page 13: http://www.africaneagle.co.uk/userfiles/file/ir/Corporate%20December%202012%20FINAL%20Print_V2.pdf

Interesting, Full Year Results moved to June! Significant? http://www.africaneagle.co.uk/investors-calendar.asp

Unless of course the Chinese want to invest the $ that they are holding prior to any further quantative easing? China are already playing a major part in Africa's development. Including planning/building the rail system! AFE said in an earlier presentation that the Nickel price would increase until 2020 (from memory). As you well know, our recovery costs are small in comparison with others. Although a gamble, this is the best investing opportunity (ever) for new AFE investors.

P.S. What % of the company are the BOD prepared to JV'/Sell? If they retained 10% of AFE and insisted that the new partner funded all future development and mining activities, this would still equate to a company worth £XXM.

As thorough as ever Mogo and to some extent I do agree with your thoughts and findings. However, Trevor Moss and the new BoD did not enter AFE in the knowledge that this company would fail. The IFC involvement and funding have been key. No bank would commit funding without due diligence and would not enter in the knowledge that they will loose on their investment. On the same point, neither would Allard. For now all we can do is be patient and let this one play out. The BoD could have something up their sleeve which may have been indicated in a recent RNS (Asia). Therefore, I would not be surprise if we see an imminent JV or TO announcement. Fact, we do need massive funding to develop Dutwa and all our other assets. Dilution would have come sooner or later. I can't honestly see the likes of Julian McIntyre (and Co) selling AFE at a massive loss. Break even yes, a loss no. Therefore, I can only presume that a JV/TO, will be far greater than today’s Market Cap. Only the BoD know our true value and they remain tight lipped (and still not selling?). The AGM will be interesting!

Lock down is a sure thing. Tight lipped yes. TO or JV is a distinct possibility hence no real worries from the BoD. PI's - I am not aware that any of the BoD have sold any shares. Please feel free to update me should I have missed something.

IMHO. The MM's are giving the BoD no other option, release an RNS.

£5.90M. Frightening!

luring - LURKING

With a market Cap of only £6.42M, any suitable partner should soon be surfacing. Late May - Full Year Results. June - Annual General Meeting. I will be more than interested so see the funds available and the cash flow burn. What are your views on a likely TO price should a predator be luring in the wings? Suggestions anyone.

Extract taken from the 2 April 2013 RNS: "Following a strategic review undertaken with the assistance of its financial adviser, Cutfield Freeman and Co Ltd., the Company has determined that the priority for the advancement of the Dutwa Project is the search for a strategic partner. This has significantly advanced following a series of recent meetings held with interested parties in Asia and elsewhere, and a number of confidentiality agreements have been signed and a data room established. The interested parties are now working through the available documentation". How long do you think it takes to translate everything from English into Chinese? No 32 please - Egg fried rice, chicken and cashew nuts please! Its not that easy. Lol

£6.42m. Bargain!

More importantly, may I suggest that we hold a TO Party in the event that AFE is sold out. Offer is open to all those who are invested at that time. Venue TBD. Central.

If I remember rightly, China and India are the biggest importers of Gold. Both are major developing countries. Gold is mainly used for Jewellery and electronic component manufacture. Its use will not go away overnight. Its use in teeth - maybe! Says it all really.

I feel reassured that your reasoning is inline with my own. The Chinese already have a major influence in African infrastructure (mines, railways etc). Buying solid assets is their long term plan aimed at supporting China/the world's growth for decades to come. The dollar is weakening by the day. So is gold! Where do you put your money next? The Chinese are no fools though. They will expect a bargain. IMHO, AFE could do far worse than signing off all or part of our assets to the Chinese. A JV or TO, either or!

I also seem to recall (said by by MP when he was in charge) that potential partners/banks were (interested) on the horizon even then. Why else would we let potential partners see the books?

My point is, with over 39% of the company owned by II's, i don't think the company will be given away cheaply. Not if Asia (the Chinese) are in the melting pot or a smoke screen has been set up to flush out even more partners..

Yep, you're right. Nickel is no good in the ground. The market wants to see mining/a profit which will first require a large initial investment. With only Dutwa really assessed, there are big unknowns elsewhere in the company and it will be extremely difficult to quantify what assets we really have until further testing has been completed.. A future JV (and i believe that we will go this way) will see AFE as a minor shareholder in a much larger company. We may well part JV (for Dutwa only) with the nuclear option being of a full TO of the company. IMHO, a full TO will not bode well with the BoD unless we get a very realistic offer. The realistic offer would be far cleaner for all parties and will be many times the current SP. The II's will not permit the BoD giving the company away for peanuts.