Marakand Minerals Share Discussion Threads

[mattybuoy] 10/3/2006 18:42

OK point taken :)

It's all rather moot at the moment anyway. I hope things may become clearer next week.

[ad1967mc] 10/3/2006 18:36

Agreed about the concentrate offtake. However most futures contracts don't actually end in physical delivery, but are settled instead. So it doesn't preclude MKD from hedging on the LME. That said, I still see little point in doing so.

[mattybuoy] 10/3/2006 17:00

Good point about hedging ad.

In fact, since MKD will be selling concentrates (to local smelters) rather than the pure metals, using the LME or other markets is not possible at all. What I would imagine is that they will enter into forward contracts with the locals i.e. fix prices for a year out say.

[giant steps] 10/3/2006 17:00

Of course one other thought that crosses my mind, of benefit to MKD and OXS,
is that OXS is bid for.

Part of the condition could be to get the Marakand goodies back !

[pecker1] 10/3/2006 17:00

ad1967mc,

Thanks for that, let's hope you are right.

[mattybuoy] 10/3/2006 16:54

OXS is still a silver story without MKD. Not sure on the precise split but OXS's own Ag resources are significant.

[giant steps] 10/3/2006 16:47

OXUS clearly believe in MKD assets, why else up stake, now over 80%

Closing prices bid 18.5p offer 20p, volume 357K / 19 trades

[pecker1] 10/3/2006 16:32

Apologies for repeating an earlier point but it seems to me that the price of silver is relevant to this discussion. It has doubled since MKD was spun off as a separate entity and is now seen as an advantage to a gold producer - look at Glamis takeover of Western Silver.

North American investors should warm to an OXS silver story (see earlier mention of OXS spending £1m on getting a listing there). I would expect Khandiza to be financed by a bank loan with a proportion of the zinc output hedged, leaving the silver and copper unhedged. Judging by the slow progress of the Amantaytau sulphides project, substantial financing is not likely to be needed for this until 2007.

[zaphod99] 10/3/2006 16:29

Oxus must have had the full support of the institutions who agreed to exchange their MKD for OXS on a 3 for 1 basis. If Khandiza, Akjilga etc do turn out to be winners then the institutions will benefit through the consequent increase in OXS's share price rather than MKD's which may no longer exist.

MKD was originally separated from Oxus because it was felt that the Oxus share price did not reflect the true value of MKD and by listing it as a separate company they hoped MKD would be more reasonably valued. With MKD currently valued at less than £20m this has not proved to be the case. Bringing it back into the Oxus fold and seeking a North American listing may be a better way of realising it's true value.

[mattybuoy] 10/3/2006 16:06

Perhaps MKD is going to be sold? Directors divesting their shares might be indicative of that. BT resigning might be another. Buying out the institutions (some of whom might object) could be another.

Being pessimistic for once, perhaps OXS will need the cash when they lose Jerooy. Little chance of getting any further City funding if that happens.

On the plus side, I can't see them letting it go for less than $100m.

Total speculation of course ...

[tee man] 10/3/2006 14:37

Clearly my version is better for us, but our interests were probably not their first thought, so maybe your right.

If they merger the two back it contradicts their intention to make Oxus a focused gold play. (one of the reasons for the split in the first place)

[zaphod99] 10/3/2006 14:24

I considered something along those lines also but it occurred to me that MKD could simply issue new shares to a third party funding the project.

Wouldn't be surprised if, within a few months, Marakand no longer exist as a separate company and all their current and future projects are owned by Oxus.

[giant steps] 10/3/2006 14:15

tee man - yes, i like your theory; one i have pondered

[tee man] 10/3/2006 14:12

Sounds plausable zaphop99 and in keeping with my thinking that there is something bigger behind the scenes going on.

My theory..

was that Oxus wanted back the shares so they could give ,half of them say, to a third party and still keep a worthwhile % themselves in exchange for the third party funding the project.

[zaphod99] 10/3/2006 13:58

My theory.....

Alasdair Stuart has lamented the fact that MKD is about 1/10th of where it should be. Pretty soon they'll be looking to raise finance for Khandiza and their other projects. Oxus have spent over $1m in pursuit of a North American listing. If Oxus take 100% ownership of MKD then Oxus will be able to use this listing to raise funds more easily and on much better terms. I doubt that MKD meet the criteria for a North American listing of their own.

Juniors miners like Oxus are much more highly rated on the Toronto exchange for example, so as well as being a means of raising more money, it would force a re-evaluation of Oxus and give the market cap a significant boost. Good for Oxus, good for Marakand and good for shareholders of both.

[tee man] 10/3/2006 13:31

Why have the management chosen Oxus shares over MKD shares if there is value in MKD?

Value is there in MKD or its not.

[pecker1] 10/3/2006 13:21

tee man,

My guess is undervalued assets. Trew said the other day he was evaluating a dozen or so prospects and increasing the holding in MKD to over 81% probably came top of the list in terms of adding value.

Perhaps those who know about corporate finance could tell us whether banks would prefer to lend the Khandiza finance and/or offer better terms to OXS rather than to MKD.

[hectorp] 10/3/2006 13:20

I agree the licence is a 'cert' it would be a certified licence.

[hectorp] 10/3/2006 13:18

The Marakand Board is of the view that the increased ownership of
Marakand by Oxus is in the interest of all the Marakand shareholders.

[tee man] 10/3/2006 13:11

Has anybody got a clue as to what the managements thinking on this is? Because at the moment I haven't the foggest. I don't buy into the theory that the institutions were getting twichy and wanted out and now the management has also taken the offer. There is a bigger picture which we are not seeing at present IMO

[cezary] 10/3/2006 12:46

yep...about 23p.
its a pity because mkd is definitely a multi-bagger.
the license will come through...its a cert!!