Latitude Resources Share Discussion Threads

[greenpastures] 12/7/2007 16:39

I wondered whether to increase but have decided to hold off for the moment. TMR looks to be quite a small company and I doubt LTR could sell its entire holding in the market without causing the price to fall.

LTR might decide to keep its stake for awhile and see what TMR can do with the assets.

[suahb] 12/7/2007 15:51

andy, u must be holding a fair few no then?! still got 235k myself, think I will hold. cheers, andy b

[loinerscum] 12/7/2007 13:57

The price seems to have dropped back to 3.5/4.0 so I've just picked up another 50k at 3.865 as I believe this is ridiculously undervalued.

I tried to get in touch with MK a couple of days ago regarding future plans, running costs etc, the response I got was...
"the Circular is in draft at the present and I hope to get it out mid next week, unfortunately until that comes out I really cannot discuss its contents as I am sure you would appreciate, sorry I cant be more helpful, but my hands are tied"

Hopefully once the circular is issued, the value in Latitude will become more apparent to the market.

Cheers
Andy P

[loinerscum] 06/7/2007 20:22

I mailed the company yesterday and that is the response I got. They haven't announced previously when they've sold the holding down.

I mailed back some supplementary questions today on the tax position if any of the disposal and ongoing running costs. The reply was "all of this will be announced in a circular we will issue to shareholders in the near future"

Cheers
Andy P

[deswalker] 06/7/2007 19:27

Andy,

Where did you get your Western Goldfields holding (2.5 mill) ? The last RNS on the subject says they sold down to 4.8 mill shares and I've heard nothing to say they've reduced further (but may well have missed something). Also how do you arrive at your 3.5 mill cash figure ?

Many thanks in advance

Des

[loinerscum] 06/7/2007 19:14

Des

I agree with your basic premise but your figures are slightly out as they have obviously sold down their Western Goldfields stake. Based on figures I got yesterday the position is

£ 3,300,000 Western Goldfields (2.5m shares @ $2.82CAD)
£ 625,000 Tanami (9.8m shares @ $0.15AUD)
£ 3,500,000 Cash
£ 9,400,000 Value of Chilean copper assets
-------------
£16,825,000 Total asset value which equates to around 6.25p per share

The current market cap at 4p per share is £10,800,000.

I'm quite happy to hold at the current price and wait for the deal to be better understood by the market. The deal may also spark some interest from Aussie investors. Whilst the shares will probably continue to trade at a discount to assets I believe that its not unreasonable to expect the shares to break the 5p figure reasonably soon. I haven't looked closely at Tamaya that both Western Goldfields and Tanami are undervalued at present.

Cheers
Andy P

[deswalker] 06/7/2007 09:02

I've just posted this on the WTE thread ...

-------

A very similar investment to WTE is LTR.

Fully diluted market cap (at 4.25p offer) = £13.23 mill for which one gets ...

- Option adjusted net cash = £4.344 mill
- 4.8 mill Western Goldfields shares (TSX:WGI) = £6.453 mill
- 9.6 mill Tanami Gold shares (ASX:TAM) = £0.613 mill
- 85 mill Tamaya Gold shares (ASX:TMR) = £9.40 mill
- 15 mill Tamaya Gold options which have decent value but assume they're worthless.

Total NAV = £20.81 mill excl the value of the Tamaya options. Currently offered at a discount of 36.4% to its fully listed holdings plus cash.

The one proviso is that the Tamaya holding is in consideration for a sale of a Chilean gold project from LTR to Tamaya (announced yesterday) and it still needs Tamaya shareholder approval at an EGM (standard practice for a sizeable acquisition). However the Tamaya bosses are already talking about their intentions for the project as if it's a done deal.

Liquidity of the holdings is good and LTR looks good value to me on the same basis as an investment in WTE. WTE has the added kicker of the Eclipse stake only being valued at book whereas LTR has the (smaller) added kicker of 15 mill Tamaya options being priced at zero in the model.

Might be worth a look if you're a TBV discount junkie like me. DYOR.

Des

Edit: I should add that of one works on undiluted numbers the discount actually increases to 39.3% because the 41.85 mill LTR options have a weighted average strike price of 4.645p which dilutes the NAV to a small degree.

[shoggoth] 06/7/2007 05:20

Howls -
The underlying assets are currently valued at 6.75p as far as I can see. How do you justify 10p? Perhaps if Tamaya doubled from here but that is a very big call.

[shoggoth] 05/7/2007 15:53

An article from a few weeks ago about Tamaya:

[rochdale] 05/7/2007 14:56

absolutely scrod - suspect they have some plans - clearly think they can make more money as an investment rather than a exploration company

[scrod] 05/7/2007 13:31

Might get some movement when the directors announce (or even decide!) what they're doing with the money. They seem to have had some success as a resource investment company.

[shoggoth] 05/7/2007 13:20

I don't think this means the company will be dissolved and assets distributed. The directors hold too little stock for that to happen.

[rochdale] 05/7/2007 13:13

lets hope they start buying then and I can start to offload some - 6p would do me

[rickus] 05/7/2007 10:04

Left a message for MK earlier and he has just called back.

There will be a circular issued to shareholders explaining the deal and the pricing.

LTR will hold approx 7.9% of TMR and approx 9% if they were to exercise the options.

There is a mechanism for capping the value of the deal - was not quite sure of the maths of this but I think it comes into play if the TMR price exceeds 29c before the deal is completed.

LTR have done their DD on TMR and believe it to have excellent people and prospects. I got the impression that LTR might well choose to hold their TMR shares for a while. They would not have a board position at TMR.

LTR did not have what was needed to carry on developing their Chilean prospects independently and the JV offers they have had have not been good enough.

I did NOT get the impression that this was the first step towards realising all the assets and winding up the company and did get the feeling that further developments are already being considered.

Western Goldfields will be entering production shortly and more upside is expected.

Tanami should now be back on track and is considered undervalued.

[rochdale] 05/7/2007 08:51

got to be a good move considering how long they have as a company been trying to get some value out of the company

the options give them scope to see some of that effort rewarded if Tamaya move things forward significantly

LTRs investments have made more money than their exploration activities

key for me is what to do now - hold, sell, top up!

[shoggoth] 05/7/2007 08:29

The current situation should, even with a discount, present a decent arbitrage opportunity.

[cerrito] 05/7/2007 08:26

shoggoth
That is my understanding that this will be purely an investment vehicle.
I have to say that my reading is to monetize the options sell the other investments wind up the company and put LTR out of its misery so that everyone can get on with the rest of their lives.
LTR does not have the size to sustain the fixed costs of an AIM listing.
Having had a quick read of the Tamaya annual report, it seems a logical fit although could not work out how close their current operations in Chile and the concentrator were to FP or SD.
with an average in price of 4.5p should be able to get out with some profit but whether that profit can equate to the time taken to understand this and the risks taken is another question.

[kickstart] 05/7/2007 08:24

Well I guess it was obvious that was the route they were taking i.e investment vehicle.

[davidblack] 05/7/2007 08:10

What a pity.

[rickus] 05/7/2007 07:18

The news as announced by Tamaya

[shoggoth] 05/7/2007 07:13

Huge news.

The 'flat in central london' has been sold at 9.4m.

GBP0.5m ASX:TAM
GBP6.3m TSE.WGI
GBP9.4m ASX:TMR
GBP2.0m cash
= GBP18.2m - should be about 6.75p.

I believe I'm correct in saying that upon completion, the co. will have zero exploration and be purely an investment vehicle.

[rickus] 05/7/2007 07:09

Latitude Resources Disposal

RNS Number:6848Z
Latitude Resources plc
05 July 2007





Latitude Resources plc

Disposal of Chilean Mining Operations

Sale of Latin American Copper Chile SA for circa #9.4 million


Latitude Resources plc ("the Company") today announced that it has signed a
Heads of Agreement to sell 100% of Latin American Copper Chile S.A. ("LAC"), a
wholly owned subsidiary of Latitude Resources plc to Tamaya Resources Limited
("Tamaya"), an Australian exploration and mining company with copper production
operations in Chile (ASX symbol : TMR).

LAC owns seven exploration projects in Chile, including Filipina Grande and
Santa Dominga. Tamaya expect their acquisition of these properties from Latitude
will double their copper resource in Chile and increase their gold resource
inventory.

The consideration proposed is 85 million fully paid ordinary shares in TMR and
15 million options. The 15 million options are to be issued in three tranches of
5 million options each with exercise prices at A$ 30 cents, 40 cents, and 50
cents respectively. Each tranche of options may be exercised between 12 months
and 36 months of the date of completion of the transaction.

The share consideration for the disposal is valued, at yesterday's closing mid
market, at circa A$ 22.0 million (#9.4 million). The number of shares to be
issued is subject to the TMR share price shortly prior to completion but the
aggregated value will not exceed A$ 24.7 million (#10.5 million).

Completion of the sale is subject to certain conditions, including final due
diligence and the approval of the Company's shareholders. Shareholder approval
will be sought after the final due diligence has been completed and further
details of the transaction will be provided at this time.

Following completion of the disposal Latitude will continue to identify,
evaluate and acquire interests in other prospective projects and companies in
the resource sector, with a view to providing expertise, management support and
capital to those projects and companies.


For further information please contact:
Martyn Konig, CEO Latitude Resources plc
Phone [phone]
Fax [phone]
Email: [e-mail]

Simon Rothschild/Keith Irons
Bankside Consultants
Phone [phone]
[e-mail] / [e-mail]

Note:

Latitude's shares are traded on the London Stock Exchange Alternative Investment
Market (AIM) under the symbol LTR and are quoted in Sterling. No stock exchange,
securities commission or other regulatory authority has approved or disapproved
the information contained herein. The directors of Latitude Resources plc accept
responsibility for the contents of this announcement.

[shoggoth] 05/7/2007 03:49

I'm keeping an eye on western goldfields, as it seems to be on the up.

WGI now C$2.80, contributing about GBP6.3m to the cap, (2.8*4.8M*0.47) but is bang on overhead resistance.


This article discusses the ROI on Mesquite.

Annual cash flows from 2008-2015 are estimated as :
@550/oz - $35.7m over 8 years = $285m
@700/oz - $45.5m over 8 years = $364m
Current capitalisation is around C$315m (US$296) undiluted so it is probably about right for the POG as it stands.

LTR:
GBP0.5m Tanami
GBP6.3m WGI
GBP2.0m cash
= GBP8.8m liquid assets vs a cap of GBP9.5M
Valuation of LTR's projects = GBP700K - price of a flat in central london. lol