China Africa Share Discussion Threads

[mattjos] 30/8/2012 00:54

all cash on books is due to be spent in pursuit of the feasibility study.
In the absence of a cashflow, they will then have to undergo some sort of raising and associated equity dilution to progress beyond Feasibility stage.

There are no executive directors at present other than Webster and he, we trust , is putting all his efforts into getting WTI back on track so, they are not even able to manage/run any other cash-producing asset.

Until we know the result of the feasibility study, aka once the cash is all spent, or until such time as news emerges on what other assets they intend injecting into this company to achieve their aim "....to build a profitable and widely based resource business that may include the acquisition of additional assets from Weatherly, ECE or third parties" (again with accompanying equity dilution) this is worth zip.
The ones i got from the WTI distribution have gone firmly into the sock-drawer. If we're lucky they'll do one of the future equity raises by a rights issue & have the opportunity to add.

[disarming] 29/8/2012 11:56

so what do we have here ?

good mineralisation in 6km campaign
assay results pending, means newsflow in near future.
capitalised evaluation cost means tacit confidence,
old mineworkings all in working order,
cash at end of june worth 12p per share
interesting management change with commitment to work phase, obviously things are stepping up.

largest shareholder is ECE state owned and the largest exploration company in China.

23m shares in issue 90% held by top 2 shareholders and directors. this is rocket fuel!

[disarming] 29/8/2012 11:11

Paleje this company elected to capitalise it's evaluation costs of $1.2m for the feasibility study rather than expense them.
Such costs can either be expensed or capitalised depending on preference. If they are capitalised then it is treated as an investment which I believe can imply a higher level of certainty of payback.

Most explorers will expense their exploration costs rather than capitalise them.

I consider this an interesting item, obviously they can't capitalise the costs of running their office in London.

For your research, this is a great read and download for investors on How to read resource company accounts.

[paleje] 29/8/2012 09:56

The Board Changes headline got me going for a bit, the second RNS explaining the 0.3m loss due to London head office management costs was the funny one though.

[longsight] 27/8/2012 14:37

Outlook for lead seems good

[mattjos] 22/8/2012 18:58

JP .. no choice, imo. Keep Epangelo on side else you'll struggle to get anything off the ground in Namibia now & in the future. Epangelo are granting themselves EPL's ahead of other explorers now if you follow such things

[jp2011] 22/8/2012 17:15

State sponsored extortion, might work during a boom but not during a global recession. WTI gave 2.5% away to the miners union with a further 2.5% available at a low price.

[mattjos] 21/8/2012 10:38

Whatever goes on here in the future, ECE will need to keep Epangelo on side

[ryan83] 16/8/2012 22:40

Mmmm time to buy?

[fairdeal2008] 20/6/2012 10:56

Yes indeed dg thank you

[dick grasso] 20/6/2012 10:12

Maybe you should stop talking about the demand/supply imbalance fair deal and actually buy some, maybe we'd see a price recovery? ;-)

[fairdeal2008] 19/6/2012 15:18

By the way, have a look at this - Glencore buying into Namibian Lead/Zinc (sound familiar??). I wonder:

[fairdeal2008] 19/6/2012 15:17

max online now 15,000 at 25.5p. Tight as anything. But few people looking at this at the moment. Is there anyone else there????

[fairdeal2008] 15/6/2012 09:41

Maximum online offer is 10,000 at the moment. Anyone else looking in?

[fairdeal2008] 15/6/2012 07:39

Anyone seen the news from BMR re a Chinese MoU and the comments made about supply issues for zinc and lead.

CAF have their initial project, a zinc lead operation in Namibia. So it looks to have been a good starter for ten.

Market cap still only £5.5m with I guess $5m or so I guess in cash. Shares in free float only 9% with major partners holding lions share of stock.

Graph looking set for a decent move I would say IMHO. Please dyor.

[paleje] 12/6/2012 10:31

Snippet yesterday, Glencore increased its interest in Namibian zinc mine, maybe those who kept their freebie shares or added might see them do well in the medium term.

[paleje] 11/6/2012 10:50

Zinc prices set to increase regardless of global situation.

....It is estimated that demand will grow 2-3% per year, especially in industries such as construction, automotive and transport due to zinc`s long useful life-cycle. In the years 2013-2014, demand is expected to exceed supply and a chronic deficit to arise....

[colin shakespeare] 30/5/2012 11:14

They are now selling 5k. I only had 500 quid loose change so bought some with that. I will transfer some cash over later and get some more if stock still available. 24p and they listed at 40p!

[jp2011] 30/5/2012 10:47

Try raising your bid price or another broker. Have seen a lot of 5k trades over the last week.

[hardassets57] 30/5/2012 10:30

still wont sell you any stock, what the hells going on here??

[fairdeal2008] 29/5/2012 18:18

Seems that CAF have a significant, strong and active partner through ECE. Of course we wait to see what other projects they will bring into the company, or how they will seek to take forward their investment.

As it stands there are 23m shares in issue, and 65% are held by East China Exploration (ECE), 25% by Weatherley (AIM - WTI) and another 0.5% by directors of WTI and CAF.

So about 21m shares tightly held by top two shareholders and connected directors, leaving 2m in free float max.

So rather illiquid given the assets (Berg Aukas Zinc, Lead, Vanadium project), cash at an estimated £3.5m and potential value that could be created by assets/interests of ECE being passed into this, their London Listed Africa vehicle.

The potential is all rather missed by a market that values the stock at a near 50% discount to the IPO price last summer of 40p (which was ground floor per the presentation comments above), and a mkt cap of just £5m right now.

Worth looking at I think.

imho pls dyor