Central Asia Metals Share Discussion Threads

[samdb] 07/9/2017 22:40

The person who broke the story was Betaville but he charges £1000/month for access.I'm happy to chip in £1 if everyone wants to go in.

[warranty] 07/9/2017 22:10

Thanks for the heads up caper, not actually in Chesterfield then!!

[lord gnome] 07/9/2017 21:43

If the inquiry was from a hack working for the Kazakhstan Echo then I am not surprised that the news hasn't surfaced over here. Clearly, the British financial media have managed to contain their enthusiasm for this story.

[capercaillie] 07/9/2017 21:06

Quite surprised that no press insight has broken as to the "third party" as the shares were suspended following an enquiry.

[mount teide] 07/9/2017 20:26

Going to check with Proactive tomorrow to see if CAML are still planning to attend in light of this week's RTO announcement - if so, i will be arranging to go as its usually Nick Clarke who does the investor presentations and Q&A, as he makes himself available for networking afterwards in the bar.

If CAML do still plan to attend, it could suggest an RTO announcement 'in weeks', may occur prior to Sept 21.

[capercaillie] 07/9/2017 20:09

Being based in the North I looked into attending but the venue is the Chesterfield Mayfair and not Chesterfield Derbyshire.

Will be interesting if CAML do indeed attend depending on what the current state of affairs are.

[warranty] 07/9/2017 16:44

CAML management along with other mining companies attending a Proactive Investors One2One investor meeting in Chesterfield on 21st September. Anyone going along to see if anything is said?

[arf dysg] 07/9/2017 15:27

from the announcement at 07:00 on 4th September 2017:
"the Directors of CAML confirm that they are in advanced talks with a third party which may lead to [...] a reverse takeover"


The interesting phrase "advanced talks" may make one optimistic that there is not long to wait, certainly a lot less than 6-9 months.

[purple11] 07/9/2017 06:57

suspended aim shares is never a good situation for a shareholder.

wait 6-9 months and itll probably trade again gl

[arf dysg] 06/9/2017 13:55

Cosmo Kramer, are you sitting on a cactus?

[defcon3] 06/9/2017 12:22

Thanks for the responses, but that post wasn't mine. That was an article Gary Newman penned for Shareprophets. A good article imo.

[mr.oz] 06/9/2017 12:13

ok, cheers for the response and info

[gary1966] 06/9/2017 12:06

mr.oz,

No notice of results RNS has been issued and so I would assume that no results forthcoming in the immediate future. I speculated previously that the notice hadn't been issued as in previous years as a result of what is going on in the background. I personally would also like to know if the suspension is going to affect the timing of the dividend.

I am not going to contact the company again about these two things as the response I got the other day regards another query suggested to me that their hands are tied presently about what they can say.

ATB

Gary

[masurenguy] 06/9/2017 11:39

Thanks Defcon3 - some good insight in your post #902

[basem1] 06/9/2017 11:32

Thanks defcon. A well informed and considered post. Let's hope you are correct.

[mr.oz] 06/9/2017 10:11

Great summary post , thank you

Have been quite surprised not to hear more speculation.
I believe there are the H1 results due in a week or so, the release of such should be unhindered by the suspension. So not long before there an opportunity for the company to give a little more flesh on the bone

[defcon3] 06/9/2017 10:05

Although you can't currently trade shares in Central Asia Metals (CAML), given my bullishness on the company I felt that I should take a look at the current situation following news of a suspension in trading at the start of the week.Often when you see this type of RNS from an AIM resources company you immediately assume the worst, but in the case of Central Asia Metals I still very relaxed about the decent sized shareholding that I have in this Kazakhstan-based copper miner. In this case, the news was cited as having been sparked by a press enquiry about advanced talks that it is currently having with a third party, which could ultimately lead to a reverse takeover.This news seemed to cause panic and plenty of speculation amongst private investors on the bulletin boards, with all sorts of theories being put forward – the favourite seeming to be that a deal was being done for fellow AIM-listed miner Atalaya (ATYM), and its Spanish copper operations.I'm not really sure where people got that idea from – other than maybe trying to give shares in Atalaya a further boost! – but not only does it not really fit in with the part of the world where Central Asia, and those running the company, have typically operated, but it also wouldn't constitute a reverse takeover anyway, so I think we can dismiss that as a possibility.A reverse takeover under AIM rules typically involves a private company using it as a way of gaining a market listing, especially on markets such as the UK, without having to pay the fees, and often the listed company will just be a shell. Alternatively, it can also involve a company taking over one with a greater market cap, but if that was the case here and the other business was listed in London, then I would expect trading in that company to have been suspended at the same time.The difference here to many situations is that Central Asia has been performing very well of late, and people are expecting the next set of results to be even better, with further significant cash build on top of the $40 million odd that it had in the bank at the end of 2016. It also makes a very healthy net profit – over $26 million for 2016 during which time it achieved an average selling price of just $2.26 per pound for its copper. The metal has now convincingly broken above $3.1/lb, and the company should be in a very strong position financially.At a share price of 255p and a market cap of £280 million – not to mention a very healthy dividend yield in the region of 6% - I would argue that many investors had half been expecting a bid to come in for the company, given how cheaply it appeared to be trading. With that in mind, I can see an outside possibility that this current move is actually to fend off potential predators looking to take the company out cheaply.When it comes to exactly which private company it could be looking to do a deal with, that is anyone's guess, but given that Kazakh oligarch Kenges Rakishev holds over 19% of the shares here, I wouldn't be surprised if it involves one of the many companies under his control. If that is the case then some may see that as a concern, but given that other institutional investors hold around 47% of the shares, they aren't going to let a deal go ahead unless it is of benefit to the company.I believe that is also the case when it comes to the board, who not only have built the company to a level where it is making a profit, but since listing in 2010 have also managed to return all of the $60 million raised initially, via dividends – a minimum of 20% of gross annual revenue - and share buybacks. So it certainly isn't an outfit that is in the business of milking investors! It is also a company that has been extremely careful with its money and investments, so I would have to assume that the current opportunity is too good to ignore, given that it was only last November when it acquired an 80% interest in the Shuak exploration licence, and I fully expect the current potential deal to relate to larger producing assets.The team behind the company has a lot of experience in the sector, and executive chairman Nick Clarke was managing director at Oriel Resources at the time of its $1.5 billion acquisition by OAO Mechel, so he does have form in the mergers and acquisitions area. Barring anything negative completely out of the blue, which would seem unlikely given the recent operations update that stated that everything was at least on forecast, I remain optimistic that this potential transaction will be good for the company, and of course for shareholders in the long term.In the meantime though anyone who is holding shares here will just have to remain patient until full details of any potential deal emerge, or negotiations breakdown – at which point I would expect the company to recommence trading and to continue performing well, especially if copper prices are still this buoyant.

[basem1] 05/9/2017 08:00

I too was in in Sibir energy, it's where all my good luck began, many years ago. ( 2008 maybe ) Turned £3425 into £12,500. Thought I'd lost it all though when the shares were suspended.

[alan_a_walker] 05/9/2017 05:40

Certainly an enlightened company - check out their website blog

[napoleon 14th] 04/9/2017 22:24

All we can do is guess, but in terms of likely guesses, this takes some beating:
"Interesting - Could be he is lining up a London quote for SAT & Company? :
"Since November 2006 Kenges Rakishev is the large shareholder and chairman of the board of SAT & Company (KASE: SATC), a diversified industrial holding combining more than 30 companies across different industrial sectors, such as mining, metallurgy, construction, mechanical engineering, oil trading, minerals exploration and recycling. From 2008 Sat & Company rapidly increased its international presence through acquisition of the new assets in China and Turkey (ferroalloy plants and mining companies exploring ferroalloys, chrome, nickel, zinc and coal). According to Bloomberg, by the beginning of 2013 market capitalization of Sat & Company made up $500 mln. By December 2015 Rakishev gained control over 75,61% of the company's shares.
In June 27, 2013 Central Asia Metals plc (LSE:CAML), an international producer of the cathode copper became the sole owner of Kounrad copper project in Kazakhstan by exchanging 20% of CAML shares into 40% of Kounrad stake owned by Kenges. Thus, Kenges was appointed as non-executive director of Central Asia Metals plc.
On March 13, 2014 Kenges Rakishev joined the board of directors of JSC "National Company "Kazakhstan Engineering" - large holding combining 27 enterprises of the defensive industry and munitions factories of the Ministry of Defence of the Republic of Kazakhstan. He left the board one year later, upon the appointment of Imangali Tasmagambetov as the new Minister of Defence."

So SAT is c. twice CAML's mkt cap & has 20%....
Still, anything is possible in that part of the world where a large part of the ruling class have a criminal record! I'm an ex-shareholder in Sibir Energy where the story finished well, but not after legal fights, suspension, ripped off by Robin' Roman Abramoschmuckovitch of Chelski fame, & earlier as a shareholder in JKX Oil & Gas who had to fight tooth & nail in the late '90s to avoid being fleeced in Ukraine.
If you like a bit of light reading in this vein, try "Red Notice" -
hxxps://www.amazon.co.uk/Red-Notice-Became-Putins-Enemy/dp/0593072952

Oh, and BTW I have a few camels..........

GLA.

[mount teide] 04/9/2017 18:49

speccy1 - would second that - Nick Clarke is one of the most impressive business managers i've met - comes across as someone with 'old school' integrity and values, who knows his brief and the industry inside out.