Asa Resource Share Discussion Threads

[wstirrup] 05/9/2017 10:49

robson1974 20 Aug '09 - 09:38 - 3273 of 14630 0 0

Mwana and BNC, working with BNC’s stakeholders, are developing options for a new business model at BNC that may result in a lower cost of supply from BNC’s mines while maintaining BNC’s smelting and refining capacity, and are investigating the availability of external funding for any additional investment that may be
required.

Hunters Road
A feasibility study for the Hunters Road project was completed in 2008. The project involves development of a probable reserve, estimated based on a nickel price of $7.50 / lb, of some 175,086 tonnes and indicated resource
of 53,890 tonnes of contained nickel, and construction of a new concentrator. Production from the first phase of the project, estimated in December 2007 to cost approximately £47.8million, is expected to be approximately
2,500 tonnes of contained nickel per year, with phases two and three bringing total production to 10,000 tonnes of contained nickel per year.
During the year, £1.9m was spent on the Hunters Road project. However, owing to the decline in nickel prices and BNC’s move to care and maintenance, further expenditure was put on hold.
The company is looking at ways to optimise the development of Hunters Road in the context of the revised business model at BNC.

robson1974 20 Aug '09 - 10:06 - 3278 of 14630 0 0

This is interesting from the Annual Report

Bindura Nickel Corporation (BNC)
Mwana Africa owns 52.9% of BNC, and the assets and liabilities of the company are fully consolidated into Mwana Africa’s accounts. BNC owns the existing Trojan and Shangani mines, the Bindura Smelter and Refinery complex, and the Hunters Road project.

The recoverable value of BNC as at 31 March 2009 is estimated to amount to £21.5m, based on an estimate of its value in use. This has been derived from a forecast of potential future cash flows, discounted at an assumed pre-tax cost of capital of 20%. The potential future cashflows have been estimated on the assumption that BNC’s mines, smelter and refinery operations are returned to production, and that the Hunters Road project is brought into production requiring aggregate capital expenditure of $171m. A nickel price of $7.50 / lb has been assumed.

The sensitivity of the valuation to these parameters is as follows:
10% increase in nickel price forecast Increase in fair value of £39.7m
1% point increase in cost of capital Decrease in fair value of £3.8m
10% increase in capital expenditure for Hunters Road Decrease in fair value of £6.5m


Evidence of spending... and expected requirements?

W.

[jacks13] 05/9/2017 10:48

So where's the counter bid?

[plasybryn] 04/9/2017 19:28

TimGW: could be! Ha Ha
I believe there are lots of genuine posters on ADVFN who have stalkers red flagging them for apparently no logical reason, & ADVFN, for some reason, aren't prepared to do anything about it.
I think many see it as a badge of honour however!

[timgw] 03/9/2017 18:27

Plasybryn - You got another "red" against your comment within minutes of posting. Are you being stalked by the Chinese!?

[plasybryn] 02/9/2017 18:16

I have spoken to them on the telephone and obviously they can't say anything at this stage, but having done that I am very happy to wait for their report which won't be long in coming. I think we can all be assured they are working hard in the best interests of shareholders, creditors and any other stakeholders.

[timgw] 02/9/2017 16:59

Rather than ranting here it does occur to me that perhaps we should write directly to the Administrators expressing out concerns in a forthright manner. Anybody got any thoughts on this? I do believe that there should be criminal charges but who and where would seem to be the issue.

[plasybryn] 01/9/2017 19:21

Good post by Parkhurst on LSE1. On Nickel First and generally global demand for stainless steel is and will be growing further, slowly but surely. Then the delta demand from the gigantic century silk road project will start kicking in more seriously soon. In addition to which we will be getting ever more demand resulting from the enormous global electro-mobility project. Nickel will remain an integral part of future battery technology. On another note people in Asia and elsewhere (Philippines, China, Indonesia etc.) are becoming ever more environmentally conscious. "Dirty"processing technology is currently being phased out on a large scale in China. Meaning the days of NPI have been shortened massively. This all augurs well for future Nickel prices. 2. On BNC NOMZ, your DYOR research is not spot on it seems. If, from what I know BNC were already surviving on Nickel prices of $ 8,800/t which they proved they could, then it stands to reason that @ $12,000/t it's a major uplift on income. As they say, do the maths. The first bond capital repayment was due 1 Sept and BNC (listed in Zim) would have had to tell the market in Zim if this wasn't going to happen. So, NOMZ, either you have a hidden agenda or you don't know the facts. Your commentary is pure speculation unless it can be backed up. General developments at the macro level then (see above) are pointing towards better nickel prices and thus near-term operational smelter viability. 3. On FRM At FRM we should nearly (last info was well before YE) have all our ducks in a row machine-wise to see production being jacked up to 80 resp. 90k ounces p.a. AISC should then move from $ 1,050 to just under $ 1,000. At current gold prices we would easily see profit levels over $ 20m for FRM instead of the ~$ 15m we are seeing now. And some authoritative pundits have it that we might well be seeing further strength in the gold price too.

[cdmona] 01/9/2017 18:07

Would someone be kind enough to briefly summarise the situation please. Thank you - CDM

[iamald] 01/9/2017 12:35

Goggin - have you seen the administrators report? I didn't know it was out yet.....or you have inside information? Just curious.

[goggin] 01/9/2017 12:04

Am fully accepting, this company is insolvent, painful as it may be, if this take over hadn't come about, we would be looking at supporting 1p and then massive dilution yet again. As the company struggles to raise money, they are all crooks and this offer from one set is better than getting nothing from the other set. This is painful for everyone, there are no winners, the buyers will have to fill a massive hole (pardon the pun) better to have something rather than follow pipe dreams and end up with a bust company

[juju44] 01/9/2017 09:00

nickel over 12000$ a ton .Bindura will be making mega bucks

[plasybryn] 31/8/2017 20:29

Courtesy VanVan on LSEhobsons choiceI really think you have got it wrong. There is no hobsons choice issue here. Why would you want to align with those who allegedly have tried to steal our Co. on the cheap? I would recommend you do nothing until the Administrators report is issued. Or if you have accepted, reverse that decision. You are entitled to do so. Whilst the date for the Report is set for 26th Sept. at the latest, it is likely to be concluded well before them. So not long to wait. In any event, RPI they want it bad as they know as well as anyone that at 2.1p it is massively undervalued (DYOR) and if they can't get near 90% (only 51.36% as we speak) they are bound to increase their offer again. But who knows what the Administrators are achieving on everyone's behalf. Don't play your cards until you know all the options that the Administrator presents & recommends. Hope this helps those who are undecided or those who have already made the mistake imo of giving their acceptance. DYOR research of course.

[timgw] 31/8/2017 17:41

Most of us are not offering advice but giving opinions based on our personal (and sometimes financially painful!) experiences.

[skidaddle] 31/8/2017 15:01

We're just trying to counter the financial advice that RPI seem to be giving us.

[casabella2] 31/8/2017 13:37

No need to be a financial adviser,just common sence

[mr macgregor] 31/8/2017 09:42

I had no idea how many financial advisers were contributing to this thread.

[plasybryn] 31/8/2017 09:27

Be right & sit tight.
Had the pain now hang around for the gain.
Reject reject reject!

[casabella2] 31/8/2017 09:22

Desperate for our shares i would say.They know like we do that the company is worth much more than they have offered.Do not let them have youre shares.

[wstirrup] 30/8/2017 16:30

If they are trying to bag us on the cheap, they couldn't have timed it better...

Just listening to Andrew Maguire, who is talking about CB buying (National Demand)



And he is likening the market to a coiled spring...

W.

[casabella2] 30/8/2017 13:07

Yes i remember now skidaddle ,when it first came to light.

[iamald] 30/8/2017 12:24

Meantime, nickel - 9000 June, 11600 - to 11800 today, copper 26000, now up to 30720.

Await more news....still won't sell.

[skidaddle] 30/8/2017 10:09

It was described as Anonymous who suggested that there was some dubious practices being initiated by certain Chinese individuals which started an investigation by non-execs which uncovered questionable goings on.

"ASA Resource Group PLC

04 April 2017

Asa Resource Group plc

("Asa Resource", "the Group" or "the Company")

Anonymous allegations: Freda Rebecca

The Directors of Asa Resource have received certain anonymous allegations relating to the operations at Freda Rebecca Gold Mine in Zimbabwe, in which the Group has an 85% interest. The allegations refer to certain aspects of the financial management at Freda Rebecca. "