Kalahari Minerals Share Discussion Threads

[nohopeatall] 19/7/2011 09:21

Zangdook, i agree, 250 would be a crazy price, but the BOD rolled over very easily and backed the bid of 290 and i think they would have been happy at the lower offer of 270. I have just been very disappointed with the price action recently particularly as the bid process is open again for the chinese in early August. We are not moving from this range of 230. I can see the chinese coming in with an offer of a 10% uplift over recent price action. I am long and have been for three years and totally agree with your comments on Dattles (i am long Polo as i like his record). Its all gone too quiet.

Lets hope a low ball offer from chinese finally brings Rio into play.

[zangdook] 19/7/2011 08:59

According to the takeover panel's rules, the soonest it could do this would be early November

I thought it was three months, thus August. Is it six?

Edit: the journalist above is mistaken. From the Hearings Committee Statement released on May 25:

As a result of the Executive's
ruling, CGNPC-URC had a choice to announce either:
(a) a firm offer for Kalahari at 290 pence per
share; or
(b) that it had no intention to make an offer for
Kalahari.
In the event of the latter, CGNPC-URC would be subject
to Rule 2.8 and, by virtue of Note 6 on Rule 2.4,
would not be permitted to announce an offer for Kalahari
at less than 290 pence per share for three months
following the date of such announcement, even with
the agreement of the board of Kalahari (save to the
extent that an event occurred in respect of which
CGNPC-URC had reserved the right to set the "no intention
to bid" statement aside at the time when that statement
was made).

CGNPC announced the withdrawal of their offer on 10 May.

[beefeater25] 19/7/2011 08:44

18th July 2011

Updated 38 minutes agoTEXT SIZE TORONTO (miningweekly.com) – Extract Resources, hoping to build the world's third-biggest uranium mine at its Namibian Husab project, said on Monday it is talking to "several" companies about potential offtake and funding deals.

"The partnership process remains ongoing, with discussions taking place with several parties regarding their potential involvement in the project. These conversations include discussion of possible offtake deals, as well as provision of financing to facilitate the project's development," a spokesperson said.

TSX- and ASX-listed Extract completed a feasibility study for the project in April, after having applied for a mining licence to the Namibian government in December.

The feasibility study outlined a 15-million-pounds-a-year operation that would cost $1.5-billion to build.

In reply to emailed questions, the spokesperson declined to comment on when the company's mining licence might get approval, saying only it was under "active consideration, and we look forward to receiving approval in the near future".

Last month, Extract CEO Jonathan Leslie said his company was in talks with the Namibian government for it to take up a stake in Husab, located east of the coastal town of Swakopmund, on a commercial basis, after the State said it would only issue licences to its newly formed Epangelo Mining.

The spokesperson declined to comment on these talks, citing confidentiality, and also wouldn't say whether the negotiations regarding the mining licence and the Epangelo stake were linked.

Stocks of companies with mining assets in Namibia shed value earlier this year, after Namibian Minister of Mines and Energy Isak Katali said that exploration and mining rights for all "strategic minerals" including uranium, copper, gold, zinc and coal would go to the State.

He later said this wouldn't affect rights already awarded.

The Extract spokesperson said that the company would take Husab to its board for approval once the mining licence had been granted and financing arranged.

An analyst, who asked to remain anonymous, said it was likely the mine would start producing in mid-2015, though this was not clear until the company had the mining licence in hand.

She said Epangelo would likely seek a maximum stake of 20% in Husab, and that the talks over the mining licence and the government's holding in the project would probably "go hand in hand".

CHINA'S NUCLEAR APPETITE

Earlier this year, China Guangdong Nuclear Power Corp (CGNPC) made a friendly bid for LSE-listed Kalahari Minerals, which is Extract's biggest shareholder, with 43%.

The State-owned company then pulled out after London's Takeover Panel disallowed a revised lower bid after the Japanese nuclear disaster wiped billions off the values of uranium companies.

"It is likely that they will come back," the analyst said, saying that CGNPC would most probably approach Kalahari first again, and then go on to make a bid for the rest of Extract.

According to the takeover panel's rules, the soonest it could do this would be early November, unless another company were to bid for Kalahari before that date.

On Sunday, China's Sichuan Hanlong bid $154.9-million for Bannerman Resources, which also owns a uranium project in Namibia.

The analyst said that China needed to secure future uranium supplies for its ambitious nuclear power build programme.

"They have now sourced about as much as they can from existing producers through long-term contracts. The next phase is to go out and buy new producers," she said.

Sichuan Hanlong also this week made a $1.4-billion bid for Australia's Sundance Resources, developing an iron-ore project in West Africa.

Cameco's McArthur River is the biggest uranium producer, with the company's Cigar Lake to follow in close second after it starts producing in 2013.

Extract was trading at C$7.91 a share on the TSX on Monday, valuing the firm at C$1.7-billion.


Edited by: Liezel Hill

[zangdook] 19/7/2011 08:09

JunkaX if you don't mind me asking, what date and price did you come up with? My notes are a bit higgledy-piggledy, but I seem to have 13 May and 175p

nohope 250p would be silly. 290p was silly enough. I don't see how an offer under the 270p they tried on before could be recommended. Who knows, though, with this BoD? I wish Dattels were still involved.

I don't know if I said this before, but I emailed the co to ask if, now the bid had been withdrawn, they were again considering moving to the main market and/or discussing the corporate structure with EXT. They didn't reply.

[nohopeatall] 19/7/2011 07:40

Marben are you about? Always appreciate your insight and comments, do you think the chinese will make a further bid when they can in August or will they wait for some more market weakness and let the price drift? Does the market think the offer will be about 250p hence why we sit here at give or take 230? And i would be interested to hear your thoughts on timing of the mining licence. Many thanks

[junkax] 18/7/2011 21:18

Aha - seems a reasonable plan.
I've called them (HMRC) with varying results.

Thank you, appreciate the reply.

Edit: I went for KAH price on the day URU said they were issued to stakeholders (I think!).

(Sorry for OT)

[zangdook] 18/7/2011 03:58

JunkaX

I took it as a dividend in specie, giving me a big tax loss when I sold URU, and took the notional purchase price of the KAH shares as the closing offer price on the day they appeared in my account. (I seem to remember reading somewhere that there's a more sophisticated official way of finding the price, but I don't believe it would have been substantially different).

That seemed to be the interpretation most consistent with the documentation and RNSs from URU at the time, comments here and my own interests. I never managed to get an answer from HMRC.

[junkax] 17/7/2011 20:38

(Bit OT sorry)

Zangdook, what conclusion did you come to regarding URU, the special divi of KAH shares and what to do when you sold either/both?
Needless to say I'm in the same boat and it's not really clear, certainly what happens after selling the KAH. (HMRC HS285.pdf pg 5 is the closest I got).
Perhaps time to visit the CGT thread..

[wanttowin] 15/7/2011 20:10

Still holding strong here in a very weak market...must be some news soon I think

[strollingmolby] 13/7/2011 15:26

LOL, zangdook! :o)

[martylangan] 04/7/2011 09:39

Just over 4 weeks until CGNPC can bid again.. May start ticking up from here...

[beefeater25] 30/6/2011 11:21

Have Kalahari already spoke to Cameco?
Cant help thinking its the lack of a mining licence that could be causing some apprehension. It would certainly put my mind at ease if it was approved.

[brad44] 27/6/2011 22:24

If I had the money myself, I would buy it..what is wrong with our find that it only interests two players? its one of the largest U finds of the century ffs!!

[krakow] 27/6/2011 21:11

I think that's our only hope for a decent price, marty. Even then competitor bidders may get together to stitch things up, unless one company wants the whole project outright. The end is nigh.

[martylangan] 27/6/2011 16:47

Either that or APEC are under the impression that there will be a bidding war too?

[krakow] 27/6/2011 16:13

Looks like this is definitely going to go cheap. Very disappointing after 2 years of hype. At least it's not falling like the rest of the market.

[martylangan] 27/6/2011 14:41

Board dysfunction has not been an issue at another of APAC's core investments, its 14.8 per cent stake in Kalahari Minerals worth pound stg. 85.3m ($130m).

Kalahari, which controls a majority stake in ASX-listed Namibian uranium player Extract Resources, was subject to an agreed takeover offer from China Guangdong Nuclear Power earlier this year until the Fukushima nuclear disaster hurt the outlook for uranium and prompted China Guangdong to withdraw its offer.

China Guangdong is precluded from making another bid for Kalahari until August, but the group is expected to come back with a slightly lower offer for Kalahari then.

Ferguson (head of APAC resources) says APAC is a willing seller of its Kalahari stake, and expects Rio Tinto, which owns the existing Rossing uranium mine near Extract's deposit, to be eyeing Kalahari and Extract.

"Rio has got a 40-year-old mine sitting 6km away, a 40-year-old pipe and a 40-year-old dilapidated plant and an open pit where they've got to spend half a billion dollars on a cutback to get to the bottom, which is half the grade of what's 6km down the road," Ferguson says. (Extract) is a much cheaper option.

"Whether they have the determination to do it, I don't know (but) the Chinese are pretty keen to secure some sort of independent energy supply."

[red ninja] 26/6/2011 20:37

I believe it is August as the hearing was 11th May, I presume it is 3 months from that date ie 12th August.

However, in articles which have been published it has been stated that CGNPC may come back in 3-6 months so they don't seem under any pressure to rush back with an offer at the first opportunity.

In the mean time there could be financial upheavals in the Euro zone. Will Greece default on Monday for example ?

[beefeater25] 26/6/2011 18:07

Does enyone know when CGNPC can make a bid again? Is it august? Seems to be bobbing around 230p a lot lately...

[aimfinder] 21/6/2011 07:48

Brad44,
of course you can mate, thats what these bb's are all about. have you seen I have made a links page on nuclear/ree & uranium is called News for FTE contains a lot of latest news links on those subjects I'm kind of using it to store all the news I find on those subjects saves trawling through a lot of posts,here is the link

If anyone finds anything of intrest can they post it there as well.

[brad44] 20/6/2011 23:06

for those interested posted on fte bb by aimtrader worth a read



aimfinder - 20 Jun'11 - 22:48 - 1692 of 1692


Another Uranium Boom on The Horizon

[humbagash] 19/6/2011 09:14

Probably a typo.......should have been 230p.