African Copper Share Discussion Threads

[outsourcer] 29/2/2012 15:50

P1ncer, I assume you are talking about ZCIFAN on LSE, he has been posting stuff that has never come true for the last couple of years and I don't beleive a word he says.

[p1ncer] 29/2/2012 15:27

Rumour from another BB "According to my infos it will not be below 8P"

I have no way of validating this information.

But this from the same poster "the only thing i can say : the mandate has been signed in november and the bank has started to talk to the potential buyers, that's why ZCI was obliged now to inform the market"

I would say that this poster has been predicting some big news for a number of weeks now.

I would certainly be happy with anything near 8p, though I still think the buyer would be getting ACU on the cheap.

[p1ncer] 29/2/2012 13:23

The talk on another board, is the sale will be of the whole company, and at a pretty advanced stage.

Also that ZCI themselves want to de-list. Which would explain the sale of ACU.

DYOR

[p1ncer] 29/2/2012 12:02

Outsourcer,

I am just looking at the information out there in the public domain, 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.

I believe even with the debt, ACU's current market cap should be nearer £60m than our current £21.6m

ZCI can ask for a good price for ACU, and I see no reason they shouldn't get it.

[p1ncer] 29/2/2012 11:37

from half year results, "Operations broadly cash neutral for the period due to good working capital management"


"USD1 million will be invested in increasing the trucking of ore from the nearby Thakadu deposit to the Mowana facilities,
USD2 million will be invested in a Larox Filter to be installed at Mowana to reduce moisture content in exported concentrate and
USD2 million of the Facility will be used for general working capital purposes.
Mining and processing at Mowana are making positive progress toward reaching commercial production levels and earning positive
monthly cashflow. Both the Larox Filter and the increased Thakadu trucking campaign are key initiatives in the plan to become cash positive."

Outsourcer, I am fully aware of the debt, but most if not all of interest is deffered until next year.

ACU are within touching distance of making a profit.

ZCI have put a lot of time effort and money into ACU, they will want a decent return.

ACU are a production company, with further prospective areas, which they are investigating, this is where quite a bit of the money has gone into in the last year.

Most of the issues ACU have had are now behind them, I believe this is why ZCI are looking to capitialize.

With debt of about $70m, out current capitalization of say $30m

this si still well below the $150 valuation at $1 per lb of copper, and way below MRI's valuation of $200m, both before ACU produced anything.

I have no doubt whatsoever that the price will be north of 2.6p ps, how much north remains to be seen.

[outsourcer] 29/2/2012 11:02

P1ncer, but we also have alot more debt than WTI and needed another $5M last month, which means we are not generating the cash we need, which is going to make any buyer wary

[p1ncer] 29/2/2012 09:59

What we need to remember is that there are 1.3 billion Chinese, and 1.2 Billion Indians, plus Brazil and Indonesia that all want the same standard as living as us.

Raw materials are going to become even scarcer and even more valuable as time goes on.

These countries, particularly the Chinese invest for the long term, and ACU would give them access to huge deposits of copper over the next 25 to 30 years, in a relatively stable country.

In Sept 09, the Chinese offered $26.81 million for a half stake in WTI, which they rejected.

We have more copper than WTI, and that was when WTI (and ACU) where on their knees.

We are now a good sized Copper Mining company, who are producing ever increasing amounts of Copper.

Let the bidding commence!!

[feethak2] 29/2/2012 09:41

Interesting information P1ncer.

I always thought this was grossly undervalued, like a lot of AIM companies at the moment.

It seems the only way a lot of them can see value for their shareholders is through a sale.

Hopefully ZCI demand a good price, and either China, India or one of the big mining companies come calling with plenty of cash.

So in Jan 2008 MRI valued ACU at $200m, which is an increase on the $150m they where valued at some years before using a copper price of $1 per lb.

Both of which value ACU somewhere north of where they are at the moment.

[p1ncer] 29/2/2012 09:06

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.

[p1ncer] 28/2/2012 16:04

Personally I wouldn't give tuppence for any analyst's comment.

Only have to look at GKP, one gives £5+ and other £1.90, thieves and fools the lot of them.

Thr 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.

[mildred49] 28/2/2012 14:34

Libertas analyst comment

"One won't hold one's breath as to the price that ZCI gets for its 84.19% stake in ACU, they only had to shove another US5m in a couple of weeks ago."

[p1ncer] 28/2/2012 13:05

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 have done this before, and done very well out of it.

They may yet surprise us

[p1ncer] 28/2/2012 11:51

Someone saying on another board, that "According to my infos it will not be below 8P"

Not sure of it's accuracy or the source, but 8p should be a minimum, and would still be a bargain.

Fingers crossed

IMHO

[p1ncer] 28/2/2012 09:52

I'm not so sure Outsourcer, ZCI are not desperate to sell, so can demand a good price.

Copper demand is very strong, with stocks dropping like a stone.

We have it, and lots of it, as usual with these things, it all depends on the price.

I would be very happy with a price of £150m ;-)

Even taking the debt into consideration, this should be nearer 10p.

I will do some digging and see if I can find if any other copper comapnies have been sold recently, to see if we can get some kind of benchmark figure.

[outsourcer] 28/2/2012 09:38

well we have made the top fallers list and the share price is dropping fast, so I don't hold out much hope of getting out of hear without a big loss, seeing as I need 6p to break even.

[feethak2] 28/2/2012 09:37

I can't believe this isn't a cracking buy at these levels with a take over in the offing.

[feethak2] 28/2/2012 09:31

Well I like Outsourcer have held here for a long time, I have averaged down, so should make some kind of profit.

As p1ncer says copper price up, I would expect production to be up also.

I would like to know how long the sale process might take, weeks or months?

£22m valuation, with about $66m of debt, still greatly under values ACU in my opinion, I think they where valued at £150m using a copper price of $1 per lb some time ago, so if we get fair value, we could still do very well out of this.

Could be we wake up one morning and are top of the leaderboard at +200%, with a sale or partial sale anounced.

I always look on the positive side.

I wonder if we will get any kind of production update anytime soon?

GLA

[p1ncer] 28/2/2012 09:08

Outsourcer,

Well copper prices are high, they have done a huge amount of work at the mine, they have increasing production, I would have thought they must be able to get a good price.

The price of copper is strong also, but we will have to wait and see.


I always thought they would sell some or all of ACU eventually.

[outsourcer] 28/2/2012 08:41

P1ncer, I have held my shares now since 2009 and have never been profit, I have a nasty feeling that this isn't going to go well.

It was strange that last week we had the few days where we rose to nearly 4p, but have steadily fallen back down and then suddenly this is announced.

[p1ncer] 28/2/2012 08:37

Outsourcer,

Looks like they want to sell all or part of ACU, hence the appointment of the Non Exec.

Is it a good thing? Depends what they get for it?

We shall just have to wait and see.

If the chinese come calling, we could get a substantial premium to the current share price.

ZCI have done this kind of thing before, and done very well out of it.

I struggle to believe they will get anything less than £50m for ACU, and it could be significantly more looking at the reserves we have.

Why is it that other shares go up on a sale expectation, but good old ACU drops

[outsourcer] 28/2/2012 08:21

is this strategic review by ZCI a good thing ?

[pelleeds1980] 13/2/2012 13:49

Fond memories of this one my first ever ten bagger, got back in again last week only a small amount but definitely looks to be doing it's own thing nobody discussing it

Bid just ticked up can now sell for 3.86 with TDW

[chrissey] 13/2/2012 13:30

not the most exciting stock on the block, be nice to see 15p by the end of March, this year!

[smiler 00] 01/2/2012 09:00

African Copper Plc: Additional USD5 Million Fac...
PIM
FOR: AFRICAN COPPER PLC AIM SYMBOL: ACU February 1, 2012 African Copper Plc: Additional USD5 Million Facility Secured from ZCI LONDON, UNITED KINGDOM--(Marketwire - Feb. 1, 2012) - African Copper Plc ("ACU" or "the Company") (AIM:ACU)(BOTSWANA:AFRICAN COPPER), the copper producer and exploration company focused on Botswana, announces that it has secured an additional loan of USD5 million from its controlling shareholder ZCI Limited ("ZCI"). The purpose of the new loan is to provide the Company with further working capital and to invest in its Mowana Mine facilities and operations. The new USD5 million loan from ZCI is a secured loan facility with an interest rate of 9.0%, repayable on 31 March 2013 (the "Facility"). Interest will be accrued and interest payments deferred until 31 March 2013. The terms and conditions of the Facility are on substantially similar terms to the previous term loans from ZCI. USD1 million will be invested in increasing the trucking of ore from the nearby Thakadu deposit to the Mowana facilities, USD2 million will be invested in a Larox Filter to be installed at Mowana to reduce moisture content in exported concentrate and USD2 million of the Facility will be used for general working capital purposes. Mining and processing at Mowana are making positive progress toward reaching commercial production levels and earning positive monthly cashflow. Both the Larox Filter and the increased Thakadu trucking campaign are key initiatives in the plan to become cash positive. As ZCI owns 84.19 per cent of African Copper's total issued ordinary share capital at the date of this announcement and is providing financing to the Company, the ZCI Loan falls within the definition of a related party transaction under Rule 13 of the AIM Rules for Companies. The independent directors of the Company consider, having consulted with nominated adviser Canaccord Genuity Limited, that the terms of the transactions are fair and reasonable insofar as its shareholders are concerned. For further information please visit www.africancopper.com. Notes to Editors: African Copper Plc is an AIM and Botswana listed copper producer and exploration company, currently focused on Botswana. The Company's flagship project is the copper producing open pit Mowana mine. ACU also owns the rights to the adjacent Thakadu-Makala deposit. Both deposits are situated on the highly prospective Matsitama belt, located close to Botswana's second largest city, Francistown, in the north-eastern part of the country. -30- FOR FURTHER INFORMATION PLEASE CONTACT: African Copper Plc Brad Kipp Chief Financial Officer [phone] [e-mail] OR Tavistock Communications (PR and IR) Simon Hudson [phone] OR Canaccord Genuity (NOMAD and Broker) Andrew Chubb/Tarica Mpinga [phone]- African Copper PLC

[droftarts] 30/12/2011 07:32

Back in and hoping for a rise