Mining Minerals & Metals Share Discussion Threads

[haydock] 06/8/2009 15:40

No comment on the lack of quslity controlled results in the report then- re Sukari ? Impurities? Improper results? Contamination?

Note the words : economic & significant.

As you say for nowt!!!

[1waving] 06/8/2009 14:49

Gold Fields quarterly report out today ---
GEX Extracts:--

June 2009 quarter salient features: ( from the quarterly headlines i.e important to them )

�� Offer post quarter end to be made for Glencar which owns the Komana project in Mali. 29.9 per cent acquired to date;

------

At the Komana project in Mali, Gold Fields and Glencar Mining plc
(AIM: "GEX") were unable to conclude a binding agreement under the
terms of the previously announced letter of intent. Gold Fields
announced on 24 July 2009, an offer for all the shares of Glencar for a
total cost of about £28 million. The Glencar Board supported and
recommended the offer. Field work at the project is stopped due to the
onset of the rainy season.

Initial Drilling Projects
At the 51 per cent owned Sankarani joint venture with Glencar Mining
plc (AIM: "GEX") which is located adjacent to the Komana Project in
Mali, positive initial drilling results have broadly defined extensive
mineralized trends with economic gold grades over significant drill
widths at the Finguana, Bokoro, and Sanioumale shear-hosted
orogenic gold targets. Field work is currently suspended for the rainy
season until September 2009.
-----------

Need to repeat this bit ----

'positive initial drilling results have broadly defined extensive
mineralized trends with economic gold grades over significant drill
widths at the Finguana, Bokoro, and Sanioumale shear-hosted
orogenic gold targets. '

These are so important --- GF are looking for resources from at least two of the three in the coming drill season.

Check the GEX website drill maps on Sankarani and the related releases -- looking like very sizeable, major deposits along the Sankarani shear zone.

Q1. HOW MANY OUNCES OF GOLD TO COME FROM THESE ?

Q2. HOW MUCH ARE GOLD FIELDS PAYING FOR THEM ?


Answer Q1. Very probably in the millions.

Answer Q2. Close to nada, zilch, nothing.

[serpicouk] 05/8/2009 20:59

SS - nice one giving Barrick a prod. It's a shame GEX has to rely on shareholders to try and advance interest in our Mali assets.

GF have acquired enough to prevent another company just coming in and taking over enough to de-list it. Next stop a controling stake of 51% which will stop any other bid in its tracks. If they get that then I think it would actually be in our interests to sell up as the alternative looks grim (until GF bid again in 12 months).

[pecker1] 05/8/2009 14:00

Now that Redback has lost out on Moto, this Africa focussed intermediate gold producer might be interested in Komana too.

[1waving] 05/8/2009 08:36

Share Share -- well done on emailing Barrick. Most gold companies will be aware of the GF/GEX situation, but encouragement from a GEX shareholder does not go amiss.

[1waving] 04/8/2009 17:26

S-S ---- Ask GCI

Volume falling very sharply and gold on the increase pushing to new recent highs. The bullion banks are capping gold but despite their efforts I think the time is very near for that surge upwards, just had a look and made another new high as I type.
GF are expecting this move up in gold and want to take out GEX quickly before the surge with their derisory offer.


A view of where gold is headed and why from Jim Sinclair:--

Posted: Aug 03 2009 By: Jim Sinclair Post Edited: August 3, 2009 at 9:57 pm

Dear Friends,

1. Pay no attention to the reasons given for gold's strength. The primary reason for gold's action is in the US dollar.

2. The idea that the dollar is a safe haven investment is SPIN on a whole new level. Buying interest free non-guaranteed debt of a nation, as is the case with the US dollar that is strangled by growing debt, will provide little safe haven.

3. The US dollar has .7285 as a magnet pulling it down. I rate that influence stronger than the .7600 support level.

4. Gold is going $1224 on its way to $1650.

5. The gold banks will fight it all the way.

6. The gold banks cannot fight the dollar because even they are too small for that market.

7. In the 70s the tide was turned for gold first by France and then by the Saudis.

8. The tide in gold this time will be turned by China, not only with gold bullion itself, but through their impact on the US dollar.

9. The US dollar was bulled during the China/USA financial management meeting.

10. That bulling was transitory as no single entity is powerful enough to offset the directional desire of the dollar. Goldman's cancellation of their bull recommendation on the euro only impacted the longs that ran plus new shorts for one US session.

12. The Chinese are irate about the China bashing from US sources that seems to never stop. Today it was 3 people with the plague. Any negative news dealing with China gets immediate F-TV headlines in the US and is heard in China immediately.

13. The idea that China is captive of the US dollar is ignorant nonsense.

14. The drop in the US dollar is due to an overabundance of debt causing less international buyers.

15. Debt in the US has only one way to go and that is ballistic.

16. The Chinese will offload dollars in a myriad of ways.

17. It will be the decline in the dollar, this time to .7200 and in the winter lower that will bull gold to $1224 and then $1650.

18. This time China via the dollar will replace the early 70s French and the late 70s Saudis that helped gold then reach it high levels.

In conclusion, the gold banks will have as little luck as they did in the 70s bullying the gold market down. They will fail MISEARABLY just as they did then.

Respectfully yours,
Jim
-------------------

[share_shark] 04/8/2009 17:07

Why has growth investor put this out today although dated 9th.May?.Saying how good their tips are ?.


More Mali magic at Glencar
Article Date: May 09 2008

Glencar Mining has followed encouraging drilling results at Mali's Kamana East gold prospect with 'significant' mineralisation at another, Solona.

The Dublin-based company says drilling intersected four metres at a bonanza grade of 155 grammes per tonne of ore at Badogo Malikila within the Solona licence. The company also found 16 metres at a more modest 2.54 grammes a tonne and four metres at 9.28 grammes at Niechilela, and eight metres at 2.27 grammes at Faliko, also within the Solona licence.

Further drilling will follow to find out more. Glencar shares plunged from 10p to 1.25p between 2000 and 2002 on disappointment at the company's Wassa gold project in Ghana. They've since moved from the Full List to AIM, in 2005, and have recovered to 9p. They could bounce further if the Mali news continues to cheer.

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[serpicouk] 03/8/2009 23:45

Interesting how the takeover rules make the markets more transparent.

The veil is lifted and we get to see the Masters of the Universe in action.

But how can we simple PIs interpret their foot prints?

Well, at least it passes the time whilst we wait for the take over document.

[serpicouk] 03/8/2009 23:17

re: The Arnhold and S. Bleichroeder transaction.

It looks like a very strange trade all around...I guess GF might be behind it. In fact that might be the most positive explanation...looking at the other side of the coin I wonder if there is a little more negative explanation... [edit - I'm assuming this is a new position as of the dealing date - 30/07/09 - so post takeover news]

So ASB have borrowed 10,752,000 shares (from some large long term holder) and sold them in the open market for 9p.

If the share price falls they will buy back the 10,752,000 and return to whom ever they borrowed them from, pocketing the difference as profit, minus any cash settlement for the original loan.

But surely if the deal goes ahead GF will be buying up all stock at 9p leaving ASB unable to close the position in any normal fashion? Where would they find 10,752,000 shares in the open market and how expensive would those 10,752,000 cost them?? Way too much.

So I wonder if this is part of a larger 'hedging' strategy? I'm not sure exactly how it might work but may be something along the lines that if the 'someone' is a very large holder (more than double that short - CDC or MacQ?) who is actually happy to sell around 9p might they strike a deal with ASB that they can borrow those shares to go short:

If the deal does fall through the share price might go through the floor (note GF would be barred from acquiring any further stock for 12 months)...they would be able to close for a profit.

If the GF deal goes ahead then they will need to find 10,752,000 shares...could they effectively buy them from the same holder for the same price they paid, 9p (or may be a small premium?). A near circular deal that effectively guarantees the current offer price plus any cash settlement/interest/premium for the long term holder and a near no risk short position for ASB.

Of course, such a 'hedge' would suggest the holder sees no significant further upside above the 9p on offer at present...

...no idea if the above is even fully legal etc, just a thought trying to explain a strange trade.

That's two theories we've now got for the strange short. Anyone got any more?

[wispaman] 03/8/2009 10:18

this was posted on the VGM thread, but relates more to demand of GEX, than VGM.
wispa

[share_shark] 03/8/2009 09:44

Guys. Re Arnold and S Bleichroder. I am glad I am not the only one who does not understand these things either.

Hi Genises. Hope you are well and thanks for the advice.

Time for our knowledgeable chaps or chapeses,I Waving and SerpicoUk to come in and tell us what is what. Shame BB is not here to explain either.

[haydock] 03/8/2009 09:03

Anyway the next things to watch for:
Volume will MacQ sell this week?
The news of the offer document on the way, that should make a good read, look for the G/G drilling gaps!!!

[haydock] 03/8/2009 09:01

I cannot get my head around that one either, interesting to know how it worked out, anybody know?

[wispaman] 03/8/2009 08:55

I have not quite grasped the short position of Arnhold and S. Bleichroeder.
Can anyone explain exactly what happened,

Did Arnhold and S. Bleichroeder, borrow and short 10752000 shares, lets say for 5p, so in theory they had to pay 10752000 X 4p to get the shares back, to return them to the owner.
GF paid the difference of 4p and then bought the shares for 9p, so in theory paid 13p for them.
Have I got this all wrong, as I have never dealt with shorting shares.
Thanks in advance for all help given.
lol wispa

[genises] 03/8/2009 08:45

Share shark
If the pi dont sell and the company want total control then the bid will have to be upted.stick in there and wait as if they reach 90% it will make no difference.
white night no chance as it would had come by now.

[share_shark] 03/8/2009 08:17

Gold Fields ups Glencar stake
Article Date: Jul 30 2009

South African mining giant Gold Fields has lifted its holding in £28 million bid target Glencar Mining to nearly 25 per cent.

Gold Fields, whose 9p-a-share bid has won the recommendation of Glencar's board, wants the Dublin-based AIM counter for its Komana gold project in Mali, with an inferred resource of 1.25 million. The South African group's offer, pitched at twice Glencar's depressed pre-bid price, follows the breakdown of talks between the two companies over a possible joint venture to exploit Komana's potential.

Glencar, which floated on AIM four years ago, began life with an ultimately disappointing gold prospect at Wassa in Ghana. Its shares, which once hit 35p on the old Ofex market before floating and reached an AIM peak of 15p, fell below 2p at one stage in the past 12 months and managing director Hugh McCullough says trying to fund Komana independently would have involved unacceptable dilution.


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[stemis] 02/8/2009 19:47

It's 90% for compulsory purchase, 75% for de-listing.

[1waving] 01/8/2009 11:10

Need to stress this bit from the previous post -- It is important.

GF are aiming high at 80% --- but they can not take out Glencar and compulsory purchase the remainder of the shares unless they have 75% according to the rules. They will want to achieve that 75% at all costs as they want 100% and don't want the encumbrance of Glencar Mining still in existence with its own Board of Directors and many other shareholders still on board.

If they don't get the 75% they will have to up their offer.

A further 2 weeks will give a much better view of how the land lies if the offer document is out, and will give the opportunity for counter proposals.

[1waving] 01/8/2009 11:07

GF only have close to 30%. This is far from over.
GF had just over 9% and picked up 7% immediately following the announcement on last Friday, most of which had been lined up and agreed. They had 16% at the start of the week so have only picked up 14% this week. That includes the 3.3% they picked up from the dodgy CFD short position of Arnhold and S. Bleichroeder Advisers, LLC. The initial momentum will slow into the coming week.

Macquarie, CDC Group and Credit Suisse are still in there, probably Macquarie are the most important and largest shareholder there. Macquarie and CDC are the barometer here, with Macquarie the main ones to stir the pot with their mining connections.

The actual offer document has not even been sent out yet so the full terms and disclosure of relevant information is not yet known. Look for full and open information on Sankarani !!!!

Any competitive offer, JV or opposing deal of any kind will take a little while to put together and then be put to the Glencar directors. We have only had a week since the offer.

GF are aiming high at 80% --- but they can not take out Glencar and compulsory purchase the remainder of the shares unless they have 75% according to the rules. They will want to achieve that 75% at all costs as they want 100% and don't want the encumbrance of Glencar still in existence with its own Board of Directors and many other shareholders still on board.

If they don't get the 75% they will have to up their offer.

A further 2 weeks will give a much better view of how the land lies if the offer document is out, and will give the opportunity for counter proposals.


We have 70% ---- they (GF) have 30% !!!

[serpicouk] 31/7/2009 20:42

Shame 50% is a lot closer.

[stenick] 31/7/2009 20:10

80% is still along way off.