Kalahari Minerals Share Discussion Threads

[red ninja] 07/9/2011 06:01

Mmm well £2.80 is more than I thought they would return with even though for a pound of EXT uranium it is cheap.

Still the question is will a counter bidder emerge ?

[krakow] 07/9/2011 05:58

I hope it doesn't turn out that the KAH directors are getting some kind of post-deal benefits in the new entity to get this through on the cheap because it's going to look pretty seedy and not in the shareholders' interests.

I may even have to go back on my previous opinion and say it's better to go it alone as KAH/EXT and open a mine.

[gero67] 07/9/2011 01:44

MARKET REPORT

By Geoff Foster
This is Money
Last updated at 11:53 PM on 6th September 2011

QUOTE
Uranium explorer Kalahari Minerals eased 2p to 234.25p but word is China's CGNPC Uranium Resources is ready to return with a new cash offer. It walked away earlier this year after apparently tabling a 290p a share offer but is now said to have reached agreement with Kalahari's board on a £688m or 280p a share bid.

[beefeater25] 04/9/2011 01:02

The Rio JV option has always been on the table... even at the time of the 290p bid. Cant see Rio bidding while they have the opportunity to be involved in the JV. Also cant see a Chinese bid being accepted at 250p so maybe this is a subtle note that the mining licence is coming very, very soon, which will enable us to see 250p-270p without any bids. The resource update in Q1 2012 could even see us head over 300p!

Someone more in the know than us mortals definitely knows something is happening as the top 20 shareholders now hold 90% of the company shares between them!!!

[red ninja] 03/9/2011 10:19

It could mean the Chinese are intent on squeezing a bid below the £2.50 level and thus the management are re-examing other options like a JV with RIO which they seemed to have rejected in the past as not being advantageous enough.

[martylangan] 02/9/2011 23:37

...unless a big bid comes in it looks like a jv with ext/rio could be a possibility. Maybe that is why the Kah board were so keen to cash in at 270p.

[beefeater25] 02/9/2011 20:41

Hi Veldt, i can see what you mean here. Few ways this can be read...

1. A bit of a psychological warning sign to the Chinese and Rio that 270 p.s is not an acceptable bid vs the other option of going alone. (Id personally prefer the go it alone route, merge with KAH and list on the FTSE)

2. Also maybe a big shout to others to raise awareness along with the value of the deposit. E.g "study of Husab's resource will further extend the expected life of a mine on the site from an estimated 20 years and operating costs will decline"

3. Straight down the middle 'we are not interested in bids' and that the mining licence is very close.

Either of the above suggest it is very undervalued at these prices and if the mining licence does gett approved in the near future I can see the share price going above 270p on its own...

Thoughts?

[veldt] 02/9/2011 17:55

Thanks for the posts, MartyLangan and Gero67. I am not sure what to make of them, but does anyone think it is possible that we are being given hints of a future directon that does not include the Chinese? I'd be interested in people's thoughts.
Thanks,
Veldt.

[nielsc] 02/9/2011 16:42

Nice to see KAH's share price recover. Would be good to get to around 250p to end any silly talk of a 250p bid. Even 270p is a nonsense. Just because management agrees to it doesn't mean the shareholders will.

Cheers,
Niels

[zangdook] 02/9/2011 15:59

I share your concern, avc0nway, and I'm not confident of receiving (what I would consider to be) full value, but even so I think there's a profit to be made from here.

[avc0nway] 02/9/2011 15:47

I began buying KAH at 155p - 160p in May 2010, because I wanted exposure to EXT. I got out entirely with a little regret at the end of May just passed for a conjunction of reasons:-

a) the uranium picture in the short term had changed (which would have mattered less had I been invested in EXT directly)

b) with what I felt were the bargain-price figures being bandied about for KAH's slice of EXT I began feeling unsure who the KAH board was batting for, and

c) with the vast sums of fiat moneys being found for QE1 and 2 (..and 3 in November?) I felt the picture with regard to precious metals was changing, and the parcel of funds in KAH seemed the sensible parcel to use to gain exposure there.

So that's what I did. I may have moved a little too early but it seems to be all coming good at the moment.

But I still monitor KAH and read the board here.

But a niggly doubt remains. Who are the KAH board members batting for? The KAH shareholders? Are we all quite sure?

Dunno, just askin', like.

avc

[gero67] 02/9/2011 13:23

Extract's Husab financing talks advance

Reported by AAP Friday, September 2, 2011

Uranium explorer Extract Resources says it is advancing financing talks for its $US1.66 billion ($A1.55 billion) Husab uranium project in Namibia, which is set to be the world's third-largest uranium-only mine.

Projects manager Andrew Penkethman said the company was also considering bringing in a strategic partner for the project."Finance discussions are going well. There is a real appetite to be involved in this project," Mr Penkethman told the Africa Down Under conference in Perth on Friday.

He indicated that talks continued with Extract's second largest shareholder, Rio Tinto with a 14.2 per cent stake, about jointly developing their neighbouring uranium assets in Namibia.

Rio's Rossing mine, some six kilometres from Husab, has been producing uranium for 30 years.

Discussions between the parties were announced earlier this year.

"It's incomplete (talks with Rio) and ... there are confidentiality agreements, so there's not much more that I can say," Mr Penkethman told reporters on the sidelines of the conference.

"In the background, we've got Rothschild leading our partnership process ... assisting us with both the finance and wider partnership process.

"It could be a combination of debt and equity, bringing on board a strategic partner, but everything is still a work in progress."

The split would potentially be 60 per cent debt, 40 per cent equity.

"We're engaging with various financial institutions around the world, but that's being largely led by our corporate office in the UK," he said.

Extract is waiting for the mining licence to be granted and for financing to be completed before it releases a detailed project timeline.

It would take about 33 months to go from board approval to proceed with the project to commissioning the processing plant.

Mr Penkethman said Husab was set to become bigger with exploration success.

"Husab is a giant ... it is a globally strategic asset," he told delegates.

"With further work, the commercial significance of Husab can only increase."

The project contained the most significant uranium resource in Namibia and the fourth-largest in the world, he said, and ore reserve upgrades last month had extended the planned mine life from 16 years to more than 20 years.

The company plans to release a further resource upgrade in the first half of 2012.

The mine is expected to produce 15 million pounds of uranium per year, from a total resource inventory of 513 million pounds.

Extract shares were down 15 cents at $7.88

[martylangan] 02/9/2011 10:18

Extract Progressing Husab Financing Negotiations
By Robb M. Stewart

Published September 02, 2011
| Dow Jones Newswires

MELBOURNE -(Dow Jones)- Extract Resources Ltd. (EXT.AU) said Friday negotiations to secure funding for its US$1.66 billion Husab uranium project in Namibia, one of the world's largest unmined deposits of the fuel, are progressing well.

Andrew Penkethman, manager of projects at the Australian company, said Extract is confident a study of Husab's resource will further extend the expected life of a mine on the site from an estimated 20 years and operating costs will decline.

"Project financing discussions are going well and there is a real appetite out there to be involved in this giant, large-scale, low-risk, high-grade project," Penkethman said in a statement released following a presentation at an Africa-focused mining conference in Perth. "Once we get the mining license, we will be able to accelerate those financial negotiations."

Husab, which has a total resource inventory of 513 million pounds with a further resource upgrade scheduled for the first half of next year, is expected to produce 15 million pounds of uranium oxide a year, Extract said.

Extract is almost 43% owned by Kalahari Minerals PLC (KAH.LN) and 14% by Rio Tinto PLC (RIO).

Copyright © 2011 Dow Jones Newswires



Read more:

[aughton 3] 30/8/2011 08:12

I agree Red i think they will make another approach.

The market did give credence to another bidder as there was significant volume above 290, but we all know what happened next unfortunately.

[red ninja] 30/8/2011 05:47

Extrader,

Ok A3 may be right on the Chinese being able to re-enter the fray if another bid had been made.

I believe the Chinese will probably make another bid.

However, the market as yet has not given credence to another bidder comming in, as neither EXT or KAH share prices have exceeded believed Chinese bid levels.

[extrader] 29/8/2011 22:42

Hi Red Ninja,

I believe it's only proper to acknowledge that Aughton 3 was right, when he said that the Chinese 3 month block only applied if there were no fresh bid.

As it happens, there wasn't.

From the way the EXT price is creeping up flwg completion of the 3 month block, it seems the market gives more credence to the possibility of a worthwhile bid than you do.

ATB

[red ninja] 29/8/2011 18:36

A 3,

I hope you are right, but I fear the Chinese will have there way.

[aughton 3] 29/8/2011 15:39

You assume too much i bought in January 2009 as you will see when i posted and made a significant return.

I would possibly check something out, you are stating that RIO had 3 months to bid with the Chinese blocked from making a bid, i suggest you check this , as should RIO or any other party have made a bid , the Chinese could have re entered within that period.

Only my opinion but i dont think this is as done and dusted as you think and not at 250p!

[red ninja] 29/8/2011 14:27

A3,

You're obviously new to this stock.

If RIO were really interested in bidding for Kalahari or Extract they have had years to achieve to do this. Just recently they had a 3 month period when there Chinese rivals were blocked from making a bid. They have made no move.

You shouln't belive these general articles on Extract they've been saying the same thing for ages, but there is no real indication that RIO want to buy Extract at current prices. A deal with the Chinese post takeover may be on the cards.

I'll be really suprised if a RIO bid emerges given they failed to counterbid the Chinese bid at £2.90 and there lack of movement since then. We'll see ...

[aughton 3] 29/8/2011 14:19

fwiw if you are interested in press comment

[krakow] 28/8/2011 23:27

Rio probably won't now bid. As has been said they've most likely cooked up a deal with the chinese already to get what they want. I don't believe Rio want to own the whole shebang. They just want to keep their plant active by processing the mined material.

[aughton 3] 27/8/2011 21:03

It still does not mean RIO wont bid, not interested in the press traded as high as 238 this week very strange if there is a bid at 250p.

Havent we had an upgrade of resource since the last bid as well?

[red ninja] 27/8/2011 14:00

A3,

RIO have made no sign of making a bid in the time when the chinese could not bid.

There have been indications in articles that RIO will do a deal with the Chinese once they have taken over Kalahari/Extract. Why pay more than you have to.

The Chinese last proposed bid was at £2.70, down from their original bid at £2.90. The £2.70 bid was backed by Kalahari management.

Recent press/analyst talk in the Australian was of a possible bid at £2.50 per Kalahari share.