Frontier Min Share Discussion Threads

[hereford29] 07/11/2014 14:59

great RNS today, must make them feel very proud: "The management are pleased to announce a loss for the nine month period of USD 21,595,805, up from a loss of USD 4,952,428 for same period in the previous year." That's great guys, well done, splendid job! Why don't you give yourselves a pay rise and some free shares? Oh, you already did.

[roadster750] 07/11/2014 14:37

Induna123,

thanks to bp on lse for this post, it states they have had $12mn of the $30mn
www.halykfinance.kz/en/site/index/research/news:91615

[vizz] 07/11/2014 12:09

Impressive production figures? About 6 tons a day during the best weather of the year,
increasing debt and not a word about desperately needed capital - living in la la land.

[temmujin] 07/11/2014 11:10

NOTHING wrong with production figures though...impressive...sitting on a gold mine just needs abit of tinkering

[induna123] 07/11/2014 09:22

"Devaluation of Kazakhstan Tenge in February 2014 had a significant impact on foreign exchange loss during the 9 months of 2014"

That's what's caused the drop in the share price It started in March. They've taken a huge hit because of it.

They need that $30m for the Naimanjal sale to ease the pressure.

28 July 2014

FRONTIER MINING LTD

("Frontier" or "the Company")

Regulatory Approval to proceed with sale of Naimanjal

Frontier Mining (AIM: FML), the AIM listed Copper production, exploration and development company focused on Kazakhstan, announces that the Company has now received approval from Ministry of Industry and New Technology of the Republic of Kazakhstan ("RoK") to proceed with the sale of Naimanjal licence area to Union Transnationale Miniere S.A. ("UTM").

As previously announced on 10 March 2014, the Company has agreed to sell its 100% owned subsidiary FML Kazakhstan LLP, owner of the Naimanjal licence area to UTM for a cash consideration of US$30 million.

The Naimanjal licence area is located approximately 200 km West of Semey in North East Kazakhstan, with four commercial discoveries covering 529km(2), including Baitemir, Yubileiny and Beschoku.

All proceeds from the sale are expected to be used for repayment of maturing debt of the Company and financing capital expenditures for the ramp up of copper production at Benkala to maximum levels. A further announcement will be made once completion of the sale has taken place.

[time 2 retire] 07/11/2014 07:38

FML still in operation then-still got something to work with going forward....

[temmujin] 28/10/2014 20:09

doing very well by all accounts...didnt take much buying today to lift the bid

[hereford29] 16/10/2014 11:52

I don't think it is a real company at all. I don't think these assets are even being operated, they probably sent everyone home last year and are just paying themselves the wages, and the photos on the website are just taken from picture libraries. That is the only possible explanation for such a contradiction between statements by the board, announced results and forecasts and the share price.

[hereford29] 15/10/2014 15:10

why are these imbeciles still running he company? Even if they own it, they cant be that stupid? Or perhaps there isn't a company, and it is just fiction.

[blueball] 15/10/2014 12:43

Great time to sell.

[induna123] 03/10/2014 15:22

I agree. £8m market cap? It's silly season at the moment on AIM Stocks going up 500%. If they announce the sale has gone thru then I can see the mm's taking this up.

[temmujin] 25/9/2014 11:50

anyway offer now 0.45p so my 0.30p looks cheap now

[hereford29] 24/9/2014 11:17

I think it is just a way to get the captive float over the 90pc compulsory purchase threshold. Issued as an incentive for the management to do what? Run the company even further into the ground than they already have done? In my opinion they have been virtually bankrupt since 2012.

[cascudi] 23/9/2014 19:32

director received share for 0.01$ = 0.008£= 0.78p..so if directors sell now they will lose as well... shall we take it as good news for them to do improve sp?

[cascudi] 22/9/2014 14:05

hi maxim1999, i am in the same situation and hope of you
My thinking is this:
1) if I look the history of working capital (current asset - current liabilities) this value has always been negative. Also when the company was trading at much higher share price. in other word they always have more short term loan then asset.
2) But recently they sold an asset and this should improve the situation of the working capital..
so my question is why bank should unplug the credit facility now that the company is going to receive some cash that should be used to pay some short term loan? if bank did not trust the company .. may be they could have done earlier? why now?
3) the big loss they had in the latest interim was due to the change of exchange rate between dollar and local currency created by the Kazakhstan bank. so it is due to local government policy. It is not FML fault. It does not happen every day that the a state bank change in one day the exchange rate.
4) But what i cannot really understand and FML ceo should answer... is ...why this year the production forecast is almost the same of last year (1500 / 2000 ton) with so much done to increase production?

they need to answer to us about this. what happens to the production forecast of 4000 ton? and we will be at 10000 ton?

[maxim1999] 22/9/2014 12:40

A sad and depressed holder. I am sure there is value in the company somewhere as local copper deals have gone thru and the local shareholders have taken a beating in this. Anybody have a view that this will ever turn around. Is there any good news due? Or are we going bust ?

[cascudi] 21/9/2014 09:14

Interesting article about the currency sudden change of exchange rate. The Kazakhstan bank change 18 per cent in one go the exchange rate to help Russia whom currency is loosing power against dollar. Russia is one of the main customers of Kazakhstan companies. I am not an expert of economy but the sudden reduction in exchange rate I think it has reduced the asset value of fml. This reduction in asset value has to be shown as expense. But my understanding looking the cash flow statement is that this is expense is shown as plus. But I guess that workers are paid in local currency so this 18 per cent in exchange rate reduction should reduce the direct cost??????http://rt.com/business/russia-ruble-tenge-currencies-367/

[cascudi] 20/9/2014 14:37

i remember Travelzest. a company with no fixed asset (only some intangible) went from 0.2m mcap to 2.5mcap in less than a month because of bid rumour and then went in administration. but fml has asset and potential to produce , just need a better management probably to deliver higher production at less cost. let`s see. copper it is an important commodity that is required for the industry. it is not like gold that has not much industry application. I believe in copper.

[cascudi] 20/9/2014 13:57

actually if 30m$ arrives (=18m£) the evalue will be 71m£ = 3.8p per share.
i guess that if a company (eg Kazakhmys) wants to buy fml.. they will wait until 30m$ are cashed in. look the last interim of kaz they have about 3,829m$ in equity and 1569m$ of the equity is cash. so for example for kaz , 71m£ is nothing
the other possibility will be that kaz will pay in cash instead of buying share so
there will be nothing left for shareholders? i mentioned kaz becuase they were interested in 2012

[cascudi] 20/9/2014 13:31

so in theory to buy this company you need about 89m£ that is enterprise value at the current mcap (6m£). if the interim would have shown a better 2014 revenue forecast (eg 4000 ton), the price would have shoot up and so the mcap and so the evalue. again, as several people mentioned, with all the improvement that they seems to have done to increase production and that they showed in their website (unless they are picture modified with paintshop :)) i cannot understand why the volume forecast is similar to last year. If i remember well they say that would have worked also during winter to increase production. is that possible that they wanted to give bad result in order to scare small private investors and forcing them to sell their shares. so now they can be an easier target for a bid? i guess that the bid would have to be at least 89m£/1860m share = 4p. i know it is a crazy theory... but i don`t understand this suddenly low production