Chromex Share Discussion Threads

[robson1974] 15/7/2010 10:18

Preliminary Approach

The board of Chromex has noted recent press speculation and announces that it
has received a preliminary approach which may or may not lead to an offer for
the entire issued share capital of the Company at 35 pence per share.

This announcement has not been made with the agreement or approval of the
potential offeror and there can be no certainty that an offer will be made nor
as to the terms on which any offer might be made.

A further announcement will be made in due course.

[robson1974] 15/7/2010 10:15

35p is the starting price for negotiations

i expect 60p+ eventually , you can still buy the warranst for 10p !

[safman] 15/7/2010 10:12

looks like 35p possible share bid...

saffy..

[sailing john] 15/7/2010 09:55

A significant move today equals some press comment tomorrow. Then perhaps we will move onto the radar for a few. I'm happy to wait for the price to move next year but even happier to be sitting on a healthy paper profit whilst waiting! :-)

[seagreen] 15/7/2010 09:49

Been waiting for them to sign up Panmure Gordon the very good South African lady analyst who used to be at Blue Oar went across there some time ago and it was she who was trumpeting about this one and Norseman as her two best stocks in South Africa.........Norseman went to the moon but this hit the skids due to chrome market but the underlyying potential is large particularly if we get a few pgms etc Should be 40p by the end of the year and 30p now imho

[sailing john] 15/7/2010 09:13

Doesn't look like there is much stock available - offer up to 23p on less than £5k of visible trades!

[saucepan] 15/7/2010 09:06

I agree with Sailing John that, whatever the truth in this, it can only help to get CHX noticed. Nice to have a bit of excitement.

[robson1974] 15/7/2010 09:00

given the brokers are expecting profits of about £9m for next financial year one would expect 60p to be the bare minimum starting point for negotiations

[robson1974] 15/7/2010 08:58

It does take a while for the 'City' to get round to reading the back page of the FT. I'd give them to about lunch time.

At some stage, probably a 10% share price move, the company may have to issue a statement on the 'press speculation'.

[sailing john] 15/7/2010 08:25

It all helps to get Chromex on the radar. It takes quite a bit of effort to crunch the numbers for 2011 and beyond to realise just how profitable this business is likely to be.
B2B - I agree 30p very cheeky if it is true

[bizz2bizz] 15/7/2010 07:30

Absolutely NO chance the present management will ever except 30p! Just totally forget it, it has always been stated that 60p was the only price they would look at even when there was a supposed bid at 45p from the middle east area 2 years ago. With changing times and conditions the opening gambit has to be around 50p minimum. Samancor will lose their contentious issue regarding the licence at Mecklemburg adding 10p to the price from here.

[sailing john] 14/7/2010 23:12

Thanks Robson - I have found it - isn't it from today?
SJ

[robson1974] 14/7/2010 22:57

you do have to register but it takes 30 secs and costs zero

[robson1974] 14/7/2010 22:55

try the story headlined 'BskyB strengthens as FTSE runs out of steam'

[sailing john] 14/7/2010 22:47

Not surprised - It had crossed my mind that either a Chinese steel co or a SA FeCr Co might be interested given the current price. How do you get to view FT for tomorrow? Or is this just dream :-)

[robson1974] 14/7/2010 22:40

wakey wakey

Tomorrows FT Market Report

'30p bid for Chromex, other bidders circling' or words to that effect

[robson1974] 08/7/2010 19:57

Thanks for the update and the insightful comment SJ.

[sailing john] 08/7/2010 11:40

Re Mecklenburg - anyone following the story will know the legal issues. As Chromex have said many times the legal challenge does appear vexacious. However, it has resulted in the market entirely discounting the value of Mecklenburg. I think Chromex are doing the right thing by pressing ahead with mine development (at least the engineering design) with the support of the DME whilst also trying to resolve directly with Samancor. If Samancor realise that the mine is going to be developed with or without them they have only two choices 1. to accept Chromex's rights or 2. to file an injunction which will presumably move the legal challenge to a conclusion.
I think Chromex have managed to put pressure on Samancor (although it's David v Goliath) and I personally hope that Chromex's direct approach is successful. It would be much better for both companies to develop Mecklenburg in partnership as Samancor have local infrastucture at the adjacent mines, access to capital and possible need for further high quality ore to feed their FeCr smelters in SA. Interesting times ahead!
SJ

[saucepan] 08/7/2010 10:53

Thanks, SJ!

[sailing john] 08/7/2010 10:40

Chromex update following conversation with CEO this week
Here is a summary of his comments regarding yield and other issues
The yield has been affected by the change from stock to recently mined product and the need to optimise the plant for the different Chromite seems. Action has been taken including plant modifications and additions to resolve. Also now have full control of Stellite with experienced management/techhnical expertise rather than relying on contractors. Sales were also affected by the Transnet (railworkers) 3 week strike.
Chromex were selling "at the gate" but are now selling CIF into China so middle man (traders) expense removed.
Mecklenburg - Pressing ahead with development (My comment - This is a higher quality chromite mine and at the original planned production of 60kT/month ROM with a higher % chrome content it will increase output by nearly 200%)
PGE's - Russell sounded very positive on PGE's
Zimbabwe - progressing - recruiting local management/staff.
Very positive IMHO - 2011 is going to be very exciting.
SJ

[robson1974] 08/7/2010 07:43

Well that is a good RNS. Panmure Gordon are a very decent small/mid cap corporate broking outfit. This is a good sign of the likely potential increase in newsflow, exposure and corporate activity CHX may be engaged in over coming weeks/months.

[robson1974] 06/7/2010 20:54

good stuff, chaps

[dj trading] 05/7/2010 14:10

Merafe London Presentation London 2010 - link worth a read

See P23 for current chrome ore imports to China
Source........% of China imports....Price
South Africa........43%...........$235/t
Turkey..............14%...........$420/t
Oman................13%...........$295/t
India...............5%............$420/t
Other...............25%..........N/A

South African ore significantly cheaper than from other sources - good for future demand and price going forward

Dave Jones

[sailing john] 05/7/2010 13:27

FeCr pricing
European benchmark for Q3 $1.30/lb vs $1.36/lb for Q2. The 4% fall is much less than expected and market expects an increase in Q4 and into 2011/12 as demand forecast greater than supply. Prices have more than doubled from the lows seen in 2009.
SJ