||EPS - Basic
||Market Cap (m)
|mike_f: Cheers someuwin, I'm looking forward to seeing what the company release. This could be very exciting! Would love to see a premium on the closing share price if a placing is the way they intend to go. GLA|
|keya5000: This is the asset I think we may go for.
Three mothballed mines previously owned by Black Fire Minerals who changed into a gaming company last year.
Assets will be none core and likely on the market.
Suspect they may be cheap and would be a superb foothold into the lithium market.
Thoughts on why--We have strong Namibian influence through Rod WEbster (WTI) and lithium is a sector we should be in.
The acquisition will be facilitated via Black Fire purchasing Sunrise's private Namibian subsidiary Starting Right Investments 94, which is the holder of the Karibib lithium Exclusive Prospecting Licences EPL 3750 and EPL 3751.
The Karibib lithium project, located 120 kilometres northwest of Windhoek, covers 765 square kilometres of the Karibib pegmatite field.
The project tenure includes the historic Rubikon, Helicon and Fricke's lithium, tantalum and cesium mines which operated intermittently from 1930 to 1994.
'Historic mine production data is poorly recorded, but the Rubikon mine reportedly produced some 17 000 tons of lithium mineral concentrates from small scale open-pit and underground mining between 1980 and 1994,' said Black Fire Minerals in a statement Thursday.
Black Fire intends to immediately commence an 'aggressive exploration programme' to test drill the known significant strike extensions of the Rubikon and Helicon pegmatites and to assess the potential of the remainder of the two EPL areas for new lithium pegmatite discoveries.
The purchase agreement is conditional upon regulatory approvals to be satisfied within 30 days.
Final consideration for the transaction will be 3,5 million fully paid ordinary shares in Black Fire, with these shares being subject to a voluntary six-month escrow period.
At the company's closing share price on November 11 2009 of 13 Australian cents, this equates to an acquisition cost of 455 000 Australian dollars.
The share price now stands at 14c, following the release of the announcement.
Lithium is an extremely soft, silvery-grey metallic element since it is extremely reactive to heat and it is used in components and in batteries. Salts of lithium are used as mood altering drugs.
Black Fire Managing Director Simon Rigby said the Karibib Project had not been subjected to modern exploration and the historic lithium mining activities were largely small-scale gouging operations that only exploited small portions of the outcropping pegmatites.
'This provides a significant opportunity for Black Fire to carry out drilling programmes and utilise modern regional exploration techniques to assess the entire project area,' Rigby said.
He said the acquisition of Karibib also represented an excellent opportunity for the company to participate in the rapidly growing sector of the energy storage business due to the proliferation of electric vehicles and electronic equipment using Li-ion batteries.|
|the stigologist: Reverse 100 bagger since he took over ECR
Paul Johnson share price destruction track record|
|paleje: Placing ahoy usually sends down not up? I wondered if they might be in talks to get rid of, zinc outlook still not great but even at current prices the asset must me worth a few times the m/cap. I'm still holding from the old Weatherly in specie payment and had more or less written off but the flurry of activity caught my attention.
Daft that pocket money can shift a share price 60%:)|
|danieldruff2: It's all about the quality of the assets.
CAF - we don't yet know but should find out very soon with the imminent feasibility study. If it's a dud then the company is worth diddly squat, if it's good then the market cap here is far too low. For the study to have got this far it must be no worse than ok.
WTI - the price reflects the crummy underground mines they are trying to run, but will eventually reflect the much better Tschudi project. I would expect the share price to gradually rise to reflect this. Copper price is around a 6 month high so that should have supported their current production.|
|knigel: Of course there will be a correction at some point - but probably not until the update has been issued (and hopefully with the share price even higher)|
|knigel: Also would a placing be a negative? As long as it was close to current share price and would enhance shareholder value in the long term - fine by me. GL|
|idontpost: So we are due an update on the feasibility by year end and likely before then an update on the exploration work, drill data and news on the JORC resource calculations.
The market needs to move CAF share price higher to attract sells and keep liquidity going. I will be holding onto my stock tightly as I believe wholeheartedly that the shareprice will be significantly higher in due course on the basis of the progress at Berg Aukas alone.
Then there is something else that I also want to draw to your attention that has been missed by all
will just get the info now.|
|idontpost: Have been accumulating here fr a while. Market capitalisation is £4.2mill. Cash was £2.7mill at end of june but that is being applied to undertake the feasibility study at berg aukas, the namibian zinc silver lead vanadium project.
Partnered with east china exploration, who will likely fund the capital cost for the berg aukas mine construction. East china do this kind of thing commonly.
Bought more today.
That video is great disarming. It shows the mine plan in detail and demonstrates the seriousness of their project.
Looks like a mine is on the way, but we have to see what their exploration assays show for short term upside and mine life extension.
Enterprise value and share price is going to look bizarrely low soon, but as the company is poor with communications the share price right now is a gift.|
|fairdeal2008: Agree with the rationale g78, but the market works in mysterious ways. Companies do seem completely unable to comment about share price devastation, but seem to be driven (presumably by advisors) to comment when the share price moves upwards. It has to be expected that after a period of market turmoil the share prices could rerate and, it has to be said, the movement in CAF recently still left the share price a long way short of the 'at cost' 40p ipo level.
On the plus side, it is good to see the operational update, and everything is moving forward with a cash position now of £3.8m.
As a reminder, this is what the admission document actually said:
Initially, the objective of CAR will be to carry out a full feasibility study on the Berg Aukas Project, which is expected to commence shortly after Admission and to be completed by the end of 2012. The total cost of the feasibility study is expected to be US$3 million over the full period and will be managed by Weatherly
pursuant to the terms of the Management Services Agreement.
Subject to the feasibility study confirming that the Berg Aukas Project is financially viable and CAR being able to raise further funds, the Company's intention is to bring the mine back into production.
Whilst the immediate focus of the Company is the development of the Berg Aukas Project as described above, the Company's overall strategy is to build a profitable and widely based resource business and the Directors expect this to include the acquisition of additional assets from Weatherly, ECE or third parties.
This type of announcement does serve one side purpose I suppose, to allow the MMs to pull the price back and shake some stock, but I note, with confirmation all is on track, I imagine people will start to look more seriously at CAF now rather than not realising the potential which I think was the case before.
China Africa share price data is direct from the London Stock Exchange