Kalahari Minerals Share Discussion Threads

[kinbasket] 26/8/2011 19:31

The bid for Hathor By Cameco is at $8.70 per lb for indicate and inferred of 58m lbs.

The latest Extract indicated and inferred is 512m lbs. An offer at the same level implies a value of A$17.70 for EXT. Currently at just over $8.

Ok not all deposits are equal, different locations, tax regimes etc etc but it's an indication that the price of EXT is too low.

CGNPC may be a little peeved that Cameco have made this move. It may light a small fire under the uranium sector and force them to pay more.

Would expect some response Oz tonight.

[aughton 3] 26/8/2011 17:21

red ninja i dont get where you get that from , i dont believe for one minute RIO are going to walk away from this without one of hell a fight

[extrader] 26/8/2011 16:55

Hi all,

If the Russians offered US$ 10 per lb (for Mantra -sp?) vs China's US$ 6-30 or so for KAH, maybe the Russians should become our new 'best friends' !

Wasn't Medvedev in Namibia a few months back....?

ATB

[red ninja] 26/8/2011 15:55

Pity we're propably only going to get 9-15% upside from the current share price if a bid ever materialises assuming a bid in the £2.50 - £2.70 range

[zangdook] 22/8/2011 10:48

...and back up to 6.02%. Are they trying to attract attention?

[zangdook] 22/8/2011 08:56

Unless I'm misreading the RNS they've reduced their holding - crossing the 6% threshold to reach 5.96%.

At the last RNS (15 Aug 16.28) they held 14,745,212; today they hold 14,625,563.

[shavian] 22/8/2011 07:31

CYN continues building its stake in KAH. Richard Lockwood is on the board of KAH and was the CEO of CYN. Insider dealing? Hope not, as I hold both!

Clearly CYN thinks there will shortly be a good outcome here.

[martylangan] 18/8/2011 14:53

Good news...

[verymaryhinge] 18/8/2011 08:16

from a couple of days ago

[krakow] 15/8/2011 00:03

Fukushima or not, any bid here less than 400p will be a right royal rip-off imo.

[gero67] 14/8/2011 13:25

Dance of the Kalahari

The Australian Financial Review
PRINT EDITION: 13 Aug 2001
Street Talk
Edited by Khia Mercer

As expectations grow that Extract Resources's major shareholder, Kalahari Minerals, will soon attract bid interest again from China Guangdong Nuclear Power, the chatter in Britain is of some interesting manoeuvring in the share registers of both companies.

Well-known mining executive Stephen Dattels, who chairs Hong Kong company Regent Pacific, is said to be building stakes in Kalahari and Extract, owner of the huge Husab uranium deposit in Namibia. Regent Pacific already owns about 2.7 per cent of Kalahari.

Dattels is executive chairman of Polo Resources, which sold out of Extract last year, and is also a former nonexecutive director of Extract.

Rio Tinto also owns stakes in Kalahari and Extract, as does Itochu, but it is unclear what Dattels may have in
mind.

Meanwhile, it is worth noting that the UK regulator ruling in May on China Guangdong and Kalahari means that, for the next three months at least, any resumption of talks between the two must be initiated by Kalahari.

[red ninja] 12/8/2011 19:27

If there is a bid at £2.50, then from the KAH current price there is around 10% upside not exactly huge, buying EXT makes more sense...

[beefeater25] 12/8/2011 15:55

"The first source said talks between the two companies are expected to take place next week. The second source said Kalahari's executive chairman Mark Hohnen will next week travel to China and is expected to meet with CGNPC. A spokesperson for Kalahari confirmed Hohnen is travelling next week but was unable to confirm his destination or intentions."

Lets get the ball rolling!
Be good if the price rose to 270p before the bid so they would have to consider offering more...

"may seek to revisit valuations"
Yeah upwards surely!!!

[martylangan] 12/8/2011 15:46

Kalahari Minerals and Chinese state-owned CGNPC expected to meet next week
by Julie-Anna Needham, Simon Segal and Ed Vinales

Published: August 12 2011 15:31 | Last updated: August 12 2011 15:31




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

Kalahari Minerals' [KAH LN] and China Guangdong Nuclear Power Corporation (CGNPC) are expected to meet next week after the latter walked away in early May from a revised 270p per share offer, two sources familiar with the situation told dealReporter. Under the Takeover Code, CGNPC was barred from making another bid attempt on Kalahari within 6 months or just 3 months should Kalahari's board give its consent.

The first source said talks between the two companies are expected to take place next week. The second source said Kalahari's executive chairman Mark Hohnen will next week travel to China and is expected to meet with CGNPC. A spokesperson for Kalahari confirmed Hohnen is travelling next week but was unable to confirm his destination or intentions.

The first source said the Chinese state-owned nuclear power producer is expected to start an internal value discussion this week about a renewed offer for Kalahari. This news service has previously reported that CGNPC, which remains interested in acquiring Kalahari, may take up to two months to table a new offer as it will initially seek to revisit valuations.

It is noted that CGNPC this week said it will issue RMB 3bn (GBP 287.7m) in short term bills with a maturity of 366 days on 11 August to replenish working capital and repay loans.

CGNPC broke off bid talks with Kalahari on 10 May after the UK Takeover Panel blocked its attempt proceed with a bid pitched 6.9% below its original 290p a share offer in the wake of the Japanese earthquake and tsunami. The Panel rebuffed the bid revision as the disaster in Japan was not deemed a "wholly exceptional event" and because Kalahari's board and advisors had not allowed CGNPC to reserve the right to lower the offer in the original 7 March bid announcement.

News of the two sides' planned talks comes as Extract Resources [EXT AU], in which Kalahari has a 43% stake, today announced a 37% increase in its estimated reserves at its key uranium asset the Namibian Husab project. Kalahari's key value driver and the main reason behind the original CGNPC bid is its holding in Extract. CGNPC was expected to make a full downstream offer for the remaining shares in Extract as part of the original deal.

Extract recently said talks are ongoing with prospective investors and off take partners with regard to the expected 33 month engineering and construction timeline for approx USD 1.5bn Husab project, which has the potential to become the third largest uranium mine in the world. Extract had cash resources of around AUD 74.9m at 30 June 2011.

A source familiar with the matter said Extract and Kalahari's interests are aligned so there will be no firm developments until the latter reaches some form of agreement with CGNPC. Extract said last month it expects Namibia's Ministry of Mines and Energy to issue its mining license in the near future.

In light of the ongoing developments at the Husab project, there is no pressure on Kalahari and Extract, which would need to recommend the downstream bid price, to agree to any offer markedly below the revised offer price, said two sources familiar with the matter. APAC Resources, a major shareholder in Kalahari, would still be comfortable with an offer at 270p a share or thereabouts, it is understood.

CGNPC indicated to Kalahari in April that while Chinese regulators would likely not approve a 290p a share bid following the Japan crisis, an offer at 270p would be acceptable to them, according to a summary of events published by the Takeover Panel on 25 May.

The Takeover Panel's statement, which explained its decision to block the attempted price revision and was based on submissions by both parties, also said that CGNPC thought a transaction at the time was still financially viable at 270p per share, "but was finely balanced". CGNPC said the fact that a price revision was not "exceptional" reflected a whole range of factors and judgments on its part.

In explaining the need for a price revision, CGNPC told the Panel that the long-term prospects for nuclear power and uranium pricing were fundamentally affected by the Fukushima events. Kalahari said Fukushima "caused a material dislocation in the uranium and uranium related equity markets and caused major reviews of the use of nuclear power and the building of nuclear plants throughout the world".

It is noted that while the short-term market price of uranium has fallen further since CGNPC revised its bid in April and had fallen following the Japan crisis long term prices remain at the same level as at the time of the price renegotiation .

Furthermore, the Panel noted that Husab is not expected to produce uranium before the end of 2013 at the earliest and that the evidence presented by both sides clearly demonstrates "the continued expectation of substantial increases in worldwide in nuclear generating capacity particularly in China"
.

[krakow] 12/8/2011 15:42

Dattels building a stake? Not so long ago he was dumping a stake.

[zangdook] 12/8/2011 13:09

I wonder if he's supposedly buiding a stake himself, or through one or more of his vehicles (POL, HK:575, EML - any others?).

[cyfalafwr] 12/8/2011 12:34

I'm not a KAH expert and I sold out at about 230 a couple of months ago with the intention of getting back in at below 200.If the bid was 290 last time and knowing how the Chinese like to do business I would expect a bid of about 250 second time around.So not much upside from today's price IMHO DYOR etc

[vosene] 12/8/2011 10:47

A poster on Polo III says:

As reported in The Times: "There were whispers that Stephen Dattels, the Canadian mining entrepreneur, was building stakes in Kalahari Minerals, the miner that was approached in March by China Guangdong Nuclear Power Holding..." who subsequently walked away.

The suggestion is that Mr Dattels expected CGNPC to return or another buyer to step up.

Any comments from the KAH experts? (I hold Polo but not KAH)

[kinbasket] 11/8/2011 16:15

Still better off with EXT if this happens.

at 220p, a 270p bid is a 23% gain. The look through valuation for EXT is about $9.70 which is a 33% gain.

I'd probably take an offer at EXT at that price now. In the current market there are a lot of places i could make use of the money.

[red ninja] 11/8/2011 16:01

Mmm that's funny as the analysts in The Australian article expect s low offer at £2.5

[wanttowin] 11/8/2011 15:55

I personally hope we dont sell for 270 if the bid comes, with the upgrade and further potential in the pipeline I believe 350 is more like it !! IMHO