European Nickel Share Discussion Threads

[metex] 29/7/2012 14:38

ian50....do not know....but this list taken from ENK`s website....gives a good outline of latest major holdings in ENK:

[ian 50] 29/7/2012 14:06

METEX-- AT WHAT PRICES DID TALISMAN AQUIRE ENK SHARES????

[jezza123] 29/7/2012 08:38

yea togglebrush - like many small caps the issue here is basic liquidity, price swings will reflect that with small volumes having big effects

[togglebrush] 29/7/2012 08:14

FWIW some basic research from FT
Total Shares in issue 262.1 million...Free Float 182.69 million
Major Shareholders

Liontrust Asset Managers Ltd. as of 31 May 2012______ _32.18m 12.14%
Goldman Sachs (US) (Market-Maker) as of 31 May 2012__ _16.23m 5.08%
Citigroup Global Markets Ltd.as of 31 May 2011_______ __8.21m 3.13%
Aviva Investors Global Services Ltd. as of 31 May 2012__8.04m 3.07%
TD Direct Investing (Europe) Ltd.as of 01 Jun 2012______8.00m 2.99%
Majedie Asset Management Ltd.as of 31 May 2012_______ __7.33m 2.80%
Barclays Bank Plc (Private Banking) as of 01 Jun 2012 __5.26m 1.99%
Talos Securities Ltd. as of 01 Jun 2012______________ __3.80m 1.36%
HSBC Bank Plc (Market-Maker)as of 01 Jun 2012________ __3.57m 1.24%
HSBC Global Asset Management (UK) Ltd.as of 01 Jun 2012_3.13m 1.23%

' Above list has recently been signicantly updated on company website''
Significant Shareholdings notified to ENK, as at 22 June 2012

Montoya Investments Ltd____________47,505,809____18.12%
Australian Control A/C*____________30,654,796____11.70%
D & A Income Ltd___________________30,472,068____11.63%
Corporate Foresight Ltd___________ 19,500,000_____7.44%
Aviva plc & subsidiaries____________8,041,869_____3.07%

This represents the Chess Depositary Interests (CDI's) held on the ASX
'
Stats based on ADVFN data from 1st January 2011 for Daily Trading Volumes
'
Maximum______________ 59,928,218____21 March 2012
1 in 100 day above ___14,796,858
Top Quartile above ______650,281
Median___________________278,509
'
Friday announcement____2,883,296____A busy but not a very busy trading day. However Price Swing, (high - low)/close, was over 35.5% which is the maximum. The median is some 3.3%. It looks like there was a shortage of stock available.

[metex] 28/7/2012 13:06

ian50....re: Golden Harvest Global Corporation....answer....yes!

There are many synergies....between the two companies.

It`s all conjecture....but a deal for GHGC....would be perfect....and the timing....fits in with the thinking....of pre-empting any potential off-take agreements....to be signed by ENK....with parties not within GHGC`s sphere of operation.

Also....the knowledge....that it would be a local Philippines company....that would be developing Acoje....wouldn`t necessarily have any impact....on the ECC amendment process.

If they took out ENK....they wouldn`t necessarily then....have to potentially fork out....the $20m later....for the Chromite assets at Acoje either....as they already have the Acoje Chromite deal with ENK....so they would be effectively be paying....the $20m up front.

With GHGC having picked up a hefty chunk of ZCMC....for a pittance from Montemina IMHO....why shouldn`t they add the rest of it....plus....a future nickel processing plant....with the tank leach process....and millions of dollars worth of Chromite ore....at Acoje.

While through GHGC`s present nickel and chromite businesses....they already have good established off-take contacts....(who could possibly fund the Acoje build)....and GHGC could then....in the future....also process their own....other nickel laterite deposits....through the new Acoje Processing Facility.

As Winston Churchill....is famously supposed to have said....as a final riposte:

"Madam....we have already established what you are....we are now just haggling over the price!"

(No gender offence intended).

Maybe that`s where ENK are....at this moment in time....as such a deal....makes a lot of sense....from GHGC`s point of view....however....do they have the funds....to match ENK shareholder expectations?

So out with the "fag" packet!....and for the moment....putting any NAV and NPV calculations aside.

1/ The first $40m....(cash pile now....and receipts coming later)....of any bid....will be received by the acquirer....on conclusion of any deal.

2/ If it is GHGC....(or someone else)....then approx $20m....can be added for Acoje Chromite assets....which was the figure mooted in the recent Chromite deal.

3/ Acoje project plus ZCMC....with Caldag sold for $40m....but Acoje (a known better project than Caldag)....plus the other part of ZCMC....therefore approx price tag of $80m to be added.

4/ Technology for both Tank Leach....and Heap Leach....price tag difficult....but taking into account monies spent on developing technologies....price tag $30m....(with potential heap leach technology licence income from Caldag....down the line).

So even using the back of a cigarette packet calculation....$40m + $20m + $80m + $30m = $170m....this equates to a share price of approximately 40p....which should be the minimum price IMHO....that ENK management should even start to consider.

(*Note....there`s also a slim chance....that the real indentities....behind some of the present larger shareholders in ENK....may be revealed too!....going forward....perhaps affecting the actual overall sum paid for ENK.

Have no knowledge of it....but are GHGC (or A.N.Other)....behind Montoya....or other investment vehicles....for instance?)

But the biggest unanswered question....for this investor though....should an actual offer....be placed on the table....is whether ENK management really do have the determination and will....(irrespective of the clear message relayed in yesterday`s RNS by Mr Gregory)....to ensure a fair return for all ENK investors....through some form of premium...in the offer price....for selling ENK....at such an early stage of Acoje`s development.

Would prefer to see Acoje project developed under ENK`s wing....over the next few years....but even for long term suffering ENK investors....if a bid price does come in....that is perceived to be more than reasonable....believe realistically....that many might sigh....and say...."so be it!"....all IMHO and DYOR.

[ian 50] 27/7/2012 22:34

This bid only underpins th shr/ pr--- I doubt the shr/ pr will collapse if th bid fails.

[eelanguilla] 27/7/2012 20:18

lets see if it goes up on mon then - this is off the radar :)

[shareho1der] 27/7/2012 20:14

The trouble is when they announce faceless bidder at unknown price ... it won't happen going by my experience.

Sell out and run, back to 10p soon.

[ian 50] 27/7/2012 18:49

What relationship is golden harvest global corp to ENK. ????

It trades in in nickel and chromite ore.

It has a 60% interest in montemina

Which has interest in zimbales project

Could this be one of many interested???????

[jezza123] 27/7/2012 16:40

I think you may be right the clue is in the second paragraph from the recent report - why would you be running 'parallel costing exercises' if chinese firms weren't taking a look at ENK?

The Acoje BFS being undertaken by Jacobs Engineering of Perth, is now entering its final stages. The detailed test work and design programs on the leaching and solid liquid separation by Outotec Oyj are now with Jacobs for final costing and write up, as is the comminution circuit by Orway Mining Consultants, continuous ion exchange design by PuriTech and infrastructure details by GHD.

The Company is planning to run a parallel costing exercise with Chinese engineering firms that will more likely and realistically estimate costs for construction in the Philippines. Based on its experience in dealing with Chinese construction firms at Caldag and more recently Acoje, the Company believes that there are significant savings to be found utilising Asian based contractors as opposed to Western contractors. This is especially so when most Australian firms are stretched with bulk commodity projects and skill shortages.

[zhockey] 27/7/2012 16:33

The buyer will not be a major, majors will not invest big in latterites when there are sulphide plays lying idle.

May be a chinese firm looking to tie up DSO for pig iron feed stock following the indonesia ban.

[bones30] 27/7/2012 15:51

I wonder if the buyer may be Teck.

[metex] 27/7/2012 15:44

So as bones30 says....with the present equivalent in the bank....of cash per share of around 10p....an acquirer....on Mr Gregory`s own advice....had better think carefully....about making a serious offer.

ENK has substantial nickel laterite assets....which will come at a price....but it also holds considerable non-tangible assets....the technological know-how....to processing....both tropical and non tropical laterites.

The timing of the approach....is very interesting....as it precedes the completion of the BFS....and also the obtaining of the amended ECC....but the timing....if it is a serious approach....staves off any potential signed off-take partner deal....which in turn might have been tied to Acoje Project Funding....but more importantly....it "ring fences" the ENK Tank Leach and Heap Leach technologies....from other interested third parties....before they get involved at a practical level.

It may just be a last ditch attempt....to pick up ENK on the cheap....before the last big hurdles are cleared....in a world economic climate....that might encourage many ENK investors to cash in their chips on the cheap....but the strong response issued today by Mr Gregory....leaves no doubt in the mind of the potential acquirer IMHO....that ENK maybe up for sale....but only at the right price....DYOR.

[zhockey] 27/7/2012 15:31

18p offer then?

Someone has more money than sense!

[bones30] 27/7/2012 14:11

Seems cheap to me given the cash and the fact they are nearly through BFS stage surely? (Ignoring today's news).

[ian 50] 27/7/2012 13:27

I've read all postings everywhere iii etc not as much excitement -- this could be an opportunist trying to get ENk on the cheap I don't think Th company would fall for this


Are the shares suspended?????

[ian 50] 27/7/2012 13:20

Anyone got a view which companies??

[ian 50] 27/7/2012 13:19

If director aren't any better off than their future options potentally it they won't be happy bunnies also we have to concider any major share holders---- either way

Will it be sold on a multiple of what criteria ???

Im v excited but concerned ENK is sold short

[shareho1der] 27/7/2012 13:18

Don't take an approach that failed to mentioned the price seriously ... all from my own experience.

[anne55] 27/7/2012 13:18

Added a few, also in AFF which is trading at 75% of cash with the other operations thrown in for free.

[hectorp] 27/7/2012 13:14

Zangdook, chip was referring to Medusa at 60p.

I also hope this bid gets no-where.
Also why should the company go down the road of disappearing at 28p ( NAV price , which hinted at a possible price).

[jezza123] 27/7/2012 12:58

60p - *boggle* - at that price I'm rolling in it....

[giant steps] 27/7/2012 12:55

Perhaps ENK offer has something to do with TMC (and berong)