Cerillion Share Discussion Threads

[kermit] 25/9/2007 07:35

Well i did say wait until we see the bid!

Derisory would be one word.......

Anyway it looks like its started and we have an agressive shareholder on our books with no respect to shareholder value.

Lets hope the managemnt will be strong enough to sell the story elsewhere..

[tsmith9426] 25/9/2007 07:24

looks like they want it on the cheap

[sagem] 25/9/2007 05:40

Tuesday, September 25, 2007. Issue 3750. Page 5.
Severstal Raises Stake in Celtic to 26.6%
By Catrina Stewart
Staff Writer
Severstal has raised its stake in gold miner Celtic Resources by 4.6 percent, fueling speculation that the steel firm will make a full bid for the London-listed company.

In a statement to the London Stock Exchange on Monday, Severstal, which is controlled by Alexei Mordashov, said its subsidiary Bluecove Limited now holds a 26.6 percent in the company. In August, Severstal acquired a 22 percent stake in Celtic Resources.

Analysts estimated the deal at about $12 million.

Sergei Loktionov, a spokesman for mining division Severstal Resurs, declined to comment on whether Severstal would make a full takeover bid, saying the company does not disclose its acquisition plans.

Last week, Celtic Resources said it had received a preliminary approach, which could lead to an offer for the company. Celtic did not provide any further details, but analysts speculated that Severstal would be the most likely suitor.

"It's a very good deal for Celtic Resources shareholders," said Andre Kroupnik, an analyst at RBC Capital Markets. "But we're a little bit puzzled about Severstal's reasons for the transaction. ... [Celtic Resources] doesn't have any really big valuable assets."

Marat Gabitov, a metals analyst at Aton brokerage, said he expected Severstal to make a full takeover approach for Celtic, while also seeking out other small gold plays.


"I think Mordashov has decided to pursue the gold story," Gabitov said, noting that based on current multiples, Celtic Resources is a relative bargain.

Mordashov said in early September that he was looking at setting up a separate gold mining company.

Mordashov's move on Celtic comes at a time when the gold price is nearing a 28-year high, hovering around $735 per ounce Monday. It has been buoyed recently by the weakening dollar and the ongoing uncertainty on financial markets. Goldman Sachs raised its gold forecasts Monday, predicting gold to trade up to $800 per ounce from a previous estimate of $715 on a six-month horizon.

"We believe that gold continues to gain support from the structural alignment in the relationship between gold and the U.S. dollar, driven mainly by rising consumer and central bank demand in the rapidly growing emerging markets," the bank said in a note to investors.

[dr_jono] 24/9/2007 21:31

Selling now is very foolish indeed. Any bid from Severstal must come at the minimum price they have paid for stock over the last year i.e. 232p. But let's see if Severstal will be challenged as this will potentially result in a more significant premium. I just can't understand why Foo will give it away here.

[goldharpongreen] 24/9/2007 21:13

this share price has risen enough

[zolota] 24/9/2007 20:39

Tsmith I was thinking the same. Just like I can't understand that there are still people selling with all the good news and a possible bid + these large spreads. Strange.

[tsmith9426] 24/9/2007 18:51

over 2m at 232 dont see that kinda vol over the last week so how did they get that much, any ideas

[liam1om] 24/9/2007 11:58

I really want to buy in here but with such a large spread it is not worth the risk.

Anyone know why its so large?

[tsmith9426] 24/9/2007 08:41

looks like its going to be Severstal seems like they took a few more friday,now at what price for the rest

[napoleon 14th] 22/9/2007 10:34

As bidder I'd open @ 260p (as at Monday a.m.),
hoping to only get auctioned up to c. 300p, 350 max.
That's a straight fight.

Could get lucky if 3 buyers involved & bid higher, just IMHO.

Nice shares with a good future anyway.

[sagem] 21/9/2007 17:13

STAND BY FOR ACTION....

ICBidwatch: Russians come for Celtic
Created: 21 September 2007 Written by: Jonas Crosland
Aim traded gold miner Celtic Resources has become the latest company in the small-cap mining sector to receive a bid approach, which in standard bid speak, may or may not lead to an offer for the company. So far it has not mentioned the name of its suitor, but the smart money is on Severstal, the Russian steel company, mainly because it already owns a 22 per cent stake which it bought last month as part of its strategy to move away from coking coal and iron ore. If the Russians are successful they will only have to go down the road to survey their new prize, because Celtic Resources owns a number of gold mines in Kazakhstan, a 50 per cent stake in a molybdenum mine (also in Kazakhstan) and a copper-gold project in the Chelybinsk region in Russia.

[chevyplus] 20/9/2007 21:57

TigerInvest,
I think your assumption of £4.00 would be close to the price we should be able to consider.There is a lot of upside with increased production and some further aquisitions would surely see this as a lot better share than we see at the moment.If the bidders are on the move at this price we can assume they are at the botttom and up is the only way to go.
If those of us who see the value much higher are smart we will be buying at these prices.I will be getting a few more before the real action starts.

Chevyplus

[kibb2] 20/9/2007 20:58

I think #4 would be a fair price for this years production, but this is not just about this years production, there is potentially much more to come in the form of increased production at Suzdal, increased production at Shorskoye plus the other projects. Even better still the company has the money to progress with these plans. So ....I agree with Tiger.

[tigerinvest] 20/9/2007 20:01

anything below 4 is not enough in my opinion

[sagem] 20/9/2007 15:21

HPreston I cannot understand why you are trying to make an issue of this, whatever you think it does not alter the fact that it appears that at least three companies could be interested in CELTIC RESOURCES and nobody knows at what price they may make a bid....I hope its £3 and above.

[hpreston] 20/9/2007 09:58

Your words - there are at least 3 companies looking at Celtic. Now several are thought to be interested??? Two conflicting statements I would have thought Sagem
Cheers
H

[zolota] 20/9/2007 09:20

Kibb,

The potential bidders seem to recognise this value as well, still by the look of it there are still some people who are prepared to sell at todays prices, very silly and or strange.

[sagem] 20/9/2007 06:37

HPreston
Celtic has not yet named the bidder, but several companies are thought to be interested.

I think that has said it all SEVERAL COMPANIES ARE THOUGHT TO BE INTERESTED

So we wait and see

[hpreston] 20/9/2007 00:41

Read all that Sagem and it says thought to be or an opinion only so you are only assuming.
Sorry wrong call
H

[kibb2] 19/9/2007 22:56

There seems to be a reasonable amount of pessimism regarding any offer price. I would be interested to hear of other peoples valuations, mine is obviously significantly higher than most on here.

Assuming that it is Severstal that is bidding, they would still need to convince the other major shareholders to sell. In my opinion (formed from recent results and news releases) this share is very cheap, it is well capitalized and is able to fund the mooted increases in production. Cashflow from 150 k oz, assuming it can be achieved, would be substantial and support a share price a multiple of where we are now.

K

[sagem] 19/9/2007 20:50

HPreston - crystal balls NOT REQUIRED IF YOU SEARCH LIKE I DO

Celtic Resources in takeover approach

Source:Ireland Digital

Date:18/09/2007 06:59:50

Celtic Resources, an Irish precious metals prospecting company, today confirmed that it had received a takeover offer.

Celtic has not yet named the bidder, but several companies are thought to be interested.

In August, OAO Severstal, a Russian steel producer, said it acquired a 22 percent stake in Celtic for an undisclosed cash sum, while Newcrest Mining Ltd and Gold Fields Ltd are other names reported to be in the frame.

Newcrest Mining is Australia's biggest independent gold miner and recently announced plans for a financial restructure funded by the sale of new shares worth A$2 billion.

A release detailing the plans said that this would:

"improve the company's ability to fund project capital expenditure at its existing
sites and undertake growth opportunities."

Celtic Resources owns mines in Kazakhstan and shares in projects in Russia. The company said that would release further statements regarding the takeover in due course.


Related Links

Celtic Resources
OAO Severstal
Newcrest Mining Ltd
Gold Fields Ltd

[hpreston] 19/9/2007 16:28

You obviously have a crystal ball Sagem. No one else seems to know how many companies are looking at Celtic.
And why would you sell for less than 4pound as they are worth that much and more
H