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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Arcon Int. | LSE:AIN | London | Ordinary Share | IE00B01H3229 | EUR0.10 |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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|---|---|---|---|---|---|
| 0.00 | 0.00% | 28.95 | 0.00 | 01:00:00 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
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| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| - |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| - | O | 0 | 28.95 | GBX |
Arcon Int. (AIN) Share Charts1 Year Arcon Int. Chart |
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1 Month Arcon Int. Chart |
Intraday Arcon Int. Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 03/2/2007 | 12:31 | http://www.lme.co.uk/2432.asp | 1,239 |
| 04/11/2004 | 14:04 | Providence Resources | 8 |
| 07/9/2003 | 18:45 | Arcon certainly striking it big!!! | 128 |
| 06/11/2002 | 07:49 | Arcon at 6P: a new low: cheap or dangerous? | 19 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
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| Top Posts |
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Posted at 03/2/2007 12:31 by stirkjames Lundin Mining share price has more than halved. Has anybody any idea what has happend. Tried to Google Lundin but just got a chart, don't know were else to look.James |
Posted at 06/4/2005 09:09 by hypocrite Moneybags Friday 8th April 2005Ireland's only source of independent company appraisals for the Irish Investor. Phoenix Magazine Dublin Ireland Arcon being bought for a steal IN SELLING out to the Swedish Lundin Mining Corp for 93m, Tony O'Reilly has picked an extraordinary time to exit. The Galmoy Mines made a small profit last year for the first time since it was brought into production eight years ago. But with the huge jump in the zinc price this year, Arcon is on line to make a profit of up to 50m in 2005, making the price Lundin is paying look ridiculous. Unfortunately, the shareholders have not been informed about current production levels in Galmoy or of the effect the current zinc price has on current profitability. With O'Reilly holding 65% of Arcon's equity and signing an irrevocable acceptance while the independent directors of Arcon and J&E Davy have recommended acceptance, the position of the independent shareholders is impossible, leaving them little or no option but to accept the bid. The only positive aspect of this is that almost 50% of the offer is in Lundin paper and, accordingly, the minority shareholders can participate but in a much diluted form. The very least O'Reilly should do is insist that Lundin shares currently only quoted in Stockholm and Toronto get a listing on the London AIM market, although the Lundin takeover document indicates that this is not being considered. TEN FOR ONE Lundin's offer for Arcon works out at 52 cent per share, made up of 28 cent in cash and 24 cent in Lundin paper. What is important to note, however, is that in July 2004 Arcon consolidated its shares on the basis of ten for one. This means all prices struck before last July had to be multiplied by a factor of ten to compare with this 52 cent takeover offer. The offer is as high as the shares have reached over the last four years and double the price of the huge rights issue in July 2002 floated at the equivalent of 25 cent per share. In total, O'Reilly has invested well over 100m in Arcon and it could be that, despite the huge recovery in the zinc price, with Waterford Wedgwood causing him so much anxiety he cannot resist the temptation to cash in his Arcon chips by selling out to Lundin now. For his 65% shareholding O'Reilly has got 32m cash plus the repayment of 13m loans he made to Arcon from his Cyprus companies, Fairfield and Indexia, to give him 45m cash. Even though this represents a cash loss of well over 50m O'Reilly will end up with a 30m shareholding in Lundin, making him the only other large Lundin shareholder (with 10%) apart from Adolph Lundin himself, who has a 13.5% shareholding. Although Lundin Mining was formed back in 1994, the company did very little other than part-fund an exploration project in Northern Sweden in partnership with Boliden to develop a small zinc and copper mine at Storliden in 1998, which was brought into production in 2002. Then, in June 2004, Lundin stepped up a league and raised $160m (Canadian) at $8 a share. This money (about 100m) was used to buy the Zinkgruvan zinc mine in southern Sweden for 20m cash from the international mining giant Rio Tinto Zinc (RTZ) in June 2004. Zinkgruvan Mine produced 62,000 tonnes of zinc last year, along with 31,000 tonnes of lead plus 2 million ounces of silver almost as much as Galmoy, which produced a higher 69,000 tonnes of zinc last year and 15,000 tonnes of lead. What is odd, however, is the observation of the senior Arcon independent director, Paddy Hayes, that "the Galmoy Mine now has a commercial life of approximately five years". He gives no data or includes any geological report to back up this significant assertion. Arcon has previously advised that Galmoy had four million tonnes of proven and probable reserves, yielding 14% zinc, signifying a zinc content of 558,000 tonnes of pure zinc. Based on Hayes's statement, this must mean Galmoy is producing over 100,000 tonnes of pure zinc pa, which is a huge increase from the 69,000 tonnnes produced last year. The capacity of Galmoy's processing plant is 750,000 tonnes of ore pa. With a 14% zinc grading and Galmoy working as it is now at full capacity, this would produce 105,000 tonnes of zinc and fits Paddy Hayes's assertion. However, this means that last year's results were significantly unrepresentative and, accordingly, in the current year production will be hugely ahead of 2004 with 50% higher production and 30% higher zinc prices. As Arcon only produced 69,000 tonnes of zinc last year, at the current zinc price this alone will increase Arcon's bottom line by 17m. With the Galmoy plant working flat out the total profit could rise to possibly 50m. It is unclear why the independent directors Kevin Ross, Bill Mulligan, Peter Kidney and Paddy Hayes do not spell out some of these fundamental facts. Moreover, Lundin's own consultants actually calculated Galmoy's reserves at 5.5 million tonnes grading 14% zinc, signifying 778,000 tonnes of pure zinc metal, almost 50% higher than Galmoy's own estimates. This means there is a 50% increase in the number of years production left in the Galmoy mine seven and a half years rather than five. Also excluded is Arcon's other known reserves, such as Harberton Bridge in Kildare, which has an estimated 3.7 million tonnes grading 10% zinc, and the Rapla Prospect adjoining Galmoy, which has an indicated 2.7 million tonnes grading 7% zinc. Hayes advises shareholders that "the Galmoy Mine now has a commercial life of approximately five years" and adds that "the proven Zinkgruvan Mine has a significantly longer remaining commercial life currently having an estimated eleven year reserve life", without giving any backup data or geological report. It is significant too that if Arcon were only to produce at Lundin's current production of 52,000 tonnes of zinc metal, Galmoy could actually produce for the next 12.5 years, and that is assuming Harberton Bridge, Rapla and the area from Galmoy down to Lisheen are all also ignored. The other producing mine Lundin has in Storliden in northern Sweden where the company has just increased its 27% shareholding to 100% at a cost of 22m is hardly worth talking about. According to Hayes this only has "an estimated remaining commercial life of approximately three years". ZINC PRICE When you consider that, on a pro forma basis, if Lundin had owned both of its present mines for the whole of last year it would have made a small profit of only 5m, there is little to justify its current 300m capitalisation. The jump in the zinc price this year will, however, seriously increase returns and particularly so with Arcon contributing. It could also be that Adolf Lundin, an impressive operator judging by the Zinkgruvan mine deal, has a much better chance of sorting out the European zinc smelter cartel, now that he is producing a hefty 200,000 tonnes of zinc pa. Although Arcon shareholders are getting a lousy deal from Lundin at least, they are getting 28 cent in cash per share, which is actually not much different to what the shares were trading at up to a couple of months ago. The 24 cent equivalent in Lundin paper could well be worth holding, especially if Adolf Lundin can pull off any more sweet deals. It will also be interesting to see how Tony O'Reilly rides his 10% stake in Lundin Mining and, in particular, whether he participates in any future fund raising the company undertakes. |
Posted at 04/4/2005 12:23 by hypocrite The share price will hopefully fall....we dont want this price....we did'nt want last weeks price......why should we want any price less than a FAIR price and that is not 52.2 cents which has already depreciated by 20%....... Anyone who sells now is a MUG....plain and simple!!! Caveat Emptor!!! |
Posted at 03/3/2005 09:44 by britishbear Big news - city does not like it - effectively a takeover but at a price BELOW the current price. Looks like we will have little choice but to accept unless a white knight arrives. I will NOT accept but this will make no difference of course.-------------------- RNS Number:2848J Arcon International Resources PLC 03 March 2005 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED STATES, AUSTRALIA OR JAPAN Lundin Mining Corporation ("Lundin Mining") and ARCON International Resources P.l.c. ("ARCON") ANNOUNCE INTENTION TO MERGE Highlights of the Intended Merger Transaction *Combination will create a diversified European base metals producer with aggregate annual zinc production of approximately 152,000 tonnes and lead production of approximately 46,000 tonnes (each based on year ended December 31, 2004), as well as copper and silver production and a substantial exploration portfolio *Enlarged group expected to have combined pro-forma liquid investments of approximately US$45 million *Enlarged group's ability to commit resources for, investment in, and exploration around, the Galmoy mine makes it possible to seek to further enhance operational efficiencies and expand mine life *Anticipated improved trading liquidity for shareholders The Board of Lundin Mining and the Board of ARCON announce that agreement in principle has been reached on the terms of a merger of the companies which the Board of ARCON anticipate they will recommend. To effect the proposed merger, Lundin Mining would make an offer, subject to an 80% minimum acceptance condition, for the entire issued share capital of ARCON in exchange for US$63 million cash, currently equivalent to approximately Euro0.276 per ARCON Ordinary Share, and 5.6 million shares in Lundin Mining, currently equivalent to approximately Euro0.262 per ARCON Ordinary Share (each based on the exchange rates referred to below). Based on the current issued share capital of both companies (undiluted) this would result in ARCON shareholders having an aggregate interest in Lundin Mining following the merger of approximately 14%. Lundin Mining anticipates making the offer as soon as practicable. Sir Anthony O'Reilly, the principal shareholder in ARCON, has advised that an offer on these terms would be acceptable to him. For the purposes of this announcement, the Board of ARCON is comprised of all Directors of ARCON other than Mr. Tony O'Reilly Jnr, the current Chairman of ARCON, who is expected to be appointed to the Board of Lundin Mining following completion of the merger. The value of the proposed offer is US$122.7 million, equivalent to approximately Euro93.6 million (based on a 1.3101 US$/Euro exchange rate, a 1.2431 C$/US$ exchange rate and the share price of Lundin Mining on March 2, 2005 (being the latest business day prior to this announcement)) and equating to Euro0.538 per ARCON Ordinary Share. While this represents a discount to the last dealt price per ARCON Ordinary Share on the Irish Stock Exchange on March 2, 2005 (being the latest business day prior to this announcement), the Board of ARCON recognise that the current ARCON share price follows a short period of strong share price appreciation, with limited liquidity. Relative to the average closing price per ARCON Ordinary Share over the twelve, six and three month periods prior to this announcement, the offer price represents premia of approximately 32%, 35% and 30% respectively. The Board of ARCON anticipate that they will recommend this offer, once formally made at this level, having regard particularly to the opportunity represented by the share element of the offer consideration which provides ARCON shareholders with the opportunity to retain an interest in ARCON's exploration prospects around the Galmoy mine, while also participating in the exploration and production diversification, and improved cash flows of the combined group. Such a decision is based on the Board's belief that the combination of Galmoy with Lundin Mining's interests would not only maintain the ability of ARCON shareholders to capitalise on the prevailing high commodity price environment, but would also expose ARCON shareholders to a broader asset portfolio and a group with a strong balance sheet for future growth. The improved cash flows and cash resources of the combined group will make it possible to further develop the Galmoy mine by investing in operations, production and exploration, thereby exploiting the mine's full potential. Lundin Mining, which is listed on the Toronto Stock Exchange and on the O-list at Stockholmsborsen (the Stockholm Stock Exchange), is a Canadian mining and exploration company with a primary focus in Europe. As at December 31, 2004, the company had cash of approximately C$105 million (US$85 million) and investments with a market value approaching US$30 million. The principal asset of the company is the Zinkgruvan mine in Sweden. The mine has been producing zinc, lead and silver on a continuous basis since 1857, and currently has an estimated 11-year reserve life with additional resources that could support mining for a further 8 years. Lundin Mining also holds approximately 74% of the shares of North Atlantic Natural Resources (NAN), a mining and exploration company listed on the Stockholmsborsen O-list. NAN's primary asset is the Storliden copper and zinc mine in Northern Sweden. A public offer has been made for the remaining shares of NAN by Lundin Mining, and is expected to close March 4, 2005. For the year ended December 31, 2004, the Zinkgruvan mine produced approximately 61,547 tonnes of zinc at cash costs of approximately US$0.23/lb of zinc, while Storliden produced 22,348 tonnes of zinc at cash costs of approximately US$0.11/ lb zinc (both net of by-product credits). Lundin Mining also holds a large copper/gold exploration project in the Norbotten Mining District in northern Sweden. In December 2004, Lundin Mining entered into an agreement with Silver Wheaton Corporation, whereby Lundin Mining agreed to sell all of its silver production from Zinkgruvan to Silver Wheaton Corporation for an upfront cash payment of US$50 million, in addition to 6 million (post-consolidation) Silver Wheaton shares (ticker symbol: SLW on the TSX), and 30 million Silver Wheaton warrants (ticker symbol: SLW-W on the TSX), plus an ongoing payment of US$3.90 per ounce of silver produced. Mr. Lukas Lundin, Chairman of Lundin Mining, said: "This merger will create a premier zinc mining investment choice for investors. With three low-cost and profitable mines focused in Europe, the combined company will generate substantial cash flow which will be used to further enhance the company's growth strategy. The merger will combine two quality management teams who can invest immediately in the Galmoy mine to further enhance operational performance and to seek to expand the Galmoy mine life through a substantially enhanced exploration program. The combined entity will continue to have the backing of the Lundin family, with its track record of adding shareholder value, and the involvement of Sir Anthony O'Reilly, ARCON's principal shareholder, who, following completion of the merger, will have a significant interest in the share capital of Lundin Mining (approximately 9% on an undiluted basis)." ARCON is an Irish mining and exploration company that is listed on the main markets of the Irish Stock Exchange and of the London Stock Exchange. The main asset of the company is the Galmoy mine located in Kilkenny County, Ireland, which, following the discovery of the "R" zone in 2003, has been recently extended by the grant of State Mining Licence No. 8 in respect of part of the "R" zone. Royalty terms agreed with the Irish Government's Department of Communications, Marine and Natural Resources on SML 8, all existing licences and any further new 2005 licences are 1.25% of revenue for the period from March 24, 2001 to June 30, 2006 and 1.75% thereafter until cessation of production. The Galmoy mine, for the year ended December 31, 2004, produced approximately 69,000 tonnes of zinc and approximately 15,000 tonnes of lead. Mr. Peter Kidney, Chief Executive of ARCON, said: "The combination of ARCON and Lundin will be a tremendous opportunity for ARCON shareholders to participate in the creation of a substantial European-based base metals company with considerable exploration potential. The timing of this potential transaction captures the recent strength in both zinc and lead commodity prices and enhances investor exposure to them." The making of the offer is subject to certain conditions including the provision of an undertaking by Sir Anthony O'Reilly to accept the offer, the obtaining of all requisite regulatory body approvals and the execution of an agreement between Lundin Mining and ARCON in regard to the conduct of the proposed merger. There can be no certainty that an offer will be made, and, if an offer is made, there can be no certainty as to the terms and conditions of that possible offer. An independent committee of the Board of ARCON will be established for the purposes of considering the offer, if and, when it is made. Davy Corporate Finance Limited have been appointed to provide independent financial advice with respect to the offer, if and when it is made. Lundin Mining have appointed Macquarie Bank Limited to provide advice in relation to the offer. A further announcement regarding the formal offer will be made in due course. |
Posted at 21/2/2005 13:09 by rambutan2 just like everything to be as clear as possible for everyone.and im getting lots of joy from the ain share price at the mo! |
Posted at 23/1/2005 19:48 by rambutan2 ain share price down 27% jan to jan.yes robinbell, its the euro prices that apply to arcon not the oft quoted US$. many are expecting the former to rise against the latter this year. |
Posted at 28/9/2004 07:13 by lee excellent results are out guys:ARCON International Resources P.l.c. INTERIM RESULTS FOR THE SIX MONTHS ENDING 30TH JUNE 2004 The Board of ARCON International Resources P.l.c. ("ARCON" or "the Company") is pleased to announce its Interim Results for the six months ending 30th June 2004, where: *Turnover (after smelter deductions) increased by 68% from Euro11 million to Euro18.4 million as a consequence of higher sale volumes, higher commodity prices and lower unit treatment charges. *EBITDA of Euro3.4 million was achieved compared to an EBITDA loss of Euro2 million in the corresponding period in 2003. *An operating profit of Euro1.07 million was earned compared to an operating loss of Euro4.4 million in the corresponding period in 2003. *A net profit of Euro1 million (Euro4.9 million loss in 2003) was achieved. *Final planning permission to develop and mine the high grade 'R' Zone orebody was received. *Upgrading of mill capabilities to handle high grade ore continued. Lead production recommenced in January and the lead circuit was expanded in the second half of May 2004. *At the AGM in July, the consolidation of shares on a 1 for 10 basis was approved by shareholders and was implemented in August. *New geological anomalies were identified for the next phase of the Company's exploration drilling programme. Commenting on this morning's Interim Results, ARCON's Chief Executive, Mr. Peter Kidney, said: "ARCON has made significant advances in the first six months of 2004 and we have made good progress in achieving our main objectives of extending the mine life and maximising production, while lowering unit operating costs, so as to sustain and grow profits in a low Euro equivalent commodity price market. "We look forward to continuing to increase production, while improving the operating efficiency of the mine. The demand for zinc and lead concentrate is currently strong and we would hope that this trend continues, sustaining a demand for production and a positive return for shareholders". Company Chairman, Mr. Tony O'Reilly Jnr., said: "With the improvement in market conditions, the Company looks forward to an improving trend in its operational results". Ends. Tuesday, 28th September 2004 For further information: Peter Kidney, Chief Executive Pauline McAlester Keith Irons ARCON International Resources Murray Consultants Ltd Bankside Consultants Tel: 353-1-6673063 Tel: 353-1-4980300 Tel: 44-207-444-4155 Dear Shareholder, I am very pleased to announce our first net profit of Euro1 million for the six months ending June 30th, 2004. This net profit, which represents a watershed for your Company, was earned as a direct consequence of ARCON's strategy to maximize production volumes, thereby reducing unit operating costs to well below prevailing commodity prices. Concentrate sale volumes increased by a record 25% to 78,100 tonnes as a result of increased lead production. A major upgrade to the lead circuit was completed in the second half of May 2004 and this has nearly trebled lead production since that time and now puts the Company in a strong position to benefit from the exceptionally high lead prices that are currently prevailing. Zinc concentrate production was also at an all time high for the period. Mining/Milling During the first six months of 2004, ARCON processed 330,000 tonnes of ore (331,000 tonnes, 2003). Additionally, the Company mined 18,921tonnes in development. The Company made record shipments of 66,900 tonnes of zinc concentrate and 11,200 tonnes of lead concentrates, a total of 78,100 tonnes compared to 62,400 tonnes of zinc concentrate in 2003. Further increases in mine production were curtailed as a consequence of a labour strike at a third party maintenance subcontractor from April to August 2004, which was outside the Company's control. Exploration Having delineated the R Zone, the Company turned its attention to the next phase of its exploration programme. During the period, the Company continued to evaluate its micro gravity and other geophysical surveys around the mine site and it has now identified a number of new nearby geophysical anomalies, which will be evaluated through a new drilling programme. The Company is also assessing a number of overseas opportunities. Finance Turnover (after smelter deductions) increased 68% compared to the same period in 2003. The average LME Euro equivalent zinc price increased 20.8% to Euro855 per tonne while the LME Euro equivalent lead price increased by 65% to Euro676 per tonne. Unit smelter treatment charges continued to decline due to a further tightening of the concentrate market. An operating profit of Euro1 million (loss of Euro4.4 million in 2003) was earned as a result of higher sales volumes, despite higher production and distribution costs. The consolidation of the Company's shares on a 1 for 10 basis was approved by shareholders in July and implemented in August 2004. Management Mr. Peter Kidney took over as Chief Executive in September 2004 following the previously announced stepping down of Mr. Kevin Ross as Chief Executive. Peter has over 20 years experience in senior positions with natural resources companies, and have been involved with the development of ARCON, since it was established in its current form in 1992, initially as Chief Financial Officer and since November 2000, as Finance Director. Kevin remains as a non-executive director of the Company. On your behalf, I would like to thank Kevin for his valuable contribution and leadership of the Company during its restructuring over the past three and a half years whilst also wishing Peter every success in his new position. Outlook The zinc metal market continues to improve as world demand continues to increase. As a result, demand for zinc concentrate remains strong and limited zinc concentrate supply is expected to lead to a further tightening of smelter treatment charges for the foreseeable future. The recommencement of lead production has coincided with very high lead prices, which appear to be underpinned by low LME lead stocks. The settlement of the sub-contractors labour dispute will now permit the Company to focus on further increasing production volumes in the second half of the year. With the improvement in market conditions, the Company looks forward to an improving trend in its operational results. Tony O'Reilly Jnr. Chairman. Tuesday, 28th September 2004 Consolidate Profit and Loss for the six months ended 30 June 2004 2004 2003 Unaudited Unaudited Euro'000 Euro'000 Gross Value Metal Sold 34,275 22,808 Smelting Charges & Deductions (15,903) (11,849) Turnover 18,372 10,959 Cost of Sales Production Costs (11,789) (10,244) Depreciation (2,288) (2,415) (14,077) (12,659) Gross Profit/(Loss) 4,295 (1,700) Other Operating Costs Other Operating & General Administration (1,357) (1,325) Selling & Distribution (1,853) (1,464) Foreign Exchange Gain 83 154 Mineral Exploration Costs written off (97) (93) (3,224) (2,728) Operating Profit/(Loss) 1,071 (4,428) Interest Receivable & Similar Income 27 25 Interest Payable & Similar Charges (95) (554) Profit/(Loss) on Ordinary Activities before Taxation 1,003 (4,957) Tax on Profit/(Loss) on Ordinary Activities - - Retained Profit/(Loss) for the period 1,003 (4,957) Profit & Loss Account, beginning of the period (105,147) (95,465) Retained Profit/(Loss) for the period 1,003 (4,957) Profit & Loss Account, end of period (104,144) (100,422) Profit/(Loss) per Ordinary Share - Euro 0.0058 (0.0313) Fully diluted Profit/(Loss) per Ordinary Share - Euro 0.0058 (0.0313) Consolidated Balance Sheet at 30 June 2004 2004 2003 Unaudited Unaudited Euro'000 Euro'000 Fixed Assets Mineral Interests 20,012 21,099 Other Tangible Assets 9,446 10,420 29,458 31,519 Current Assets Stock 841 1,007 Debtors 3,851 1,505 Investments 1 1 Cash at bank & on hand 3,502 2,221 8,195 4,734 Current Liabilities Bank Loans & Overdrafts (7,404) (3,501) Trade Creditors (1,916) (4,814) Accruals (8,126) (5,103) Lease Obligations (461) (206) Amounts Falling due within one year (17,907) (13,624) Net Current Liabilities (9,712) (8,890) Total Assets Less Current Liabilities 19,746 22,629 Creditors Falling due after more than one year Loans (6,564) (9,843) Lease Obligations (20) (675) Provision for Liabilities & Charges (4,777) (4,544) Net Assets 8,385 7,567 Capital Reserves Called up Share Capital 31,770 30,189 Capital Conversion Reserve Fund 1,002 1,002 Share Premium Account 81,359 77,608 Profit & Loss Account (104,144) (100,422) Foreign Currency Translation Reserve (1,602) (810) 8,385 7,567 Consolidated Cashflow Statement for the 6 months ended 30 June 2004 2004 2003 Unaudited Unaudited Euro'000 Euro'000 Net Cashflow from Operating Activities 1,390 (571) Returns on Investments and Servicing of Finance 51 4 Capital Expenditure and Financial Investment (1,819) (2,514) Net Cash outflow before use of Liquid Resources and Financing (378) (3,081) Management of Liquid Resources _ _ Financing _ 3,482 Increase/(Decrease) in cash (378) 401 Reconciliation of net Cash flow to Movement in Net Debt 2004 2003 Unaudited Unaudited Euro'000 Euro'000 Increase/(Decrease) in cashflow for period (378) 401 Cashflow from draw-down of bank loans, Capitalised interest, net (79) (4,111) Cash (inflow) outflow from movement in Liquid Resources _ _ Change in net debt arising from cashflows (457) (3,710) Foreign Exchange Translation (500) 988 Net Debt at end of period (9,509) (8,401) Net Debt at end of period (10,466) (11,123) Notes to the Financial Statements - 30 June 2004 1. *The date of the planned mine closure has been extended to 2010, following the issue of final planning permission for the "R" Zone and the completion of a revised independent mine closure plan. Consequently, by deferring the liability for the closure costs to a later date the discount amount attributable to the present value of closure costs is increased, with a consequent decrease in interest payable of Euro524,000. 2. *The financial statements for the six months ended 30 June 2004 and 30 June 2003, which were approved by the directors on 28 September 2004 are neither audited or reviewed by our Auditors. There have been no changes to existing accounting policies, which have been consistently applied throughout the period. 3. *Profit/(Loss) per share has been restated for the consolidation of ordinary shares on a one for ten basis that occurred in August 2004. This information is provided by RNS The company news service from the London Stock Exchange END IR LRMTTMMMTTRI |
Posted at 02/8/2004 17:42 by keevo Phoenix MagazineXXXXXXXXXXXXXXXXXXXX Moneybags....30th July 2004. ZZZZZZZZZZZZZZZZZZZZ Take a plunge into Providence Resources AT THE Providence agm on July 19, the operations director, Tony Odone confirmed that the Stena Dee drilling rig is en route to the Blackrock prospect offshore Cork, just 10 miles south of the Seven Heads gas field. The current intention is to begin to spud the well during the upcoming August bank holiday weekend and to hit the target 6,300 foot drilling depth by the end of August. This is the most exciting news that has ever hit the Irish offshore exploration sector because the prospect being drilled contains a potential 600 million barrels of oil. If this comes in, not only will the current Providence 6 cent share price go through the roof but the whole Irish economy will get a huge shot in the arm. Unlike the drilling of the 49/9 Helvick Head discovery three years ago which Philip Treacy took Providence into on a solerisk basis at a cost of 13m, this time around Providence has been much more prudent and has brought in three experienced partners on the operation side. On the financing side, when raising fresh capital of 13m last April, Providence was able to convince a group of normally very sceptical UK fund managers that it was worth supporting. Each agreed to put in at least 1m and included some serious funds like Jupiter Asset Management, Caldwell Associates, Carmignac Gestion, Focus Investments, Griffin Capital, Polar Capital, RAB Fund Managers and Tudor Capital. Most significantly of them all, the finance director, Stephen Carroll, managed to convince Gervais Williams, one of the most highlythought- of fund managers, who actually bothers to run a specialist Irish fund, Gartmore Irish Growth Fund. RECOGNITION Convincing a group like this that Providence was worth sticking the odd million into was some achievement and is some serious recognition that this time around Tony O'Reilly might get it right. Much more serious, however, is the actual $30m farm-in Providence negotiated with the giant American oil and gas drilling contractor, Global Santa Fe. The latter makes its money out of wet-leasing out drilling rigs to the likes of Providence and charging them a bucket of money for the privilege. The going rate for the 100-man-operated Stena Dee drilling rig is $2m a week. Given the near two weeks it will take to move this rig from Rotterdam and the four-week drilling programme, the cost for the first drill hole will run to $12m just to hit the 6,300 foot target drilling depth. If the drill is kept on to flow test any oil found, which even at the minimum would take at least two weeks, the cost could then run on to $16m. For Global to risk-share in these circumstances, even though it has got a US oil company, Palace Exploration, to part pay the costs, is a major achievement. To earn a 50% stake in the field, Global and Palace will have spent $25m of the total $30m cost to complete their two-well farm-in deal whereas Providence will only have to spend $4m to pay for its 41.5% stake in the Blackrock field and its junior partner, Midmar will only have to pay around $1m for its 8.5% stake. Providence already has 13m in the bank from its April placing and rights-issue fund-raising and will get a further 5m from the associated warrants it issued at the time, which could not be taken up until the latter warrants were approved at the egm accompanying last week's agm. As drilling in the two-well Blackrock programme will only cost Providence a little over 4m, this means that it will still have nearly 10m left in the bank even after this is paid for, but more likely 15m assuming the justapproved warrants taken up at 4.5 cent are all exercised, which is very likely as these are currently showing a 25% profit. The deal with Global is a front-loaded one whereby Global and its minority oil company partner, Palace, have to pay for 67% of the first drill and all the costs of the second drill. Of course, if the first drill is a success and proves to be a gusher, funding the second drill will be a no-brainer given the size of the prospect. With a 41.5% stake in the Blackrock prospect, this means that, at the going rate of 5 a barrel for oil discovered, if the whole 613 million barrels comes in, Providence's share would come to over 250 million barrels, which on this basis would be worth 1.25 billion. This would value Providence's shares at over 60 cent each, that is 10 times the current share price. This is some indication of the upside potential if this Blackrock drill is a success. However this time around Providence is not a one-drill play. It has a particularly interesting 25% stake in a play off the northeast shore of Scotland, the Skye Prospect. Back in the Celtic Sea, Providence has identified a big gas prospect, of which it has now got an 80% share on Block 50/8 which contains the so-called Glandore field. Further up the coast in St George's Channel, Providence has also got an 80% stake in Block 21/21 which contains the Dionysus gas prospect, another very large formation in very low water and very near to the Wexford coast. Providence has estimated that there is a gross potential of 788 million barrels of oil equivalent in its other prospects, mainly Glandore, Skye and Dionysus. On the basis that, when farm-outs are taken into account, Providence could end up with between 25% and 50% of each of these fields when matured for drilling, it could have a 250 million barrel share of this potential oil, as much again as the actual share of the Blackrock prospect. So even if the latter does not prove a success, then Providence has three other large prospects to negotiate drilling deals on which together could be as significant as Blackrock. This puts another 60 pence value on Providence and brings the total potential of all its major prospects up to a potential valuation of 1.20 for Providence shares. EXCITEMENT Fans of Moneybags have already done very well. Last year (see The Phoenix 18/7/03) readers were recommended to buy Providence shares at 0.9 cent and later last year (see The Phoenix 10/10/03) Moneybags again advised to "buy now at 1.5 cent for the excitement will be inevitable if and when drilling is announced". With Providence shares now trading at 6 cent, readers who followed this advice last year are now showing gains of up to 500%. There must be a temptation to take a profit and no doubt some people are doing this. You can not blame them, but if London and New York come in as buyers when the first well is spudded over the coming bank holiday weekend the shares could jump ahead. |
Posted at 30/7/2004 17:47 by hypocrite This is what Phoenix Magazine readers will see over the weekend!!!XXXXXXXXXXXXXXXXXXXX Moneybags....30th July 2004. ZZZZZZZZZZZZZZZZZZZZ Take a plunge into Providence Resources AT THE Providence agm on July 19, the operations director, Tony Odone confirmed that the Stena Dee drilling rig is en route to the Blackrock prospect offshore Cork, just 10 miles south of the Seven Heads gas field. The current intention is to begin to spud the well during the upcoming August bank holiday weekend and to hit the target 6,300 foot drilling depth by the end of August. This is the most exciting news that has ever hit the Irish offshore exploration sector because the prospect being drilled contains a potential 600 million barrels of oil. If this comes in, not only will the current Providence 6 cent share price go through the roof but the whole Irish economy will get a huge shot in the arm. Unlike the drilling of the 49/9 Helvick Head discovery three years ago which Philip Treacy took Providence into on a solerisk basis at a cost of 13m, this time around Providence has been much more prudent and has brought in three experienced partners on the operation side. On the financing side, when raising fresh capital of 13m last April, Providence was able to convince a group of normally very sceptical UK fund managers that it was worth supporting. Each agreed to put in at least 1m and included some serious funds like Jupiter Asset Management, Caldwell Associates, Carmignac Gestion, Focus Investments, Griffin Capital, Polar Capital, RAB Fund Managers and Tudor Capital. Most significantly of them all, the finance director, Stephen Carroll, managed to convince Gervais Williams, one of the most highlythought- of fund managers, who actually bothers to run a specialist Irish fund, Gartmore Irish Growth Fund. RECOGNITION Convincing a group like this that Providence was worth sticking the odd million into was some achievement and is some serious recognition that this time around Tony O'Reilly might get it right. Much more serious, however, is the actual $30m farm-in Providence negotiated with the giant American oil and gas drilling contractor, Global Santa Fe. The latter makes its money out of wet-leasing out drilling rigs to the likes of Providence and charging them a bucket of money for the privilege. The going rate for the 100-man-operated Stena Dee drilling rig is $2m a week. Given the near two weeks it will take to move this rig from Rotterdam and the four-week drilling programme, the cost for the first drill hole will run to $12m just to hit the 6,300 foot target drilling depth. If the drill is kept on to flow test any oil found, which even at the minimum would take at least two weeks, the cost could then run on to $16m. For Global to risk-share in these circumstances, even though it has got a US oil company, Palace Exploration, to part pay the costs, is a major achievement. To earn a 50% stake in the field, Global and Palace will have spent $25m of the total $30m cost to complete their two-well farm-in deal whereas Providence will only have to spend $4m to pay for its 41.5% stake in the Blackrock field and its junior partner, Midmar will only have to pay around $1m for its 8.5% stake. Providence already has 13m in the bank from its April placing and rights-issue fund-raising and will get a further 5m from the associated warrants it issued at the time, which could not be taken up until the latter warrants were approved at the egm accompanying last week's agm. As drilling in the two-well Blackrock programme will only cost Providence a little over 4m, this means that it will still have nearly 10m left in the bank even after this is paid for, but more likely 15m assuming the justapproved warrants taken up at 4.5 cent are all exercised, which is very likely as these are currently showing a 25% profit. The deal with Global is a front-loaded one whereby Global and its minority oil company partner, Palace, have to pay for 67% of the first drill and all the costs of the second drill. Of course, if the first drill is a success and proves to be a gusher, funding the second drill will be a no-brainer given the size of the prospect. With a 41.5% stake in the Blackrock prospect, this means that, at the going rate of 5 a barrel for oil discovered, if the whole 613 million barrels comes in, Providence's share would come to over 250 million barrels, which on this basis would be worth 1.25 billion. This would value Providence's shares at over 60 cent each, that is 10 times the current share price. This is some indication of the upside potential if this Blackrock drill is a success. However this time around Providence is not a one-drill play. It has a particularly interesting 25% stake in a play off the northeast shore of Scotland, the Skye Prospect. Back in the Celtic Sea, Providence has identified a big gas prospect, of which it has now got an 80% share on Block 50/8 which contains the so-called Glandore field. Further up the coast in St George's Channel, Providence has also got an 80% stake in Block 21/21 which contains the Dionysus gas prospect, another very large formation in very low water and very near to the Wexford coast. Providence has estimated that there is a gross potential of 788 million barrels of oil equivalent in its other prospects, mainly Glandore, Skye and Dionysus. On the basis that, when farm-outs are taken into account, Providence could end up with between 25% and 50% of each of these fields when matured for drilling, it could have a 250 million barrel share of this potential oil, as much again as the actual share of the Blackrock prospect. So even if the latter does not prove a success, then Providence has three other large prospects to negotiate drilling deals on which together could be as significant as Blackrock. This puts another 60 pence value on Providence and brings the total potential of all its major prospects up to a potential valuation of 1.20 for Providence shares. EXCITEMENT Fans of Moneybags have already done very well. Last year (see The Phoenix 18/7/03) readers were recommended to buy Providence shares at 0.9 cent and later last year (see The Phoenix 10/10/03) Moneybags again advised to "buy now at 1.5 cent for the excitement will be inevitable if and when drilling is announced". With Providence shares now trading at 6 cent, readers who followed this advice last year are now showing gains of up to 500%. There must be a temptation to take a profit and no doubt some people are doing this. You can not blame them, but if London and New York come in as buyers when the first well is spudded over the coming bank holiday weekend the shares could jump ahead. |
Posted at 15/7/2004 10:46 by hypocrite Latest Moneybags fortnightly appraisal....will hit the shops tomorrow morning!!!!Action usually follows on the Monday after weekend......I have all his coverage of Arcon filed over the last two years.....this is a "C" change!!!! XXXXXXXXXXXXXXXXXXXX Arcon shares a bargain at 3.5 cent THE RECENT resignation of the mining engineer, Kevin Ross, and his replacement as chief executive by the finance director, Peter Kidney, makes sense given that Arcon is a commercial play and now effectively a commodity derivative, driven by fluctuations on the London Metal Exchange. Given recent increases in the zinc price and increased output from the mine, Arcon shares at 3.5 cent are a definite buy. Now that the new R zone extension of the Galmoy Mine has been fully delineated, it is possible to get a better insight into its value. While the extent of the new ore body at 2.3 million tonnes is actually quite modest and will only add three years to Galmoy's mining life, the incredible 19% zinc grading the second richest in the western world makes this such an interesting prospect. It has, however, largely gone unnoticed that the R zone also contains a significant amount of lead grading 7.2%. With the current lead price up at $900 a tonne, less than 10% behind the zinc price, this now makes the lead content here really significant. The R zone also contains an interesting 2.5 ounces of silver per tonne. While the new R zone is a highly valuable resource, it is virtually impossible to mine zinc profitably at anything under $1,000 a tonne. Unfortunately, the zinc price has been well below these levels for the last four years. Instead of mothballing Galmoy, Tony O'Reilly has pumped his own money into the company to keep it going, allowing Arcon to lose 50m over the last four years during which period 250,000 tonnes of pure zinc was extracted from the mine. O'Reilly got Kevin Ross to maximise the plant by digging a 500-metre tunnel from the existing mine into the new R zone discovery and then mixing high-grade ore from this with the existing 11.3% zinc grade production to achieve an average 13.25% zinc grading in 2004 and 14.5% in 2005. Even according to Kevin Ross this would "result in a reduction in unit cash production costs to sub 700 per tonne of zinc". With the zinc price now up to 800 per tonne, and assuming the mine produces at its planned maximum of 750,000 tonnes of ore pa, this means that the mine should be making an EBITDA (earnings before interest, tax, depreciation and amortisation) of something over 10m pa. But with the depreciation charge cut back to 4m pa due to the longer mine life now expected and interest charges running at 1m pa, this leaves Arcon now running at 5m profit, assuming Kevin Ross's production targets are met. Last year, despite diverting mining resources to digging a 500 metre tunnel to the R zone, mine production was still maintained at 659,000 tonnes. This was mainly extracted from the main G ore body as it helped to raise the average extracted grade to 11.3% zinc. According to Arcon's accounts, this yielded a gross metal value of 45m. The European zinc cartel imposed 5m. After a 4m depreciation charge and a 1m interest charge, Arcon ended up with a pre-tax loss last year of 10m, compared with 15m the previous year. Two years ago Arcon's finances were totally restructured when O'Reilly bought the banks' 100m loan off them for 20m. At the same time O'Reilly underwrote a 25m rights issue which put the company back into net cash. The loss was such, however, that net debts began to mount up again and last September 158 million shares were placed at 3.6 cent to London institutions, to raise 5.7m. In the process, O'Reilly was actually selling off 10% of the company, a surprising decision given that it only had a 5m bank overdraft at the time. SHORT-CHANGED According to Arcon itself, the average zinc price ran at 747 per tonne last year and gross revenue should have come to 56m but the gross value of this metal only came to 45m as the company was short-changed by 23% by the European zinc cartel. the overall extraction rate to 750,000 tonnes, this means that Arcon should produce 105,000 tonnes of zinc this year. On top of this, 30,000 tonnes of lead will be produced, representing a 50% increase in metal content compared with last year. ZINC PRICE RISE Even assuming the cartel ripoff remains unchanged, this would increase Arcon's revenue by 11m and with the zinc price already ahead this year by slightly over 50 a tonne to 800 a tonne, this should add a further 7m revenue. Thus Arcon would be pushed into 12m profit even without any further increase in the price of zinc this year. This shows the significance of even a small zinc price rise. On this basis, Arcon's shares are standing an a prospective 0.9 cent earnings per share and at the current share price of 3.5 cent are trading on a prospective 4 p/e multiple. The egm on July 19 should help to confirm this which, given that the shares are also a zinc play, makes Arcon shares a bargain buy at 3.5 cent. XXXXXXXXXXXXXXXXXXXX Caveat Emptor!!!! |
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