Kalahari Minerals Share Discussion Threads

[zangdook] 01/11/2011 12:17

I doubt the share price fluctuations are connected to inside info about a deal or lack of one. They seem to follow general market sentiment fairly closely.

[andrewhbruce] 01/11/2011 10:41

This is a total mystery to me. Thought it would be 240-250 running into 11/11?

[monis] 31/10/2011 10:41

more info out at BKY...

[grahamg8] 28/10/2011 15:36

Agree BeefEater, I think Hohnen is playing a canny game. Let's assume the ''my shareholders have an expectation of real value'' means he is under pressure from the likes of CQS, APAC and Itochu who are making it clear that he mustn't sell at too low a price. Ridiculing Rio perhaps suggests that they are trying to get part of the action without putting in much money. To my way of thinking three agreements will eventually be needed 1) who owns the mine, 2) who operates the mine, 3) who if anyone has an offtake agreement (probably in exchange for cash up front to deliver the capex). At least we now have a deadline of 11 November to finish negotiations. If they fail then plan A comes back in which was to list on the main London exchange, and although not explicit this would allow the raising of funds to carry us into 2012 and mine preparations. Delay seems to be in our best interests because one of the positive triggers we need is to get a mining licence signed off.

[monis] 28/10/2011 11:32

thanks-I'd be interested to know the analysis of BKY.

[zangdook] 28/10/2011 10:00

MONIS

BKY is on Chip's to do list - you could keep an eye on his base metal thread

[beefeater25] 28/10/2011 09:49

Definitely looks like things are heating up here...
Thanks for the post Gero. Looks like there is still a strong "put up or shut up" message going out to Rio.

Will they respond with a bid or will they accept CGNPC getting it for a song?
Not long to wait now before the fun and games begin!

[monis] 28/10/2011 08:24

off topic- if anyone has an opinion on the present value of BKY i would like to have some feedback. many thanks.

It's another Uranium company.

[wanttowin] 27/10/2011 16:17

Wish we had some news,profit to be had elsewhere and quicker,but been waiting so long for the deal, feel i have to stay in.

[gero67] 27/10/2011 16:06

Kalahari sees China follow-on bid for Extract

The Australian Financial Review
PRINT EDITION: 27 Oct 2011
Perry Williams

London-listed Kalahari Minerals, the largest shareholder in Australian-listed uranium explorer Extract Resources, expects its suitor China Guangdong Nuclear Power to also make a bid for Extract over the medium term.

"I do not think there is any suggestion they would not want to do that," said Kalahari executive chairman Mark Hohnen on the sidelines of the Commonwealth Business Forum in Perth. "It's a matter of timing, I would have thought."

Kalahari, which owns 42.8 per cent of Extract, confirmed earlier this month that it had resumed talks with CGNPC on a possible recommended takeover offer.

Any bid is expected to be priced no higher than 270 pence per share, the level the Chinese company had proposed to cut its earlier proposed offer to after the Fukushima nuclear accident in March.

Mr Hohnen would not be drawn on a specific price.

"All I can say is my shareholders have an expectation of real value," he said.

Under Australian takeover regulations, the purchase of Kalahari by CGNPC would require the Chinese to make a follow-on bid for Extract at an equivalent price.

Mr Hohnen said an announcement will be made by November 11 on whether a deal will go ahead between Kalahari and CNGPC.

Mr Hohnen also hit out at Rio Tinto's holding in the company, describing it as "crazy" and adding that Rio would never be offered a seat on the company's board.

Rio holds a 11 per cent stake in Kalahari and a 14 per cent holding in its major asset, Extract - prized for its Husab uranium project in Namibia - and is thought to be eager to simplify its different shareholdings in the two companies.

Mr Hohnen said the mining major's holding in his company was not helpful.

"Unfortunately when they came on the register in 2008, I think they told their powers that be that they control Extract. Well they don't. Kalahari is the gatekeeper and their holding in Kalahari is crazy ... because they won't be allowed a board seat and Kalahari controls Extract."

Speculation has arisen that Rio could mount its own counter-bid to China Guangdong Nuclear Power's $1.1 billion tilt for Kalahari. Analysts have also raised the prospect of Rio looking to jointly develop Extract's Husab deposit with its own adjacent Rossing mine but Mr Hohnen said he was not aware of specific moves by Rio.

"Rio talks the whole time," said Mr Hohnen. "I'm sure that Rio is talking to everyone but no, I'm not [aware of specific talks]."

[nielsc] 27/10/2011 09:06

zangdook,

I certainly hope so. 270p or 290p is a total steal. 350-400p is still a bargain.

I am pretty sure more shareholder value could be achieved by EXT/KAH developing the mine.

Cheers,
Niels

[zangdook] 27/10/2011 09:03

However Hohnen said based on the valuation implied by Rio Tinto's takeover offer for Hathor Exploration, Extract was worth A$16 a share.

"If you look at a see-through on what Rio Tinto's bid for Hathor was, that puts a price of A$16 on an Extract share," he said.


Does that give us a clue why it's taking them so long? Has MH grown a pair?

[wiseacre] 26/10/2011 12:23

Lot of CFD buying including 4 million share call by Hong Kong hedge fund which you would think positive for Chinese bid.

[sparty1] 24/10/2011 09:52

Does not look as if the market thinks £2.70 is attainable!At £2.35 there is a quick turn round to be made if you do...

[gero67] 23/10/2011 16:00

Uranium sector a long-term investment

The Australian Financial Review
PRINT EDITION: 24 Oct 2011
Claire Stewart

The rapid drop in uranium spot prices and the bearish demand outlook since Japan's Fukushima disaster have crippled the share price of some of Australia's biggest uranium producers this year.

Coupled with underperforming assets owned by the likes of Paladin Energy and Energy Resources of Australia (ERA), this makes the uranium sector a difficult one to navigate for opportunities.

But market watchers say demand for nuclear-powered energy will only increase, and while there are near-term oversupply issues, China, Russia and India will lift demand, meaning battered stocks still look attractive for investors with deep pockets and longer-term strategic views.

The global market for uranium is about 86,000 tonnes, around the same size as the rare earths market, and issues have been raised about the possibility of production from BHP Billiton's Olympic Dam site flooding the market.

"As far as other new mining opportunities are concerned, they are limited," Deutsche Bank resources analyst Paul Young said. "Either the resource size is too small, meaning scale will be too small and uneconomical, or the grades are too low."

Part of the attraction of Canada's Hathor Exploration for Rio Tinto is its high-grade Roughrider deposit. Mr Young describes the grades of more than 11 per cent as "stunning".

By comparison, the grade at the proposed underground operation at ERA's Ranger mine will be about 0.34 per cent, which means a much larger amount of material must be put through the processing plant to produce a tonne of uranium.

China has been stockpiling uranium, soaking up the impact of recent increased production from Kazakh producers, and demand from China is expected to rise.

China currently produces about 11 gigawatts of electricity from nuclear power, but the World Nuclear Association forecasts that could rise to between 50 and 200 gigawatts by 2030 depending on the pace of its nuclear rollout.

OC Funds Management portfolio manager Rob Calnon said while its fund did not hold any uranium exposures, it was "closely" following Namibian hopefuls Bannerman Resources and Extract Resources.

Bannerman has received a takeover offer from China's Hanlong Mining, and Extract's major shareholder, Kalahari Minerals, has been in takeover talks with China Guangdong Nuclear Power.

But Mr Calnon cautions there are very few projects in Australia outside those such as ERA's Ranger mine undeveloped Jabiluka project, BHP's Olympic Dam expansion and Paladin's Queensland tenements that are of substance.

Paladin is currently prohibited from developing its Queensland projects due to a ban on uranium mining in that state.

[beefeater25] 23/10/2011 00:35

Well if the bid of 270p equates to an approximate bid of $4.70/lb (based on 512mlb), and the recent Rio offer for Hathor equates to $9.90/lb, then we should really be valued more towards 540p.
Plus, if the mining licence was granted and the resource is increase to 1m lbs then that would double to approx 1080p.
Just shows the upside present here and also how a bid of 270p would undervalue KAH.

[krakow] 21/10/2011 16:28

700p would be good news!

[kayfash] 21/10/2011 15:56

Sounds like good news. I suppose

[beefeater25] 21/10/2011 15:26

Could this mean the bid is coming soon?

[zangdook] 21/10/2011 14:58

If it's not a mistake, it seems to be saying that CGNPC are party to an offer for KAH, and declaring their current interest (nil, except some bank, perhaps advising them, has a small number).

[beefeater25] 21/10/2011 14:41

What does this latest announcement mean?

[zangdook] 21/10/2011 14:33

CGNPC Uranium Resrc
Form 8 (OPD)
RNS Number : 6328Q
CGNPC Uranium Resources Co., Ltd
21 October 2011


FORM 8 (OPD)

PUBLIC OPENING POSITION DISCLOSURE BY A PARTY TO AN OFFER
Rules 8.1 and 8.2 of the Takeover Code (the "Code")

[stu31] 21/10/2011 14:00

the ramp to 258 by the 'anonymous source' was quite successful though wasn't it..