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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Arcon Int. | AIN | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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|---|---|---|---|---|
| 0.00 | 0.00% | 28.95 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 28.95 |
| Top Posts |
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Posted at 06/4/2005 08:09 by hypocrite Moneybags Friday 8th April 2005Ireland's only source of independent company appraisals for the Irish Investor. Phoenix Magazine Dublin Ireland Arcon being bought for a steal IN SELLING out to the Swedish Lundin Mining Corp for 93m, Tony O'Reilly has picked an extraordinary time to exit. The Galmoy Mines made a small profit last year for the first time since it was brought into production eight years ago. But with the huge jump in the zinc price this year, Arcon is on line to make a profit of up to 50m in 2005, making the price Lundin is paying look ridiculous. Unfortunately, the shareholders have not been informed about current production levels in Galmoy or of the effect the current zinc price has on current profitability. With O'Reilly holding 65% of Arcon's equity and signing an irrevocable acceptance while the independent directors of Arcon and J&E Davy have recommended acceptance, the position of the independent shareholders is impossible, leaving them little or no option but to accept the bid. The only positive aspect of this is that almost 50% of the offer is in Lundin paper and, accordingly, the minority shareholders can participate but in a much diluted form. The very least O'Reilly should do is insist that Lundin shares currently only quoted in Stockholm and Toronto get a listing on the London AIM market, although the Lundin takeover document indicates that this is not being considered. TEN FOR ONE Lundin's offer for Arcon works out at 52 cent per share, made up of 28 cent in cash and 24 cent in Lundin paper. What is important to note, however, is that in July 2004 Arcon consolidated its shares on the basis of ten for one. This means all prices struck before last July had to be multiplied by a factor of ten to compare with this 52 cent takeover offer. The offer is as high as the shares have reached over the last four years and double the price of the huge rights issue in July 2002 floated at the equivalent of 25 cent per share. In total, O'Reilly has invested well over 100m in Arcon and it could be that, despite the huge recovery in the zinc price, with Waterford Wedgwood causing him so much anxiety he cannot resist the temptation to cash in his Arcon chips by selling out to Lundin now. For his 65% shareholding O'Reilly has got 32m cash plus the repayment of 13m loans he made to Arcon from his Cyprus companies, Fairfield and Indexia, to give him 45m cash. Even though this represents a cash loss of well over 50m O'Reilly will end up with a 30m shareholding in Lundin, making him the only other large Lundin shareholder (with 10%) apart from Adolph Lundin himself, who has a 13.5% shareholding. Although Lundin Mining was formed back in 1994, the company did very little other than part-fund an exploration project in Northern Sweden in partnership with Boliden to develop a small zinc and copper mine at Storliden in 1998, which was brought into production in 2002. Then, in June 2004, Lundin stepped up a league and raised $160m (Canadian) at $8 a share. This money (about 100m) was used to buy the Zinkgruvan zinc mine in southern Sweden for 20m cash from the international mining giant Rio Tinto Zinc (RTZ) in June 2004. Zinkgruvan Mine produced 62,000 tonnes of zinc last year, along with 31,000 tonnes of lead plus 2 million ounces of silver almost as much as Galmoy, which produced a higher 69,000 tonnes of zinc last year and 15,000 tonnes of lead. What is odd, however, is the observation of the senior Arcon independent director, Paddy Hayes, that "the Galmoy Mine now has a commercial life of approximately five years". He gives no data or includes any geological report to back up this significant assertion. Arcon has previously advised that Galmoy had four million tonnes of proven and probable reserves, yielding 14% zinc, signifying a zinc content of 558,000 tonnes of pure zinc. Based on Hayes's statement, this must mean Galmoy is producing over 100,000 tonnes of pure zinc pa, which is a huge increase from the 69,000 tonnnes produced last year. The capacity of Galmoy's processing plant is 750,000 tonnes of ore pa. With a 14% zinc grading and Galmoy working as it is now at full capacity, this would produce 105,000 tonnes of zinc and fits Paddy Hayes's assertion. However, this means that last year's results were significantly unrepresentative and, accordingly, in the current year production will be hugely ahead of 2004 with 50% higher production and 30% higher zinc prices. As Arcon only produced 69,000 tonnes of zinc last year, at the current zinc price this alone will increase Arcon's bottom line by 17m. With the Galmoy plant working flat out the total profit could rise to possibly 50m. It is unclear why the independent directors Kevin Ross, Bill Mulligan, Peter Kidney and Paddy Hayes do not spell out some of these fundamental facts. Moreover, Lundin's own consultants actually calculated Galmoy's reserves at 5.5 million tonnes grading 14% zinc, signifying 778,000 tonnes of pure zinc metal, almost 50% higher than Galmoy's own estimates. This means there is a 50% increase in the number of years production left in the Galmoy mine seven and a half years rather than five. Also excluded is Arcon's other known reserves, such as Harberton Bridge in Kildare, which has an estimated 3.7 million tonnes grading 10% zinc, and the Rapla Prospect adjoining Galmoy, which has an indicated 2.7 million tonnes grading 7% zinc. Hayes advises shareholders that "the Galmoy Mine now has a commercial life of approximately five years" and adds that "the proven Zinkgruvan Mine has a significantly longer remaining commercial life currently having an estimated eleven year reserve life", without giving any backup data or geological report. It is significant too that if Arcon were only to produce at Lundin's current production of 52,000 tonnes of zinc metal, Galmoy could actually produce for the next 12.5 years, and that is assuming Harberton Bridge, Rapla and the area from Galmoy down to Lisheen are all also ignored. The other producing mine Lundin has in Storliden in northern Sweden where the company has just increased its 27% shareholding to 100% at a cost of 22m is hardly worth talking about. According to Hayes this only has "an estimated remaining commercial life of approximately three years". ZINC PRICE When you consider that, on a pro forma basis, if Lundin had owned both of its present mines for the whole of last year it would have made a small profit of only 5m, there is little to justify its current 300m capitalisation. The jump in the zinc price this year will, however, seriously increase returns and particularly so with Arcon contributing. It could also be that Adolf Lundin, an impressive operator judging by the Zinkgruvan mine deal, has a much better chance of sorting out the European zinc smelter cartel, now that he is producing a hefty 200,000 tonnes of zinc pa. Although Arcon shareholders are getting a lousy deal from Lundin at least, they are getting 28 cent in cash per share, which is actually not much different to what the shares were trading at up to a couple of months ago. The 24 cent equivalent in Lundin paper could well be worth holding, especially if Adolf Lundin can pull off any more sweet deals. It will also be interesting to see how Tony O'Reilly rides his 10% stake in Lundin Mining and, in particular, whether he participates in any future fund raising the company undertakes. |
Posted at 13/3/2005 19:41 by hypocrite HermesSunday Tribune Tara Mines owner offloads Lundin stake! Boliden, the Swedish mining conglomerate that owns Tara Mines, has sold a 6.7% stake in Canada-based LUNDIN MINING, the firm that said less than two weeks ago, that it is buying ARCON RESOURCES for E94 million in cash and stock. BOLIDEN which is the third largest zinc miner in the world, said it had sold the Lundin stake to an "accredited investor". It will realise a gain of E2.2 million on the share sale. Arcon majority shareholder Tony O'Reilly will get about E40 million in cash and E40 million in Lundin stock as a result of the recent acquisition. Lundin stock price has risen by over 25% so far this year;and rose by some 1.5% on news that Boliden had sold it's stake. Last week Outokumpu which had sold the Tara operation to Boliden, offloaded a 10.4% stake in Boliden, raising E115 million in the process. Outokumpu had acquired the shareholding in 2003 in part exchange for mine and smelter capacity it transferred to Boliden in a E849 million transaction. |
Posted at 07/3/2005 20:56 by hypocrite The Arcon CEO said last week that the Arcon mine life was onlyfor the next 5 years....... Yet several Press Releases from Arcon during the former ceo's time were designed to get investors to believe the mine life had nearly trebled....... Then you read the third justification for the merger...as follows... "Enlarged group's ability to commit resources for, investment in, and exploration around, the Galmoy mine makes it possible to seek to further enhance operational efficiencies and expand mine life" All of which has already been done...... and announced by Kevin Cross....former CEO of Arcon. So when after the merger does the new company expect to spring this lovely surprise on the new company's shareholders....whic also include dont forget...you and me!!!! |
Posted at 07/3/2005 14:02 by rambutan2 evidence abounds that we being sold on the cheap:from resource investor... Rae sees the nickel market moving into balance in 2006, but it reverts back to a state of chronic deficits thereafter. In fact he warns that this period is remarkable for the risk of a supply side shock given low inventories and mines running at breakneck speed to keep up with demand. It's much the same in the zinc market which metal has been the laggard until recently when it began to handsomely outperform every base metal cousin in sight. TeckCominco's Andy Roebuck { Listen to Andy Roebuck} said the late start was caused by phantom inventories that started becoming visible in late 2003. These were stocks "hidden in plain sight," said Roebuck, ascribing the anomaly to off-warrant metal that was in fact in the LME warehouses. Since September 2004 no further phantom zinc has hit the market and, as a result, the price has been on an after-burning run higher as warehouse levels are drawn back toward normal levels of 5-weeks of consumption. However, China's appetite for zinc is such that TeckCominco expects below-average stockpiles by the end of this year. What's more the developing deficit has no near-term supply to cushion price impacts, whilst refining capacity is actually declining. "There has been a fundamental shift in the market," said Roebuck, using a phrase that delegates heard repeatedly. from an aussie visitor... CBH RESOURCES LTD PRESENTATION Australian listed zinc-lead-silver producer, CBH Resources Ltd (formerly Consolidated Broken Hill ;ASX:CBH; current price AUS$0.30; market cap $150m; www.cbhresources.com The Company recently announced an AUS$5 million profit for the December half year and declared its maiden dividend (after only 15 months of operation) on the back of improved output from the flagship Endeavor mine in New South Wales coinciding with stronger commodity prices. Zinc prices have increased by 30% in the last 3 months as LME stocks move down, prices are anticipated to rise to at least 1989 highs which is still 60% above current levels. The Company generated AUS$144 million in revenue in 2004. |
Posted at 06/3/2005 17:25 by hypocrite Picture of Arcon's Peter Kidney again today in The Sunday Tribunewhich report.s as follows: O'Reilly gives up the Zinc King feeling! It must have been with some relief that Tony O'Reilly decided to accept an offer for Arcon Resources, the zinc and lead mining firm that has soaked up so much cash in recent years. A major refinancing last year saw O'Reilly stump up E12.5 million to pay down Arcon's debt and put it back on a more sound footing, but his total investment in the company has been more than E60 million. The new owner, Canadian Lundin Mining is paying E94 million for Arcon in cash and stock. O'Reilly held a 72% stake in Arcon and will receive E40 million in cash and roughly E40 million worth of Lundin mining stock. It is the end of a bleak period for Arcon investors as the weak price of zinc on global metal markets hit the company. Zinc prices have been at rock bottom in recent years, and were among the last of the metal prices to improve this year following rises in other commodity prices of metals such as copper and nickel. BUT, speaking to the Sunday Tribune recently, Arcon Chief Executive Peter Kidney said the company has customers "knocking down the door" due to the shortage of zinc on world markets and has already been approached by one Chinese client seeking to buy it's entire annual output. The market price of zinc could also be set to rise higher as stockpiles are depleted, all heralding a real reversal of fortune for Arcon and other operations here including Boliden's tara mine. PS: I wonder if that report marks the end of that particular reporter's career!!! |
Posted at 03/3/2005 09:44 by britishbear Big news - city does not like it - effectively a takeover but at a price BELOW the current price. Looks like we will have little choice but to accept unless a white knight arrives. I will NOT accept but this will make no difference of course.-------------------- RNS Number:2848J Arcon International Resources PLC 03 March 2005 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED STATES, AUSTRALIA OR JAPAN Lundin Mining Corporation ("Lundin Mining") and ARCON International Resources P.l.c. ("ARCON") ANNOUNCE INTENTION TO MERGE Highlights of the Intended Merger Transaction *Combination will create a diversified European base metals producer with aggregate annual zinc production of approximately 152,000 tonnes and lead production of approximately 46,000 tonnes (each based on year ended December 31, 2004), as well as copper and silver production and a substantial exploration portfolio *Enlarged group expected to have combined pro-forma liquid investments of approximately US$45 million *Enlarged group's ability to commit resources for, investment in, and exploration around, the Galmoy mine makes it possible to seek to further enhance operational efficiencies and expand mine life *Anticipated improved trading liquidity for shareholders The Board of Lundin Mining and the Board of ARCON announce that agreement in principle has been reached on the terms of a merger of the companies which the Board of ARCON anticipate they will recommend. To effect the proposed merger, Lundin Mining would make an offer, subject to an 80% minimum acceptance condition, for the entire issued share capital of ARCON in exchange for US$63 million cash, currently equivalent to approximately Euro0.276 per ARCON Ordinary Share, and 5.6 million shares in Lundin Mining, currently equivalent to approximately Euro0.262 per ARCON Ordinary Share (each based on the exchange rates referred to below). Based on the current issued share capital of both companies (undiluted) this would result in ARCON shareholders having an aggregate interest in Lundin Mining following the merger of approximately 14%. Lundin Mining anticipates making the offer as soon as practicable. Sir Anthony O'Reilly, the principal shareholder in ARCON, has advised that an offer on these terms would be acceptable to him. For the purposes of this announcement, the Board of ARCON is comprised of all Directors of ARCON other than Mr. Tony O'Reilly Jnr, the current Chairman of ARCON, who is expected to be appointed to the Board of Lundin Mining following completion of the merger. The value of the proposed offer is US$122.7 million, equivalent to approximately Euro93.6 million (based on a 1.3101 US$/Euro exchange rate, a 1.2431 C$/US$ exchange rate and the share price of Lundin Mining on March 2, 2005 (being the latest business day prior to this announcement)) and equating to Euro0.538 per ARCON Ordinary Share. While this represents a discount to the last dealt price per ARCON Ordinary Share on the Irish Stock Exchange on March 2, 2005 (being the latest business day prior to this announcement), the Board of ARCON recognise that the current ARCON share price follows a short period of strong share price appreciation, with limited liquidity. Relative to the average closing price per ARCON Ordinary Share over the twelve, six and three month periods prior to this announcement, the offer price represents premia of approximately 32%, 35% and 30% respectively. The Board of ARCON anticipate that they will recommend this offer, once formally made at this level, having regard particularly to the opportunity represented by the share element of the offer consideration which provides ARCON shareholders with the opportunity to retain an interest in ARCON's exploration prospects around the Galmoy mine, while also participating in the exploration and production diversification, and improved cash flows of the combined group. Such a decision is based on the Board's belief that the combination of Galmoy with Lundin Mining's interests would not only maintain the ability of ARCON shareholders to capitalise on the prevailing high commodity price environment, but would also expose ARCON shareholders to a broader asset portfolio and a group with a strong balance sheet for future growth. The improved cash flows and cash resources of the combined group will make it possible to further develop the Galmoy mine by investing in operations, production and exploration, thereby exploiting the mine's full potential. Lundin Mining, which is listed on the Toronto Stock Exchange and on the O-list at Stockholmsborsen (the Stockholm Stock Exchange), is a Canadian mining and exploration company with a primary focus in Europe. As at December 31, 2004, the company had cash of approximately C$105 million (US$85 million) and investments with a market value approaching US$30 million. The principal asset of the company is the Zinkgruvan mine in Sweden. The mine has been producing zinc, lead and silver on a continuous basis since 1857, and currently has an estimated 11-year reserve life with additional resources that could support mining for a further 8 years. Lundin Mining also holds approximately 74% of the shares of North Atlantic Natural Resources (NAN), a mining and exploration company listed on the Stockholmsborsen O-list. NAN's primary asset is the Storliden copper and zinc mine in Northern Sweden. A public offer has been made for the remaining shares of NAN by Lundin Mining, and is expected to close March 4, 2005. For the year ended December 31, 2004, the Zinkgruvan mine produced approximately 61,547 tonnes of zinc at cash costs of approximately US$0.23/lb of zinc, while Storliden produced 22,348 tonnes of zinc at cash costs of approximately US$0.11/ lb zinc (both net of by-product credits). Lundin Mining also holds a large copper/gold exploration project in the Norbotten Mining District in northern Sweden. In December 2004, Lundin Mining entered into an agreement with Silver Wheaton Corporation, whereby Lundin Mining agreed to sell all of its silver production from Zinkgruvan to Silver Wheaton Corporation for an upfront cash payment of US$50 million, in addition to 6 million (post-consolidation) Silver Wheaton shares (ticker symbol: SLW on the TSX), and 30 million Silver Wheaton warrants (ticker symbol: SLW-W on the TSX), plus an ongoing payment of US$3.90 per ounce of silver produced. Mr. Lukas Lundin, Chairman of Lundin Mining, said: "This merger will create a premier zinc mining investment choice for investors. With three low-cost and profitable mines focused in Europe, the combined company will generate substantial cash flow which will be used to further enhance the company's growth strategy. The merger will combine two quality management teams who can invest immediately in the Galmoy mine to further enhance operational performance and to seek to expand the Galmoy mine life through a substantially enhanced exploration program. The combined entity will continue to have the backing of the Lundin family, with its track record of adding shareholder value, and the involvement of Sir Anthony O'Reilly, ARCON's principal shareholder, who, following completion of the merger, will have a significant interest in the share capital of Lundin Mining (approximately 9% on an undiluted basis)." ARCON is an Irish mining and exploration company that is listed on the main markets of the Irish Stock Exchange and of the London Stock Exchange. The main asset of the company is the Galmoy mine located in Kilkenny County, Ireland, which, following the discovery of the "R" zone in 2003, has been recently extended by the grant of State Mining Licence No. 8 in respect of part of the "R" zone. Royalty terms agreed with the Irish Government's Department of Communications, Marine and Natural Resources on SML 8, all existing licences and any further new 2005 licences are 1.25% of revenue for the period from March 24, 2001 to June 30, 2006 and 1.75% thereafter until cessation of production. The Galmoy mine, for the year ended December 31, 2004, produced approximately 69,000 tonnes of zinc and approximately 15,000 tonnes of lead. Mr. Peter Kidney, Chief Executive of ARCON, said: "The combination of ARCON and Lundin will be a tremendous opportunity for ARCON shareholders to participate in the creation of a substantial European-based base metals company with considerable exploration potential. The timing of this potential transaction captures the recent strength in both zinc and lead commodity prices and enhances investor exposure to them." The making of the offer is subject to certain conditions including the provision of an undertaking by Sir Anthony O'Reilly to accept the offer, the obtaining of all requisite regulatory body approvals and the execution of an agreement between Lundin Mining and ARCON in regard to the conduct of the proposed merger. There can be no certainty that an offer will be made, and, if an offer is made, there can be no certainty as to the terms and conditions of that possible offer. An independent committee of the Board of ARCON will be established for the purposes of considering the offer, if and, when it is made. Davy Corporate Finance Limited have been appointed to provide independent financial advice with respect to the offer, if and when it is made. Lundin Mining have appointed Macquarie Bank Limited to provide advice in relation to the offer. A further announcement regarding the formal offer will be made in due course. |
Posted at 21/2/2005 11:20 by hypocrite DOLMEN DAILYDisclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. www.dolmensecurities Dolmen House, 4 Earlsfort Terrace, Dublin 2, Ireland. ▪ Tel : +353 1 633 3800 ▪ Fax : +353 1 677 7044 ▪ Email : info@dbb.ie 45 South Mall, Cork, Ireland. ▪ Tel : +353 21 422 2122 ▪ Fax : +353 21 422 2123 ▪ Email : cork@dbb.ie DOLMEN SECURITIES Breaking News Arcon set for strong 2005 All the latest indications are pointing to a very strong year for Irish zinc miner, Arcon. Recent strong results from Australian peer company, Zinefex, would suggest that, with zinc prices at seven year highs, Arcon is set for a bumper 2005. Zinc prices are currently trading at around $1,300 per tonne and provided that Arcon achieves its forecasted production levels, the company should easily beat current PBT forecasts of 16.5m for 2005. far more than is often acknowledged. |
Posted at 16/2/2005 13:06 by hypocrite Nope not euros......Euros are less...are'nt they? 985 a ton today...dollars.... Cant say for certain as to when the start date for revenue from the lead mine???? Problem with Arcon's share performance may... repeat may..or ..might....have something to do with it's plans...if any....outside of Ireland..... might not want the share price to move outside of the narrow band it has been stuck in since the reverse consolidation....... might be why they have'nt finished with the capital write down application.... Anyway...they are bloody slow at what they are doing and dont't sem to be in any hurry to remotivate new or existing retail investors. Caveat Emptor!!1 |
Posted at 11/10/2004 04:09 by hypocrite Hi Ram....can you post the text of the Investors Chronicle tipfor Arcon? Thanks?? |
Posted at 14/9/2004 15:46 by hypocrite The shareholding structure of the Company with circa 65% O'Reilly,9% formerBankers and 9% Institutional Investors, leaving a free float of 17%........ |
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