25/11/2015 18:17:36 Cookie Policy Free Membership Login

Baobab Res. Share Price - BAO

Share Name Share Symbol Market Type Share ISIN Share Description
Baobab Res. LSE:BAO London Ordinary Share GB00B19HQ991 ORD 1P
  Price Change Price Change % Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00 +0.00% 2.50 0.00 0.00 - - - 0 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m) RN NRN
Mining 0.0 -5.4 -1.7 - 8.56

Baobab Resources News, Charts, Forums & Trades

More Baobab Resources News
Baobab Resources Takeover Rumours

Baobab Resources Share Charts

1 Year Baobab Resources Chart

1 Year Baobab Resources Chart

1 Month Baobab Resources Chart

1 Month Baobab Resources Chart

Intraday Baobab Resources Chart

Intraday Baobab Resources Chart

Baobab Resources Discussions and Chat

Baobab Resources Forums and Chat

Date Time Title Posts
18/9/201517:52Baobab Resources - 201061,377
20/5/201512:51Baobab Resources: following in the footsteps of Zambezi Resources?10,235
23/9/201413:04BAOBAO 100p for JV 300p for Production185
10/9/201420:01FINANCE AGREED35
24/6/201110:46Baobab Resources {Research Discussion}73

Add a New Thread

Baobab Resources Top Chat Posts

master rsi: Some parts of Brokers Shore update Tete DFS is essentially fully funded Baobab had good news last week (11th October 2013): it is to place 13.5m shares with its largest shareholder African Minerals Exploration & Development (AMED) to raise £2.0m (gross), i.e. 15p/share – a 15.4% premium to the previous day's closing price. AMED will be granted 13.5m options with a 20p strike, the exercise of which would raise a further £2.7m. AMED will also receive a further 27m options whose strike will be 105% of the five-day volume-weighted average price (VWAP) prior to exercise (at 20p, for illustration, their exercise could generate a further £5.4m). In our view, AMED's willingness to invest at the above prices underlines the attractiveness of Baobab's 85%-owned flagship Tete Project in Mozambique. Investing in junior explorer-developers is by nature relatively high risk but we continue to believe Baobab offers a more robust, lower-risk investment with the prospect of better potential returns than typical of its peers. Three tranches: Initially, AMED will receive 5m shares (plus 5m options), giving it a 27.93% interest (previously 26.73%) in Baobab‟s resulting 306.8m of issued shares. A second tranche of 8.5m shares and 8.5m options, and a third tranche comprising the 27m VWAP options, are conditional on shareholder and regulatory approval. These latter tranches could take AMED‟s interest above the 30% mark, and a Takeover Panel waiver would be required to avoid AMED having to make a general offer for all the outstanding shares it does not own. DFS funded: Assuming all the requisite approvals are received, we believe that the monies raised from the shares issued should be sufficient to complete what we regard as a „bare-bones‟ Definitive Feasibility Study (DFS) on the Tete Project. Option exercise should provide funds for additional work. Work currently planned includes pilot plant metallurgical testwork on a bulk sample, a 3,000m drilling programme designed to upgrade sufficient resources to Measured status to support the first 25 years‟ mining, completion of environmental studies and Memorandums of Understanding (MoU) for power, rail and port allocation, and a detailed study on power generation options. Significant potential for upside as Baobab derisks: For modelling purposes, we have assumed that all the above shares are issued and options exercised in H1 FY2014. For the third-tranche options, we have conservatively modelled a 15p strike, i.e. the same price as the placing shares. The total monies raised and overall fully diluted shares are similar to those in our last published assumptions (19th June 2013). Consequently, our Tete Project attributable NPV10% range falls only slightly, to 54-219p/share fully diluted (previously 55-221p/share). It should be borne in mind that this makes no provisions for the potential for further volume or mine life expansion, the possibility of upgrading titania slag to produce highervalue by-products (which requires investigation), Baobab‟s various other assets in Mozambique, or that the Tete Project is being progressively derisked. Models updated We have updated our Baobab models to reflect developments since our last published note (19th June 2013). Principally, the changes comprise the replacement of our previous funding assumptions (the raising at 17p/share of £3.5m in FY2014 and £5.5m in FY2015) with: ● The three tranches of AMED funding. As mentioned, we have assumed the issue of all shares and exercise of all options in these tranches in H1 FY2014. For the thirdtranche options, we have conservatively modelled a 15p/share strike, the same price as the placing shares but lower than the 20p/share strike for the tranche 1 and 2 options. As a result, £8.7m is raised and issued shares rises by 54m. ● A drawdown of £0.1m from the £17m Equity Line Facility, in which there remains £13.7m of headroom. It should also be noted that the IFC made a pro rata contribution of US$1.0m to DFS expenses in August 2013. We expect the IFC to continue to make further pro rated contributions as the DFS progresses. We have updated our models to reflect developments since our last published note The IFC contributes pro rata (15%) to Tete Project funding Conclusions: undervalued; significant upside potential Baobab‟s current share price is far below our conservative Tete Project 1-2Mtpa attributable NPV10% valuation range of 54-219p/share fully diluted. This is despite the fact that our valuation makes no provision for further volume and/or mine life expansion potential, the possibility of upgrading titania slag to produce higher-value by-products (which requires investigation), or Baobab‟s various other assets in Mozambique. There is thus clearly significant upside potential to our valuation. We believe that Baobab‟s current share price represents an enticing low-cost entry opportunity. We expect significant share price appreciation as Baobab advances towards production and thereby becomes progressively derisked, and its compelling pig iron story becomes more widely recognised. There is significant upside potential to our Tete Project valuation of 54-219p/share We conclude that Baobab‟s current share price represents an enticinglow-cost entry opportunity into a highly compelling story hxxp://baobabresources.com/files/ShoreCap_Baobab_20131016.pdf
solonic: BTW I spoke to some nice blokes called BJ and JD over a slap-up dinner in the local Wetherspoons and they swore blind, to me and me alone, the BAO share price would be 500p by Xmas. I have it in writing on the back of a very pretty beer-mat. Anybody who says it will be less than that (like £2.01) is a pink fart and a wimp deramper working in a tent.
bao4u2: Last year after Agm and Bj presentation at minesite bao share price rocket from 6p to 37p .......Same thing is happening this year . On 5th of dec. 2013 Bj is presenting at minesite in the morning and Agm in the afternoon and share price start lifting first thing on the 6th of dec. 2013........And just to remind you we got lot more in our bag this year then what we had last year so fireworks could be huge .......gla
bao4u2: http://thesharehub.comLife is like riding a bicycle.To keep your balance, you must keep moving - Albert Einstein.Baobab Resources – Initiating CoverageWritten by HUB January 06, 2014A new stock to thesharehub Hotlist for 2014, Baobab shares some regional interest with the recently reviewed Beacon Hill Resources.Baobab found 2013 hard going after making a promising start with the share price hitting 35p. The stock has not managed to muster enough news worthy progress to break out and pass above 16p with conviction. The asset value is there for sure but the infrastructure requires some patience. Unlike, Beacon Hill, Baobab are yet to agree terms for the Sena Rail line. This is important and should prove a good catalyst for share price growth once finalised. Mozambique is not short of super majors and the region is nicely positioned for exports. But rail links need to be improved as do the loading facilities and various other hub's. Recently, Beacon Hill announced that they too will be looking at progressing development plans for Pig Iron. The timing suggests that Beacon Hill feel the time is right to expand beyond their current Coking coal business at Minas. Cost savings have been cited due to the recent rail stock acquired and Sena rail line capacity. Hence, Beacon Hill can make some cuts in overheads by exporting both Coking coal and Pig Iron commodities.Baobab have other near term catalysts which could see/help the share price back towards the 20p levels.The following comes from their last Tete ops update.• Drilling has been prioritised to convert the upper portions of the Tenge resource block, representing a minimum 10 years of operation, to a JORC compliant Measured category. Preliminary analytical results are expected in January 2014 with a revised resource estimation to be completed by the end of Q1 2014.• Bulk samples collected from the trenches, along with bulk coal and carbonate samples, are being processed at the Mintek laboratories in South Africa before despatch to pilot plant facilities in the USA and Japan for reduction test work.• Un-fluxed bench scale smelting test work carried out by CSIRO earlier in the year confirmed that a low impurity pig iron product could be produced using Baobab's iron ore and local Mozambique thermal coal (refer to RNS dated 4 March 2013 for details). Further fluxed smelting test work is on-going and will provide the first empirical data on the composition of the vanadium and titanium slag by-products. Results are expected in early 2014.• Discussions with public and private sector entities regarding port and rail allocation are making solid progress and are expected to be formalised shortly by way of Memorandum of Understanding ('MoU') documentation prior to the drafting of term sheets in which access conditions and tariff rates will be established.• Mining title and industrial licence applications are being prepared for submission in January 2014. The environmental impact assessment ('EIA') and associated resettlement plan and community and enterprise development programme are making good progress under the guidance of Ms Elisa Vicente, Baobab's newly appointed Environment, Health and Social Manager....................................................................................................................Baobab also has interests in another project which is shared with ASX listed Metals of Africa (ASX: MTA).Details of the project can be found using this link from the companies website.As the above bullet points highlight, Baobab is due to update the market on several aspects of progress over the next 2 to 3 weeks. Ultimately this will contribute and lead up to a definitive feasibility study which is keenly awaited by investors and the market. The infrastructure story in Mozambique is improving each day and will provide further share price support/catalysts throughout the year.TheShareHub believes that despite the obvious hurdles ahead, the regional developments in Mozambique now provide a clear route to market based on Rail capacity. This will become more relevant as completion nears towards the end of 2014.Like Beacon Hill, Baobab has suffered with the markets lack of patience and interest in smaller commodity players. Funding is always tough for the minnows as no meaningful cash revenue is there at present.But at today's price of 13.875p, Baobab has many of the risks and discounts more than priced in. If anything, further funding/draw downs appears priced in too. With plenty of catalysts around in 2014, Baobab should be able to convince investors and the market that they will commercialise their assets sooner than the market expects.TheSharehub has a near term target of 26.5p (2 bagger) and 12 month target of 45p (3 bagger) for 2014.
6kenny: au24, Yep, I'm still very much invested in BAO and confident that the price will be much higher than 13p in due course. I'm suprised and somewhat gutted that we are at these paltry levels considering we were at 37p pre PFS. I thought September would bring a real surge to the BAO share price but that has yet to happen. The market wants to know how BAO plans to raise the required $1 billion, once that is clear then we should start to fly. I was really close to investing in IRON at 2.12p last December, look at it now!
solonic: I want to apply to live in this glorious institution where "our little chatterbox friend" obviously has to spend the rest of his life. I've been racking my brains to see if I can achieve entry into this wonderful place where the little birdies are singing all the time, where it doesn't matter if I take all my clothes off or rip them into small pieces, where I can throw my free porridge all over my neighbours, where I can wallow freely in the mud, foam at the mouth regularly and where I can feel totally protected by beautiful large men with large muscles who give me yummy medicine and who say they will always make sure I am safe. For starters I'm going to try to gain entry by saying as follows: " Charlie and Kenny are definitely non holders of BAO and they do nothing but deramp the stock" "Bao will reach 250p by next Shrove Tuesday" "mitu and, erm, friends are probable potential Nobel Prize winners for protecting the peace and making arguments and predictions which are impossible to refute" "Thank the Lord and max101 for having worked so successfully with daily posts for 3 years to keep the BAO share price up so high" After that do you think they'll let me into that haven of peace? I gather it has high barriers for entry (and, I'm told, for exit, hurrah!) and I won't have to pay!
tuckman: Morning 6kenny, 2phildove. To be honest I have given up on guessing a potential share price I am just now concerned on project success and then the direction that we may go around. Putting this in a simple answer IMO, the share price is irrelevant as the outcome will be decided by the majors in one of many ways. The share price will react depending on which way we go. 1. Major offers at least 5 or 600 million for the lump of mud or the going rate depending on how much value add occurs over the next 6 months. No doubt Standard Chartered etc will have realistic valuations. 2. Strategic technical partnership with a forward take of minimum 30% 3. If there is no realistic offer on the table from anyone (which I seriously doubt) then they will get a new management team and go it alone. IMO this can be done through a solid DFS and loans. So sorry guys just because the share price is low IMO does not mean we will get sold down for less than the going rate. If the project succeeds then so will the share price but it might be Q4 before you see it. Again patience required, the news is coming and it might not even alter the share price but as far as I am concerned I am looking forward to Q4 when the real dealing will be done. Our payday will come then. For those that have been here years then it is only another 6-7 months away. Let the traders play and worry about the ups and downs, we all know who they are.
andygibb101: The IC article: Baobab: a tempting binary bet BUY Bull points Huge potential resource Definitive Feasibility Study imminent Metallurgical upgrades Low-cost production Bear points Binary nature of investment Security issues in Mozambique Over the past six years, Baobab Resources (BAO) has been developing a large mining and processing complex in Mozambique – the Tete Pig Iron & Ferro-Vanadium Project. With prospects for success looking increasingly encouraging, the share price looks well out of step with events. Baobab has identified a gross resource measuring 759m tonnes (323m tonnes measured and indicated). By the end of this year, it expects to deliver the Definitive Feasibility Study (DFS) for the project, which, it is hoped, will attract the interests of an industrial partner – possibly an Asian steelmaker – to fund future development. To achieve this, Baobab needs to further de-risk the project by defining the measured resource, annual production and life-span of the project, in addition to providing details relating to the metallurgical suitability of ore bodies and the state of local infrastructure. Two recent press releases demonstrate that Baobab has made significant progress in defining the Tete resource. Geological modelling by SRK Consulting (South Africa) has increased the resources at Tete's Tenge resource block by 15 per cent to 222m tonnes. More importantly, the measured and indicated resource categories came in at 156m and 66m tonnes, respectively. SRK also gave an operational life of at least 20 years. This compares very favourably with initial expectations of 32m-48m tonnes of measured resource and a 10- to 15-year mine life. The Tenge/Ruoni prospects account for around three-quarters of the overall resource size, so the significant upgrade provided a major fillip to the project – and there's more. In April, analysis from Australia's CSIRO provided strong indications that the project is viable from a metallurgical perspective. A round of bench-scale separation ('beneficiation') and smelting tests produced a final alloy containing 99 per cent iron, which is purer than the standard commercial pig iron product specification. What's more, Baobab managed to separate titanium and vanadium as slag by-products. The bottom line is that these tests indicate that a high-quality, low-impurity pig iron can be produced cheaply from Baobab's iron ore resources and locally sourced thermal coal, which is a by-product of the washing process on the project boundary. The DFS process also received added impetus because Baobab signed a memorandum of understanding with Mozambique's state energy company EDM for a detailed study of Tete's power requirements. In addition, an environmental impact scoping study has been approved by the Mozambique government – all of this helps to de-risk the project. And the DFS should be fully funded as both the International Finance Corporation – which holds a 15 per cent participatory interest in Tete – and Baobab's cornerstone investor, African Minerals Exploration & Development, have built on their investments recently. All is looking good for a strategic investor to come on board, although there are lingering security issues in Mozambique linked to the activities of the Renamo rebel movement – or what's left of it. Above all, it should be remembered that this is essentially a binary bet – so it's high risk. Before the recent ore upgrades, Shore Capital gave a conservative low-end valuation for Baobab of 54p a share. With the commercial case for Tete getting really compelling, the shares are worth a speculative buy. MR
qipincha: each company has its own story the share price is a function of so many things and I have to say market sentiment is very important and I see many bad companies have much higher market value... and good companies can have rubbish share price not rational a lot time the price of commodities is periodic. if the price is high, I will worry but as the price is low now, I expect a lot players will be removed from the market from this downturn and bright future is ahead. for bao, I will prefer if they can get all documentations right and sell it, eventually, bao is a exploration company, quick money will be in favour of many investors. ok, that's from me. talk to you when next RNS come
bao4u2: Listen Bem James about howMuch he is worried about renamo ..... Not at all...Baobab Resources Takes The Option Of Scalability At Tete Out To Potential Partners In The Far EastBy Alastair FordIs the civil war in Mozambique about to flare up once more, as former rebel group Renamo starts to flex its muscles (and its AK47s) again? Ben JamesNot if Ben James?s analysis is anything to go by.As managing director of Baobab Resources, Ben?s been in country along with his family for a fair while now, and although there?s been plenty of sound and thunder about the latest bout of militancy from Renamo, he?s not worried.?There?s been a couple of isolated skirmishes?, he says. And yes, he concedes, it?s true that Rio?s suspended operations on its railway, and that this has made headlines in the mining press around the world.?But Vale hasn?t. And we don?t hear about that. We don?t hear that at Vale it?s business as usual.?In fact, business as usual is probably the right call, because no-one?s quite sure exactly what Renamo is up to.Renamo leader Alfonso Dhlakama is not, says Ben, the great agitator he once was. At the age of 60 one might very well expect that the fire and urgency of the former bush warrior has long since waned.For many years Dhlakam has lived in Maputo in relative comfort, so his recent move back into the bush has been viewed with alarm in some quarters. But not all.?In Tete, the general feeling is that this is sabre rattling in the jungle?, says Ben. ?Half the people say he has gone into the bush to try and settle down militant factions. Or maybe he?s using militancy as a way of getting better leverage. But he?s not supported internationally or nationally.?What?s more the area affected by the new militancy is not significant. ?It?s only relevant to a small strip of highway south of the Chimoio intersection on the EN1.?But having said all that, the effect on Baobab?s share price has not been salutary. In what are in any case difficult markets, having the two former belligerents in a civil war squaring up to each other in your country of operations is never going to be helpful.Hence Baobab?s share price has dipped in recent days, falling from 17p a couple of weeks ago to the current 13.5p.In spite of all that though, there are still plenty of reasons to be cheerful. For one thing, the price of iron ore, if not exactly soaring away, has at least stabilized at around US$120, and that will put some sort of floor on any selling pressure on Baobab.Because there?s no doubt it has iron ore, and lots of it. What?s more it?s got a plan to get it out of the ground and a route to market too, although there?s still plenty of work to be done before that becomes a reality.The company is currently working up a bankable feasibility study on a potential one million tonne per year pig iron operation. The study is following up on a promising pre-feasibility study which envisaged a 37 year operation producing a million tonnes of pig iron at an operating cost of US$225 per tonne FOB.The price tag of US$1.14 billion looks a little daunting in the current markets, but Baobab has said all along it wants to bring a partner in to help with the heavy lifting. To that end, while the bankable study is ongoing, Baobab has engaged Standard Bank to check around for suitors, and it has also investigated the viability of scaling up the operation to two million tonnes.The results of that two million tonne scenario really demonstrates the scalability of the project, according to Ben, increasing the internal rate of return from 22 per cent to 26 per cent, and increasing the NPV from US$1.3 billion to US$2.4 billion.?We?re happy with the one million tonne scenario?, he says. ?But we need to be flexible and to demonstrate that the project can be scaled for potential strategic partners.?Finding such a partner remains a work in progress, but in recent weeks there have been trips to Korea and Japan, where, says Ben, ?we opened discussions with various parties?.A frequent topic of conversation, he says, was scalability. So, from that point of view it seems that Baobab is making all the right noises.But as to when a partnership deal gets signed, that?s very hard to predict. ?In a normal market we could almost put a timeline on these discussions?, says Ben. ?In this market we can?t.?That has a knock-on effect on the bankable study too. ?The highest cost components of the BFS will be the smelting testwork?, says Ben. ?Until we get a better understanding of who our strategic partner might be we won?t be doing that testwork, because most strategic partners would want to do those tests themselves.?In the meantime, though, the company is getting on with other time-critical aspects of the study, including proving up a measured resource, optimizing the beneficiation, and doing direct reduction testwork. Environmental impact community work also continues.To keep it going, Baobab has US$3 million in the kitty, and can also expect a contribution at the project level from the IFC, which has a 15 per cent working interest. That ought to be more than enough to take care of the current work programmes, and to allow enough time for a partner to come in and do a thorough investigation of the opportunity.That could be within a couple of months, or it could be longer. Nothing is predictable in this market.But one thing?s for sure ? there?s plenty of value on offer for anyone with deep enough pockets and a longer term view.

Baobab Res. Most Recent Trade

Trade Type Trade Size Trade Price Trade Date Trade Time Currency
O - - - - GBX

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 151125 18:17