Chromex Share Discussion Threads

[moosh2] 10/5/2010 09:47

delayed trade?

[seagreen] 10/5/2010 09:25

took me two hours to get 10,000 shares 8-)

[bizz2bizz] 06/5/2010 10:37

Don't forget about the Mecklenberg asset. Samancor are still interested I think. The court case must be close now unless we have settled out of court!

[seagreen] 06/5/2010 10:32

Kashares sorry for not responding earlier, I was first alerted to this over a year go by the blue oar analyst as one of her top picks the other being norseman gold that went to the moon, who is now with Panmure Gordon.
However due to the Ferrous Chrome market and the legal dispute nothing happened so to speak. Its no wonder Astaire have started covering as they took over blue oar who had the relationship. The target prior to the troubles was over 40p from memory but so was her target on norseman which burst through that level from memory.

If the market for ferrous chrome takes off which everyone tells me it is or is about to then this should double in pretty smart time, since then they have also invested in Zimbabwee so that price could be exceeded when everything is in play and they also have the pgm angle which was in the origianl report valuation for zero.

So very happy to be in it as long as it takes.

[golla] 06/5/2010 07:53

Getting noticed.

[golla] 06/5/2010 07:15

This looks to be taking off at last.

[sailing john] 27/4/2010 21:45

Re Samancor
They are a massive player with 600Mt (from memory) of resource and produce 1Mt FeCr and 700kT ore/annum ie they have 300 years supply at current consumption. I think it is more important to them to stop anyone else producing from Meckleburg (circa 10Mt) than to produce from it themselves. They don't need it but it is good for prices to stop anyone else producing. Hence if they think that they are going to lose the case it is in their interest to stall and delay the development of the mine by Chromex. Just my thoughts as it sounds like they are in no hurry to resolve.
SJ

[sailing john] 27/4/2010 12:25

Added another 40k Chromex
The more I look at this the better it gets
IFL trading statement today reported finished product FeCr prices up 35% from $1.01/lb to $1.36/lb over the last quarter
IFL has similar size mining operation to CHX but also smelts in SA. Mining ore represents 28% of cost
IFL down 3% today due to smelting problems and some difficulty sourcing ore.
CHX only provide beneficiated ore and are ramping up from 20kT/month to 40kT/month this year
Bought 10k at 17p (LSE) and 30k at 17.23p (Plus) - well within spread which remains 16.5 - 18 so both my buys showing as sells.
SJ DYOR etc etc.

[kajshares] 27/4/2010 08:19

SJ surely Meckleburg will also give them access to platinum products as well. I think it is their most valuable asset. The co needs to update the mkt on the Samancor litigation to get things moving.

I think it will serve them well to keep the Meckleburg project and develop it if they win their case. The Eskom deal has ensured that there would be cheap electricity at reasonable rates long term.

CH prices has formed a base and they would probably go into production next year.

On Zim, I dont know about the current makeup of the shs. I think we need news on indeginisation compliance as well.

I think 16p looks reasonable not cheap.

[sailing john] 25/4/2010 22:11

I'm not that worried about Mecklenburg. Yes it is a bankable asset but I'm not sure how profitable it would be to operate at current Chromite prices. I think it is all underground. I understand Samancor are the other party in the dispute and they are a very large Chrome player in SA. I think if Chromex win this dispute, as they expect, they will possibly sell the asset to fund investment in Zimbabwe.
Stellite has many years of surface resource and is up and running - and likely to be much more profitable in the short term.
The best deal Chromex have made is to get into Zimbabwe which has the second highest level of Chromite resource after SA but only 2.3% of world production. I understand it only opened up to foreign investment on 1 Nov 2009 and Chromex signed the deal to buy 49% stake in Falvect a private chromite miner in that month. Not sure what assets Falvect have but Chromex only paid a nominal sum and will provide working capital to the company. I think in the longer term Zimbabwe could be bigger than SA for Chromex. I like the fact that they have moved so quickly.
SJ

[seible] 25/4/2010 15:29

I have a small holding in here but was thinking myself of topping up. However my concern is the ongoing legal dispute over the Mecklenburg area and I see no signs whatsoever of this being settled or resolved and no updates by the company are given. The result will affect the share price.

Does anyone know when the results are due?

Another concern is that there is so little action, the share is just dormant for months followed by movements up on good news and then usually back on no action.

But there is a potential significant upside and I like the fact that they should be making money at the moment as opposed to some other miner who just have hopes and potential.

[sailing john] 23/4/2010 10:49

Headlines from results 5 Mar 2010 - not posted before

Chromex - Year ended 30/9/09
Cash generative profitable chrome producer operating in the world's key
chrome area, the Bushveld complex in South Africa
* Low-cost flexible business model of outsourcing operations delivering
healthy margins
* Commissioned the processing plant at the Stellite open cast chrome mine on
time and within budget - August 2009
* Achieved full plant design capacity at the chrome beneficiation plant at
Stellite in November 2009
* Restarted mining operations in January 2010 due to improved pricing and
chrome market conditions
* Granted positive amendment to the Stellite Mining Right to include PGEs and
gold in March 2009 - testwork on chrome tailings has shown positive results
and scoping study relating to the economic recovery of the PGEs underway
* Concluded a binding Heads of Agreement to acquire 49% of Falvect Mining a
company owned and operating in Zimbabwe
* Expect to develop the Mecklenburg Chrome Project following legal settlement
* Strengthened Board and management team as part of a strategy to advance
chrome projects in southern Africa
* Significant growth potential - ideally placed to profit from the upturn in
the markets as demand for chrome products begins to increase

[sailing john] 23/4/2010 09:02

Added another 20k @ 16.75
Again well inside spread of 16.5 - 18.0 so will probably show as a sell

[sailing john] 22/4/2010 11:13

After another read of the past 3 years RNS and accounts and some research into Chrome Ore demand/pricing I have decided to double my holding
Bought 2*10k @ 16.75
Well inside quoted spread of 16.5-18.0 so these will probably show as sells
GL SJ

[kajshares] 12/4/2010 07:23

Seagreen, I have been sniffing around this for 4 months but I do not know enough to dip in. If anyone has checked this out, could you kindly give me a heads up please. We can then get this thread going.

Looks like news expected in the summer.

[seagreen] 06/4/2010 16:32

the whole ferro chrome market coming back and nobody awake on the ockey....

[seagreen] 06/4/2010 16:32

no same price, two buys ....

[bizz2bizz] 30/3/2010 09:44

What happened there, rolls?

[seagreen] 30/3/2010 09:41

2 less blocks of 500,000 to buy...8#)

[seible] 14/3/2010 09:53

I am very glad how the company is performing (not the share price though but surely there should be a re-rating). I will be adding up as I am confident there will be a day when this will fly (hopefully, up:). There has been absolutely no impact on the share price when other miners' sps increased by multiples without necessarily any positives in fundamentals. Here we have improving fundamentals and yet no improvement in the share price So, I am happy with this.

Has anyone seen any updates re: their dispute. I am not sure how important is this field for the company but it will impact the sentiment short term for sure so good news could be a catalyst to re-rating.

[sailing john] 05/3/2010 14:38

Positive results today

Chromex CEO Russell Lamming said, "Chromex successfully commissioned its processing facility at the Stellite open cast Chrome mine ('Stellite') and continued to invest in its mining operation, in spite of the chrome market in 2009 remaining under pricing pressure. This investment has enabled Chromex to take advantage of the strengthening chrome market in the latter part of 2009 and the beginning of 2010, and although the strength of the South African Rand continues to hamper margins, the operation is still profitable. Chromex firmly believes that operations must have the cost structures in place to be able to produce through the commodity cycles, and I am delighted to say that Stellite is now in that position. With approximately 41 million tonnes of chrome resources under its control, cash generative production in place and a low-cost flexible business model generating healthy margins, I believe Chromex has a resilient investment case and is due for a value re-rating."

[andy] 03/3/2010 18:39

new article;

[seagreen] 03/3/2010 09:43

Another gem that remains hidden in the haystack that is AIM.....multi bagger for those with patience