Aquatic Food Share Discussion Threads

[plunge] 02/10/2005 21:35

I will second that.

[barred] 02/10/2005 20:55

Can't wait for tomorrow............;-)

[barred] 02/10/2005 20:29

Excellant work as always WS.

[wstirrup] 02/10/2005 20:03

Just read this from the AFG web-site...


Gold has been mined at the site of the Freda Rebecca mine, since as early as 1912. The mine which was re-opened in 1988, was designed for the production of 100,000 ozs of gold a year. It produced on average over 100,000 ozs of gold a year from the late 1990's up to as recently as 2002. Since then its output has severely declined due to Zimbabwe's deteriorating economic situation and the inability of its gold miners to obtain realistic prices. However, since 2004 new policies have been implemented in Zimbabwe which would help FRM's situation improve. The Freda Rebecca mine, which involves both underground and open-pit working, is currently producing about 30,000 ozs of gold a year but a programme is in place to refurbish the mine to increase production to approximately 100,000 ozs of gold a year. Mwana is negotiating a US $8m facility to finance this refurbishment and has been informed that the Reserve Bank of Zimbabwe has approved this facility in principle. Final documentation is expected to be completed shortly. FRM has rights over a number of exploration properties in the immediate vicinity of the Freda Rebecca mine, and further near-pit targets are being explored with a view to extending the life of surface operations at the Freda Rebecca mine. The Mwana Directors are confident that open pit mining in these areas should extend the life of the mine beyond its current 10 year estimate.



So the extension could cost as much as $8m and generate 70,000oz of Gold p.a. @ $470 (current price). $32,900,000 EVERY YEAR...So WHAT are you all worrying about?

BUT what if the Gold price reaches $500, $600 or $1,000 ounce? (or more)

Like I said before, the Gold price is set to rocket because almost the exact same conditions that prevailed in the 1970's are in motion TODAY...

Yes there is downside risk...The gold price might stay at current levels for another year or so, or two years, but inevitably it WILL rise...

The Current Gold price is being held down because of Governments selling off gold in central Bank vaults, because sufficient gold is not being mined to meet World demand. (about half that needed to meet demand)

AFG/Mwana could be your retirement fund provided you hold for more than 2years.

(All AIM profits are taxed at 10% after 2years...which mine are :¬)))

W.S.

[wstirrup] 02/10/2005 19:44

For those Chicken Lickens running around the Farmyard, Most of the Mining licences AFG acquired back in late 2002/early 2003 were at a time when the price was around $325 mark (If I recall accurately) Now the Gold price is hovering around $470.

Any insolvency practitioner worth his salt would be able to value them at a good deal more than the price paid, partly because of the gold price rising by 50%, in the intervening time period, and partly because the ground has been examined in some detail and a great deal more minerals have been found there than originally thought.

THAT alone would be one way to raise capital, either sell one or two of the licences on (Ahanta/Akrokeri perhaps) and/or do equity deals with partners.

Isn't that what Mwana are doing? ...providing much needed finance with an equity deal?

If they can buy productive mines and keep them productive in a nut-house like Zimbabwe, they should be able to do a lot better in the likes of DRC, and Ghana.

I just wish the nervous ones would GET A GRIP!

W.S.

[asmodeus] 02/10/2005 17:27

6721 - Bennie - yes- I saw the FT article. They didn't seem either impressed or perturbed at the news.

[plunge] 02/10/2005 16:40

From minesite.com

"On the negative side, the worst performer was African Gold which lost 24 per cent to end the week at 4.75p. The stock restarted trading on Friday after having been suspended for the last couple of weeks pending publication of a document detailing the proposed reverse takeover by Mwana Africa. Mwana Africa is a group with strong links to Anglo American which has acquired Anglo's mining assets in Zimbabwe including the Freda Rebecca gold mine and a substantial holding in the Bindura nickel mine and smelter. It is not immediately obvious why the stock fell so sharply upon readmission, though it might have something to do with the departure of serial mining entrepreneur John Teeling from the board. For the more speculative investors, it was clearly time to move on".

Good riddance !!!

[the gull] 02/10/2005 13:40

GWR7

What do you feal about getting in now for the 1st time?

[gwr7] 02/10/2005 13:07

Shareholders in this company need to get real.
In effect, your company is about to be taken over.
But at what price? Look at the share price chart. Your company is to be sold near its lowest price for two years.
Your Directors have overseen a halving of the share price this year.
They're consistently bad performers. They also oversaw a halving of the share price in 2004.
Hello out there. Gold is in a bull market but your company is about to be taken over at a rock bottom price. The Directors will do very well out of this but what about you? You are about to be shafted.
You have a vote, use it.

[bennie buffett] 02/10/2005 11:50

Anyone see the piece in the FT yesterday

[the gull] 02/10/2005 11:30

Ian, I hear now what you are saying - take worst case scenario & apply that - £10-15M ????

Sam

Teeling is out - busy in war torn Iraq.

[sam miller] 02/10/2005 11:06

New mine anywhere between US$ 25 - 40 million, depending on existing regional infrastructure etc etc. Does this "reverse takeover" mean that the Dubliners receive their marching orders? If so, I will be buying.

[ianwc] 01/10/2005 23:56

Hi Gull, that's not what i was getting at. the company has suggested increasing production from 30k to 100k per annum by "refurbishing" equipment. In Africa any spare equipment is quickly cannabalised so what sounds like a simple low cost exercise is in fact something quite different imo.

[the gull] 01/10/2005 22:21

Maybe circa £20/25m to construct plus admin, others, etc:

[the gull] 01/10/2005 21:43

Ian

just tot clarify £7.5m / existing mine to refurbish and restart production. New mine I dont know but circa £45m could be the ball park.

Any one involved in mining construction your estimate on the cost of a new mine would be most appreciated. I suppose though having said that we may be able to get a rough idea from the share holders of the likes of GFM.

Ian, if you asked hectorp you may get a comprehensive answer as to how much Griffin paid to get their mine up & operational in China???

[ianwc] 01/10/2005 19:18

thanks gull. i think i will wait until the new entity is trading, then i might take a position.

[dutch dexter] 01/10/2005 17:20

Thanks for the info Plunge.

[asmodeus] 01/10/2005 14:34

Many articles back, somebody asked why "anybody would pay 50p for shares that can be bough for 45p" or words to that effect. Well surely the answer is that they assessed over 2 weeks or so that 50p was a fair price for the assets available, and, I trust, commited themselves to paying that price. Similarly, most of us must, at some time, have committed ourselves to paying 100p per share for a new issue, only to find after launch that the price drops to 95p, or less. So why do we pay 100p for shares worth only 95p? For the same reason as above, I suggest.

[sawbones] 01/10/2005 09:55

hear hear plunge,well said

[plunge] 01/10/2005 09:48

Dutch Dexter

Regarding Josiah Tungamirai - I understand he died a week back whilst receiving treatment in a South African clinic.

Xonghile Kudu

Thank you for your 'profound' comment. However, I choose not to take your stance as this won't make the problem go away. Remaining silent will certainly not hasten the fall of the existing regime. As an ex-Zimbabwean I am deeply affected by what is happening in the country. Anything I can do to inform people about the very serious plight faced must ultimately benefit humankind, not forgetting our future investment in this company.

[dutch dexter] 01/10/2005 03:12

More on Mpinga:


More on the Nickel mines in Zimbabwe:


That's Zimbabwe for you:

[dutch dexter] 01/10/2005 00:38

This from Zimbabwe's The Standard:

"Mwana Africa is a consortium led by Congolese businessman Kalaa Mpinga, and is linked to Empowerment Minister Josiah Tungamirai. Businessmen Oliver Chidawu and attorney Muchadeyi Masunda are among the directors. Besides the Zimbabweans, Mwana's rank of top shareholders and directors comprises South Africans, Angolans, Kenyans and Zambians."

And this from Engineering News online:

"Mwana Africa's shareholders include top businesspeople from Angola, the DRC, Kenya, South Africa, Zambia and Zimbabwe.

Its Zimbabwean directors include Josiah Tungamirai, a parliamentarian of the ruling Zanu-PF party and former commander of the Airforce of Zimbabwe; Oliver Chidawu, a senior ruling-party member and former mayor of Harare; and lawyer and businessperson Muchadeyi Masunda."


I must say, "Empowerment Minister" sounds a lot better than "parliamentarian of the ruling Zanu-PF party and former commander of the Airforce of Zimbabwe".

I wonder how much money goes into the pockets of Tungamirai and Chidawu. I would think that's what's required to do business in Zimbabwe under the current regime. Mmmmm, now how is that different from western directors? Uhhhhh, well, uhhhh......lol

[the gull] 01/10/2005 00:14

Mwana even have their own football club - watch out Chelsea