Circle Property Share Discussion Threads

[novicedave] 15/6/2007 07:22

ditto- small loss and will probably re-enter early next year.

[stemis] 15/6/2007 07:20

The price did surprise me and the fact that the MMs would take the volume. I topped up with 12,000 shares on 4 June and yet, despite the news, was able to sell them with only a £35 loss (i.e. little more than the dealing charges).

The additional capex of $35M equates to around 23p a share on an nav basis and a years delay would knock 10% off. Looks to me like CRC are funding the whole equity element of capex even though they own 75%. I can understand the states 5% getting a free carry but the Forrest's 20%?

[addas99] 15/6/2007 07:16

Totally out now, from 50K to zero over the last few weeks. All the signs were this is not running to plan. Likewise relieved that todays exit price reasonable.

[doverbeach] 15/6/2007 07:10

Me too, I stuck in a limit order at 80 and very pleased to get 83.5.

Country risk I can live with, but non-existant communications, major operations delays, placing looming...

[stemis] 15/6/2007 07:02

Indeed.

I've sold my entire holding. Suprised to get 83.5p. Will buy back in if the price drops significantly or when fog clears.............

[judgement] 15/6/2007 06:49

Visibility confirmed as heavy fog!

[stemis] 14/6/2007 21:34

Last year they released their results on 30 June, so if they keep to that schedule we should be getting them pretty soon.

Certainly CRC are not exactly shouting their prospects from the roof top, but with their funding (and options) in place maybe they are pretty sanguine about investor relations until they have something to crow about. Its hard to know.

They certainly managed to get their funding away in February without too much of a discount or any issue of warrants.

I'd much prefer some visibility of what is going on and it certainly adds to the risk factors, but at the moment its in the price.

[reefseeker] 14/6/2007 20:15

Am I the only one worried that there is no executive management team apart from the chairman in an acting CEO capacity; they've been looking for a new one for several months. No CFO either.

The web site is out of date, the contact email does not work, there have been no recent investor presentations or analyst reports. The web site still shows the CEO as Chris Jordinson, complete with full bio!

Is the de-watering complete? Are they still expecting to commence producion in three months time?

I guess we'll get all the answers very soon.

[stemis] 14/6/2007 19:55

I can't see any need for a fund raising.

Here's what they said on 26 February 2007

The estimated capital cost is US$47 million and, including working capital and financial costs, estimated total expenditure is US$58 million. CRC has already funded US$15 million of the project costs and CRC's additional funding will be complemented by the US$32 million financing that has been approved by RMB Resources of South Africa in July 2007, and by cash generation.

That leaves them the $15M they raised on 26 February

[drewz] 14/6/2007 19:43

It's far too cheap - should be at least double this, even discounting for country risk.

A sharp rerating towards 150p on production news for Kinsenda is definitely on the cards.

[trustman] 14/6/2007 18:58

Have been bid above market couple of days ago for my stock.Smells like good news on Kinsenda.....or prepping for a fund raise?

[stemis] 14/6/2007 07:56

Just a reminder of how profitable CRC could be when it starts in full production:-Annual output (contained copper) 57,000 tonnes
= 125M lbs
Copper price, say $2.50/lb (currently $3.35/lb)
Operating costs 73c/lb
Treatment costs/refining costs 15c/lb
EBITDA $202M
= £101MCRC's current market capitalisation is £67M.

[drewz] 12/6/2007 15:49

CRC has legitimate mining agreements. Forrest Group is very well connected at the highest levels in DRC. Not expected to be any problems for CRC's operations.

[unionhall] 12/6/2007 15:47

I didn't realise - do we know anything about the impact, if any, on CRC ?

[drewz] 12/6/2007 15:46

Old news from last month being recirculated.

[unionhall] 12/6/2007 15:26

Congo will review mining contracts
By Nathan Becker
11 Jun 2007 at 03:53 PM

From Resource Investor....

The Democratic Republic of Congo launched a review of about 60 mining contracts, taking a look at whether the deals are legal and fair.

"The experts will have the delicate job of exposing all irregularities that taint these contracts," Congo's Mines Minister Martin Kabwelulu announced in the capital Kinshasa.

Coming into concern is whether some contracts will be canceled because they're bad enough that they can't be repaired.

"I don't want to say just yet if there will be any eventual cancellation of contracts. We are confident that the partners we've signed contracts with want to see our country develop. I hope no contracts will be cancelled," he said.

[rvsy38] 11/6/2007 16:41

Glad to see that some others are watching CRC.

It has been very quiet and I feel starved of news. Tried to email CRC for an update on prgress on the MMK project and when the annual ( final) results are due to be announced ( end of June ?? ). For some reason my email was bounced back.

I am still a holder and today bought some more.

Has anyone else been in touch with the company recently and if so is there anything to report ?

[doverbeach] 11/6/2007 14:57

Just a small holding from early last year at 80p.

[stemis] 11/6/2007 14:51

Are you in these DB?

I think it was predictable (and fair enough) that someone would raise the DRC, not in a million years flag. However it shows just how much upside there is in CRC if they do deliver. Can't see the Forrest's letting CRC fail without a fight.

It should start to get interesting pretty soon. On 26 February, CRC were still on track to commence production in September/October of this year. Results were release on 30 June last year so we may get an update on progress pretty soon.

[doverbeach] 11/6/2007 13:35

Interesting rough comparison between CRC and ACU posted on TMF by SteMis:

[novicedave] 11/6/2007 07:48

took a small stake on a december SB just now.

[drewz] 26/5/2007 22:32

Nice article, Serpico. Patience will be well rewarded here.