Chromex Share Discussion Threads

[chattochris] 26/5/2010 10:37

I bought the warrants last year - did not need to sign a risk form - just happy to have read the terms which I found on Bloomberg - without reading these I would have been very nervous. However,if you want to buy Chrome ( a leveraged play in itself) you might a well buy leveraged Chrome (only with money you can write off mind!)

[kenmitch] 26/5/2010 10:14

No-one has mentioned the warrants - I've held them for ages,and they've done nothing for ages.

Exercise price is 20p and expiry in September next year.

Shares are now 26p to buy and the warrant is 8p to buy.

So those of you targeting that 45p share price would then see a warrant selling price around 25p.

50p for the shares would give a warrant price of 30p.

20p or less for the shares this time next year and the warrants would expire worthless.

Any buying today at 8p will need the shares at 29p or more to sell to be sure of a profit, assuming the warrants can then be sold for 9p.

They are not traded much.

You probably have to sign a risk form before being able to trade them - but the only risks are losing your stake IF the shares finish 20p or under, but you can sell them any time between now and then just like the shares.

The other negatives are a wide spread and it is not always easy to sell large stakes.

But for anyone who thinks the shares are going up the warrants are at a very good price.

Code is CHXW.

A few buys might well lift the buying price as few trade these warrants.

I'm not buying any more because I've lost count the number of times there have been these share price rises and so far they have never lasted. Will it really be different this time?

[bizz2bizz] 26/5/2010 08:12

I think the same will apply here with a short term target of 45p.

[moosh2] 26/5/2010 06:22

liking GDP already. gave up on CHAR at 15p. next thing i knew it was 30p....and i thought i missed the boat! ugggh.

[bizz2bizz] 25/5/2010 20:00

Check out PDL, CHAR & GDP. The guys behind Chromex are here as well. You can rest assured that this is going one way. DYOR on the main shareholders of Transafrika Resources as well, I think this may be ofinterest.

[moosh2] 25/5/2010 16:55

once momentum really gets going, it'll fly. just hold until it happens!!!

[sailing john] 25/5/2010 12:19

Not that many trades - mostly at or around 24.3p. With a quoted spread of 23-26 and later 24-26 they are all showing as sells. However the bid had been moved up this morning so I am 99% sure that they are all buys. Every buy that I made in March - early May showed as a sell! :-)
GL SJ
With everyone wearing tin hats and full body armour this week - there is a reluctance to open wallets at the moment! But just a matter of time - the story gets better every week :-)

edit
I have a feeling that we might see a little tipette in the next couple of weeks.

[sailing john] 25/5/2010 10:51

Glad to see another buyer or two this morning. Thought it was just me!
Thought I had posted the RNS here at 7:30 this morning. Perhaps I posted on the wrong thread!
SJ

[moosh2] 25/5/2010 09:33

happy with not much PI interest at these levels. good RNSs makes pouncing on those lows even nicer!

[seagreen] 25/5/2010 08:24

Chromex Mining PLC US$5 Million Capital Project Funding


TIDMCHX

Chromex Mining plc / Epic: CHX / Market: AIM / Sector: Mining & Exploration
25 May 2010
Chromex Mining plc ('Chromex' or 'the Company')
US$5 Million Capital Project Funding Secured

Chromex Mining plc, the AIM listed chrome mining company focussed in Southern
Africa,
has secured US$5 million funding, on a pre-payment for product basis, for a
Dense Media Separation ('DMS') circuit and ancillary plant improvements at the
Stellite opencast chrome mine ('Stellite') located on the western limb of the
Bushveld Complex in South Africa. The DMS circuit, expected to be completed in
Q4 2010, will double chrome production capacity to 40,000 tonnes run-of-mine
('ROM') tonnes per month, improve recovery margins and economic efficiencies at
the plant.

The US$5 million funding has been secured in the form of a pre-payment from
Suzhou Kaiyuan Chemical Co. Ltd ('Suzhou'), a Chinese steel manufacturing
company. After the initial six month construction period, all lumpy chrome
product will be sold to Suzhou for a period of two years. During this period a
percentage of each lumpy chrome consignment will be used to offset the
pre-payment. Pricing will be market driven and negotiated on a monthly basis.

The construction of the DMS has already commenced with cold commissioning
planned for October 2010. Other capital projects, which include the
construction of a tailings thickener and spirals upgrade, are expected to be
commissioned during the early part of June 2010. The thickener will
significantly reduce the Stellite processing plant's make-up water requirements,
and the spirals upgrade, which includes two additional scavenger spiral banks,
are also being installed to optimise chrome recoveries.

Chromex CEO Russell Lamming said, "This is a fantastic deal as it provides both
a guaranteed off-take to China, our largest market, and allows for expansion
without a dilutive effect on shareholders. With chrome production set to double
at our South African operation, our recent acquisition in Zimbabwe, strong cash
flow and a strengthening of the team following the recent appointment of two
chrome specialists, we are well placed to take advantage of the increasing
demand for chrome."

[seagreen] 25/5/2010 08:17

Back to 40p ?

Ground breaking company making RNS

[sailing john] 21/5/2010 17:08

China imported 42% more ferro-chrome in April as the high price of chrome ore encouraged more buying of the alloy. High-carbon ferro-chrome imports reached 199,678 tonnes in April, up 58,730 tonnes...
DYOR - "high price of chrome ore" - I like that!
SJ

[sailing john] 18/5/2010 16:38

Checked out Jean de Plessis
Looks like he is a Director of Hernic. Must be very confident in Chromex to move from a job like that - whatever the circumstances.

[sailing john] 17/5/2010 14:15

Chromex have made a significant announcement today - copied below.
These appointments provide confidence that Chromex is moving from start up to being a major player. To attract such senior staff is a big vote of confidence in the future IMHO. The offer includes a golden hello of 1.3m options at 25p but to be significant the share price will have to rise somewhat from here and that's fine with me.
Interestingly price is down slightly today on very little volume "Duh"
SJ



17 May 2010
Chromex Mining plc ('Chromex' or 'the Company')
New Appointments


Chromex Mining plc, the AIM listed chrome mining company focussed in Southern
Africa,

announces that the Board has made the strategic decision to move away from the
contractor based model for the processing of its chrome ore and developing its
own in-house skills. In line with this strategy as of 1 June 2010, the Company
will be taking full operational control of the Stellite opencast chrome mine
('Stellite') processing plant, located on the Western Limb of the Bushveld
Complex in South Africa. In addition Chromex has appointed two key operations
personnel, Jean du Plessis and Anson Gilbert, who will oversee operations at the
Stellite.


Jean du Plessis is a mining engineer with over 15 years experience in the chrome
industry. He is currently General Manager of Mining at Hernic Ferrochrome
('Hernic'), the fourth largest producer of ferrochrome in the world. Mr du
Plessis is currently responsible for all mining and chrome processing operations
at Hernic and previous to this, was responsible for the development of eight
chrome mines on the Bushveld complex. In his role at Chromex, he will be
responsible for the Stellite mine and will be intimately involved in the
development and operation of the Company's future projects.


Anson Gilbert is a metallurgist with in excess of 8 years experience in the
chrome industry designing, commissioning and optimising gravity separation
circuits. Mr Gilbert will have overall responsibility for the metallurgical
requirements of the Company. He is currently overseeing the spiral
modifications, and will be building and commissioning the Dense Media Separation
('DMS') circuit at the Stellite mine.


Chromex CEO Russell Lamming said, "As we continue to expand our operations in
both South Africa and Zimbabwe we are focussed on investing in our team and
skill sets needed to convert our projects into profits. At this key stage in
Chromex's development, it is imperative to optimise our current operations and
to secure additional resources and I believe that the procurement of such
experienced mining professionals reflects very positively on our Company and the
potential of our projects."

[sailing john] 14/5/2010 15:44

News from Turkish producer Eti Krom
London 14 May 2010 14:36
Eti Krom will offer no chrome ore to China before December this year as it increases shipments to its Swedish subsidiary, it said on Friday. "Eti Krom will deliver 200,000 tonnes of chrome ore to [Swedish subdiary] Vargön Alloys from July to December due to its annual contractual obligation for 2010. Because of this reason, Eti Krom will not be able to offer any chrome ore to the Chinese market for the third quarter and even part of the fourth quarter,"...
Edit link to website
Press release 24/2/10 worth a read

[sailing john] 13/5/2010 19:47

Transnet strike
Opportunity or threat?
Merafe and Samancor? and others IFL? have called force majeure on their ferrochrome customers as they are unable to export product due to the Transnet strike.
My view is that this will result in a short term increase in prices which might be sustained post strike for several months as producers play catch up. Chromex will presumably be affected although I don't know how they move product. The strike appears very disruptive in SA and I therefore assume it will be resolved quickly. I see this as a possible short term cash flow issue for Chromex as sales are disrupted for a few days or weeks but a longer term opportunity with the expected step change in price for a few months or longer. Prices were already under pressure as demand currently ahead of supply.
All IMHO of course and DYOR

[sailing john] 13/5/2010 19:32

Some research for info

Merafe (Xtrata FeCR JV) Q1 update
First quarter 2010 production update
Shareholders of the Company are advised that ferrochrome production for the Xstrata-Merafe Chrome Venture (the Venture) rebounded strongly during the first quarter of 2010 in response to rising demand. This resulted in an increase in the Venture's ferrochrome production of 316% for the first quarter of 2010 compared to the same period in 2009. The European benchmark ferrochrome price has increased by 35% from US$1.01 per pound in the first quarter of 2010, to US$1.36 per pound in the second quarter.

[afrorich] 13/5/2010 15:14

keep it going sailor. nice to see others have joined

[sailing john] 13/5/2010 12:43

And in answer to a query elsewhere

The main operation is Stellite in South Africa - 30mt - ramping production to 500kT/annumROM - benificiated product - also looking at economics of Platinum Group and Gold Recovery - Recent results 3PGE and Au 1.74g/t (don't know whether that is worth recovering but sounds pretty good to me)
Also Mecklenburg in South Africa 10mt but not producing as legal dispute re mining rights with Samancor

Recent acquisitions in Zimbabwe -
49% of Falvect Mining (Private) Limited for a nominal sum - Chromex to provide working capital and route to market.
100% of Waylox mining for $1.15m in cash and shares (carries $1m debt) 1.9mT asset not yet producing

My valuation is based on the Stellite SA asset alone. Favourable resolution of Macklenburg and the Zimbabwe acquisitions are potential future icing on the cake.
All IMHO DYOR etc etc
SJ

[sailing john] 13/5/2010 12:40

Here is some stuff I posted elsewhere for info.

Interims soon (early June last year) - Think they might get noticed then but full value might take 12 months plus as they ramp production to 500kt/annum ROM and start to develop other assets.

What I like
Chrome price rising after significant destocking last year. Demand forecasts rising
Early player in Zimbabwe (edit - Current producion from South Africa but recent small acquisitions in Zimbawe)
It appears that the cost of smelting in SA is rising significantly - even so IFL has bagged this year although off slightly at the moment. I think the value in SA is now biased towards sale of beneficiated Chromite ore to China and others rather than Ferrochrome production in SA (electricity price to double over 3 years, cost of reluctant and strength of Rand)
Plenty of room for growth circa 10 years of resouce available from open cast mining + 50 years underground from Stellite at current production rates although these might increase
Simple business - dig it up - sort it - sell it
Low overhead - all operations contracted out
Price visibility

Risks
Mecklenburg dispute - Potential loss currently priced in IMHO but bound to affect sentiment if court judgement favours Samancor - no news currently
World Chromite price - (currently strong)

Current news
Samancor - suspended mining operations following accident.
Transnet strike - Possible minor affect on cash flows - though likely to be short term

[moosh2] 13/5/2010 12:20

errr....falling lol. it's a retrace. resistance issues at 24p 27.75p 30.5p

[seagreen] 13/5/2010 12:17

Probably worth 40p now in most long term investors view

[sailing john] 13/5/2010 12:12

Just entered the toplist chart at No7
And rising

[moosh2] 13/5/2010 11:26

looks like SJ has started a buying frenzy!? or perhaps SJ was the buying frenzy!? couldn't have timed it better! unlikely to mean anything to you but macd weekly on verge of going +ve and share price looking poised to get to good side of weekly cloud. first major target ~30p.

[sailing john] 13/5/2010 10:53

Two 35k trades on plus and 15k on LSE
All buys and all by me!
Interims due soon (ealy June last year) think we might get noticed then
Warrants on the move!
SJ