African Copper Share Discussion Threads

[p1ncer] 23/3/2012 13:40

I would trade it myself, but I know I would come in one morning and found it's been sold for 10p.

Outsourcer, lots of companies releasing great RNS's at the moment and the share price goes down! It's the way the market is now I'm afraid.

Look at LOGP, one of the best RNS's I have seen, and the share price drops by a 3rd from it's peak

The only thing releasing value is a sale, which is what is going to happen to ACU.

ZCI have done this before, no reason that ACU shouldn't go for a good price, what the definition of a good price is, we are about to find out.

[p1ncer] 23/3/2012 13:27

Doesn't surprise me re the share price drop, buy low sell high easy money.

This has nothing to do with the sale, and very little volume, which shows how quickly it can move.

Outsourcer, there is still expected to be a supply shortfall this year, and probably next.

ACU have two mines producing increasing amounts of copper, they also have "at least three, potentially world-class mineral deposits/systems identified."

Other copper mines that have sold recently have gone for over $1b. Not saying we will go for that, but it proves there is demand for copper, and companies are prepared to pay.

Yes it has been nearly a month but if Deadline for 1st buyers Proposals: 15/3 is accurate, we are nearly two weeks into the second phase of the sale process.

[outsourcer] 23/3/2012 11:14

right on cue, price drops again

[outsourcer] 23/3/2012 11:13

I am pessismistic by nature and watching the share price movements I don't see us getting anything near the prices people are expecting. We are now nearly a month on from the announcement and usually stuff leaks which cause share price movements the fact the share price is falling again shows it all.

I am expecting one of 2 outcomes, no-one comes in with a price ZCI want, they don't go ahead with the sale and the share price falls into the 1-2p range or we get an offer of around 4-5p which they accept and lets them get some money back on their investment.

[feethak2] 23/3/2012 09:54

The 15\03 would make sense if they are after a quick sale, which is about three weeks after the announcement of the strategic review, we are now two weeks into the second stage of the prcoess, so looks like things are moving quite fast.

"least three, potentially world-class mineral deposits/systems identified." is also good news, it will all help the eventual sale price.

If I had to guess at this stage, I would expect a sale price of between 6p and 8p, though if it went for more I wouldn't be surprised.

I would be very surprised if it went for less, but with the markets being what they are at the moment anything is possible.

[p1ncer] 22/3/2012 19:08

"Deadline for 1st buyers Proposals: 15/3"

Interesting if true

[p1ncer] 22/3/2012 18:49

"ZCI is in advanced discussions with industrial partners and financial partner for the development of new licenses to Matsimata with very large reserves, even to give as existing operations

Their signature will appear to light the true market value of ZCI / ACU, much higher than 2E"

"8/Conclusion:The bet is being won to turn a start-up ACU which produced almost nothing beautiful in junior mining and profitable growth that will be sold soon"

[p1ncer] 22/3/2012 18:37

Whoever buys ACU is not just buying the current producing mines, they are also buying "at least three, potentially world-class mineral deposits/systems identified."

If ZCI do not demand a good price I will be amazed.

[p1ncer] 22/3/2012 18:31

--Matsitama Minerals ("MM") is a 100% owned subsidiary of African Copper Plc ("ACU") •ACU is an international mining and exploration company incorporated in England and Wales and listed on the AIM (London) and Botswana Stock Exchanges.--

---•Exploration has proven very successful with at least three, potentially world-class mineral deposits/systems identified.

•Matsitama Minerals has, over the past year, identified world-class mineral deposits and mineralizing systems in the MSB.

•The company has succeeded in positively identifying, for the very first time, IOCG mineralization in the MSB together with syn-to late-deformation granite intrusives.Conclusions

•The company is now in a position to rapidly move the exploration assets up the value curve.

•MM is confident that the exploration programs currently being imple-mented will lead to the discovery of one or more major mineral deposits in the short term.

taken from

[p1ncer] 22/3/2012 18:20

"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 $142million, (approximately Pounds Sterling 70-78m @ $1.84/Pounds Sterling ),
using a copper price of $1.00 per pound"

Based on the current value of copper of $3.7 per lb, that would put "fairvalue" of $473m to $525m.

I aint saying we will get that figure, but it will e very interesting to see what we do get

[feethak2] 22/3/2012 16:45

4p? 6p? 8p? 10p? 12p? Whatever the sale price will be, we are going to find out very soon.

As long as it's not 2p I will be happy.

If ACU goes for $200m, - $70m debt, that is still five times the current market cap.

We need it to be over $90m, to cover current market cap and outstanding loans. Which when you consider it was valued at $150m using a $1 per lb price of copper, against a current price of £3.7 per lb should be more than achievable.

Even if we get that $150m, -$70m loans that is still over three times current market cap

This is an exciting time, it is not often you are waiting on news that will put a definate price on a company in the same way that we will find out here.

The present market cap seems so ridiculously low like a lot of AIM comapnies at the moment, especially given the demand and price of copper at the moment.

Yet we are about to find out exactly how much ACU is worth, or at least what ZCI can get for it.

I'm not sure how long the process will take, but we are a month into it already, so the clock is ticking.

We will either get an RNS saying the deal is done at a given price, or a deal is being done.

The question we all want to know will be at what price?

GLA

[p1ncer] 21/3/2012 15:20

Well the copper price is still strong, which is a good card in our favour.

You would have thought there would be quite a bit of interest so news should be soon.

the big problem with AIM shares at the moment, is that cash is king, a share announces a great find, the share price shoots up, and then straight down again.

We like many others are vastly undervalued.

The only way value is being seen at the moment is through an offer for the company.

ACU is near the bottom of the curve, and about to be sold, with so few shares in free flow this who is to say this couldn't soar to 12p again, it has in the past.

Fingers crossed for us all, that we come in tomorrow to news, it certainly can't be far away.

[feethak2] 21/3/2012 13:40

Well copper stocks are continuing to fall, they LME could be below 250k tonnes by the end of the week.

Which makes anyone with a copper mine to sell in a strong position.

Hopefully the bids are increasing as we speak.

[p1ncer] 21/3/2012 12:24

I would expect no less than 6p+, but would hope for 10p+.

I would think when the sale is announced, there will be a stampede to buy shares, of which there are very few.

This board will go from virtually non existent to being very busy, with a very happy Outsourcer, and me!

[feethak2] 21/3/2012 11:56

Hopefully we can get to 4p+, then an 8p+ (is 10p+ being too greedy?) takeout price looks more of a possibilty

[p1ncer] 21/3/2012 10:09

Looking perky.

News of the sale price leaking?

[feethak2] 13/3/2012 15:33

I think the phrase "However there is no certainty that a partial or full sale will be completed." is put out in all these kind of RNS's.

I think they will sell, probably all of ACU, though if they sold a partial stake I wouldn't be surprised.

However I think a full sale is the most likely, as ZCI have done this kind of thing before.

Any other company anouncing it is up for sale and the share price would fly, but poor old ACU flat lines.

Hopefully when the deal is anounced we will be one of those long forgotten companies that suddenly appears at the top of the leaderboard.

I am hopeful the price ACU goes for could surprise us all.

GLA

[p1ncer] 13/3/2012 09:31

Mining deals are accelerating as companies struggle to replace depleting deposits and China's industrial growth stokes demand for metals. More than $27 billion was spent globally on copper deals in the last 12 months, according to data compiled by Bloomberg,

[p1ncer] 13/3/2012 08:13

"However there is no certainty that a partial or full sale will be completed."

I think this is an interesting sentence from the last RNS, are ZCI saying, we will sell for the right price, but if anyone thinks they are getting it cheap, we would rather keep it ourselves.

[feethak2] 12/3/2012 19:46

I have always elieved that long term ACU's value would be vastly greater than it is now.

The prices eing paid for some of these other companies does nothing but confirm this belief.

The multi million dollar question, is what ZCI will get, looking at the info given by P1ncer, we could have a few possible suitors.

[p1ncer] 12/3/2012 15:21

If you look at the prices paid for Copper companies that have been sold recently, they seem to go for billions rather than millions.

I know it is bigger than ACU, and it is difficult to compare apples and oranges, but it shows the current share price to be utterly ridiculous.

As things stand, even with the debt, the share price should be 10p+

[p1ncer] 12/3/2012 15:17

"(2.2 billion euro, $2.9 billion) or 9.15 billion zlotys and decided to rename the unit to KGHM International, the company said in a market filing.

KGHM also decided to delist the Canada-based company, in line with prior declarations.

The agreed purchase price is down from an original 3.5 billion Canadian dollars price tag, KGHM said on its website.

The acquisition will allow KGHM to increase production by 25 percent - the equivalent of 100,000 tons of copper - this year, KGHM said."

"KGHM maintains its plans for more takeovers as the group needs at least one more acquisition to meet its production target of at least 700,00 tons of copper, CEO Herbert Wirth told a news conference"

[p1ncer] 12/3/2012 15:07

The above is why ZCI should demand a good price for ACU.
Copper demand is outstripping supply, this will underpin prices, and make ACU a valuable asset for somebody.
I personaly would find it incredible if ZCI let ACU go for less than 6p a share.
Even at those prices it is an absolute give away, if they demand fair value we would be talking well over 10p.
Strange as it may seem with the share price languishing at 2.5pish, I have seen stranger things happen.

ACU is the most unloved share on the entire AIM, and has been for a number of years, hopefully we are nearing a point where those with patience will be rewarded.

[p1ncer] 12/3/2012 14:57

"Mitsui & Co., holding a record $17 billion in cash, wants to buy mining stakes and expand operations to triple copper output and more than double coal production, easing its reliance on iron ore sales"

"Globally, copper consumption will outpace supply by 376,000 tons this year and there will be another shortage in 2013, Barclays said in a Feb. 29 report."

[p1ncer] 12/3/2012 14:51

"Major producers such as Tongling Nonferrous and Jiangxi Copper, said this week that they expect Chinese consumption to grow some 6-7 percent this year, as construction of power lines and millions of subsidised homes would keep demand for the red metal healthy"