African Copper Share Discussion Threads

[p1ncer] 24/12/2011 15:32

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.

[feethak2] 23/12/2011 12:07

Well wasn't expecting results today I must say.

Seriously hungover from works Christmas do.

Will look over figures later, and give my thoughts.

[outsourcer] 23/12/2011 08:12

well they lost $16M this year, but they didnt burn through much cash and seem fairly confident that things are about to turn around

[p1ncer] 22/12/2011 18:49

BamBam,

If they make £5m this year, what price would you value them at?

What value would you place on them if they make £10m next year?

[feethak2] 22/12/2011 18:28

What gamble?
They are producing copper at ever increasing amounts, and could well earn £20m to £30m in their next full financial year.

Read the last RNS 15\11 prdoction has increased 176 per cent and 53 per cent higher than the respective quarters from last year.

They are also improving infrastructure by the end of this month, that will increase production further.

The more they produce, the lower the costs.

That doesn't even include further exploration projects.

All for a market cap of £15m!!

This could well be the most undervalued stock on the entire AIM.

IMHO

DYOR

[bam bam rubble] 22/12/2011 17:01

The balance sheet is a horror show and ZCI can take it private at any time

Not for widows or orphans, and to be honest would struggle to find any sector of society which would find this a suitable investment. Gamblers perhaps

[feethak2] 22/12/2011 16:37

From Full Year Results last June.

"- As a result of the more than doubling of ore processed year-on-year, the
increases in grades and recovery and generally buoyant copper prices,
revenues for the year to 31 March 2011 were US$24.7 million (15 months
to 31 March 2010: US$7.4 million)
-- Reduced operating loss of US$2.3 million (15 month period to 31 March
2010: loss of US$11.6 million)"

They had revenues of $24m for the previous 15 months up from $7.4m/

They could now have potential revenues of $29m for 6 months.

They also reduced losses from $11.6m to $2.3m, which leads to a very interesting question of what profit or loss they will show this time??

We shall be finding out very shortly.

[feethak2] 22/12/2011 16:00

Well either they put the results out tomorrow, or they are waiting to give us a present inbetween Christmas and New Year.

GLA

[p1ncer] 22/12/2011 15:07

They intend to mine an average of about 20,000 mt p/a over the next five years, which would equate to £52m p/a. It is going to cost them about $2 per lb against a current cu price of $3.4 per lb.

This does not include

1. Northern extension to Mowana open pit

2. Southern extension to Mowana open pit

3. Erasmus extension to open pittable reserves

4. Underground sustainability and expansion potential

[p1ncer] 22/12/2011 15:01

From an RNS Nov. 12, 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 Pounds Sterling 70-78m @ $1.84/Pounds Sterling ), using a copper price of $1.00 per pound----

So they valued it in 2004 at £70-£78 m, using a copper price of $1.00 per lb, copper now trades at $3.52 per lb.

They also used a figure of $1.84 to £1, the figure today is $1.56 to £1.

[p1ncer] 22/12/2011 14:48

cash,

No worries.

As i said, Half Year Results are due out before the end of the year, they should put some more meat on the bones.

Good Luck.

[feethak2] 22/12/2011 14:44

Cash,

If memory serves me correct, they expect production to hit 20k tonnes p/a from Mowana.

And onther 20k p/a tonnes from thakuda over three years.

Though as P1ncer has pointed out

"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"

Not forgeting the Gold and silver deposits!

It seems a no brainer to me.

Though DYOR as the saying go's!

[cashandcard] 22/12/2011 14:40

P1ncer,

Cheers, will take a deeper look at it in due course (after the festive period).


Cash

[p1ncer] 22/12/2011 14:36

Cash, here is a little light reading.

FOR: AFRICAN COPPER PLC

AIM SYMBOL: ACU

November 15, 2011

African Copper Plc: Production Update for Mowana and Thakadu

LONDON, UNITED KINGDOM--(Marketwire - Nov. 15, 2011) - African Copper Plc ("African Copper" or "the
Company")(AIM:ACU)(BOTSWANA:AFRICAN COPPER), the AIM and Botswana listed copper producer and exploration company,
announces a production update for its Mowana and Thakadu Mines for the first and second quarters of the Company's
financial year.

Highlights

-- In terms of copper produced in concentrate, production for the first and
second quarters was 176 per cent and 53 per cent higher than the
respective quarters from last year (comparative production figures are
set out in the table below).

-- Copper produced in concentrate continued to progressively increase
during the second quarter with total production of 1,812 tonnes and
record production levels achieved in August.

-- Advances in production levels were achieved due to marked improvements
in maintenance strategies at the secondary and tertiary crushers,
improved production at Thakadu, higher availability of the mill and
increasing recoveries as mining moved from more oxidic areas to more
supergene rich areas at Mowana and Thakadu.

-- Continuing plant upgrades are in progress and are expected to be
completed by the year end.

Production

Combined production levels for the Company's first and second financial year quarters (ending 30 June 2011 and 30
September 2011 respectively) are set out below, together with comparatives:

----------------------------------------------------------------------------
Description Q1 to Q1 to Q2 to Q2 to 1H(i) 1H(i)
end end end end 2011 2010
June June Sept Sept
2011 2010 2011 2010
----------------------------------------------------------------------------
Ore processed (Mt) 198,429 146,052 194,089 173,312 392,518 319,364
----------------------------------------------------------------------------
Cu grade (%) 1.74 1.22 1.87 1.24 1.80 1.23
----------------------------------------------------------------------------
Recovery (%) 48.5 34.1 50.0 55 49.2 45.6
----------------------------------------------------------------------------
Concentrate produced 8,075 2,641 7,637 5,274 15,712 7,915
(Mt)
----------------------------------------------------------------------------
Copper produced in
concentrate (Mt) 1,674 607 1,812 1,183 3,486 1,790
----------------------------------------------------------------------------
Payable copper sold 1,552 482 1,743 1,113 3,295 1,595
(Mt)

----------------------------------------------------------------------------
(i)Fiscal Year first half ended 30 September

In terms of copper produced in concentrate, production for the first and second quarters was 176 per cent and 53 per
cent higher than the respective quarters from last year. Copper production continued to increase during the second
quarter. Total copper produced in concentrate was 1,812 tonnes, with record production levels achieved in August. The
progressive improvements in production are attributable to a number of factors including increased mining flexibility at
Mowana and Thakadu, increased ore delivery to the plant as a result of improved production at Thakadu, successful
maintenance strategies at the secondary and tertiary crushers, higher availability of the mill and efficiency
improvements at the filtration plant. Daily throughput at the filtration plant has increased from 80 tpd to between 160
and 200 tpd due to the following:

1. Improved feed density as a result of changes made to the thickener
underflow pumps;
2. Increased feed pressure as a result of enhanced feed valves:
3. Improved solid separation from better filter cloth aperture size
control; and
4. Instalment of new filter press plates.

Increased recoveries are anticipated over the next two quarters as mining operations progressively move at Mowana from
more oxidic areas to more supergene rich areas and at Thakadu towards sulphide mineralisation.

A number of plant upgrades are currently in progress and are planned for completion by the year end:

1. Installation of a new tertiary crusher is currently underway. A new
secondary crusher is planned for installation at the end of November.
These crushers are expected to increase operational efficiency and
increase throughput to the mill.

2. The installation of column flotation cells is currently underway and is
expected to remove impurities, specifically silica during flotation,
resulting in a cleaner higher grade concentrate.

3. Installation of a Larox filter is planned during December to increase
filtration efficiency, allowing higher throughput of concentrate with a
lower moisture content.

Commenting, Jordan Soko, Acting Chief Executive of African Copper Plc, said, "I am happy to state that we have moved
closer to achieving our intended level of steady state copper production. These have been two progressively strong
quarters for the Company, which have seen substantially increased production and numerous initiatives put in place to
ensure the long term improvement of our mining activities. I look forward to informing the market of further updates in
due course."

The technical information in this announcement has been reviewed and approved by David De'Ath, BSc (Hons), MSc, GDE-
Mining, MIMM and MAusIMM, the Company's Manager - Geology, of the Mowana Mine for the purposes of the current Guidance
Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009.

[p1ncer] 22/12/2011 14:32

cashandcard.

They have some loans to ZCI the principle shareholder, but the earnings potential makes them easily affordable, and to pay back.

They do have a large shareholder 88% last time I check, but they have shown themselves to be very benign, and provided the loans for investment in infrastructure.

ZCI seem to like keeping ACU a seperate entity, I suspect either to sell all or part of there share, as they have done in the past. If they do this, they will want the share as high as possible.

Though as feethak has said, they may just sit on it and use it as a cash cow for the next 25 years or so

Once the money starts rolling in, they should be able to fund themselves quite easily.

The reason for the share price has to do with sentiment as much as anything. They have had there problems over the years, but are now a producer.


They also have other improvements at the mine completeing this month.

ACU is the most unloved ignored share on the AIM, once the money comes rolling in that will change.

half year results are coming out before the end of the year.

But we already know production increased 176 per cent and 53 per cent higher than the respective quarters from last year, wich on my rough calculations equates to revenue of about $29m.

Check out the figures yourself if you don't believe me.

As thing stand ACU should be worth at least £150m, and more again going forward.

ACU is not on the "herd's" radar, yet!

Dou some research, if you find anything different to what I say please come back and let us know.

[cashandcard] 22/12/2011 14:07

P1ncer,


The must be reason why it is valued so low. What is it? Debt, potential for costs to increase, contractual issues, other financial committments that need funding, authority to issue shares to oblivion - there has to be something the market has factored in when arriving at this price.


Cash

[feethak2] 22/12/2011 13:58

There are plenty of stocks with nothing more than a hole in the ground and a dream that's SP's are multiple of ACU.

We have the hard work all behind us, a touch more patience and we will be rewarded.

Ulitimately cash flow and profits will be king.

[p1ncer] 22/12/2011 13:36

Look at DME market cap £338m.

ACU market cap £15.43m

At some point that gap is going to close significantly.

I would suspect when half year results come out, that will be the beginging of the gap closing.

[p1ncer] 22/12/2011 13:25

Well how is this for basics?

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"

Not forgeting the Gold and silver deposits!

[feethak2] 22/12/2011 12:41

I like to look at the basics.

ACU are now a producer of Copper, for which supply is out stripping demand at the moment.

They have a lot of it.

And they opperate in a country with a stable Govt that are enthusiastic to outside invesment.

All thats required for me, is to buy my shares and sit and wait, it's looking like my long wait is begining to bear fruit

[p1ncer] 22/12/2011 10:10

feethak.

£15m valuation for a company that could well turn over $60m in the coming full financial year is 'insane'.

as we pretty much know what they have produced, which at an average price of $9.000 per tonne should give them revenue of roughly $29m, and maybe even a profit, though I wouldn't like to start to get to excited.

production is increasing hand over fist, this brings costs down, plus the improvements they have made, and other areas to prospect.

Anyone remember this

-------"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 Pounds Sterling 70-78m @ $1.84/Pounds Sterling ), using a copper price of $1.00 per pounds"----------

Copper today is $3.40 per pound, with supply unable to keep up with demand.

ACU valued at £15m, if it was £150m it wouldn't be over valued.

Good times ahead looks like.

[feethak2] 22/12/2011 09:27

Pincer,

All very interesting, though my imediate interest is the up coming results.

They have already told us they have increased production 176% and 53% over their respective quarters from last year.

The more they produce, the more costs come down.

I have been here a very long time, I invested and left it, checked in once in a while, and now I believe my patience will start to bear fruit.

ACU is now a producer, if you check the valuation of £15m compared to WTI who are £35m, it is insane.

Though as the money starts to roll in, it can't stay at these prices forever.

They could have profits of £10's of millions within a year or so.

As far as I am concerned the share price should be 10-15p now, looking at 25-35 in the medium term, assuming they don't decide to sell out to the Chinese for silly money.

Though the potential here is so huge, they may just decide to sit on it, and use it as one huge cash cow.

[p1ncer] 22/12/2011 08:46

feethak,

The £15m valuation is possibly the most ridiculous on the whole of the AIM, as the rsults could well prove.

Here is a repeat of a post a put up a while ago to remind people of the potential here, hopefully coming to fruit in the very near future.

---------------------------
"Here is a snippet of a post from another board, that comes to the same conclusion I cam to a while ago.

"Key assumptions of ACU for FY 2012 , extract from the annual report published yesterday:

" 1/The key assumptions relating to production and pricing assume an average copper price per tonne over the 12 month period to June 2012 of US$9,593 and average monthly production of copper in concentrate of 1,257 Mt of copper.

2/The projections show that, if the key financial assumptions are achieved, the existing facility with ZCI and new facility with ABCB will be sufficient to provide the necessary funding for the Group for at least the next 12 months from the date of approval of these financial statements and in addition, enable the Group to repay US$10.0 million of debt to ZCI which is due, under the terms of the particular facility agreement, in March 2012. "

-------------------------------------------

In clear :

ACU will produce in FY 2012 around 15,000T instead of 4,143 in 2011, which means a turnover of $143.9M instead of $ 24.7M.

Note that ACU and ZCI are always very conservative in their previsions.

This year the total costs (operation + finance etc.) amounted to around 33M and they should not climb too much.

Can you imagine then the leverage on the profit ?!!!

Even with very high costs let's say 60M , a crazy figure, the net profit would be $84 M"

"

[feethak2] 21/12/2011 16:08

Well with results out and with production increases 176 per cent and 53 per cent higher than the respective quarters from last year, the comming results should be interesting.

It should certainly make the £15m valuation look a bit silly.