African Copper Share Discussion Threads

[p1ncer] 30/3/2012 21:19

5% knocked off the value of a £20m company with a £50m p/a turn over thanks to a trade valued at £458.89p

And we wonder why people have lost faith with the AIM market.

Fortuantly for us those wanting to buy ACU will look at the actual value of it's assets not a £458.89p trade before making their offer.

[p1ncer] 29/3/2012 22:15

I have to say, given all the interest in buying mining assets, then if ZCI and RMB don't get a very good price for ACU they should be publicly flogged.

[p1ncer] 29/3/2012 16:09

"China's Zijin Mining Group Co Ltd plans to spend 5.5-billion yuan ($872.19-million) for acquisitions, the bulk of which will be overseas gold and copper assets, the company's chairman said on Thursday."

Is there anyone not looking to buy up African mining assets??

Hopefully RMB's have been on the phone to all of these companies, and others besides.

[p1ncer] 29/3/2012 15:44

Another possible suitor!

"MINMETALS Resources says it will use the assets recently acquired through its takeover of Anvil Mining as the starting point for a wave of acquisitions through southern Africa.

The miner, based in Melbourne and listed in Hong Kong, recently completed its $C1.3 billion ($1.25bn) takeover of Anvil, in the process picking up the Kinsevere copper mine in the Democratic Republic of Congo. The company, majority owned by state-owned entity China Minmetals, plans to use acquisitions to help it achieve fourfold growth in coming years."

[feethak2] 29/3/2012 15:01

Three trades all day, and they mark it down on a trade of £600.

[feethak2] 29/3/2012 08:06

Remember ZCI should have a legal obligation to their shareholders to get the best price they can for their holding in ACU

[p1ncer] 28/3/2012 21:40

KGHM paid 2.2 billion euro, $2.9 billion) for a mikne that produces 60k tonnes p/a if my memory serves me correctly

"Mitsui & Co., holding a record $17 billion in cash, wants to buy mining stakes and expand operations to triple copper output and more than double coal production, easing its reliance on iron ore sales"

Your guess as a who a likely bidder will be is as good as mine.

One thing I would say is ZCI have been a fantastic majority share holder so far, providing funding whenever it has been required.

Lets hope they do us minority shareholders one last favour and demand a good price for ACU.

Even a half decent price should do us very well

[p1ncer] 28/3/2012 21:09

Good luck Outsourcer.

One of the exciting things about our present sittuation is the unknown.

Looking at the four companies who recently bid for Rosia Poieni Oz Minerals (Australia), Dutch Dundee Holdings (Canada) ,Ellatzite Med Ad (Bulgaria) and the Roman Copper Corp (Canada) all bid in the auction.

KGHM (Poland) recently paid $2.9 billion for a mine.

I have also read that the Indians and Japanese are interested in buying mining assets, thats even before we consider the Chinese, who I recently read have $1Trillion available to buy mining assets.

I wouldn't completely rule out Rio or BHP, though I think Xstrata would be more likely.

But in reality who knows, anyone of the above wouldn't surprise me.

A bidding war would be nice.

One thing is for sure, we will find out in the not too distant future.

[feethak2] 28/3/2012 10:29

Remember "ACA Howe, as independent geological and mining consultants, have put a fair market value for Dukwe and Matsitama in the range of $128 million to $142million, (approximately Pounds Sterling 70-78m @ $1.84/Pounds Sterling ),
using a copper price of $1.00 per pound"

Which using todays copper price of $3.8 per lb sort of ties in with the figures being quoted for the recent sale of other mines.

[feethak2] 28/3/2012 10:14

Outsourcer,

I hope so too!!

All I do is look at the information out in the public domain, and also try and use some common sense.

There are 7 Billion people in the world, who all have a need for the dwindling supply of natural resources.

Mining companies are going for good prices, I have done a lot of research and can't see any reason why ACU wouldn't also go for a good price.

I know you have been here a long time, and I hope you and the rest of us make a decent profit out of ACU.

I believe the current share price is down to sentiment as much as anything, though most AIM companies are significantly under valued at the moment.

i remember these being 9p!!

With a sale due, this will hopefully realise the full value of ACU, which should be signifacntly higher than where we are at the moment

[outsourcer] 28/3/2012 10:05

feethak2/P1ncer, hope you are both right as I picked up another 275,000 this morning to bring my average down to around 5p, but my holding is now scarily close to 1M shares !

[feethak2] 28/3/2012 08:20

Rosia Poieni's Min's minimum sale price was set at $79.5 million,yet it went for a very hefty premium of $267m.

So it was sold for 3 1/2 times it's minimum price! Which highlights the demand for these kind of assets.

[p1ncer] 27/3/2012 20:14

Also KGHM recently paid $2.9 billion for a mine that produces 60k tonnes p/a if my memory serves me correctly.

ACU should produce at least 10k tonnes p/a in the next financial year, with a target og 30k p/a.

Based on the information above regarding two recent sales of copper mines, if ACU gets sold for less than $300m, someone will have some very serious questions to answer!

[p1ncer] 27/3/2012 20:04

Let's look at what we know as facts.

ACU was valued at $150m in 2007 using a copper price of $1 per lb.Todays price $3.86 per lb.

There is a supply issue regarding copper, hence inventries going down and the price of copper still strong.

ZCI has initiated a strategic review process to realise value from its investment in ACU process may result in the partial or full sale of ZCI's interest in ACU.

A copper mine put up for sale by the Romanian Govt had four serious bidders. It went for $267m, and produces 11k tonnes p/a.

ACU is confident that the exploration programs currently being imple-mented will lead to the discovery of one or more major mineral deposits in the short term."

The 'sale process' is now one month old. We think "Deadline for 1st buyers Proposals was 15/3

All in all making ACU at £20m market ca a very, very good short term investment risk.

Fingers crossed

[p1ncer] 27/3/2012 18:16

$267m for a mine that produces 11k tonnes a year!

Well there is our bench mark, a similar valuation for ACU -$90m debt, would value us about £120m, only 6 times present market cap.

This is getting interesting, very interesting.

Game on!

[feethak2] 27/3/2012 16:05

"The Romanian government said Canada's Roman Copper Corp successfully bid €200.8 million (US$267M) for SC Cuprumin SA Abrud's Rosia Poieni porphyry copper-gold mine, winning an open outcry auction"

"The mine produces around 11,000 tonnes of copper a year"

So they paid $267m for a mine that prduces 11k tonnes a year!!

ACU should produce 7k tonnes this year based on the last half year figures, though they and us are expecting these figures to increase substantially, with a target of 30k tonnes per year!

Though it is difficult to do a direct comparision, it does give us an idea of the kind of figures these assets are going for.

Plus they will also get thrown in ""MM is confident that the exploration programs currently being imple-mented will lead to the discovery of one or more major mineral deposits in the short term."

Looking at all the information out it is very difficult to see ACU going for less than $200m, unless some very shady deals have gone on.

As I have said previously, the figure ZCI get for ACU could well surprise us all.

[feethak2] 27/3/2012 15:39

"Oz Minerals MD and CEO Terry Burgess said on Tuesday that while the Rosia Poieni project had the potential to be a long-life copper/gold-producing asset, in line with the company's stated strategy in terms of production cost and life, Oz Minerals was "not prepared to overpay for the asset in the auction process".

Oz Minerals subsequently withdrew from the auction.

"We will continue this discipline to acquisition in order to ensure that whatever we do adds value for our shareholders," said Burgess."

---------------------

"China Development Bank's investment arm is targeting copper, uranium, iron ore, coking coal as well as nickel resources overseas, looking for investments with good returns and Chinese connections, a China Development Bank International executive... "

Two potential bidders, I have also seen news of Japanese and Indian companies muying mining companies

[feethak2] 27/3/2012 13:34

"The global demand for copper will rise 3.1% in 2012, driven mainly by a 6.8% increase in Chinese demand, a senior official with Xstrata Mining said Tuesday."

"Chinese industrialisation "will continue to drive higher rates of copper consumption," Kruijff said."

[p1ncer] 26/3/2012 22:06

"MM is confident that the exploration programs currently being imple-mented will lead to the discovery of one or more major mineral deposits in the short term."

I'm not sure what they mean with "short term", but I know what they mean with "will lead to the discovery of one or more major mineral deposits"

[p1ncer] 26/3/2012 18:43

That £400m would tie in the the valuation of $150m using a $1 per lb of copper.

Just hope whoever buys ZCI out agree's

[feethak2] 26/3/2012 15:53

Doing a bit of comparision of another copper company FML.

Someone has posted this about FML "the Company is totally focused on copper production which at a targeted 30k tons per year would have an NPV way north of 20p per share so the current header doesn't exactly tell the story nor is it likely to attract new readers."

20p a share for FML would value them at £400m ish, against a current market cap of £115m.

ACU are also looking to mine 30k tons per year and a current market cap of £20m, with about £50-60m of debt.

[feethak2] 26/3/2012 12:43

Copper stocks on the LME continue to fall.

This highlights the supply issue regarding copper, and is providing support for the price, and hopefully the price ZCI gets for ACU.

GLA

[feethak2] 23/3/2012 16:14

Copper stocks have fallen nearly 50% in the last six months, as production cannot keep up with demand.

This is and will continue to provide support for the price of copper, and provide some kind of support for the price ACU will be sold for.

[feethak2] 23/3/2012 16:03

Well if there is an offer for the entire company they will have to issue an RNS, which will be well before any deal is actually done.

Could be any day.

[zcifan] 23/3/2012 15:40

Remember : the mandate to RMB was signed in Oct 2011 MEANING THAT the process is much advanced; I am pretty shure that the deal should be concluded within 2/3 MONTHS or even before