Finders Resources Share Discussion Threads

[coffeelito] 09/6/2009 17:44

joniflamingo... how many times have i fallen in love with a macro picture only to be slammed by the micro ... woteva appens to copper, 'ow can we be sure that fnd is gonna succeed ...

[jonny flame] 09/6/2009 17:40

'If you build it they will come' - this is my new slogan for FND, if they build the copper plant the herd of investors will come and invest. Coffeelito - I reckon you will appreciate the new slogan :)))

Copper Prices Rise as Dollar Slumps, Auto Sales Soar in China



The metal may reach $2.75 a pound by the end of the year as inflation accelerates, said Pento, who in January correctly predicted copper's 2009 rally.

Copper prices also were supported by a report today that showed auto sales jumped in China, the largest user of the metal.

[baht] 01/6/2009 18:01

For an active BB on FND go to

[baht] 01/6/2009 18:01

For an active BB on FND go to

[jonny flame] 01/6/2009 17:33

Nice RNS today, another box to tick off!

Mean while copper is surging over 5% at the time of writing, at $2.32 lb.

....and yes it was me that bought those 5,827 shares today, I'll continue to add to my holding this summer.

[jonny flame] 29/5/2009 09:19

Hi coffeelito, In regards sp, In 6 to 9 months time, as long as all goes well with the feasibility, Copper prices remain above 2$ a lb and there is no slippage in getting the main site built and producing by Q2 of 2010, significantly higher than what it is now!

In regards cash flow problems, well they are producing copper now getting paid for it and earning profit on this they are also looking to expand the demo production so that would bring in more funds. The real key though is getting the financing in place to build the main site, this will come once the full feasibility has been complete in August, I would imagine. They would also use these funds to repay the $5 million loan that is due in Dec. So there are still a few boxes to be ticked which we should be hearing about this summer.

"The current plan is that this will be repaid at the time project finance is secured for the Wetar expansion project".

P.S. you were up late last night, or do you live abroad like me!

[coffeelito] 29/5/2009 00:50

cheers jonnyflamingo ... so wot do u reckon the share price should be?!?! Aint there a possible cashflow problemo lurkin' ...?

[jonny flame] 28/5/2009 19:28

coffeelito - hyped up? Apart from me there is no one else around, this is one of THE least hyped companies I have ever come across. The management own around 25% of the company and so have a huge stake in making this a success, the company is now selling copper at a healthy profit and slowly but surely they are progressing the company along. Also the directors are all experienced and there are some very bright and motivated people in FND, personally I have great confidence in Chris Farmer.

Once we get some more news on how current trial production is going we should start to build up a better picture, we are also awaiting news on;

"Initial performance data from the test heaps is now available and Finder's has been invited to bid for two used SX‐EW plants".

"At this stage, with critical operational results from the test heap leach pads due in the next two months, it is expected that the study will be completed in August 2009".

Outlook
With the Wetar demonstration plant now in production, the Group's priority is to complete the Feasibility Study, with a view to unlocking the value of the project through the development of a 20,000 to 25,000 tonnes per year copper cathode operation. Initial results from the demonstration plant have added to the already high confidence level that the expansion project is technically
feasible and economic. It is expected that, with consistent production from the demonstration plant for the remainder of the year and a continued upturn in LME copper prices, the Company's working capital position can be maintained until project finance for the Wetar expansion project is secured. The Company has a
secured loan of US$ 5 million from Meridian International Capital Limited which is required to be repaid by 31 December 2009. The current plan is that this will be repaid at the time project finance is secured for the Wetar expansion project. The Company is also currently evaluating options to increase production from the demonstration plant.

[jonny flame] 28/5/2009 18:25

coffeelito - ha! Not really. Just someone that studies commodities and can see long term value here.

Will you be posting on here in the autumn when this share price is multiplies of its current valuation?

Remember that their demo plant is producing high grade copper, which is going for premium rates, produced at a cash cost of around 1$ per lb, and that copper is currently trading at 2.15$ per lb.

This thread will have it's day! Might have to wait 3-6 months though :)

[coffeelito] 28/5/2009 17:07

r u a cheerleading pied piper johnny flamingo ?

[jonny flame] 26/5/2009 16:43

.....ugh me again. Can't wait to see what FND will be worth when there copper mine is commisioned and operating at full capacity in 2010, just when the world realises that there is not enough of the stuff around. You can see why the Directors of Finders are increasing there stakes in the company at these prices. On the grand scale of things, 6 to 9 months is not long to wait.



May 26 (Bloomberg) -- The "worst is over" for raw materials demand

....."We are becoming increasingly confident that the period of weakest demand for raw materials is behind us," analysts led by Melbourne-based Malcolm Southwood said yesterday in a report. "We have also seen the bottom of the price cycle for base metals, and particularly for copper, which remains the most supply-constrained, and therefore our preferred commodity for investment exposure."

Rio Tinto Group, the third-largest mining company, is hopeful of a "V-shape" recovery in China, the world's biggest metals buyer, an executive said today. The Asian nation increased imports of copper, aluminum and iron ore to a record in April as buyers replenished stockpiles for the country's 4 trillion yuan ($586 billion) stimulus.

"The rate of copper and iron ore imports into China has been extraordinary and certainly implies a degree of restocking," Goldman's Southwood said. "The bottom line here is that we think economic sentiment, demand for raw materials, and commodities prices will be better in 12 months' time and 24 months' time than they are now."

[jonny flame] 19/5/2009 16:48

China's Stockpiles Are New Sovereign Wealth Strategy, RBC Says

May 18 (Bloomberg) -- China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth amid concern that the value of its dollar assets may decline according to the Royal Bank of Canada. .....

Increased spending on commodities represents a reallocation of China's sovereign wealth away from the accumulation of financial assets," Jackson said in a May 15 research note.

China, the world's biggest consumer of iron ore, boosted imports of the material to a record 57 million metric tons in April. China's purchases of copper and copper products reached a record 399,833 metric tons last month, compared with 374,957 tons in March.

[jonny flame] 09/5/2009 18:22

Looks like we will have some RNS's on Monday morning, due to some changes in shareholdings.



Looks like Tennant Metals (www.tennantmetals.com.au) have reduced there shareholding and that Acorn Capital (www.acorncapital.com.au) have taken the shares off them and indeed added to the holding. Perhaps this is what the recent large delayed buys were all about this week?

I would see this as good news as it means we have an instituation buying in, which says to me that they have seen value here.

[jonny flame] 07/5/2009 16:32

Monday, March 09, 2009

So what's it worth? As shown by current analysts' dramatically different DCFs, calculating fair value on an earnings basis is inaccurate until the DFS gives clear guidance on capex, costs, revenue and – most importantly – a production start-up date. Reverting to the tried and tested rule of thumb for valuing resources in the ground, Wetar's measured and indicated resource of 218,000 tonnes of copper could be fairly valued at 10% of the in-situ worth, particularly given the simple mining and processing route, high copper grade and low op costs. At today's copper price of US$3,300 per tonne, that suggests a resource value of £50 million.

Today you can buy it for ten....

--------------------

If we do the same analysis today using a copper price of US$4,500 PT then that now suggests a price of £65 million.

[jonny flame] 07/5/2009 16:10

focus-on-feasibility-study-for-wetar-copper-cathode-project-5379.html

FinnCap issued a note, saying the company should have enough working capital until the end of the year. The shares, currently trading at 16 pence, have another 12 months to reach the broker's minimum valuation of 31p. "With commercial production 12 months away, we think the shares, currently trading on 3.6x 2010 earnings, continue to offer exceptional value," FinnCap added.

[jonny flame] 07/5/2009 09:21

wirralfinance - thanks for that mate much appreciated, if you get some news from your broker would it be possible to foward the information onto me, to a private email account? If so please do let me know as I am very interested to hear some other views on this company.

I'll post my email on here if you agree. I'll also share some other info with you :)

[jonny flame] 04/5/2009 09:21

If the below estimates from RBS prove correct then that makes for a compelling investment case for FND. This is a long term hold in my view, but at the current price you are buying in at the bottom.



May 1

"Copper futures will average $1.90 a pound this year and jump to an average of $2.50 in 2010 as consumption rises, RBS forecast. The most-active futures averaged $3.1214 a pound in New York last year".

[jonny flame] 30/4/2009 18:27

Once the markets start to recover in 2010, which should hopefully coincide with the main plant coming into production and high commodity and copper prices this overlooked and underloved company will look like an excellent investment. What really appeals to me is the cost per oz, the quality of the product they are producing, location of the mine to the port and the Chinese market and the management team behind it.

Just need to sit tight on these.

[jonny flame] 27/4/2009 19:08

Quarterly Report for the Period Ended March 31st 2009



Wetar Copper Project
• Demonstration plant fully commissioned on 23rd February 2009.
• Initial cathode sales coincided with a rebound in copper prices and each shipment has attracted a premium above LME prices.
• ~60,000 tonnes of 3.5% Cu ore stacked in two heaps and under irrigation.
• Copper leaching rates in line with expectations.
• Feasibility Study targeted for completion in August 2009.

Ojolali Gold‐Silver Project
• Ongoing low cost evaluation of geochemical targets within the mineral district with the
completion of ~500m of trenching in new target areas.
• Wide zones of gold bearing quartz veins observed in the trenches indicate potential to extend the Jambi mineralized zone for at least 250m to the NW.

Corporate
• Drawdown of US$1.5m convertible note facility with RCF.
• A$0.7m loans from directors, partly converted to shares with balance to be converted upon shareholders' approval.
• Placement of ~28 Million ordinary shares at 20c/9p in two tranches to raise approximately
A$5.6 million, subject to shareholders' approval.
• EGM scheduled for 4th May 2009 and notice of meeting sent to shareholders.
• T. Quinn Roussel appointed as non‐executive director.

Feasibility Study
As advised in the previous quarter, the Board considered it was prudent to finalise the bankable study once SX‐EW plant purchase options (used or new) were clearer and once operating data from the test heaps is sufficiently robust to ensure that the final study has minimal capital cost and technical risk.
Initial performance data from the test heaps is now available and Finder's has been invited to bid for two used SX‐EW plants.

Arrangements have therefore been made with key consultants, Australian Mine Design and Development Pty Ltd, Ausenco, SRK Consulting, ENSR and Helman & Schofield to restart the work required to finish the study.

At this stage, with critical operational results from the test heap leach pads due in the next two months, it is expected that the study will be completed in August 2009.

[jonny flame] 21/4/2009 07:34

coffeelito - at the present time, a share price of 30p would be a more realistic valuation (in my view). If the feasibility goes well and they get things going and can start mining by Q2 of 2010 and the copper price stays at between US$1.80 Ib to US$2.20 Ib then a valuation of 50p is more realistic, in my humble opinion.

Previously these assets were almost priced to go bankrupt, however FND are already a low cost producer of copper (the demo plant is showing this) and have the added benefit of location to market (China) which makes them competitive in comparison to most of there peers.

I maybe incorrect in valuing the assets like so but if the company are planning to mine 218,000 tonnes of copper over a 10 year period, working on an average copper price of say US$3,500 pt over this period that equates to mine able asset's worth US$760m. The company currently has a market cap of 15m pounds.

Feel free to correct me if I am wrong.

[cyprussteve] 21/4/2009 05:30

Hi coffee,

Well, the article above dated March 2nd is targeting a price valuation of triple the current share price - I guess if it reaches that it may fully valued if the forecast in the article is correct - I think double the current share price would do nicely for starters :)
I have also noticed that the spread has closed down a lot today - clearly a sign that the share is becoming in more demand.
Regards
Steve