Chromex Share Discussion Threads

[kenmitch] 18/8/2010 08:38

40000 warrants sold at 6p when the quoted price was 9p. Now the spread is a still awful 6p to 10p. Seems a bit strange selling so far below the quoted price and it is such a small sale that it is hard to see it being anyone with any inside knowledge!

I still hold the warrants as it's worth the gamble that there is still a slight chance of a bid at 35p. That should mean warrant holders being offered at least 15p to give 50% upside from the current buying price.

The share price performance is either telling us that everyone involved in a potential bid is doing very well ensuring no news is leakiing, or more likely that there is no news to leak and there won't be a bid at any price.

Any who disagree with that will get more upside buying the warrants than the shares - though be prepared to lose the entire stake if the share price is 20p or lower when the warrants expire in September next year. Still a chance that even without a bid that the shares could do well on other good news over the next year or so.

[kenmitch] 17/8/2010 19:00

robson1974.

Wonder where the share price will settle if no-one offers more than 35p and they turn that down and the bidder walks away?

A risky hold at best?

[robson1974] 16/8/2010 00:01

If I was a CHX shareholder/manager I would not take less than 50p

[sailing john] 13/8/2010 10:47

China's hc FeCr price up circa 5% due to higher ore costs.
Chromite prices moving up nicely!
SJ
Edit - If I was CEO of a Chinese FeCr manufacturer I would love to get my hands on some long life upstream assets.
Hmmm!

[sailing john] 12/8/2010 07:30

Chinese chromite traders expecting further price increases. :-)

[sailing john] 11/8/2010 11:23

Just found a RNS dated 9/8/10 via digital look not on my normal RNS listings
Regarding Form 8.3 declaration of persons holding more than 1% stock from Phoevos Pouroulis who was an ex director of Chromex. He left the company last year see extract from interims below. He appears to have a network of mining contacts in SA. Perhaps he has an involvement in the bid. Just my speculation.
SJ

Interims June 09 extract
Phoevos Pouroulis and Guy Gibbons have stepped down from the Board
with immediate effect. Phoevos, who was responsible for marketing
and sales, is establishing a new multi commodity trading company,
which will include chrome. He will remain responsible for Chromex's
sales through his new company and his resignation is solely to avoid
any potential conflicts of interest.

[sailing john] 11/8/2010 11:06

Chinese chromite ore prices continue to firm this week :-)
And re bid - I don't think the main players - Directors and Spruce are going to accept 35p given the price hit 45p in 2008 and the company is in a much stronger/well developed position now - my guess circa 50p
SJ

[kenmitch] 10/8/2010 19:14

Usually if the market expects a higher offer the share price rises above the current bid price. The fact that it is still well below means the market is not expecting a higher bid. Fortunately that doesn't mean there won't be a higher bid or several bidders eventually. Agree with sailing john that these things usually take months rather than weeks. Then there is news one way or the other sometimes out of the blue and sometimes well forecast by the share price just ahead of any news if it is leaking out.

A shame that the spread is so awful on the warrants as a bid at 35p is already almost priced in to the 14p buying price but not the 9p selling price. So no point buying the warrants imo unless confident of a bid higher than 35p but well worth holding as the uplift from the current 9p sell price would be very good. Fingers crossed for good news eventually as otherwise the downside for the warrants could be high.

[robson1974] 10/8/2010 14:43

I don't think this would be trading at this level if the market did not expect a higher offer. But not one to cast pearl before swine so work it out yourself.

[bizz2bizz] 10/8/2010 14:11

My guess is the 35p confirmen sale!

[robson1974] 10/8/2010 11:29

Inching higher.

The chart and fundamentals both suggest a higher offer or a operating update which will justify a higher offer. IMO.

[sailing john] 09/8/2010 12:44

It will take longer than a couple of weeks. I'm not expectuing to hear anything for a couple of months.
SJ

[bizz2bizz] 09/8/2010 12:04

with no updates or publicity I think this has been done and dusted.

[sailing john] 09/8/2010 08:20

Reports that Chinese chromite ore prices on the rise - it all helps. :-)
Perhaps Merafe will take a look at Chromex? - a very small bite for such a large company.
I'm starting to think that quite a bit of the value of Chromex to Hernic, Samancor, Merafe (even IFL) and the many Chinese FeCr companies is in preventing anyone else taking these assets on the cheap. I can see a bit of a bidding war perhaps? All IMHO of course
SJ

[sailing john] 08/8/2010 11:56

Just back from 9 days sailing holiday and catching up. The Lonmin Merafe situation looks interesting (thanks for posting). Will have a read tonight. Glad to see price consolidating nicely as there were some large trades a couple of weeks back that looked like sells but perhaps someone is quietly hoovering up any shares available.
SJ

[robson1974] 06/8/2010 14:25

SJ, any comments on this stuff ? could it imapct the chrome market ?

[robson1974] 06/8/2010 07:55

Holgoun holds a minority interest in Samancor Chrome, a major chrome producer. Some of Samancor's chrome mines are very close to Lonmin's operations. Holgoun was not immediately available for comment.

[robson1974] 05/8/2010 15:48

Lonmin plc

Department of Mineral Resources orders Lonmin to suspend sale of associated minerals

Late on 4 August 2010, Lonmin plc ("Lonmin" or "the Company") received a letter from the Department of Mineral Resources of the Government of South Africa ("DMR") which contained an order to refrain from selling Nickel, Copper, Chrome and any other minerals ("associated minerals") other than Platinum Group Metals ("PGMs") with immediate effect, notwithstanding the natural occurrence of these minerals in the PGM reefs and seams. Lonmin will contest this matter vigorously and will be seeking an urgent court ruling to overturn this order.

[bizz2bizz] 05/8/2010 14:50

If the management accept the 35p which looks increasingly obvious your 20p options are as well priced as the stock. The only advantage is the gearing. If the bid fails the stock goes back to 20p and options back to 4-6. The problem you have with the options is the expirary date Sep 11. Time decay will eat into the price if the bid fails.

[robson1974] 05/8/2010 11:07

spread has moved from 27-30 yesterday to 29-31

[robson1974] 04/8/2010 22:27

Chrome miners seek partnerships

Written by Paul Ndlovu

Wednesday, 04 August 2010 14:58

HARARE – Small-scale chrome miners are seeking partnerships to boost their production levels in to order to sell the mineral on the lucrative international market.

The small-scale miners are selling chrome locally at between US$80 to US$90 a tonne, which is lower than the London Mineral Index price of US$200 a tonne.

"In terms of mining we are doing well but, we are not impressed by the prices
which we are being offered by local smelting companies and Chinese companies
operating in the country," said the managing director of Benmas Investments, Peter Kanyeza. "We are therefore looking for investors to assist us through direct cash
injection or unveiling machinery in the form of excavators, front-end loaders, compressors and bulldozers so that we can be able to increase on tonnage thus enabling us to export for much bigger returns,"

Benmas Investments owns 13 claims in the chrome abundant area of Shurugwi
and extracts over 200 tonnes of the mineral a month.

Small-scale chrome miners were early this year given an 18-month reprieve to
conduct operations on their own without interference from the Ministry.

This was after Government had convinced the largest ferrochrome companies,
Zimasco and ZimAlloys, to permit the mining of chrome ore to be done by
small-scale workers, several years ago.

But in 2008 the ferrochrome price fell and power cuts meant that ferrochrome
smelters could no longer operate at a profit so they suspended production.
That left the small-scale miners with no buyers so they sought permission to
export the unprocessed ore. This was considered unacceptable at first as the
country had made so much money by adding value.

"The government has over the years promised to mechanise us by way of ensuring
us that we process the chrome ore and export it as a finish product but
nothing has taken shape to date thus we are calling on it to reconsider this
move as this won't only benefit us, but the country as a whole," said Kanyeza.