Ferrex Share Discussion Threads

[novicetrade68] 18/11/2015 17:15

Here is an interesting summary from a poster on LSE, hope he doesn't mind me copy pasting here :

Hi all, been out and about busy today but managed to park up and listen in at 11.00am.

Pretty much all my queries satisfied, particularly around shares issue - these are going to 5 members of the Auzzie mining company we are acquiring and they are committed for long term deliverables.

This essentially means that DR retains control - the 2nd tranche of shares (paid at total value of £495k) are only given if we reach the 10,000 ounces threshold - if we get to that point, we are highly likely to be a significant premium to today's share price so the dilution effect will be considerably less. No Darwin pumping 93m shares on the market whenever they feel like it.

DR sounds like he's on fire! I appreciate that he has always been upbeat (I actually admire his tenacity, given the last 12 months). The change of focus towards 100% cash generation and away from exploration IS MASSIVELY transformational. I guess there are still questions over DR delivering but he made a big point about ensuring that HE does deliver to these published milestones.

He does that and in 6 months time we are a very, very different beast.
Failure is still an option but at least we haven't got to wait much longer to find out!

I've been in over 3 years now and the fact that DR has put his reputation on the line and also that the 2 Peter's have come on board with shares rather than taking cash, speaks massively of this being a success. These guys could have raised £300k to get this up and running without Ferrex (based on the finances of this) so they must recognise the same things in DR's added value as I do.

DR was talking about US $300/oz margin after ALL costs, including royalty - even if they achieve half of this then profit on 20,000 oz is $3,000,000 per annum. If they do achieve $300 on 30,000 then it's $9,000,000 PA

I'd cautiously suggest we are over the worst :)

[novicetrade68] 18/11/2015 16:07

Thanks andylee, I've added the link to the header. With a bit of luck Ferrex will be producing from two mines as of next year.

[andylee3] 18/11/2015 15:52

Link to today's presentation from DR to shareholders....

[hope67] 18/11/2015 15:30

300k needs to be raised then we will be self funding hardly a large amount is it?

[technovator] 18/11/2015 11:44

Typical pump & dump, when is the placing?

[edgein] 18/11/2015 11:35

Very good presentation all moving forward very quickly for the Australian assets and plenty of news flow from here to Q2. Also DR will be in Togo next week so we may also hear something about Nayega in the near term too.

Regards,
Ed.

[liquid millionaire] 17/11/2015 18:40

Ferrex (FRX.L) - Speculative Buy at 0.5p

Ferrex, a diversified mineral resource development company, has entered into an agreement to acquire 100% of Chaffers Mining, a private Australian gold company. Chaffers currently has a five year toll milling agreement in place with Norton Goldfields to mine certain defined gold deposits on Norton's mining leases, located 30km north of Kalgoorlie in Western Australia. Ore will be treated through Norton's nearby Paddington processing plant. The gold deposits host historical resources of 5.7Mt grading 2g/t containing 364koz gold and located within 25km of the Paddington plant. Under terms of the acquisition, Ferrex will issue £465,000 in shares at a deemed price of 0.5p to acquire 100% of Chaffers and an additional £465,000 in shares on production of 10,000oz of gold (equivalent to an in-situ value, on aggregate, of US$3.9/oz historical resource at current prices). In addition, Ferrex will pay all processing costs and a 22% royalty to Norton on any gold recovered. SPECULATIVE BUY Read the full report....



Beaufort Securities

[hope67] 17/11/2015 17:04

17 November 2015

Ferrex plc ('Ferrex' or 'the Company')

Shareholder Call

Ferrex plc, the AIM quoted resource development company, is pleased to announce that it will hold a shareholder call on Wednesday 18 November 2015 at 11.00am.

During the call Dave Reeves will update participants on today's news that the Company has acquired 100% of Australian private company Chaffers Mining ('Chaffers'), which has negotiated a five year tribute agreement with Paddington Gold, a subsidiary of Norton Gold Fields ('Norton') to mine certain defined gold deposits located on the Norton leases for treatment at Norton's nearby Paddington processing plant.

To participate in this conference call, please dial 0808 109 5644 FREE FREE, or [phone] if you are calling from outside of the UK, and type in 2950614 followed by the hash key for the access pin. Please note that all lines will be muted with the exception of Dave Reeves', however the Company invites shareholders to submit questions to its public relations advisers, St Brides Partners Ltd, ahead of the call via email to [e-mail]. St Brides Partners will acknowledge receipt of shareholder enquiries to that address via email, and in the case that a response from St Brides Partners is not received, please re-send the questions to the email address or call [phone]. All shareholder enquiries must be received by 10.30am. The management team will strive to answer as many of these previously submitted questions as possible during the course of the call.

[danielmiller1] 17/11/2015 14:58

Man this is Judy plain fvcking rediculous, excuse the French, but when D R says this............

ts in Gabon and South Africa, saying the assets cannot compete on a cost basis with the major iron ore producers. As it cannot achieve the objective of being a lowest quartile producer, it is in talks to ‘realise value’ for shareholders from these assets.
Managing director Dave Reeves warns investors not to get their hopes up in terms of the sale price. ‘No-one will pay a huge slug of cash for anything in this market,’ he says.


I recall telling you guys much the same a few years back that these projects were unrealistic and unsustainable. So all what DR was telling you mugs at the time was just as I said.....pure Bullshjt.Man this has to be the best example of being suckered ever!.

I can't understand why these guys went to OZ for a deal, sounds a bit suspect to Dan when they could be walking into a profit making GDP. I MEAN ITS PRACTICALLY THE SAME BOY'S CLUB!

Same non ex chair, but as always 2+2 never makes 4 with these guys!

[clocktower] 17/11/2015 13:48

Where have all the rampers gone, gold prospecting?

If by chance they were banking on those 93 million shares being unloaded onto small investors at a premium they seem to have misjudged the intelligence of most.

[paul the octopus] 17/11/2015 12:47

the rns meant to say "Togo what? forget about it for now, let's just get over it and find something else to keep it going and raise some funds."DR singing: "I got bills, I gotta pay, so I go work work everyday"

[paleje] 17/11/2015 08:48

Ed,
I know how it looks at face value but I'm slightly sceptical of these wonderful deals which happen to come along just in the nick of time when a co is in the mire. We'll see how the fund raise is handled, I think it will be soon.

[clocktower] 17/11/2015 08:44

One things for sure DR is good at promotion of the deal but will he deliver the goods for small stakeholders?

[hope67] 17/11/2015 08:41

RNS Number : 9068F
Ferrex PLC
17 November 2015


Ferrex plc / Index: AIM / Epic: FRX / Sector: Mining

17 November 2015

Ferrex plc ('Ferrex' or 'the Company')

Acquisition of Gold Mining Company in Australia and Strategic Review



Ferrex plc, the AIM quoted resource development company, is pleased to announce that it has entered into an agreement to acquire 100% of Australian private company Chaffers Mining ('Chaffers'). Chaffers has negotiated a five year tribute agreement with Paddington Goldfields, a subsidiary of Norton Goldfields ('Norton') to mine certain defined gold deposits located on the Norton leases, located 30km north of Kalgoorlie in the heart of the Western Australian goldfields, for treatment at Norton's nearby Paddington processing plant.



The acquisition will enable Ferrex to commence production and cash generation with only working capital expenditure in Q2 2016. The funds delivered will be used towards the development of the Nayega Manganese Project ('Nayega') located in Togo upon receipt of the mining permit. This acquisition follows a recently completed strategic review by the Company focused on how to best deliver rapid value to shareholders in the current commodity pricing environment.



Overview

· Low acquisition cost, cash generative mining opportunity in a geographically stable mining jurisdiction:

o Production targeted to commence Q2 2016, initially targeting 20,000 to 30,000 ounces per annum

o Agreement covers historic resources of more than 350,000 ounces of gold at a grade of 2g/t

o Mining leases granted - deposits comprised of remnant resources below historic pits and previously unmined near-surface deposits

o Limited working capital costs to commence production estimated at GBP300,000

o Leases located 25km from the mill in an area of excellent infrastructure

o Ferrex to pay mining and processing costs, plus 22% royalty on gold recovered to Norton

· Low cost consideration and addition of highly experienced mining personnel to Board and management which will add further significant and relevant skills to Ferrex

o Consideration of £465,000 in shares at a deemed price of 0.5p to acquire 100% of Chaffers, additional £465,000 in shares on production of 10,000 ounces of gold at 30 day VWAP to announcement of successfully completing this milestone

o Chaffers executive Peter Hepburn-Brown to be appointed as a non-executive director of Ferrex and Chaffers Non-Executive Director Peter George to be appointed as Chief Operating Officer

· Strategic Review of current assets completed with focus directed at adding value for shareholders through near-term, low cost, compelling production opportunities

o Acquisition of Chaffers fits these criteria

o Continuing to develop Nayega as a low cost manganese export mining operation with a view of production within nine months of receipt of the Mining Permit, due imminently

o Evaluating opportunities to realise value or monetise non-core iron ore portfolio, located in South Africa and Gabon, through joint ventures or trade sales



Ferrex Managing Director Mr. Dave Reeves said, "It is very rare to find an opportunity which can deliver production in under six months from acquisition and therefore I am personally very excited about this project, which fits our goal of rapidly delivering cash flow at a low cost. Gold production will commence at 20,000 to 30,000 ounces per annum, the cash flows from which will be used towards the development of the Nayega manganese project in Togo when the permit is received. With our focus firmly on producing cash from these gold assets for the next six to nine months, I have no reason to believe that the Nayega permit will not be fully granted when we have the time to turn our attention to developing this as our next cash producing asset.



"In light of the continued depressed iron ore pricing environment we have been investigating various projects that fit the criteria highlighted above and continue to do so. The appointment of Peter Hepburn-Brown to our Board and Peter George as COO will bolster our mine development expertise and can be leveraged both in terms of this new acquisition and any future ones. This experience will be highly beneficial as we closely plan our next steps at the Norton leases in Australia and we look forward to reporting these plans to the market."

[hope67] 17/11/2015 08:40

Advfn news feed not working

[dell1234] 17/11/2015 08:14

Shares magazine article on the news:

[edgein] 17/11/2015 08:10

Paleje,

Looks like a good deal to me, they've just acquired 350k Oz at a very low cost and pay only a royalty on production. Cash flow generative by Q2 next year is really near term now too. With Nayega licence now imminent and sale of those large non-core iron ore assets on the cards then things could start moving here at an accelerated pace. 20-30000 Oz pa would be a decent level of production too and a 5-10 year mine life. ML, DFS and funding news on Nayega would be a massive step forward for this £5m company, 8.48Mt at 14% Mn is worth significant cash. Great little acquisition to get early production and cash flow to support the company until the big news comes here.

Regards,
Ed.

[liquid millionaire] 17/11/2015 08:06

Ferrex Managing Director Mr. Dave Reeves said, "It is very rare to find an opportunity which can deliver production in under six months from acquisition and therefore I am personally very excited about this project, which fits our goal of rapidly delivering cash flow at a low cost. Gold production will commence at 20,000 to 30,000 ounces per annum, the cash flows from which will be used towards the development of the Nayega manganese project in Togo when the permit is received. With our focus firmly on producing cash from these gold assets for the next six to nine months, I have no reason to believe that the Nayega permit will not be fully granted when we have the time to turn our attention to developing this as our next cash producing asset.

"In light of the continued depressed iron ore pricing environment we have been investigating various projects that fit the criteria highlighted above and continue to do so. The appointment of Peter Hepburn-Brown to our Board and Peter George as COO will bolster our mine development expertise and can be leveraged both in terms of this new acquisition and any future ones. This experience will be highly beneficial as we closely plan our next steps at the Norton leases in Australia and we look forward to reporting these plans to the market."

[andylee3] 17/11/2015 08:04

Published on Nov 16, 2015


Ferrex CEO Dave Reeves discusses the AIM listed the firm’s acquisition of Australian private company Chaffers Mining.
The deal, according to Reeves, will enable Ferrex to commence production and cash generation with only working capital expenditure in Q2 2016.
"It’s rare to find an opportunity which can deliver production in under six months from acquisition and therefore I am personally very excited about this project,” he says.

[paleje] 17/11/2015 07:42

Wonder why Chaffers/Paddington/Norton are giving up a low production-cost only gold resource to Ferrex in a shares only transaction, why not develop it themselves if it's so lucrative. Presumably they are cash strapped but so are we.

Out of the frying pan into the fire and if pog worsens next year as Goldmans think it will, it won't be looking too clever, that's without taking into account any possible miscalculation in the 'low'production costs.

[oilbuy] 17/11/2015 07:23

Ferrex plc / Index: AIM / Epic: FRX / Sector: Mining17 November 2015Ferrex plc ('Ferrex' or 'the Company')Acquisition of Gold Mining Company in Australia and Strategic Review Ferrex plc, the AIM quoted resource development company, is pleased to announce that it has entered into an agreement to acquire 100% of Australian private company Chaffers Mining ('Chaffers'). Chaffers has negotiated a five year tribute agreement with Paddington Goldfields, a subsidiary of Norton Goldfields ('Norton') to mine certain defined gold deposits located on the Norton leases, located 30km north of Kalgoorlie in the heart of the Western Australian goldfields, for treatment at Norton's nearby Paddington processing plant. The acquisition will enable Ferrex to commence production and cash generation with only working capital expenditure in Q2 2016. The funds delivered will be used towards the development of the Nayega Manganese Project ('Nayega') located in Togo upon receipt of the mining permit. This acquisition follows a recently completed strategic review by the Company focused on how to best deliver rapid value to shareholders in the current commodity pricing environment. Overview· Low acquisition cost, cash generative mining opportunity in a geographically stable mining jurisdiction:o Production targeted to commence Q2 2016, initially targeting 20,000 to 30,000 ounces per annumo Agreement covers historic resources of more than 350,000 ounces of gold at a grade of 2g/to Mining leases granted - deposits comprised of remnant resources below historic pits and previously unmined near-surface depositso Limited working capital costs to commence production estimated at GBP300,000o Leases located 25km from the mill in an area of excellent infrastructure o Ferrex to pay mining and processing costs, plus 22% royalty on gold recovered to Norton· Low cost consideration and addition of highly experienced mining personnel to Board and management which will add further significant and relevant skills to Ferrexo Consideration of £465,000 in shares at a deemed price of 0.5p to acquire 100% of Chaffers, additional £465,000 in shares on production of 10,000 ounces of gold at 30 day VWAP to announcement of successfully completing this milestoneo Chaffers executive Peter Hepburn-Brown to be appointed as a non-executive director of Ferrex and Chaffers Non-Executive Director Peter George to be appointed as Chief Operating Officer· Strategic Review of current assets completed with focus directed at adding value for shareholders through near-term, low cost, compelling production opportunitieso Acquisition of Chaffers fits these criteriao Continuing to develop Nayega as a low cost manganese export mining operation with a view of production within nine months of receipt of the Mining Permit, due imminentlyo Evaluating opportunities to realise value or monetise non-core iron ore portfolio, located in South Africa and Gabon, through joint ventures or trade sales

[paul the octopus] 14/11/2015 19:20

before they say the president went AWOL, last they say he was/is in India, now we all know that the Indian president was/still in the UK and that's for fact, go figure.