Share Name Share Symbol Market Type Share ISIN Share Description
Arcon Int. LSE:AIN London Ordinary Share IE00B01H3229 EUR0.10
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 28.95p 0.00p 0.00p - - - 0.00 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining - - - - 0.00

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Date Time Title Posts
03/2/200712:31http://www.lme.co.uk/2432.asp1,239.00
04/11/200414:04Providence Resources8.00
07/9/200317:45Arcon certainly striking it big!!!128.00
06/11/200207:49Arcon at 6P: a new low: cheap or dangerous?19.00

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DateSubject
03/2/2007
12:31
stirkjames: Lundin Mining share price has more than halved. Has anybody any idea what has happend. Tried to Google Lundin but just got a chart, don't know were else to look. James
04/4/2005
11:23
hypocrite: The share price will hopefully fall....we dont want this price.... we did'nt want last weeks price......why should we want any price less than a FAIR price and that is not 52.2 cents which has already depreciated by 20%....... Anyone who sells now is a MUG....plain and simple!!! Caveat Emptor!!!
08/3/2005
19:21
figis: Lundin down in Toronto again this evening. Betwen this and disillusioned shareholders heading for the exit will depress the share price. Hypocrite any feedback on your protestations. I would be interested to know and back you up anyway I can. Kingspan's results out today. The results are excellent and well worth reading. This is a well managed company. The shares have enjoyed a good run and my opinion for what it is worth there is more upside to come. The price is in euros.
03/3/2005
09:44
britishbear: Big news - city does not like it - effectively a takeover but at a price BELOW the current price. Looks like we will have little choice but to accept unless a white knight arrives. I will NOT accept but this will make no difference of course. ----------------------------------------------- RNS Number:2848J Arcon International Resources PLC 03 March 2005 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED STATES, AUSTRALIA OR JAPAN Lundin Mining Corporation ("Lundin Mining") and ARCON International Resources P.l.c. ("ARCON") ANNOUNCE INTENTION TO MERGE Highlights of the Intended Merger Transaction *Combination will create a diversified European base metals producer with aggregate annual zinc production of approximately 152,000 tonnes and lead production of approximately 46,000 tonnes (each based on year ended December 31, 2004), as well as copper and silver production and a substantial exploration portfolio *Enlarged group expected to have combined pro-forma liquid investments of approximately US$45 million *Enlarged group's ability to commit resources for, investment in, and exploration around, the Galmoy mine makes it possible to seek to further enhance operational efficiencies and expand mine life *Anticipated improved trading liquidity for shareholders The Board of Lundin Mining and the Board of ARCON announce that agreement in principle has been reached on the terms of a merger of the companies which the Board of ARCON anticipate they will recommend. To effect the proposed merger, Lundin Mining would make an offer, subject to an 80% minimum acceptance condition, for the entire issued share capital of ARCON in exchange for US$63 million cash, currently equivalent to approximately Euro0.276 per ARCON Ordinary Share, and 5.6 million shares in Lundin Mining, currently equivalent to approximately Euro0.262 per ARCON Ordinary Share (each based on the exchange rates referred to below). Based on the current issued share capital of both companies (undiluted) this would result in ARCON shareholders having an aggregate interest in Lundin Mining following the merger of approximately 14%. Lundin Mining anticipates making the offer as soon as practicable. Sir Anthony O'Reilly, the principal shareholder in ARCON, has advised that an offer on these terms would be acceptable to him. For the purposes of this announcement, the Board of ARCON is comprised of all Directors of ARCON other than Mr. Tony O'Reilly Jnr, the current Chairman of ARCON, who is expected to be appointed to the Board of Lundin Mining following completion of the merger. The value of the proposed offer is US$122.7 million, equivalent to approximately Euro93.6 million (based on a 1.3101 US$/Euro exchange rate, a 1.2431 C$/US$ exchange rate and the share price of Lundin Mining on March 2, 2005 (being the latest business day prior to this announcement)) and equating to Euro0.538 per ARCON Ordinary Share. While this represents a discount to the last dealt price per ARCON Ordinary Share on the Irish Stock Exchange on March 2, 2005 (being the latest business day prior to this announcement), the Board of ARCON recognise that the current ARCON share price follows a short period of strong share price appreciation, with limited liquidity. Relative to the average closing price per ARCON Ordinary Share over the twelve, six and three month periods prior to this announcement, the offer price represents premia of approximately 32%, 35% and 30% respectively. The Board of ARCON anticipate that they will recommend this offer, once formally made at this level, having regard particularly to the opportunity represented by the share element of the offer consideration which provides ARCON shareholders with the opportunity to retain an interest in ARCON's exploration prospects around the Galmoy mine, while also participating in the exploration and production diversification, and improved cash flows of the combined group. Such a decision is based on the Board's belief that the combination of Galmoy with Lundin Mining's interests would not only maintain the ability of ARCON shareholders to capitalise on the prevailing high commodity price environment, but would also expose ARCON shareholders to a broader asset portfolio and a group with a strong balance sheet for future growth. The improved cash flows and cash resources of the combined group will make it possible to further develop the Galmoy mine by investing in operations, production and exploration, thereby exploiting the mine's full potential. Lundin Mining, which is listed on the Toronto Stock Exchange and on the O-list at Stockholmsborsen (the Stockholm Stock Exchange), is a Canadian mining and exploration company with a primary focus in Europe. As at December 31, 2004, the company had cash of approximately C$105 million (US$85 million) and investments with a market value approaching US$30 million. The principal asset of the company is the Zinkgruvan mine in Sweden. The mine has been producing zinc, lead and silver on a continuous basis since 1857, and currently has an estimated 11-year reserve life with additional resources that could support mining for a further 8 years. Lundin Mining also holds approximately 74% of the shares of North Atlantic Natural Resources (NAN), a mining and exploration company listed on the Stockholmsborsen O-list. NAN's primary asset is the Storliden copper and zinc mine in Northern Sweden. A public offer has been made for the remaining shares of NAN by Lundin Mining, and is expected to close March 4, 2005. For the year ended December 31, 2004, the Zinkgruvan mine produced approximately 61,547 tonnes of zinc at cash costs of approximately US$0.23/lb of zinc, while Storliden produced 22,348 tonnes of zinc at cash costs of approximately US$0.11/ lb zinc (both net of by-product credits). Lundin Mining also holds a large copper/gold exploration project in the Norbotten Mining District in northern Sweden. In December 2004, Lundin Mining entered into an agreement with Silver Wheaton Corporation, whereby Lundin Mining agreed to sell all of its silver production from Zinkgruvan to Silver Wheaton Corporation for an upfront cash payment of US$50 million, in addition to 6 million (post-consolidation) Silver Wheaton shares (ticker symbol: SLW on the TSX), and 30 million Silver Wheaton warrants (ticker symbol: SLW-W on the TSX), plus an ongoing payment of US$3.90 per ounce of silver produced. Mr. Lukas Lundin, Chairman of Lundin Mining, said: "This merger will create a premier zinc mining investment choice for investors. With three low-cost and profitable mines focused in Europe, the combined company will generate substantial cash flow which will be used to further enhance the company's growth strategy. The merger will combine two quality management teams who can invest immediately in the Galmoy mine to further enhance operational performance and to seek to expand the Galmoy mine life through a substantially enhanced exploration program. The combined entity will continue to have the backing of the Lundin family, with its track record of adding shareholder value, and the involvement of Sir Anthony O'Reilly, ARCON's principal shareholder, who, following completion of the merger, will have a significant interest in the share capital of Lundin Mining (approximately 9% on an undiluted basis)." ARCON is an Irish mining and exploration company that is listed on the main markets of the Irish Stock Exchange and of the London Stock Exchange. The main asset of the company is the Galmoy mine located in Kilkenny County, Ireland, which, following the discovery of the "R" zone in 2003, has been recently extended by the grant of State Mining Licence No. 8 in respect of part of the "R" zone. Royalty terms agreed with the Irish Government's Department of Communications, Marine and Natural Resources on SML 8, all existing licences and any further new 2005 licences are 1.25% of revenue for the period from March 24, 2001 to June 30, 2006 and 1.75% thereafter until cessation of production. The Galmoy mine, for the year ended December 31, 2004, produced approximately 69,000 tonnes of zinc and approximately 15,000 tonnes of lead. Mr. Peter Kidney, Chief Executive of ARCON, said: "The combination of ARCON and Lundin will be a tremendous opportunity for ARCON shareholders to participate in the creation of a substantial European-based base metals company with considerable exploration potential. The timing of this potential transaction captures the recent strength in both zinc and lead commodity prices and enhances investor exposure to them." The making of the offer is subject to certain conditions including the provision of an undertaking by Sir Anthony O'Reilly to accept the offer, the obtaining of all requisite regulatory body approvals and the execution of an agreement between Lundin Mining and ARCON in regard to the conduct of the proposed merger. There can be no certainty that an offer will be made, and, if an offer is made, there can be no certainty as to the terms and conditions of that possible offer. An independent committee of the Board of ARCON will be established for the purposes of considering the offer, if and, when it is made. Davy Corporate Finance Limited have been appointed to provide independent financial advice with respect to the offer, if and when it is made. Lundin Mining have appointed Macquarie Bank Limited to provide advice in relation to the offer. A further announcement regarding the formal offer will be made in due course.
21/2/2005
13:09
rambutan2: just like everything to be as clear as possible for everyone. and im getting lots of joy from the ain share price at the mo!
25/1/2005
17:05
hypocrite: It takes 80 million out of the balance sheet.... total debt now for Arcon is around 20 million...... The share NAV , including the zinc and lead in the ground, mined or not being mined......vastly in excess of where this share price is...... Thoe only thing wrong with Arcon is SENTIMENT...... and a management who obviously do not want to promote the share price!!! Caveat Emptor!!!
23/1/2005
19:48
rambutan2: ain share price down 27% jan to jan. yes robinbell, its the euro prices that apply to arcon not the oft quoted US$. many are expecting the former to rise against the latter this year.
02/8/2004
16:42
keevo: Phoenix Magazine XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Moneybags....30th July 2004. ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ Take a plunge into Providence Resources AT THE Providence agm on July 19, the operations director, Tony Odone confirmed that the Stena Dee drilling rig is en route to the Blackrock prospect offshore Cork, just 10 miles south of the Seven Heads gas field. The current intention is to begin to spud the well during the upcoming August bank holiday weekend and to hit the target 6,300 foot drilling depth by the end of August. This is the most exciting news that has ever hit the Irish offshore exploration sector because the prospect being drilled contains a potential 600 million barrels of oil. If this comes in, not only will the current Providence 6 cent share price go through the roof but the whole Irish economy will get a huge shot in the arm. Unlike the drilling of the 49/9 Helvick Head discovery three years ago which Philip Treacy took Providence into on a solerisk basis at a cost of €13m, this time around Providence has been much more prudent and has brought in three experienced partners on the operation side. On the financing side, when raising fresh capital of €13m last April, Providence was able to convince a group of normally very sceptical UK fund managers that it was worth supporting. Each agreed to put in at least €1m and included some serious funds like Jupiter Asset Management, Caldwell Associates, Carmignac Gestion, Focus Investments, Griffin Capital, Polar Capital, RAB Fund Managers and Tudor Capital. Most significantly of them all, the finance director, Stephen Carroll, managed to convince Gervais Williams, one of the most highlythought- of fund managers, who actually bothers to run a specialist Irish fund, Gartmore Irish Growth Fund. RECOGNITION Convincing a group like this that Providence was worth sticking the odd million into was some achievement and is some serious recognition that this time around Tony O'Reilly might get it right. Much more serious, however, is the actual $30m farm-in Providence negotiated with the giant American oil and gas drilling contractor, Global Santa Fe. The latter makes its money out of wet-leasing out drilling rigs to the likes of Providence and charging them a bucket of money for the privilege. The going rate for the 100-man-operated Stena Dee drilling rig is $2m a week. Given the near two weeks it will take to move this rig from Rotterdam and the four-week drilling programme, the cost for the first drill hole will run to $12m just to hit the 6,300 foot target drilling depth. If the drill is kept on to flow test any oil found, which even at the minimum would take at least two weeks, the cost could then run on to $16m. For Global to risk-share in these circumstances, even though it has got a US oil company, Palace Exploration, to part pay the costs, is a major achievement. To earn a 50% stake in the field, Global and Palace will have spent $25m of the total $30m cost to complete their two-well farm-in deal whereas Providence will only have to spend $4m to pay for its 41.5% stake in the Blackrock field and its junior partner, Midmar will only have to pay around $1m for its 8.5% stake. Providence already has €13m in the bank from its April placing and rights-issue fund-raising and will get a further €5m from the associated warrants it issued at the time, which could not be taken up until the latter warrants were approved at the egm accompanying last week's agm. As drilling in the two-well Blackrock programme will only cost Providence a little over €4m, this means that it will still have nearly €10m left in the bank even after this is paid for, but more likely €15m assuming the justapproved warrants taken up at 4.5 cent are all exercised, which is very likely as these are currently showing a 25% profit. The deal with Global is a front-loaded one whereby Global and its minority oil company partner, Palace, have to pay for 67% of the first drill and all the costs of the second drill. Of course, if the first drill is a success and proves to be a gusher, funding the second drill will be a no-brainer given the size of the prospect. With a 41.5% stake in the Blackrock prospect, this means that, at the going rate of €5 a barrel for oil discovered, if the whole 613 million barrels comes in, Providence's share would come to over 250 million barrels, which on this basis would be worth €1.25 billion. This would value Providence's shares at over 60 cent each, that is 10 times the current share price. This is some indication of the upside potential if this Blackrock drill is a success. However this time around Providence is not a one-drill play. It has a particularly interesting 25% stake in a play off the northeast shore of Scotland, the Skye Prospect. Back in the Celtic Sea, Providence has identified a big gas prospect, of which it has now got an 80% share on Block 50/8 which contains the so-called Glandore field. Further up the coast in St George's Channel, Providence has also got an 80% stake in Block 21/21 which contains the Dionysus gas prospect, another very large formation in very low water and very near to the Wexford coast. Providence has estimated that there is a gross potential of 788 million barrels of oil equivalent in its other prospects, mainly Glandore, Skye and Dionysus. On the basis that, when farm-outs are taken into account, Providence could end up with between 25% and 50% of each of these fields when matured for drilling, it could have a 250 million barrel share of this potential oil, as much again as the actual share of the Blackrock prospect. So even if the latter does not prove a success, then Providence has three other large prospects to negotiate drilling deals on which together could be as significant as Blackrock. This puts another 60 pence value on Providence and brings the total potential of all its major prospects up to a potential valuation of €1.20 for Providence shares. EXCITEMENT Fans of Moneybags have already done very well. Last year (see The Phoenix 18/7/03) readers were recommended to buy Providence shares at 0.9 cent and later last year (see The Phoenix 10/10/03) Moneybags again advised to "buy now at 1.5 cent for the excitement will be inevitable if and when drilling is announced". With Providence shares now trading at 6 cent, readers who followed this advice last year are now showing gains of up to 500%. There must be a temptation to take a profit and no doubt some people are doing this. You can not blame them, but if London and New York come in as buyers when the first well is spudded over the coming bank holiday weekend the shares could jump ahead.
30/7/2004
16:47
hypocrite: This is what Phoenix Magazine readers will see over the weekend!!! XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Moneybags....30th July 2004. ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ Take a plunge into Providence Resources AT THE Providence agm on July 19, the operations director, Tony Odone confirmed that the Stena Dee drilling rig is en route to the Blackrock prospect offshore Cork, just 10 miles south of the Seven Heads gas field. The current intention is to begin to spud the well during the upcoming August bank holiday weekend and to hit the target 6,300 foot drilling depth by the end of August. This is the most exciting news that has ever hit the Irish offshore exploration sector because the prospect being drilled contains a potential 600 million barrels of oil. If this comes in, not only will the current Providence 6 cent share price go through the roof but the whole Irish economy will get a huge shot in the arm. Unlike the drilling of the 49/9 Helvick Head discovery three years ago which Philip Treacy took Providence into on a solerisk basis at a cost of €13m, this time around Providence has been much more prudent and has brought in three experienced partners on the operation side. On the financing side, when raising fresh capital of €13m last April, Providence was able to convince a group of normally very sceptical UK fund managers that it was worth supporting. Each agreed to put in at least €1m and included some serious funds like Jupiter Asset Management, Caldwell Associates, Carmignac Gestion, Focus Investments, Griffin Capital, Polar Capital, RAB Fund Managers and Tudor Capital. Most significantly of them all, the finance director, Stephen Carroll, managed to convince Gervais Williams, one of the most highlythought- of fund managers, who actually bothers to run a specialist Irish fund, Gartmore Irish Growth Fund. RECOGNITION Convincing a group like this that Providence was worth sticking the odd million into was some achievement and is some serious recognition that this time around Tony O'Reilly might get it right. Much more serious, however, is the actual $30m farm-in Providence negotiated with the giant American oil and gas drilling contractor, Global Santa Fe. The latter makes its money out of wet-leasing out drilling rigs to the likes of Providence and charging them a bucket of money for the privilege. The going rate for the 100-man-operated Stena Dee drilling rig is $2m a week. Given the near two weeks it will take to move this rig from Rotterdam and the four-week drilling programme, the cost for the first drill hole will run to $12m just to hit the 6,300 foot target drilling depth. If the drill is kept on to flow test any oil found, which even at the minimum would take at least two weeks, the cost could then run on to $16m. For Global to risk-share in these circumstances, even though it has got a US oil company, Palace Exploration, to part pay the costs, is a major achievement. To earn a 50% stake in the field, Global and Palace will have spent $25m of the total $30m cost to complete their two-well farm-in deal whereas Providence will only have to spend $4m to pay for its 41.5% stake in the Blackrock field and its junior partner, Midmar will only have to pay around $1m for its 8.5% stake. Providence already has €13m in the bank from its April placing and rights-issue fund-raising and will get a further €5m from the associated warrants it issued at the time, which could not be taken up until the latter warrants were approved at the egm accompanying last week's agm. As drilling in the two-well Blackrock programme will only cost Providence a little over €4m, this means that it will still have nearly €10m left in the bank even after this is paid for, but more likely €15m assuming the justapproved warrants taken up at 4.5 cent are all exercised, which is very likely as these are currently showing a 25% profit. The deal with Global is a front-loaded one whereby Global and its minority oil company partner, Palace, have to pay for 67% of the first drill and all the costs of the second drill. Of course, if the first drill is a success and proves to be a gusher, funding the second drill will be a no-brainer given the size of the prospect. With a 41.5% stake in the Blackrock prospect, this means that, at the going rate of €5 a barrel for oil discovered, if the whole 613 million barrels comes in, Providence's share would come to over 250 million barrels, which on this basis would be worth €1.25 billion. This would value Providence's shares at over 60 cent each, that is 10 times the current share price. This is some indication of the upside potential if this Blackrock drill is a success. However this time around Providence is not a one-drill play. It has a particularly interesting 25% stake in a play off the northeast shore of Scotland, the Skye Prospect. Back in the Celtic Sea, Providence has identified a big gas prospect, of which it has now got an 80% share on Block 50/8 which contains the so-called Glandore field. Further up the coast in St George's Channel, Providence has also got an 80% stake in Block 21/21 which contains the Dionysus gas prospect, another very large formation in very low water and very near to the Wexford coast. Providence has estimated that there is a gross potential of 788 million barrels of oil equivalent in its other prospects, mainly Glandore, Skye and Dionysus. On the basis that, when farm-outs are taken into account, Providence could end up with between 25% and 50% of each of these fields when matured for drilling, it could have a 250 million barrel share of this potential oil, as much again as the actual share of the Blackrock prospect. So even if the latter does not prove a success, then Providence has three other large prospects to negotiate drilling deals on which together could be as significant as Blackrock. This puts another 60 pence value on Providence and brings the total potential of all its major prospects up to a potential valuation of €1.20 for Providence shares. EXCITEMENT Fans of Moneybags have already done very well. Last year (see The Phoenix 18/7/03) readers were recommended to buy Providence shares at 0.9 cent and later last year (see The Phoenix 10/10/03) Moneybags again advised to "buy now at 1.5 cent for the excitement will be inevitable if and when drilling is announced". With Providence shares now trading at 6 cent, readers who followed this advice last year are now showing gains of up to 500%. There must be a temptation to take a profit and no doubt some people are doing this. You can not blame them, but if London and New York come in as buyers when the first well is spudded over the coming bank holiday weekend the shares could jump ahead.
15/7/2004
09:46
hypocrite: Latest Moneybags fortnightly appraisal....will hit the shops tomorrow morning!!!! Action usually follows on the Monday after weekend......I have all his coverage of Arcon filed over the last two years.....this is a "C" change!!!! XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXx Arcon shares a bargain at 3.5 cent THE RECENT resignation of the mining engineer, Kevin Ross, and his replacement as chief executive by the finance director, Peter Kidney, makes sense given that Arcon is a commercial play and now effectively a commodity derivative, driven by fluctuations on the London Metal Exchange. Given recent increases in the zinc price and increased output from the mine, Arcon shares at 3.5 cent are a definite buy. Now that the new R zone extension of the Galmoy Mine has been fully delineated, it is possible to get a better insight into its value. While the extent of the new ore body at 2.3 million tonnes is actually quite modest and will only add three years to Galmoy's mining life, the incredible 19% zinc grading – the second richest in the western world – makes this such an interesting prospect. It has, however, largely gone unnoticed that the R zone also contains a significant amount of lead grading 7.2%. With the current lead price up at $900 a tonne, less than 10% behind the zinc price, this now makes the lead content here really significant. The R zone also contains an interesting 2.5 ounces of silver per tonne. While the new R zone is a highly valuable resource, it is virtually impossible to mine zinc profitably at anything under $1,000 a tonne. Unfortunately, the zinc price has been well below these levels for the last four years. Instead of mothballing Galmoy, Tony O'Reilly has pumped his own money into the company to keep it going, allowing Arcon to lose €50m over the last four years during which period 250,000 tonnes of pure zinc was extracted from the mine. O'Reilly got Kevin Ross to maximise the plant by digging a 500-metre tunnel from the existing mine into the new R zone discovery and then mixing high-grade ore from this with the existing 11.3% zinc grade production to achieve an average 13.25% zinc grading in 2004 and 14.5% in 2005. Even according to Kevin Ross this would "result in a reduction in unit cash production costs to sub €700 per tonne of zinc". With the zinc price now up to €800 per tonne, and assuming the mine produces at its planned maximum of 750,000 tonnes of ore pa, this means that the mine should be making an EBITDA (earnings before interest, tax, depreciation and amortisation) of something over €10m pa. But with the depreciation charge cut back to €4m pa – due to the longer mine life now expected – and interest charges running at €1m pa, this leaves Arcon now running at €5m profit, assuming Kevin Ross's production targets are met. Last year, despite diverting mining resources to digging a 500 metre tunnel to the R zone, mine production was still maintained at 659,000 tonnes. This was mainly extracted from the main G ore body as it helped to raise the average extracted grade to 11.3% zinc. According to Arcon's accounts, this yielded a gross metal value of €45m. The European zinc cartel imposed €5m. After a €4m depreciation charge and a €1m interest charge, Arcon ended up with a pre-tax loss last year of €10m, compared with €15m the previous year. Two years ago Arcon's finances were totally restructured when O'Reilly bought the banks' €100m loan off them for €20m. At the same time O'Reilly underwrote a €25m rights issue which put the company back into net cash. The loss was such, however, that net debts began to mount up again and last September 158 million shares were placed at 3.6 cent to London institutions, to raise €5.7m. In the process, O'Reilly was actually selling off 10% of the company, a surprising decision given that it only had a €5m bank overdraft at the time. SHORT-CHANGED According to Arcon itself, the average zinc price ran at €747 per tonne last year and gross revenue should have come to €56m but the gross value of this metal only came to €45m as the company was short-changed by 23% by the European zinc cartel. the overall extraction rate to 750,000 tonnes, this means that Arcon should produce 105,000 tonnes of zinc this year. On top of this, 30,000 tonnes of lead will be produced, representing a 50% increase in metal content compared with last year. ZINC PRICE RISE Even assuming the cartel ripoff remains unchanged, this would increase Arcon's revenue by €11m and with the zinc price already ahead this year by slightly over €50 a tonne to €800 a tonne, this should add a further €7m revenue. Thus Arcon would be pushed into €12m profit even without any further increase in the price of zinc this year. This shows the significance of even a small zinc price rise. On this basis, Arcon's shares are standing an a prospective 0.9 cent earnings per share and at the current share price of 3.5 cent are trading on a prospective 4 p/e multiple. The egm on July 19 should help to confirm this which, given that the shares are also a zinc play, makes Arcon shares a bargain buy at 3.5 cent. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Caveat Emptor!!!!
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