Archipelago Resources Share Discussion Threads

[silverfern] 01/12/2011 07:45

melody Xmas presents is a good enough reason of course, but anything about AR. itself that prompted your sale?

[melody9999] 01/12/2011 00:25

My sell order at 61p got filled just before the close on 29th. Happy with that though could not anticipate todays action!

[boadicea] 30/11/2011 23:55

davegk - This is my understanding of price monitoring extensions, but not being a dma trader it is just my retelling what I remember being told by a former trader and I stand open to possible correction.

At the end of each market day, traders with orders on the book can choose whether to execute them at auction (known as the Uncrossing Trade, UT) or hold them overnight. Many (most?) traders choose to auction orders that represent closure of open positions (long or short) as part of risk control, particularly in volatile times when events in other open markets (e.g. NY, Oz, HK) may influence next day's opening.
As a safety feature, there is a guarantee that no initial auction will settle at more than a certain differential to the last recorded automated trade (AT) price.
The differential is not a constant for all stocks but varies according to the volatility characteristics of the particular stock sector/segment (?).
In the event that the formula used for the auction settlement produces a price outside the permitted range, the result is voided and participants are given the option of reconsidering their position before the auction is rerun in what is termed a price monitoring extension. Similarly after the second auction attempt.
On the third attempt (2nd rerun) whatever price is settled is accepted, participants having been duly warned.

Some 'smart' traders I believe specifically watch for auctions producing out-of-line prices to pick up bargains.

If you now read this notice from 29th, it should make sense.

[boadicea] 30/11/2011 17:40

The primary reaction to latest central bank measures (and pog) of precmet stocks seems to have been confined largely to those on the main market - MML and ALD in my case - with lesser reaction elsewhere.

We do have some response here (AR.) and I hope to see more feed through in the next few days if the general market rise holds.

The improvement will probably be mainly confined to actual producers who can benefit short term - because short term is the only thing the market is currently noticing.

[silverfern] 30/11/2011 15:38

when you consider that at the start of the year we hadn't poured any gold, hadn't raised the JORC and were basing profits on a gold price of $1200-1400, it's absurd. We can see today the effect of a little share price activity

[lfc4ever] 30/11/2011 15:18

if we're going to hit col's £1 by year end, it is going to be a very good december!

[silverfern] 30/11/2011 13:27

Dave: readon down the page here you'll get your answer. All I know is that this comapny is now way undervalued. Every month that gold is at current levels they are making over $1k an ounce

[davegk] 30/11/2011 08:41

Boadicea would be grateful if you could explain "Double extension to uncrossing trade" and its implications.

[boadicea] 29/11/2011 22:03

An interesting close for once.
Double extension to uncrossing trade. Someone asleep on the job?... or a case of attempted manipulation (lots of small sells) gone wrong?

Looking on the bright side, could it portend good news tomorrow?

[silverfern] 24/11/2011 23:04

what a waste of time

[lucky_punter] 18/11/2011 12:03

Following an update from precious metals miner Archipelago Resources (LON:AR.) earlier this month, independent broker Oriel Securities believes now is the time for the firm to focus on exploration after it reached full production capacity at its existing Indonesia gold operation.

[lucky_punter] 08/11/2011 09:11

Archipelago Resources (LON:AR.) today declared the start of full production at its 95 per cent-owned Toka Tindung gold mine in Indonesia.
The mine is now achieving the targeted production rate. This means that the mine is expected to produce at least 60,000 ounces of gold this year.

[silverfern] 07/11/2011 21:31

Today's gold price rise would put another $7.5m profit onto the bottom line next year and doubtless increase the economic life of even the existing pit

[boadicea] 07/11/2011 15:14

Paul - There is little doubt that the 8.5 yr life of mine will be increased - It's just a question of by how much. This in turn will almost certainly depend on what cut-off grade becomes economic in due course.

[polaris] 07/11/2011 13:02

Any rerating will need to await the first full 6 month production so that we can see the actual costs rather than the forecast costs. If AR. can do 150k oz eq @$500 production costs then they are significantly undervalued if they can keep the resource discovery up. If not then it will trade at a significant discount to other longer-life similarly producing miners due to visibility of production.

regards,

Paul

[lfc4ever] 07/11/2011 08:57

yep- very good news to see that they are now up to full production. this really should see a rerating as it is now a fully fledged producer- but still with considerable exploration upside.

[nametrade] 07/11/2011 08:14

So, up to full production, gold around 1770, organic growth and a healthy bottom line in the offing......happy days...
nt

[lfc4ever] 03/11/2011 11:15

come on, gold heading north- let's see our share price follow.

[cockerell] 27/10/2011 13:35

Frustrating lack of volume / interest in this share, though this has long been the case. Is it just the majority Rajawali ownership that deters or relative lack of news flow? I do wonder if it has a long term future as a public company. Anyhow given the POG, we should be in for some pretty pleasing numbers at the next financials assuming production is on track.

[silverfern] 17/10/2011 08:39

Well spotted! it is my other half who hails from there. COurtesy of the Rainbow Warrior and nuclear testing off the Pacific Atoll there is no love of the French in new Zealand- she was dreading an Aus vs France final (and so was I)

[lfc4ever] 14/10/2011 15:56

would it reasonable to infer that you may be chewing nervously on the old fingernails at 0900bst on sunday, silverfern?

[silverfern] 14/10/2011 15:17

thankfully moving up again(apologies for disturbing the peace!)

[djy007] 29/9/2011 21:40

Did anyone take up the offer on Archipelago Minerals? I cannot even find any website?

[akjelly] 29/9/2011 08:04

Minesite article.September 28, 2011

Colin Loosemore Bids Farewell To Archipelago Resources, Ushering In A New Era Of Growing Gold Production And Potential Acquisitions
By Sally White

Colin Loosemore always said that when he had brought Archipelago Resources' major Indonesian gold mining project, Toka Tindung, successfully into production he would move on. He has, and he is. Last year the processing plant at Toka Tindung was constructed, and in April this year the first gold was produced. And so, at last month's annual general, meeting Colin said his farewells.

Archipelago's chairman Stephen Sulistyo offered the following valedictory in acknowledgement of Colin's achievements: "He has served as managing director of Archipelago for ten years and in that time has led the company in its transformation from a junior explorer to a significant gold producer. When Toka Tindung reaches full production in a few months' time it will be a testament to the hard work of Colin and his team."



Colin leaves behind him an Aim company built up from scratch and now boasting a market capitalization of around £425 million at the current share price of 74.5p. Along the way there have been highs and lows – a 3p low in 2008 and a 79p high hit earlier this summer. But the task having been done, he slipped out of the door quietly with no public fanfare what so ever and is starting again on a new development challenge (his forte) at Archipelago Metal. This is an unlisted Australian company spun out of Archipelago Resources, which is focused on non-gold projects. Currently the focus is a chromite project in Vietnam which is at the advanced feasibility study phase. No word is available on his plans here yet – he will re-appear, as ever, in his own time.



But he leaves behind high hopes for Archipelago Resources, and a company that looks to be in pretty good shape. Production is on track for approximately 80,000 ounces of gold equivalent this year, and the eventual annual output rate should then rise to 160,000 ounces, supported by a current resource base of 1.7 million ounces. Costs are likely to come in at just shy of US$500 per ounce over the first six years of the project's life.



Some investors believe that there is now a possibility Archipelago will be able to expand by acquiring other Indonesian gold projects. The company has strong local backing in the shape of Indonesian-based PT Rajawali Corporation, which owns a 53 per cent stake. Rajawali is an industrial conglomerate encompassing interests in transport, retail and telecommunications. It has no other gold investment as yet, although it has stakes in coal mining operations.



Of course, Archipelago has prepared well for the post-Loosemore era and has head-hunted a worthy replacement. The new chief executive is Marcus Englebrecht, a man who's spent 22 of his 51 years in the mining industry. Earlier in his career he was with BHP Billiton, as chief financial officer of the Diamonds and Speciality Products Group based in Melbourne. More recently, he held the position of chief financial officer of Canadian listed OceanaGold Corporation, also based in Melbourne. In 2009 he served as interim chief executive at OceanaGold.



"I have joined what I believe is one of the most exciting growth opportunities in gold mining", he says. "The Toka Tindung mine in Indonesia started gold production in April this year and one of the key focuses over the next few months is to increase this production to its nameplate capacity and produce at steady state. The other focus is to harness the significant upside of all of our assets, which are in some of the most prolific gold territories in the world, which we will do through one of the most aggressive exploration drilling campaigns in the history of the company."



To that end, mining has now commenced, as planned, at Pajajaran, the second open pit at Toka Tindung, to the south of the main Toka Tindung pit, while exploration drilling continues, focused on extensions to mineralisation around the planned open pits. Some initial difficulties with a clay-rich section of the orebody have now been overcome, and the company is on schedule to hit full production in the last quarter of this year.



There's plenty of room for manoeuvre in terms of working capital, too. The majority of the US$15 million working capital facility which was drawn down in March was unused at the last update, in July. The company has no committed hedging, but as a condition of its project finance facility it is obliged to hedge around 100,000 ounces by means of put options at a floor price of around US$900 per ounce. These will provide some downside protection without capping the upside.



There should be regular updates on the ongoing drilling, and on the progress of the production ramp up over the next few months. So, by the time the company hits its 160,000 ounce per year target, Colin's departure will already seem like old news. But by then, he may well be generating his own newsflow from his next venture. It'll be interesting to see.