Cerillion Share Discussion Threads

[tsmith9426] 08/10/2007 07:20

bit of a slaging off there by severstal be intresting if and what cer response is.thy do need to respond unless they are ready for us to sell out cheap

[papalpower] 08/10/2007 01:23

chevyplus, I am a holder by default, as I got CER shares as part of the EKA takeover, where the board of CER screwed all EKA shareholders.

Therefore, to see them all kicked out of their jobs would be wonderful imv.

I am not looking at the financial side here, only the personal side of things, and it would be nice to see the board thrown out.

As CER holders, kicking the present board of CER out and putting a new one in does not effect the value of the shares at all.

In fact, with Foo and his team gone, and a new board in palce, you might even see the city then take CER more seriously, and give it a higher rating on the share price

[tsmith9426] 07/10/2007 15:11

dont see how they can unless they get a load of instituions on board and they will be after the best deal they can, they are not having mine at 270

[eastwind] 07/10/2007 14:26

Severstal only speaks for 29.7+6.6% of shareholders. How can it install a management of its own and treat CER as a subsidary?

I used to be a shareholder of EKA. I got CER due to its acquisition (equivalent price of CER is 200p). I was glad that EKA was saved from bankrupcy by CER. 12 months ago, when EKA was in trouble, no other company came to its rescue.

Although Foo is responsible for the demise of EKA, I think he did quite well in running CER recently.

The value of CER is significantly higher than the 270p offered by Severstal.
CER will produce 120kounce of gold and 0.8 mlb of moly in 2008. (The Company is currently completing advanced studies on the potential expansion of Suzdal to result in production in excess of 150,000 ounces per year by the end of 2008.)
The cash cost of gold for 1H 2007 was $346/ounce and $12/lb. If we assume the cash cost will remain the same (although should be lower due to higher output), gold price to be $700, moly price to be $30. The pretax profit will be $56.9m. Assume tax rate of 40%, then after tax profit will be $34m = £17m. EPS = 17/60 = 28p. If we assume a PE of 15, then share price should be 420p.

If we include CER's cash ($61m, 51p per share) and other exploration assets, the share price should be significantly higher.

At 270 bid price, I will certaintly not tend my shares. If Severstal call an extraordinary meeting, I will not support installing a management of its choice. I am afraid that Severstal will ruin the company and buy CER on the cheap.

PapalPower, on EKA days, you said it was worth a lot more than the price offered by CER. I totally agreed with you. Given EKA's acquisition by CER, I think the value of old EKA can be better realised.

I migh tend my shares if the offer price is 420p or more.

[papalpower] 07/10/2007 10:34

I would be more than happy if they kicked the complete board into touch. Come on Servestal, go for it :)




From The Sunday TimesOctober 7, 2007

Threat to oust miner's boardJenny Davey

SEVERSTAL, the giant Russian miner and steelmaker, will turn up the heat in its hostile bid for Celtic Resources tomorrow by in effect threatening to oust the mining company's board if it fails to gain the backing of 80% of shareholders for a £161m takeover offer.

The company, through its wholly-owned subsidiary Centro-ferve, will write to the shareholders of AIM-listed Celtic, confirming that it will launch a formal 270p-a-share hostile bid for the company, even though it has been rejected by the Celtic board.

The group will criticise Celtic's management for rejecting its bid only 33 minutes after the offer was announced.

It will also accuse the Celtic Resources directors of unnecessarily placing the company shareholders' money at risk by not recommending the offer and suggest the board puts continued independence above shareholder value.

Severstal will warn the management that if acceptances fall short of the 80% threshold, it will call an extraordinary meeting and oust the board, install its own management team and run the business as a subsidiary.

The company already speaks for 29.7% of the shares and Bar-rick Gold Corporation, which owns 6.6%, has indicated it is prepared to accept the Severstal offer as well.

A spokesman for Celtic Resources said: "The 270p-a-share

offer substantially undervalues the company. The share price has been ahead of the offer price because it is an attempt to buy the company on the cheap."

The spokesman added: "Had Severstal wanted to behave in an honourable fashion they would have conducted this conversation in an entirely different way.

"We will make sure shareholders get the best price for their shares."

The company had previously announced there was still takeover interest from another party and it said this weekend the interest continued.

The share price closed at 280p on Friday.

[stephenwilson] 07/10/2007 09:42

Turning nasty now!

[tigerinvest] 05/10/2007 21:42

Chevyplus, you are right. My calculation ignored a lot of value. It was meant to estimate 'sure' profits for 2007/ 2008 to show that the Severstal offer is extremely low.
I am disappointed with the fact that Celtic can't seem to use the current bid to create more exposure and a matching share price.....

[liam1om] 05/10/2007 16:54

Hope so, its getting boring now.

[tsmith9426] 05/10/2007 16:29

took about a week before we knew for def it was Severstal, we should be hearing soon

[tsmith9426] 04/10/2007 13:01

going by the sells its going to take them forever,
yes thats what we need liam, maybe we will have a busy friday like last week.
tony

[liam1om] 04/10/2007 11:55

Hope so tsmith.

Still waiting to see if the unnamed party make a bid.

[tsmith9426] 04/10/2007 10:13

gone quiet should be getting some news soon id say

[chevyplus] 02/10/2007 21:33

TigerInvest,
You are correct in the value being very good for another bidder.Not sure but did you include the 2m ozs recently aquired in Russia ??? This will add further asset value and as you say shareholders should sit tight.Lets see what the other party are going to bid.As for Severstal going away I dont think this will happen but who cares the true value is now being seen by a number of brokers and this share will only go up.
There is also the possibility of a lot more activity in the Biox side of the company and this gives very heathy returns so further value and add anther aquisition or two and S/Price will be closer to £5.00 in my opinion.

Chevyplus

[mad jack mcmad] 02/10/2007 18:54

New broker note:

[stuart14] 02/10/2007 11:48

No mate. Watching it now though!!

[liam1om] 02/10/2007 11:45

Stuart, did you manage to get into Blnx?

Managed to get in just before the big rise.

[stephenwilson] 02/10/2007 11:27

BLNX up 20% so far today at 35p.

[stuart14] 02/10/2007 10:50

What is the ticker mate?

[liam1om] 02/10/2007 10:04

Stuart14 if your there and want a very good tip buy blynx. Just announced they will release results on the 25/10 ahead of market forecast.

I've just bought in with £18,000 worth. Personally think they will go to 45-50p short term.

[tsmith9426] 02/10/2007 09:31

yea just read the last few rns seems like 36% is owned by the group so they still have a fair bit of work to do to get the lot

[stuart14] 02/10/2007 09:29

I'm assuming this is the 30% they said they owned on Friday being declared.

[tsmith9426] 02/10/2007 09:28

so does that mean they have close to 60% now

[stuart14] 02/10/2007 09:23

Ah. Makes sense now.