Aquatic Food Share Discussion Threads

[plunge] 15/10/2005 20:40

The Zimbabwe Independent Friday, 14 October 2005
Mwana Africa averse to platinum mining
Roadwin Chirara

EMERGING mining group, Mwana Africa, this week ruled itself out of the lucrative platinum mining sector despite having shown interest in mining other minerals like gold after acquiring Freda Rebecca Mine.

The company had also shown interest in acquiring chrome processing firm, Zimbabwe Alloys, but lost out to a consortium led by banker Farai Rwodzi. "We are not at the moment looking at platinum, but if an opportunity was to present itself, we would consider it carefully," Mwana Africa chairman Kalaa Mpinga said.

Zimbabwe's platinum sector is currently dominated by Australian-listed Zimplats, Zvishavane-based Mimosa Mines, while Anglo American Corporation Zimbabwe (Amzim) is expected to join the fray in 2007 with its US$90 million Unki Platinum as a third player in the sector.

The Mwana Africa boss also ruled out any possible secondary listing by the group on the Zimbabwe Stock Exchange (ZSE) despite its recent reverse listing on the London Stock Exchange (LSE). Mpinga said the group would have to weigh the advantages of such a listing. "We are not at this stage planning to list Mwana on the Harare (ZSE) stock exchange and need to study carefully the merit of such listing," Mpinga said.

Mwana Africa was listed on the LSE this week after it agreed on its conditional acquisition by African Gold, a deal which found Mwana Africa acquiring over 71% on conclusion of the 4,4 million pound deal. Mpinga said the deal was meant to allow the group access to capital for its various expansion and exploration projects in the country. "The listing of Mwana Africa in London will allow more flexibility to raise project financing for its various investments in Zimbabwe," said Mpinga.

Listing will also allow it to position itself in the mining sector, while at the same time allowing it further acquisitions going forward. "The listing in London will also position us for more acquisitions on the continent. The reverse take-over has indicated to us that there is a strong appetite in taking exploration money in Zimbabwe as well as for the development of the new project."

He said some of the projects likely to benefit from the deal include the deepening of its Shangani Mine and the construction of a new concentrator at Trojan mine, a subsidiary company in which Mwana Africa has interests through its majority stake in Bindura Nickel Corporation.

He said feasibility studies for its proposed multi-billion dollar Hunters Road project under BNC will begin next year as the company had just completed the required metallurgical studies on the site.

"Again at BNC, we will be starting early next year, a bankable feasibility (study) for the development of the Hunter Road project having just completed a number of metallurgical studies to determine the suitability of the nickel for processing," said Mpinga.

[wstirrup] 14/10/2005 12:26

For those who enjoy a good read, this link to the other thread, gives you an update on several factors affecting the future GOLD price, and it's likely scenario. (There's about 4 or so items)




W.

[wstirrup] 14/10/2005 12:00

Errol...Thanks for the appreciation.

Buffet, Well if the small shareholders want to sell them at these silly prices, then that is their business. (I agree though that they are foolish)

Can't help but feel within 12months, the share price (post consolidation) will be £1.00+ And we will be getting regular updates as to what has been happening on the ground with the AFG acquired sites since the last major update.

The Nickel mines worth though will be based on the industrial metal's value (i.e. world demand) unlike the intrinsic value of Gold which will be scarily high I suspect within 2years due to inflation and dollar fears.

As usual, the long-term holders will sell when it is judicial to do so, and that will be just as the Gold price goes through the stratosphere.

The small shareholders will no doubt be buying back in in the hope of a profit before the "NEXT BIG THING" takes their money elsewhere.

But they won't get mine for at least 2years. Held for 2years mostly already, apart from a small sell-off at over 10.5p, and a small buy back when the price was in the doldrums. (6.85p)

W.

[bennie buffett] 14/10/2005 10:56

Got to be stupid letting Canaccord buy all small shareholders shares at these prices. From the large circular I have received it shows all the new shares are tied in for at least 12 months. I expect once the EGM is out of the way that the promotional machine will be underway with Kala Mpinga doing a roadshow around London to introduce himself.

[errol0001] 14/10/2005 09:26

WS,

thanks for your good efforts in setting up this thread - like the header charts.

cheers ...

[wstirrup] 13/10/2005 17:12

Hi Gull

I take it you're gonna hold me to my prediction...:¬))

W.

[the gull] 13/10/2005 13:35

WStirrup - 29 Sep'05 - 12:26 - 18630 of 18800


I'm waiting for a market correction come the end of October....

BAD News regarding the economy will be filtering through by then, and the "Poo" will hit the fan for the SE's around the world, though I suspect once the brokers have had time to assess things, there will be a bounce back in some stocks...KMR? Perhaps...

W

[wstirrup] 13/10/2005 10:09

I've been snooping around too on the net, and found this little piece, although a few months old, it illustrates some of what I have been saying for almost 2years now. We are at the end of a long up-trend in house prices, and the market now is for resources - particularly GOLD, because of its monetary nature, and its longevity as a store of value.

It has taken longer than I had hoped for the U.S. housing bubble to start to deflate...


Is There A "new Economy"??? by Dr. Marc Faber

In the late 1990s, numerous economists and strategists distinguished between the "old economy" and the "new economy". Old economy companies were companies that made some money, had reasonable stock market valuations, and a relatively high earnings visibility. "New economy" companies, on the other hand, were engaged in new and unproven industries, in which were the pace of technological innovation was extremely rapid and, therefore, so was the obsolescence. Moreover, all the profits and some more had to be reinvested in research and development.

New economy companies were also characterized by very high valuations (in March 2000, NASDAQ at 5000), and almost no earnings visibility. Well, we now know what happened to the then popular buzzword "new economy", but to be fair, there is indeed a new economy in the world. It is just different than what the visionaries had anticipated.

The new economy is characterized by the rise of China, India and to some extend also Russia as global economic and geopolitical players. Out of the blue and certainly totally unexpected to the American visionaries that spent their days counting irrelevant eyeballs in order to value Internet stocks, China has overtaken the US in many markets such as for steel, iron ore, copper, not to mention in the production of appliances and consumer electronics.

But more importantly the "newest economy" is characterized by seemingly endless bubbles, courtesy of the man who has done more to destroy the value of paper money than any one else in the 200 year history of capitalism: Mr. Alan Greenspan. The destruction of paper money as a store of value (the most important quality paper money should have) occurs only in one way and that is through increasing the quantity of paper money at a higher rate than real GDP growth.

At times this "excessive" money supply growth will lead to real wages rising strongly, such as in the 1960s, or to commodity and consumer prices soaring, such as in the 1970s. But, excessive money supply growth can also lead to the most dangerous form of inflation and this is asset inflation, which at times will boost equity prices to lofty levels (Kuwait in 1980, Japan in 1989, Taiwan in 1990, NASDAQ in 2000, etc) and on other occasions boost the value of real estate into cuckoo-land (Tokyo in 1990, Hong Kong in 1997, and now in the Anglo Saxon countries).

The reason asset inflation is so dangerous is that central bankers - usually unemployable in any other capacity - not even as waiters - only pay attention to consumer price inflation. Therefore, when consumer prices do not rise much, for example because of international competition (as was the case in 2001-2004), they print money like water.

So, with the entry of China and India into the global economy we had low consumer price increases around the world - although higher than the statisticians in the US are under political pressure computing, calculating and doctoring - and this led Mr. Greenspan to create, after he fueled the NASDAQ investment mania with easy money, another gigantic bubble: the housing bubble! There are many ways to recognize a bubble. One of the most reliable indicators that an investment mania is underway is always very high volume. In the case of US housing it is the number of home sales as a percentage of households that show how speculative the market has become. (see figure 1).

Figure 1: US Home Sales as a Percentage of Number of Households



Source: Bridgewater Associates


As can be seen from figure one annual home sales as a percentage of households is now at an all time high. I am not suggesting that US housing cannot get even more over-heated but very clearly we are in housing not near a low such as was the case in 1971, 1982, and 1992.



W.

[wstirrup] 13/10/2005 09:12

And a few not so brief words from one of our sponsors...

IN THE AFTERMATH, PART II
by Justice Litle

"Everybody came in here with every car they had and took
everything we had in the ground."
- Kip Neuhart, Chevron station manager, Marietta, Ga.

As the linchpin of the global economy, much depends on
the American consumer. With consumer spending
representing more than two-thirds of US economic
activity, and consumer import consumption the engine
that keeps Asia humming, money to spend and willingness
to spend it are critical for turning the fiscal merry-
go-round. In this regard, Katrina has had a sharp
financial and psychological impact.

Consider the shift in perception of gasoline prices. An
editorial cartoon from a few months back does a good job
of illustrating the difference between then and now. A
carefree motorist fills up his SUV at the gas pump,
whistling aimlessly, with electrodes attached to the
back of his head. Two scientists observe from behind a
one-way mirror. One is manipulating a large dial - the
price of oil listed in $10 per barrel increments - as
the other takes notes.

The first scientist has a look of surprise and concern
as he tentatively turns the dial toward $60. The second
scientist frantically observes:

"It's not having any effect!"

Fast forward to the present: That carefree, "what-me-
worry" mood is long gone. It has been replaced with
anger, anxiety and fear as prices break the $3 per
gallon mark nationwide, with outliers as high as $6
reported at gas stations in the Southeastern United
States. This may not seem much to UK drivers paying £5
per gallon, but there is real pain at the US pump. The
governor of Georgia has publicly denounced gas gouging,
President Bush has asked drivers not to horde gas and
fears of shortage become self-fulfilling prophecy as
anxious drivers blitz their local filling stations and
run them dry. The long lines of the '70s have returned,
and a few illiterate politicians from Hawaii and Florida
have even called for the reinstatement of price
controls. (Hopefully, they will be muzzled or ignored.)

Things were already looking precarious before Katrina,
with the US consumer savings rate in negative territory,
discretionary income dwindling and energy prices high
enough to cause fresh concern. The disruption of Gulf
Coast production did not create a new problem. It merely
kicked an existing one into overdrive.

While gasoline prices will ease a bit as initial panic
dies down and excess driving is curtailed, there is
another psychological bogeyman waiting in the closet:
Natural gas.

Natural gas futures were already challenging all-time
highs before the disaster struck. They have since gone
into orbit on concerns that commercial storage
inventories may not be enough for a cold winter ahead.

From a psychological perspective, the unknown often
generates more anxiety than the known. Consumers are
already dealing with shock and awe as they fill up their
petrol tanks. Now they have to endure a more frightening
question: How high will the heating bills be this
winter? It's impossible to know, and there are many
months to dwell on the question...before we find out
just how cold the coming winter will be.

As consumers adjust to these new realities, the instinct
to cut back may finally kick in. We are likely to see
the savings rate tick up over the next few months, as
anxious consumers brace themselves for a further body
blow this winter. This shift in sentiment could put
further pressure on the retail sector as discretionary
income erodes, and a slowdown in import consumption may
put economic pressure on Asia, as well. Of course, if
China starts to feel the pain due to consumer slowdown,
the complimentary US Treasury purchases that have kept
interest rates low and home values high may grind to a
halt.

"At some point, the sense of confidence in capital
markets that today so benignly supports the flow of
funds to the United States and the growing world economy
could fade. Then some event, or combination of events,
could come along to disturb the markets, with damaging
volatility in both exchange markets and interest rates."
- Paul Volcker, 'An Economy on Thin Ice'

"What we are looking at...is one of the biggest US
public finance projects of all time."
- Joe Mysak, Bloomberg columnist

As a result of Katrina, the pace of government spending
will increase rapidly. At the same time, the Federal
Reserve is facing increased political pressure to pause
in its campaign of interest rate hikes. This combination
is likely to weigh heavily on an already weakening
dollar, as foreign creditors look on with growing
concern. (All this with a vulnerable Asia in the
background, no longer so anxious to provide vendor
financing.)

This is not a criticism of the coming rebuilding
efforts, or a denial of the need for federal assistance
in time of disaster. It is simply an observation that
the bill is coming due at a time when US finances are
decidedly shaky. Government officials have promised
whatever it takes in terms of federal funds, and
estimates have consistently estimated, with some
suggesting Katrina could ultimately cost more than the
wars in Iraq and Afghanistan combined. This comes on top
of more than $100 billion in estimated economic damage,
with long run energy costs still unclear. Not to mention
federal assistance for a million displaced individuals.
Meanwhile, fiscal conservatives are disgusted with the
lack of political will to cut back pork in other areas
as we are hit with these massive expenditures.

It is hard to play the role of fiscal hawk in the face
of human suffering. The natural moral instinct is to
give with compassion and expect the government to spare
no expense in restoring order. The problem is not the
financial realities of disaster relief, but rather the
fiscal excesses that came beforehand, putting the
country in such an untenable financial position in the
first place. Nothing has been put aside for a rainy day.
The credit card of last resort is already loaded with
charges. Nature's misfortune has compounded the ill
winds of poor financial planning.

At the end of the day, America has essentially borrowed
$2 trillion from the rest of the world and spent it in
mostly nonproductive ways. The Fed fuelled this binge
and facilitated a gold rush in paper assets...for what
else do you call $400,000 apartments that don't yet
exist?

To the degree that real estate appreciation is fuelled
by borrowed dollars, the appreciation is not real
wealth, but rather a temporary loan from overseas
creditors. Consumers are not using these generous loans
to start productive businesses with an aim for future
return on investment. They have been swapping houses,
monetising their mortgages and living it up on the
proceeds. When that money has to be paid back, America
will have little to show for it. The only way out will
then be to manage the dollar downward, which in turn
triggers a deliberate erosion of purchasing power for
all those holding dollars and dollar-linked assets. The
consequences of fiscal profligacy may be long delayed,
but ultimately cannot be denied.

The inevitability of a managed dollar descent is not in
question. In fact, it is a key piece of the "optimistic"
scenario for a soft landing. America has all but
admitted that its fiscal rehabilitation plan hinges on
inflating its way out of trouble, a "burn the bag
holder" scenario. Only an issuer of the world's reserve
currency could get away with such a brazen plan - and
probably not more than once.

Reserve currency or not, no credit line reaches to the
sky.

It is a foregone conclusion that America's net
borrowings from foreigners will eventually cease, and
then head into reverse as fiscal imbalances sort
themselves out. When this happens, the dollar will begin
its slide in earnest, and moneymen the world over will
pray that the descent is an orderly one.

No central bank stands to gain from a free-fall scenario
in which the world reserve currency plummets. But if
things start getting precarious, it could easily become
every financier for himself. As Jesse Livermore dryly
noted, in times of crisis, the bankers do not stand
around saying, "After you, my dear Alphonse."

Hopefully, the destabilising event that former-Fed
Chairman Volcker hypothesised was not a natural
disaster. Hopefully, we are not already making our way
down the slippery slope.


Regards,

Justice Litle
for The Daily Reckoning



but what Justice Litle doesn't say, at least with any clarity, is that when people lose faith in the reserve currency, not so much the American people, who are too ill-educated to be aware for the most part, but the reserve currency watching, Central Banker type, "Let's broaden the base of our currency reserves away from the dollar" kind of people; when THEY start to lose confidence in the currency, and the world's central bank's vaults of gold have been sold or rented to the open market. Then the price of Gold will ROCKET as they all try to maintain the value of their currency against dollar inflated natural resources.

THEN my friends those mining companies with proven reserves, and sound management, and a free-flow of metals to the market, THEY will rocket in triplicate.

Watch this space...

W.

[wstirrup] 12/10/2005 23:26

And as I predicted, the Gold price just brushed $480 an ounce today.

TESTING...TESTING...1. 2. 3. 5. 8. 10. 50. 1000...or something like that..:¬))

W.

[ratters] 12/10/2005 15:16

barred

Yes, could be quite interesting with only 25 percent of shares in
immediate circulation.

[barred] 12/10/2005 10:03

That ties up 70% of the shares.......................if they all continue to hold that is.........

[wstirrup] 11/10/2005 17:38

Well said smudge.

And the chinese don't have International Business Schools either, but they know a thing or two about making money...

Yale, Harvard, Kingston, Edinburgh, Oxford, Cambridge, are wonderful seats of learning, but they don't hold the monopoly on business knowledge...

Buy low, sell high...What's hard to learn about that?

(As an ex business studies lecturer, I know a thing or two about business, but it doesn't make me a CEO, or an Accountant.)

W.

[no1smudge] 11/10/2005 11:01

They are the precedent.

[Abuse team] 11/10/2005 08:51

Post removed by ADVFN

[dutch dexter] 10/10/2005 17:30

Perhaps the following might help WS. It's a concise analysis of the US economic situation:



Mostly bad news from the US. Delphi Corporation has filed for bankruptcy. General Motors may well have to bear the burden of pensions and benefits of Delphi employees for as much as $11 billion. As if GM isn't in enough trouble as is.

[wstirrup] 10/10/2005 16:26

Hands...You have it in one sire..

Great minds think alike (but then some say, fools seldom differ)

Exactly my thoughts on that particular phrase.

This EGM seems to be dragging out a bit. A pity I can't get some time off to go to it.

If it was around the corner, or even as far as Birmingham, it would be merely a day trip, but as it is, it's an overnight stay, and a long journey home, so I guess I'll just have to rely on you guys making the right decision...

W.

[wstirrup] 10/10/2005 10:46

BLT...I realise that you probably have an "Axe to grind" re PNG, but here is where we discuss African Gold, and in the future, MWANA Africa.

Unless you are discussing the Gold price, or prices of metals possibly being mined from Mwana's existing mines or possible future resources, I'd appreciate it if you took your input elsewhere.

Talking up a share, only to short it when it overextends itself is not what we are about.

W.