|See also (COMX):
CME suffers from pullback in derivatives trading
By Hal Weitzman in Chicago
Published: October 30 2008 02:00 | Last updated: October 30 2008 02:00
The CME Group, the world's biggest futures exchange, said yesterday that its third-quarter profits were up slightly from the same period last year as growth in the derivatives trade was hit by falling volumes from financial institutions damaged by the crisis.
Excluding extraordinary items, the CME's net income was $278m or $4.13 per share, up 3 per cent from $269m or $4 per share a year ago, on revenues of $787m, up 6 per cent from last year's figure of $744m. The company has enjoyed extraordinary growth in recent years, fuelled by a secular increase in trading volumes and high-profile acquisitions such as the Chicago Board of Trade and Nymex.
However, that strategy may have run its course for the time being: most of the profit for the third quarter was accounted for by a $7m decrease in expenses.
The CME, which controls 98 per cent of listed futures in the US, has suffered from a pullback in derivatives trading by hedge funds and other big financial institutions.
Morgan Stanley said yesterday as a result of economic turbulence, financial exchanges should brace themselves for a continuing fall in trading volumes next year.
"We believe post-crisis landscape will exert significant pressure on growth and forecast a decline in most key products in 2009, the broadest decline since 1988," said Patrick Pinschmidt, an analyst at Morgan Stanley. "CME enjoys dominant market shares across its core products, but we worry this will be insufficient to overcome weaker volume trends."
Craig Donohue, chief executive, confirmed hedge fund volumes had decreased, but said that had been offset by increased proprietary trading by other financial institutions, which have beefed up their use of algorithmic trading to take advantage of highly volatile markets.
As it seeks new revenue streams, the CME is attempting to position itself to benefit from the turmoil, in particular, regulators' wish to reduce risk in the overthe-counter credit derivatives market. Mr Donohue said the turmoil in the financial world presented "tremendous strategic opportunities" for the exchange.
US regulators are keen to see a clearing house established for the OTC contracts as soon as possible.
"As customers in the over-the-counter derivative markets move increasingly toward more regulated, transparent and centrally cleared markets, CME Group is extremely well positioned to benefit," said Mr Donohue.
|Carnegie Minerals says raises 1.13 mln stg via institutional placing
LONDON (Thomson Financial) - Carnegie Minerals PLC said it raised 1.13 mln stg (before expenses) through a placing of 28.25 mln shares to institutional and other investors at 4 pence a share.
Proceeds from the placement are planned to be used to fund Carnegie's 50 pct share of an environmental impact study at the Niafarang deposit in Senegal, drilling in Southern Senegal and other purposes.
The mining company said it plans to develop the Niafarang deposit where it has identified high grade ore reserve, aiming to bring the project into production in early 2009.
With the positive exploration results in Senegal, the company said it intends to raise further funds to enable the group to maintain its contributing interest in that country and to follow up the other high potential initiatives, Carnegie said.
|Carnegie Minerals plc
01 February 2008
CARNEGIE MINERALS PLC
('Carnegie' or the 'Company')
Issue of Equity and Notice of Extraordinary General Meeting
The Board of Carnegie Minerals Plc (AIM - CME), the mineral sands resource
company with production interests in The Gambia and advanced exploration in
adjoining Senegal, is pleased to announce that it has raised £1,130,000 (before
expenses) through a placing to institutional and other investors at 4p a share.
A Circular has been sent to Shareholders to convene an Extraordinary General
Meeting for the purposes of passing resolutions to enable the proposed Capital
Raising to be effected.
Background to and reasons for the Capital Raising
Since Carnegie's admission to AIM in August 2006, Carnegie's mineral sands
business has continued to grow in West Africa. At the same time, the Company
has progressed new synergistic opportunities that we believe hold great
potential for the Company going forward.
In Senegal, Carnegie's exploration identified a high grade ore reserve at the
Niafarang deposit. The Company therefore plans to develop Niafarang, which is
50% funded by our joint venture partner Astron Ltd ('Astron') and 50% funded by
the Company, with the aim of bringing the project into production in early 2009.
The Company also recently undertook a significant exploration drilling
programme in the northern and southern parts of the licence area. Based on the
assay results available to date, which highlighted mineralisation intersections
in these previously untested areas, the Company plans to follow-up exploration
as well as drill testing in the eastern part of the licence area where
identified geophysical targets were not drilled during this programme due to the
onset of the rainy season.
With the positive exploration results received so far, the Company has also been
investigating further mineral sands potential in the region. Additionally, the
Company has been actively assessing a number of opportunities in other
geographical regions; both in industrial minerals and other commodities that it
believes will complement the existing projects and contribute to the future
success of the Company.
With the positive exploration results in Senegal, the Company wishes to raise
further funds to enable the Company to maintain its contributing interest in
that country and to follow up the other high potential initiatives.
Additionally, to allow the Company to issue Ordinary Shares in consideration for
existing warrants and options and to provide the Board with flexibility for
further fundraisings in the future, authority is being sought at the EGM to
issue a number of Ordinary Shares other than on a pre-emptive basis. By passing
the resolution to provide the Board with such authority, the Company will be
able to rapidly exploit investment and financing opportunities that present
themselves to the Company, in a cost-effective manner.
In The Gambia, all development and operating expenditure is funded by the
Company's 50% joint venture partner, Astron. Four production units have been
commissioned and an official mine site opening held in July 2007. Production
rates were increasing in line with expectations and a second stage concentrator
was scheduled to be commissioned this year with a resulting increase in revenues
On 16 January 2008, the joint venture company received an instruction from the
Government of The Gambia directing it to cease all operations and to provide
certain information in relation to production, grades and prices. An additional
letter with a request of further information was received by the company on 18
January 2008. Both letters received from The Gambian Government required the
information requested to be supplied within 24 business hours in default of
which there would be a risk of the cancellation of the Gambian joint venture
company's licence and other potential action. The Company responded to each of
the letters within the prescribed time limits. The Company has not received any
notice from The Gambian Government that the licence has been cancelled. The
Company believes it has supplied all the required information including
independent SGS laboratory assays and offered to fund an independent industry
expert to assist them in interpreting these results. As at the date of this
circular, we await the Gambian Government's response. Given the uncertainty over
the Gambian licence that this action has produced, the Board has decided to take
the most prudent approach available to it and provide fully against the carrying
value of the Gambian assets on its balance sheet.
Given this new development in The Gambia's risk profile, a full provision
against the Company's Gambian assets will remain, even in the event the
Government of The Gambia allows the joint venture company to fully resume its
Following the supply of the necessary information to the Gambian Government, the
Company awaits a response. Whilst the Company is making arrangements to meet
with the Gambian Government in order to resolve any concerns, the Board
currently has no indication or visibility on the timing of the response from the
Gambian Government on this issue. The Company will make further announcements as
appropriate when responses from the Gambian Government are received.
Details of the proposed Capital Raising
Blue Oar has, on behalf of the Company, conditionally placed a total of
28,250,000 Placing Shares at the Placing Price, to an existing substantial
shareholder, RAB, and additional institutional and other investors, to raise
In addition, 28,250,000 New Warrants will be issued to Placees on the basis of
one New Warrant for every Placing Share subscribed.
The Capital Raising is conditional, inter alia, upon:
the passing of the Resolutions at the EGM;
the Placing Agreement becoming unconditional; and
Admission having become effective on or before 26 February 2008 (or such
later date as Blue Oar and the Company may agree, not being later than 29
The Placing is not being underwritten, in whole or in part, by Blue Oar or any
The Placing Shares
The Placing Shares will, when issued, rank equally in all respects with the
other Ordinary Shares then in issue, including all rights to all dividends and
other distributions declared, made or paid following Admission.
Application will be made for the Placing Shares to be admitted to trading on
AIM. It is expected that trading in the Placing Shares will commence on 26
The New Warrants
The Company has created 28,250,000 New Warrants on the terms of the New Warrant
Instrument, which will be issued to Placees on Admission on the basis of one New
Warrant for every Placing Share subscribed for. Each New Warrant entitles the
holder to subscribe for one Ordinary Share. Subject to their terms, the New
Warrants are exercisable at any time prior to the fifth anniversary of the date
of Admission at a price of 6p per Ordinary Share. The New Warrants will not be
admitted to trading on AIM but are freely transferable.
Use of Proceeds
Proceeds from the proposed Capital Raising are planned to be used to fund:
Carnegie's 50% share of an environmental impact study at the Niafarang
deposit in Senegal and other statutory procedures to convert the deposit
area into a mining title;
Carnegie's 50% share of further exploration including drilling in Southern
Continued regional investigations; and
Investigation of new projects in other geographical regions identified as
highly prospective with low sovereign risk.
In the event that the joint venture company is able to convert the Niafarang
portion of the title in Senegal to a mining title in a timely manner, then
additional funding would be sought to facilitate the development of this deposit
at that time.
Extraordinary General Meeting
The EGM will be held at 10.00 a.m. on 25 February 2008 at the offices of Memery
Crystal LLP, 44 Southampton Buildings, London SC2A 1AP.
RAB is a substantial shareholder (as defined) under the AIM Rules. The Placing
therefore constitutes a related party transaction for the purposes of the AIM
Rules. The Directors, having been so advised by Blue Oar, the Company's
nominated adviser, consider that the terms of the Placing are fair and
reasonable insofar as the Shareholders are concerned. In providing advice to the
Board, Blue Oar has taken into account the Directors' commercial assessments.
The Directors consider that the Capital Raising is in the best interests of the
Company and its Shareholders as a whole and accordingly recommend that
Shareholders vote in favour of the Resolutions, as they intend to do in respect
of their own shareholdings, amounting in aggregate to 250,000 Ordinary Shares
(representing approximately 0.45 per cent. of the current issued share capital
of the Company).|
|"On 19 of July 2007, Her Excellency Mrs. Isatou Njie Saidy, Vice President of The Gambia officially opened the Sanyang minesite in The Gambia."
Happy mine opening pics...
6 months later...
"Carnegie announces that it has today received a letter from The Geological
Department of The Office of The President of Gambia requesting the Company to
stop all mining operations in The Gambia with immediate effect..."
That's raised the risk profile somewhat.|
|Gambian Operations Suspended - govt order - pending CME sending info on minerals mined and lab results;
had been on a slide anyway, but today down 22% to further all-time low at 3.875p
no pos, but in princinple it has some good assets; current weakness could prove to be a good buying opp., but I confess to not being in any rush|
|Carnegie Minerals Plc 7.125p Speculative Buy
|Should be due the Interims in next couple of weeks, hopefully will update on progress as well|
|Looks like a promising story developing and potential news flow.
They have their new web site @ http://www.carnegiemins.com/home.php
More interest may develop if the results show siginificant resources which according to the updates on their website is due around Apr07. They've also contracted further significant drilling on Senegal area which is encouraging.
----> Dec 06 Update
At the end of November, Carnegie's exploration team completed infill drilling at the priority Niafarang prospect immediately south of the Gambian border. The density of the drilling grid at the Niafarang dune was doubled
to 200 metres by 20 metres at 1 metre sampling interval which will allow the JORC compliant estimate of Indicated Resource category. The obtained drilling samples have been sent to independent Australian laboratories and the assaying results are expected to be available during the first quarter 2007
|MJ - Carnegie - yes - and note their exposure to REH's technology (REH on the up again today)|
|Mike, Thanks. Carnegie Corp itself looks quite interesting. Their market cap is not a lot higher than the value of their shares in CME.
|Looks promising, worth further investigation.|
|MJ - I haven't really seen a catch - apart from it being hitherto unable to catch the market's attention!
...though, would need to keep an eye on those significant major holders (see header)|
|Today's RNS caught my eye. I know very little about the company, but it would seem that they are about to get revenue of at least 50 x 50,000 = $2.5m over the next 4 months, which is pretty good considering the market cap is under £5m - even after today's rise. If they can get this sort of revenue now, their prospects for the future must be very good. I am looking for the catch - can anyone help?
|hardly expensive as estimated production rates at present market price, see annual earnings being more than double present market cap.
We arent talking BP v Shell - small cap mineral stocks cannot be compared as are news driven and not cyclical.|
|Tx for the reply, don't know much but compared to KMR this looks very expensive to me. Good luck if you hold.|
|...you mean why did they go up?
And warrants often rise well immediately/shortly after issue.
Bear in mind, though that there is probably only 20% free float, so moves in the share price either way may tend to be rapid.
And maybe the placees were playing hardball with the placing price (what with the market having been weak for months now) - and having got it away at a relatively low price, they are actually happy to add at hereabouts.
All conjecture, so perhaps not a useful answer, but then I think there probably isn't one.|
|Any idea why these are now 10.5-12p? And the warrants, 3-4.5p. The 'First day of Dealings' link in the header appears to confirm 55m shares in issue.|
|link added - thanks Mangal|
|The warrants of these(CMW) are now listed here:
Mike, if you like you may add the link to the header.|
|Another titanium minerals sands play (like KMR and TXR).
Admitted to AIM on 14aug06; placing of 25m shares at 8p + 1 warrant (CMW) for every two shares subscribed (exercisable at 12p); raised £2 million gross (£1.53m net); mkt.cap ~£4.4m; lead broker: Corporate Synergy (020-7448-4400).
Following the placing: 55m shares + 12.5m warrants in issue.
Re CMW: expiry 14aug08; 1 share per warrant; initial market price: 1p(bid)/2.5p(offer); see also the WT thread - http://www.advfn.com/cmn/fbb/thread.php3?id=8764319
(Some confusion over expectations: had been expecting a placing price of 20p, but was still intending to raise £2m gross; number of shares entails some vagueness.)
Carnegie has assets in the Gambia and Senegal; it already has a mining licence in Gambia and an exploration permit in Senegal.
There is work to do before it gets into production, but it has an agreement with Astron, who will fund Carnegie's Gambia project that far, at least. Offtake and joint venture agreements are in place with Astron as regards both the Gambia and Senegal projects. Astron is based in Australia, and is one of the largest independent suppliers and processors of Zircon products in China. The Senegal project is significantly behind the Gambian one; partial resource estimates from Senegal are expected by the end of 2007; Astron are funding 50% of the exploration costs here (RNS 14aug06).
"The funds raised will be used to fund exploration costs in The Gambia and
Senegal until the end of 2007 with the remainder of the net Placing funds being
utilised for working capital."
- Alan Robert Burns, Non-executive Chairman
- Alan Gerard Hopkins, Managing Director
- Dr Boris Vsevolodovich Matveev, Technical Director
- Timothy Stephen Jones, Finance Director
- Grant Jonathan Mooney, Non-executive Director
Details in AIM admission RNS 14aug06.
Signficant (>3%) holders after the placing:
- Carnegie Corporation Limited - 45.41%
- RAB Special Situations Master Fund - 29.90%
- Seydor Limited - 3.64%
In Australia in Dec 1999, Carnegie Minerals changed its name to Carnegie Corporation (http://www.carnegiecorp.com.au; ASX:CNM). Carnegie Corporation has clean/green energy technolgies (followers of REH and PDX take note), but now it is demerging its minerals operations - as Carnegie Minerals. Project management and administration will be done from Carnegie's Perth office.
Approval for mining in Gambia was granted on 31jan06 - http://www.carnegiecorp.com.au/news/asx_releases/2006/ASX_2006-01-31.pdf,
including "With the granting of the Mining Licence, we can now rapidly escalate to commercial scale production".
Introductory RNS - http://investegate.co.uk/Article.aspx?id=200607310851329611G
ASX release 31jul06 - http://www.carnegiecorp.com.au/news/asx_releases/2006/ASX_2006-07-31.pdf
Web site (part of the Carnegie Corp. web site) - http://www.carnegiecorp.com.au/minerals/index.php
That has a lot of good info and photos - have a look.|
|Post removed by ADVFN|