Kalahari Minerals Share Discussion Threads

[krakow] 18/6/2011 12:49

An even bigger worry is the KAH BOD will let this go on the cheap.

There was an uncrossed trade at 220p from the auction yesterday.

[red ninja] 18/6/2011 09:13

iii gives a closing range of 228.0 - 231.75.

Seems someone was offloading at close.

Given European markets are worried about a Greek debt default selling is the order of the day.

[beerbaron2] 17/6/2011 23:20

What's the story with the closing share price? Some charts give me 229.75 ish, others give a closing price of 220.

Any reason for the sell-off?

[martylangan] 15/6/2011 12:41

Huge uranium deposit reports attracting worldwide attention - by Desie Heita

15 June 2011

WINDHOEK – Namibia is making new headlines worldwide following the release of latest drilling results by Extract Resources, which indicate that the deposit site is the fourth largest uranium deposit in the world.

The latest results are 33 percent more than the previous metric tonnes of uranium deposits that the company believes lie under its claims in the Erongo Region, a site that is not far from where the current Rössing Uranium Mine sits.

A statement from Extract Resources says the findings indicate, "Once in full production, Husab [deposits] is expected to become the largest producer of uranium in Namibia, and one of the three largest producers in the world."

These are the deposits that the Chinese state-owned company courted in a bid to buy out majority shareholding from Kalahari Minerals, which owns nearly 43 percent of Extract Resources.

The bid is said to have fallen through, as minority shareholders asked that the offer is extended to all shareholders at equal value.

Also, discussions between the Namibian Government and Extract Resources for significant shareholding in the Husab Mine, once it goes into development, are said to have stagnated, with no real progress made. Government, through state-owned Epangelo Mining, wants to have shareholding in the mine and the two companies have been in discussions for nearly two years.

Extract Resources wants to commission the mine in three years from now and require nearly N$12 billion to bring the mine to reality.

Extract Resources says together with the recent definitive feasibility study, "all point to Husab [deposit] being the most exciting undeveloped uranium deposit in the world." While the company has previously billed the deposit among the top 10 in the world, it now says: "These results continue to emphasise the global significance of the Husab Project which, on the publishing of these figures, is now known to house the world's fourth largest uranium deposit."

Meanwhile, Extract Resources says it has completed the definitive feasibility study and has initiated the mine optimisation and resources extension programme with the purpose of substantially increasing the current mine life span and optimisation of the process plant and mining operations.

"The significant increase in resources in the updated estimate indicates substantial progress towards this objective," says the statement.

The next step is to generate a revised mine plan based on the updated resource model.

Expectations are for this to result in a material increase in reserves and mine life.

The company says it will continue with its drilling programme, with a target to expand and improve the classification of existing deposits, and to discover new areas of mine­ralization.

There are currently five drill rigs in operation on site with 100 000 metres planned for drilling to the end of the first quarter next year.

"We expect that the resource base will continue to increase with continued drilling of known deposits and new discoveries. In particular we look forward to the results of further drilling at the Middle Dome, Pizzaro and Salem prospects to the south of Zones 1 and 2," stated Extract Chief Executive Officer Jonathan Leslie.

[beefeater25] 14/6/2011 22:14

Still cant figure out what the board are trying to do here and if they are trying to force someones hand?

I keep thinking they would surely be unhappy to just get 270p per share considering EXT could potentially have over 1m lbs of uranium...

Strange one to figure out.

[red ninja] 14/6/2011 17:55

Niels,

Well baring any other company intervention it would seem the Chinese can have the company for £2.70 per KAH share and around AU$9.50 per EXT share. I cannot see who will force them to raise their offer at the moment.

Krakow,

Everyone likes a bargain and the Japanese events have helped to deliver one for the Chinese. I just hope they don't get too greedy and think about another slice of the £2.70 recent offer.

[krakow] 14/6/2011 17:27

Yes, it's possible they want it on the cheap which is what I've always been afraid of as shareholders will not get full value if there's a stitch-up behind closed doors.

[nielsc] 14/6/2011 17:07

Red Ninja,

I think something like that will come about.

RIO have the mining infrastructure close by and the know how.
CGNPC have the need to secure uranium supply.

How exactly a deal is done I don't really mind as long as KAH is bought out at a decent price. Not these low ball offers we've seen so far.


Cheers,
Niels

[red ninja] 14/6/2011 16:39

RIO want it, but all they have to do is crack a deal with the Chinese

[krakow] 14/6/2011 14:53

The longer this goes on the more I think that, for whatever reason, RIO don't want it.

[martylangan] 14/6/2011 14:17

Gathering some momentum now...

[nielsc] 14/6/2011 12:12

zangdook,

I think in these power struggles a lot more goes on behind the scenes than we generally see. The fact that RIO hasn't shown its hand yet perhaps gives it an edge over CGNPC.

Although you would think that an earlier bid would have been better before more Uranium had been proven.

Cheers,
Niels

[zangdook] 14/6/2011 10:41

Or 4.

I'm concerned that no-one has come forward to take advantage of the 3-month waiting period before the Chinese can bid again below 290p. It's depressing to think maybe RIO et al might be stepping aside to give the Chinese a free run at KAH, in order to curry favour. It would certainly fit in with the craven behaviour of the Kalahari board over the desultory Chinese offers and the break fee.

[nielsc] 14/6/2011 09:54

KAH creeping up nicely. Another month at this rate and the price will be around 250p. A 270p bid would not much of a premium over the market price.

A bid should really begin with the number 3.

Cheers,
Niels

[grimbo] 07/6/2011 18:43

I certainly hadn't seen that before - but it looks like clever politics and (as Leslie all but states) is the reason why Extract has no reason to fear getting its mining license.

[lenses] 07/6/2011 10:58

Is this already posted?



L.

[nielsc] 07/6/2011 10:22

I hope that if the 270p bid is made correctly that any other interested parties will be happy to pay a higher price. Will be happier when the price gets around the 270-290p range without any bid talk. Then any bid would have to be above £3 odd.

Cheers,
Niels

[zangdook] 07/6/2011 10:11

I wonder how much the resource would have to increase for the board to decline to back a 270p bid when the three months are up.

[grahamg8] 07/6/2011 09:08

Update now posted by Kalahari. Zone 4 looks very interesting as the grades are higher than zone 1&2 and so far there have only been 40 holes drilled. Headline resource figures also exclude the Ida Dome area which has 0.3mlb indicated and 24.8mlb inferred, just a minor footnote near the end of the report.

Next upgrade H2 2011 from reinterpretation of data being done in the MORE prog, then from extra drilling in Q1 2012. Other news flow is going to be on financing, licensing, mine design and procurement programme for the rest of 2011.

[grimbo] 07/6/2011 05:31

Nice new update from Ext - now established as the 4th largest Uranium deposit in the world

Theres also a nice audio broadcast too available via the website.

[grahamg8] 01/6/2011 08:26

Jimbo, import the electricity from France - nuclear, and all those nice shiny new UK nuclear power stations. In the aftermath of Fukushima Germany began to review the safety of its nuclear plants and as I recall at least one in Bavaria I think was shut down. Remember the owner set about sueing the regional government? Of the 17 they have I do wonder how many are rather old and would have to shut down in the next 20 years anyway. In other words they have a similar problem to the UK. But the plan on how and what to replace them with is now completely different. UK (reluctantly) leans to nuclear but has no credible plan to make it happen; Germany has no plan at all.

[jimbo55] 01/6/2011 00:25

I wonder what German utility users will think of Merkel's decision in 10 - 15 years time. You couldn't make this up. Wonder how she's planning to plug the shortfall - magic......?

[shavian] 31/5/2011 16:12

Gratifying little MM reaction to Germany's intentions today.

[cyfalafwr] 31/5/2011 10:12

nielsc
An interesting statistic from the table in the above link is that China and the UK have the same MW capacity at present

[nielsc] 31/5/2011 09:54

Out of the 60 nuclear reactors being built in the world almost half (27) are being built in China.

Some interesting statistics here.



Germany sticks out as the only country in the world considering phase-out of it's 17 reactors (441 reactor world wide)

Cheers,
Niels