Cape Lambert Iron Ore Share Discussion Threads

[littlemadam] 31/7/2008 10:36

so, what's in this for CLIO?

[ianbrewster] 30/7/2008 12:30

Eastwind - I think it would depend on whether you own UK or Oz listed shares.

If you have UK shares, then I believe only UK taxes will apply i.e. any gains over GBP 9,600 for the year 08-09 are taxable at 18%.

Not sure what the Oz tax regime is if you own shares through ASX.

Of course no tax if shares held in an ISA!!

[teh knight of no] 30/7/2008 11:19

Three fat ladies.

[eastwind] 30/7/2008 11:18

IanBrewster, do UK investors have to pay Oz capital gain tax? Will this be deducted at source? If the total value of my investment is only £5,000, do we still need to pay CGT?

Thanks in advance.

[divinausa1] 29/7/2008 11:14

i expect this to trade under 20p as most AIM companies are trading heavily discounted to cash. Should of sold at 40p+ have to wait awhile to see that price again. heres hoping for a sub 20p top up

There remaining resource is valued as worthless.

[ianbrewster] 29/7/2008 10:14

prices in Oz and UK now back in-line. Same OZ went up a little and UK went down another 13%!!

Re tax: the in-specie distribution is a return of capital therefore no income tax, but a CGT gain. The 'possible' dividend would be treated same as any other divi.

[paulie1] 29/7/2008 09:56

i think i may have bought in to early 30.5p!!!

[eddie catflap] 28/7/2008 19:34

Very surprised by the -32% fall in OZ. Was there really a 32% takeover premium in the price?

Just an opinion, but i think the fall was due to the following factors:

Obviously a takeover bid had been expected (and as yet there is no explanation for the Evraz accumulation)

Disappointment with the rewards accruing to shareholders. The huge amount of options has reduced the value per share. Further, there was an unexpected (by me) finders fee to pay; Aussie Tax and there may well be tax on the distribution to UK shareholders.

There was also clearly an execution risk to the sale, now removed. However, has that been replaced by a time-frame discount? ie The upside is now (possibly)limited but there is an opportunity cost to pay by holding and waiting.

I just wish i could work out exactly how much the damn thing is worth!

[ianbrewster] 28/7/2008 15:44

Is the current share price about right??

If you take the net assets from the balance sheet on p34 of the EGM notice, that gives AUD 233.6m as the value of the co after the transactions take place.

If we add back in the 37.7m return of capital, we get 271.3m

Divide by current shares (320.5m) we get AUD 0.846 or 41p per share


If you add in all the options (and most can be exercised at below the current sp) then the co receives an extra AUD 66.7m and the no of shares goes up to 524.2m.

That gives us AUD 0.645 or 31.4p per share

Basically values the co at cash, leaving the retained exploration in for nothing.

As far as I can see London is currently at a ~16% premium to ASX. Who is right, or could there be some UK/Oz tax differences influencing the prices?

Have I got the numbers right?
Any thoughts?

[bucho] 28/7/2008 14:05

Per page 19 of the company's notice of the general meeting, "the Record Date will be 5.00pm WST on that date which is 6 business days after the later of payment of the Second Tranche Payment pursuant to the Sale Agreement and receipt of the audited 30 June 2008 accounts."

The Second Tranche Payment is expected to be 15 September 2008, so the Record Date is likely to be around the end of September.

Bucho

[the metal man] 28/7/2008 11:42

Not sure on this one. One of the arguments against the MCC deal in the press allegedly from Evraz considered the deal meant CLIO shareholder returns would not be as much due to net receipts to the company after Aussie tax. However, I would imagine that for UK shareholders, UK tax rules would still apply on any net gain. I should think tax could be payable on any profit from investments above your annual allowance for the financial year. I don't know whether or not they could get around this by paying it as a special dividend.

[eastwind] 28/7/2008 11:09

What is the tax implication for us UK holders? Will the tax be duducted at the source?

[the metal man] 28/7/2008 11:04

They did not launch a bid, and the best time for that would have been prior to the vote. Reading how the vote went, I find it hard to establish the numbers as the proxy vote against was small. It is a mystery other than they will benefit from the payout, then have a stake in the remaining assets. It might still be possible for them to launch a takeover but I can't see the benefit of that at this time. The key point now has to be the qualifying date for return to shareholders.

[littlemadam] 28/7/2008 10:15

But we are still none the wiser as to why Evraz built up their stake.
Any guesses?

[the metal man] 28/7/2008 09:21

The sale to MCC proceeding. There will be an element of cash repaid to shareholders although they have yet to record the date for qualifying shareholders (on the register at the time).
This is certainly a reaction to the lack of a bid from Evraz prior to the vote, the very reason the share price advanced over such a rumour. For the moment it is back to where we were with the MCC sale before Evraz turned up on the scene, so in that sense, nothing has changed.
No doubt many have sold prior to this and might even be buying back in at the lower level in the hope of qualifying. It will be good to know what the record date is.

[jailbird] 28/7/2008 09:14

all good ,sale approved..we should go back up now.

[paulie1] 28/7/2008 09:06

whats happened?

[divinausa1] 28/7/2008 06:01

down 14% in Aussie does not bode well

[the metal man] 25/7/2008 17:28

Probably. It depends how other shareholders vote. If enough abstain or, vote against the sale, then yes.
It has been suggested that one reason for blocking the sale is because the Chinese Government have not yet given Evraz clearance to buy Delong, a Chinese steelmaker, in which it holds an equity stake. Delong in turn owns CLIO stock. Evraz have purchased the maximum allowed before it is obliged to launch a bid, but alone it is not enough to block the vote. If they succeed they might be able to buy up CLIO shares on the cheap and make a lower bid. Either that or, they might invest in the project.
A bid for the company would make sense for Evraz as it would give them a foothold and allow them to expand in a mineral rich region. If the latter were the case, why take the gamble of trying to block the vote unless for one or more of the other reasons stated?

[littlemadam] 25/7/2008 12:48

why would they do that? (and upset the Chinese ).
Do they have sufficient voting power?

[the metal man] 25/7/2008 10:15

More options converted to shares this morning, market admission on the 31st. Interesting given the vote is on the 28th.
In the absence of any move today we should presume that Evraz want to just block the MCC purchase.

[littlemadam] 24/7/2008 08:44

TMM. Just joking, of course. I am well capable of making up my own mind.
Similarly my husband is not a 'yes' man - when I say "No", he says "No"!

Seriously, as you say, great shame there was not more discussion here.

Cheers.

Here waiting for a skip, which the man promised he was delivering b4 8 a.m.

[the metal man] 24/7/2008 08:14

littlemadam - I can't tell you that and I am surprised that you asked. There has been very little discussion on this board, which is unfortunate as a few more opinions might help you weigh up the pros and cons as they might offer a different perspective or, offer a view that nobody has yet considered. With a bit of luck that might yet still happen. I have given my opinion and my reasons so perhaps you should check some other discussion boards and see what is being said, and even go over some of the news items. Good luck, MM.

[mitz] 24/7/2008 08:11

littlemadam
was your hubby right in the election vote do you think,if so ask him to chose
ha ha

Pageos

[littlemadam] 24/7/2008 07:51

what should i vote for TMM? sorry, so used to hubby telling me which party to vote for in elections!