Ambrian Capital Share Discussion Threads

[koolio] 13/8/2011 17:37

People: Chasing a richer seam
10/08/2011 Robert Tyerman



One former broker pleased to have switched into mining is Richard Chase, former managing director of Ambrian Partners, who has been running Ethiopian gold hopeful Nyota Minerals since April and recently cheered followers with a new formal resource estimate of 1.5 million oz of gold at the company's Tulu Kapi gold project in Ethiopia.

Ambrian has recently been contending with bids for control, activist investors and personality clashes and has been a scene of 'stress and strife', says Chase, who clearly finds his new role more congenial.

AIM-quoted Nyota, an Australian-based AIM counter which began its quoted life as gem flop Dwyka Diamonds, has had its own upheavals, though these have had a positive outcome, insists Chase. With former chief executive Melissa Sturgess still in the chairman's role, Chase adopted a new approach to developing the Tulu Kapi resource and grades, which have been improved to a (still modest) 2.84 grammes a tonne, and hopes to have a bankable feasibility study ready within 12 months.

Nyota is looking at 20 other targets in a 20 km radius of Tulu Kapi and Chase has talked to '14 investment institutions in a week'. Having spent 11 years at Ambrian, 'I know most of the players in the City', he reflects, and, having previously been a mining geologist at African gold group SAMAX when it was taken over by Ashanti Goldfields, he understands African mining, too.

Now 'back where I came from' and 'enjoying putting my geology back to work', Chase says recent events at Ambrian – whose boss Tom Gaffney left earlier this year – show that 'activist shareholders', such as non-executive director Julian McIntyre, can be (unintentionally) 'detrimental'.

He recalls it was clear that certain key players were not going to work well together, stressing 'some forget that broking is all about people'.

[marky4] 28/7/2011 15:00

Koolio,

Thanks for the info from the Times regarding the American expert in talks with Ambrian re a takeover. I can see one prominent American expert is already in the list of major shareholders as is a prominent Canadian expert, perhaps they have helped precipitate a proposed sale of part or the whole of the business.

[tiswas] 28/7/2011 09:46

Fully diluted tangible net asset value is 29.2p per share.

[koolio] 27/7/2011 18:50

AMBR(25.38p) From the Times(extract):-

27/7/11

"AMBRIAN seeks American shelter to survive in a harsh climate.

Those stockbrokers specialising in smaller companies are still looking to insulate themselves yesterday against unforgiving markets.

AMBRIAN ,a specialist in mining & resource stocks,is talking to an American expert in mining & oil companies about a possible T/O.

FC STONE,the Fortune 500 company that bought Ambrian's commodities desk in April is thought to be in talks to buy the rest of the company."

[koolio] 27/7/2011 18:38

They will have to issue a release soon to confirm or deny press speculation.

[frazboy] 27/7/2011 13:55

but no official press release? why?

[koolio] 27/7/2011 08:16

AMBRIAN CAPITAL 27/07/2011

The specialist mining and resources stockbroker is talking to an American peer, FC Stone, about a possible takeover of the British firm, The Times' Market report said.


NAV not less than 33p, why is the S/P still so low.

[frazboy] 29/6/2011 17:18

shareladder, that's what i originally thought when i saw it, but it's say 'affiliated', therefore we must assume that a chinese wall exists between the company the director is affiliated to, and Ambrian

[shareladder] 29/6/2011 13:25

Director bought the day before trading statement released. Ummm.

[koolio] 29/6/2011 11:14

Post removed:

[seekingvalue] 29/6/2011 11:14

trading statement:

"Ambrian has enjoyed strong trading across its operating businesses for the five months ended 31 May 2011.



The performance of Ambrian's physical commodities businesses has exceeded our expectations for the year to date. Our energy business has performed particularly well which is highly encouraging as this is a new business line for Ambrian. Our client-focused corporate finance and equities division continues to build on its strong market leading position in the natural resources sector, breaking even for the same period. Notably, it was recently ranked 2nd in the Metals & Mining sector in the UK small cap Extel 2011 Rankings for a third year running, also attaining a number 2 ranking in the New Energy & Clean Technology sector for the first time.



However, the valuations of our principal holdings in both the investment portfolio and in those held within corporate finance and equities have fallen, in line with the recent weakness in resource equity prices. This has impacted the Group's profit before tax for the five months to 31 May 2011. The losses incurred on the investment portfolio to date, all of which are unrealised, amount to about £600,000. Based on the current market value of the portfolios we expect Group profit for the six months ending 30 June 2011, before share option charges and tax, to be approximately £900,000.



The balance sheet remains strong with our capital fully deployed in our operating businesses. Upon completion of the sale of the LME futures broking business, as announced in April 2011, the capital thereby released will be deployed in the further growth of Ambrian's physical commodities activities. The sale remains conditional on obtaining regulatory approval.



We expect the physical commodities businesses to continue to perform solidly for the rest of the year. The performance of our corporate finance and equities business, which has a strong client base, is dependent on market conditions which continue to be difficult against a backdrop of macroeconomic and political uncertainty.



We have diversified our revenue base, strengthened our organisation and increased our financing capability which positions us to benefit from the long term growth in the natural resources market."

[frazboy] 28/6/2011 19:20

200k purchase. that's what i like to see when a share gets beaten up

this was an IC bargain portfolio pick at 29ish, don't think the fundamentals have changed. time to add

[koolio] 28/6/2011 17:57

Ambrian Capital received notification on 27 June 2011 that Allard Services Limited ('Allard'), an investment company affiliated to Julian McIntyre, Non Executive Director of the Company, purchased 800,000 Ordinary Shares in the Company, at an average price of 23 pence per share. Allard's total holding is now 9,313,149 Ordinary Shares representing approximately 8.72% of the total voting rights of the Company.

[koolio] 27/6/2011 17:19

Tiswas:
Write to: richard.chase or Robert Ashley at Ambrian.com.
They have answered all of my messages sometimes within a couple of hours.

I would be interested to see your questions and their reply. If you feel like sharing.
Not much downside with Ambr so I feel safe parking some cash here if/when the rerating comes so much the better.
K

[tiswas] 27/6/2011 11:14

Well I used their investor relations page to e-mail them asking whether they intended to do anything about the share price discount to cash and TNAV.

Despite a follow up mail they have not bothered to even acknowledge my communication let alone respond to it which confirms my thoughts that this is a company run for the benefits of its employees and not its shareholders.

[hieronymous1] 23/6/2011 20:51

Maybe the market IS valuing it as a base metals rather than stock broker and reacting to the disinflationary moves in China?

[jsbach123] 23/6/2011 20:13

Anybody have any other insights into the dismal performance of this share over the last three months?

[jfishy55] 17/6/2011 11:43

This is frustrating & suspect a lot is down to small holders that got in back in 2007 that are selling off here & there.

I'm happy holding, the yield is good & at some point there will be a correction in the price.

[traderabc] 16/6/2011 19:38

I believe it, since 2008 the market has regarded this one like a 'financial' , ie like a broker/bank stock, the commodity aspect appears irrelevant, it's a broker as far as the market is concerned. It never fully recovered, lagged the mining index, failed to make new highs and now is taking full advantage of a genuine all index sell off. Look at RAB if you want to see really bad. MAN isn't doing too well either, this sector has been out of favor for a few years now.

[trader351] 16/6/2011 18:41

This is unbelievable. My wealth is seriously suffering here. Fundamentally I still believe I should at least hold, but this is not good. Clearly the market is not in love with this share!

[koolio] 16/6/2011 16:54

And so soon.

[jsbach123] 15/6/2011 12:21

I fear you are correct maty ... but why?

[maty] 14/6/2011 17:32

24p here we come !

[jfishy55] 11/4/2011 16:49

Final 0.75p dividend makes for a full year 5% ROI on a company with a NAV of 33.3p.