Marakand Minerals Share Discussion Threads

[nobull] 08/5/2006 16:59

The Board (Oxus) seems more interested in risk reduction than making us all rich: if with about 75/125ths of the Khandiza profits going to pay for a 75m$ equity injection by the Koreans, I can\'t see Khandiza creating much value for us as Oxus holders, particularly when what is left of the prospective NPV of Khandiza (after the Koreans have taken 75/125ths of it) has to be shared between 300m shares (Oxus) instead of between 100m shares (Marakand). I'd have been better off taking delivery of a lump zinc instead of buying these. (Bought 1st tranche last August when zinc was about 1300% a tonne?). I still hold but without any good reason.

PS. There is nothing wrong with risk reduction (I read all that stuff about Uzbekistan and rogue state status beckoning, in the Economist 2006 Outlook, that annual publication), but when a company presents itself as a 50 million $ company only needing to raise 75m$ to build a mine to unlock 5bn$ of profit (not taxable by Brown?), it is plainly seeking investors who want to get rich (very?) quick. Unless the Korean finance is the cheap debt variety, it doesn\'t look like the company is going to deliver.

[giant steps] 08/5/2006 16:35

Closing prices -

MKD 24.00 -25.5p, 69K / 6 trades
OXS 78.25 -78.5p, 2.2m / 49 trades ( 2 x 1m @ 78p)

Looks like some weak holders gave up MKD stock,
arbitrage window appears again, most surprised!

[cezary] 08/5/2006 15:52

No offer has been received!! You will only receive such a letter if you REQUESTED to convert starting from the 1st tranche....so I have been told

[dixi] 08/5/2006 15:47

Well - I for starters have never received a letter making the offer!

I don't doubt the validity of the letter at all - just that it looks like not all holders have been informed - possibly due to nominee holdings??

[jockthescot] 08/5/2006 14:40

Cezary,

When did you receive that letter??

Cheers

Jock

[cezary] 08/5/2006 13:32

gs.....

here's one of the clauses in conversion letter.....


Oxus Gold would like to formally offer to buy all the Marakand shares you own or exercise control over for consideration in Oxus shares at the following ratio:
Oxus Gold plc ordinary share for each 3.0 Marakand Minerals Limited ordinary shares you own or exercise control over. Should Oxus agree to more favourable terms with another Marakand shareholder within the coming 12 months you will benefit from a top up to equal these improved terms.

Seems like the mkd sharescould be around for next 12 months

[giant steps] 08/5/2006 12:20

Cezary - strange really, if you believe in Khandiza then you get to play it
both ways with MKD and OXS, as the OXS conversion 3 for 1 provides safety.

Still believe there is a useful arbitrage window, and this is expanded by
MKD sellers, great !

[cezary] 08/5/2006 12:11

You could be right.
Sold some oxs last week to buy more sey.

[giant steps] 08/5/2006 12:03

Cezary - looks like i'll be catching your stock then!

I believe OXS will go stronger, and even if it's a forced conversion
buying MKD may prove a cheap way into OXS !

( as the arbitrage window opens i will sell OXS shares to buy MKD
- nothing like going short with your own stock ! )


Interesting times ahead.

[cezary] 08/5/2006 11:56

I am holding, but thinking about converting.
Tried to sell last week, but brokers wanted to shaft me with an share price below bid price.

[giant steps] 08/5/2006 11:54

Cezary - guess i'm still a wishful thinker !

I notice the arbitrage window appears again.

Folk selling MKD at 25p are closing at 75p in Oxus money, makes no sense

OXS still look poised to advance, MKD should be pulled thru'


[ have you converted, sold or holding ? ]

[cezary] 08/5/2006 11:48

GS...Correction...
depends on who you talk to.
According to OXUS, you can still get onto 3rd tranche up to end of this week.
So if you want to convert, you definitely want to contact oxus before end of this week.

I believe, anybody still holding and still believing MKD will rocket based on expectant news is wishful thinking. I dont think OXS will shaft institutions that have already traded in 1st or 2nd tranche.

Khandiza will definitely go ahead, but Oxus in control with Korean Funding

[giant steps] 08/5/2006 11:42

Cezary - is 3rd tranche closed or postponed pending offer to ALL ?

[cezary] 08/5/2006 11:39

Well, I believe the 3rd Tranche is now closed.
Process will come into play to offer remaining holders to transfer into Oxus shares at 3 to 1.
Regards the koreans they have to come into play to finance the development of Khandiza. Once all mkd shares are in Oxus hands then I expect an Rns to be issued proclaiming the finance.

[nobull] 07/5/2006 22:40

The partner the Uzbek Govt. wants to invest in Khandiza?

KORES ( and ) is a state- run organization established to promote the economic development of Korea by developing domestic and overseas natural resources with the support of a highly efficient system providing technical and financial assistance for individuals and organizations wanting to take part in Korean business.

[nobull] 05/5/2006 10:49

I hope you are right GS. It all sounds to me like the MM's are limiting their downside (not confident of a general offer coming, and nervous about the 3rd tranche being abandoned? For all my grumbles and doubts about MKD, they are as nothing compared with URL, my other "zinc" play (Although URL is a single project company it behaves as anything but one: possibility of production is too remote?). The capital cost of its project has just risen from 1bn$ to 1.6bn$, and the company has a similar mkt cap to MKD. Its financing problems are going to make Khandiza's financing look easy peasy stuff. And as for what the extra 600m$ cost has done to the NPV and the IRR is something I don't want to think about. Interestingly they work on a long term zinc price of 1700$ a tonne (the sort of dollars that exchange at 1.83 for a pound, I presume).

[cezary] 05/5/2006 09:57

GS...I agree with you.
Brokers Only accepting 10k tranches if you want to sell now.

[giant steps] 04/5/2006 14:56

Cezary - i sense they are about to abandon 3rd tranche; will not be surprised
to see instructions go to ALL shareholders ~ should help to resolve mystery!

[cezary] 04/5/2006 14:53

nobull,
if mkd is the jewel in oxus crown why hasnt the jv been agreed with the uzbeks. surely the uzbeks know the worth to them of the khandiza resource. so it must be mkd/oxs management who are dragging their heels in finalisation of this deal. notably bill trew!!...imo

[giant steps] 04/5/2006 13:54

Interesting to see trade 25K @ 24.5p (in Oxus money 73.5p)

Observing the impatient at work !

MKD 25.0 - 27p
OXS 79.5 - 81p

[nobull] 04/5/2006 11:37

But the delay in granting an exploration licence on Akjilga is a fact, and I simply can't understand, if the Tajiks care about improving their living standards, why they don't get on and make an announcement on Akjilga. Or is the delay to do with us? Exploration licences usually specify minimum amounts to be spent? MKD and OXS are not overflowing with riches given the huge captial commitments required to complete all the OXS MKD projects at once (i.e. not waitng for the cash flows from one project to fund the development of another)?

[cezary] 04/5/2006 10:49

I believe cetain rumour mongering regarding Akjilga were unfounded according to Oxus.

[nobull] 04/5/2006 10:35

Thank you 0238jr for the info on Angus and Ross. I had seen it tipped everywhere, but I expect I will get round to studying it one day, if only to get a better understanding of the zinc mining stocks I'm already in.