Murchison United Nl Share Discussion Threads

[sharestriker] 05/9/2003 09:09

Murchison United NL
05 September 2003





ASX, AIM and Media Release
5 September 2003


Termination of negotiations with Allegiance Mining and sale of Renison Bell

_____________________________________________________________________



Murchison United NL ('Murchison' or 'the Company') (ASX: MUR, AIM: MUU) today
announced that it had mutually agreed to terminate negotiations with Allegiance
Mining NL over the treatment of the Avebury Nickel deposit through the Renison
Bell mill.



As a result, the Directors expect that Renison Bell will be put up for sale
through a formal sale process. The Directors are of the view that given the
recent rise in LME tin prices to around US$5,000 per tonne against a flat
Australian dollar and the resurgence of the equity market raisings for junior
mining companies the potential interest in acquiring this well established
operation is now higher than it has been for several years.



Renison Bell is the world's largest producer of tin concentrates available for
toll smelting and has been in almost continuous operation for over 40 years. It
has a substantial inventory of tin resources, excellent infrastructure and was
restored to profitability during the March quarter at significantly lower tin
prices than those currently prevailing. The holding company Renison Bell Limited
has accrued revenue losses of over A$40 million.



The operations are currently on a care and maintenance programme funded by a
loan facility from the Tasmanian Government.



The Directors understand that an advisor is likely to be appointed to assist in
the divestment process of the operation on a going concern basis along with
Renison Bell's 50% interest in the Maroochydore Copper Project in Western
Australia.



Renison Bell Limited is a wholly owned subsidiary of the Company and was placed
into Voluntary Administration on 24 June 2003 with debts totalling approximately
A$42 million, A$22 million of which is owed to Murchison, A$5.2 million to
Government entities and A$14.8 million to trade creditors.



Renison Bell Limited has no bank debt and all creditors are unsecured. One
creditor holds a guarantee from Murchison and Renison Bell for an amount of
approximately $3.2 million. The Company is seeking to arrange a commercial
settlement of this obligation with this creditor.



The proceeds of any sale are expected to be applied to costs of the
administration, Renison Bell employee entitlements, government care and
maintenance funding and the balance to be distributed amongst creditors.

[sharestriker] 05/9/2003 09:09

Good or bad!!!!!!

[sharestriker] 22/8/2003 10:46

we live in hope

[skipster] 22/8/2003 10:30

Also, Murchison has been looking for a suitable acqusition for some time now. Could a Nickel Company be in their sights?

[sharestriker] 22/8/2003 10:23

 The Company is in discussions with Allegiance Mining NL over the treatment of nickel ore from the Avebury deposit located 26 kilometres from the Renison Bell mill. It is proposed to treat both nickel and tin ore through the Renison Bell mill to produce two high grade concentrates for sale to toll smelters.

[feroza] 22/8/2003 09:56

haven't the foggiest why did would - anyone any info????

[skipster] 01/8/2003 10:24

Deed of Company Arrangement

At the creditors meeting a decision as to the company's future is made.

Creditors may vote to:

· place the company into liquidation;

· end the administration and return the company to the directors; or

· enter into a deed of company arrangement.

A deed of company arrangement is a document setting out the terms on which the company will proceed into the second stage of administration and usually of the manner in which the deed's administrator will resolve the company's debts and return the company to a solvent state.

A deed of company arrangement binds all the creditors of the company with regard to any claims arising on or before the date specified in the deed.

The execution of the deed does not act as a general release of the company from all of its debts. The deed releases the company from its debts only insofar as the deed provides for the release and the creditor to whom the debt is owed is bound by the deed.

[skipster] 01/8/2003 10:20

RNS – 1st August 2003

Quarterly Report

Summary

 Mining and treatment operations were suspended at the Renison Bell tin mine on the 27 May 2003. The suspension of operations follows from a geotechnical failure in the Huon open stoping area which resulted in the tragic death of a Barminco employee.

 The Company announced on 24 June 2003 that it had appointed Mark Reilly of Featherby Reilly as Voluntary Administrator to Renison Bell Limited. The appointment provides the most appropriate framework to fully investigate all available recapitalisation options for Renison Bell.

 The Renison Bell operations have been placed on a care and maintenance basis pending a full review of the options for recapitalisation. A small management team has been retained.

 The Company is in discussions with Allegiance Mining NL over the treatment of nickel ore from the Avebury deposit located 26 kilometres from the Renison Bell mill. It is proposed to treat both nickel and tin ore through the Renison Bell mill to produce two high grade concentrates for sale to toll smelters.

 The Company is currently in discussions with the Administrator of Renison Bell Limited over a proposal to be considered by creditors in a Deed of Company Arrangement.

[sonoftherock] 07/7/2003 14:09

Continued price recovery in Australia has not gone unnoticed. Finally some buying in UK (at 1.22p it's around 15% below the latest price in OZ).

[dina] 26/6/2003 23:06

A steady rise - SOMETHING must be happening!

[skipster] 26/6/2003 09:46

Renison is never going to be business transforming for MUU. The best one can expect is a rise in tin prices over $5000/MT, a reduction in the LME inventorty and the US$ to strengthen against the AUS$. Rension which was producing at a total cost of $4,250MT recently, so would become a small cash-cow. They also appear to be considering using the Renison processing capacity to handle other minerals.

The business transforming deal would be finding a suitable acquisition to be bought using debt finance. They are still looking for one as I understand it.

As for price, well 1p capitalises MUU at £1.5M. If Rension comes back on stream a leaner and fitter entity and the various prices and exchange rates move in MUU's direction then I would hope for 5p minimum with possibly 10p. If an acquisition is found then who knows... maybe 30p?

As for a month, I don't expect much to be resolved that soon.

[dina] 26/6/2003 08:42

Skipster - where do you see this share price in a month?

[skipster] 25/6/2003 10:39

Yes, this is essentially the Australian equivalent of America's Chapter 11 which should be concluded within a few months and will then allow Renison Bell to operate profitably without its current creditors and therefore free to raise finance. My guess of the odds of suceess is 90% but that still leaves some risk.

[sonoftherock] 25/6/2003 07:37

Good price recovery ongoing in OZ, decent volume too. Someone obviously believes there is life after "The Administrator". Be interesting to see if there's any buying here. DYOR

[jda] 24/6/2003 21:41

First glance-terrible news.
Second Glance-may not be as bad as it seems.
Bit like Chapter 11 in America, can be a way of coming out with a clean shell and smelling of roses.But risks are attached.Not for widows and orphans as they say.

[skipster] 24/6/2003 13:45

I'm not sure about it being the end.........

Managing Director Paul Atherley commented: "We have supported Renison Bell through this very difficult period in its long history and having restored it to profitability we intend to recommence operations at the earliest opportunity.

The appointment of the Voluntary Administrator is an important step in the future of Renison Bell as it provides a formal framework within which we can recapitalise the operation and manage the outstanding liabilities."

[big black dog] 24/6/2003 13:19

It is a sad day to see Renison Bell go into Liquidation. I first heard of it in 1968 when I did a review of it for an MSc I was doing.

[bbbb] 24/6/2003 10:01

it's certainly been feast, famine, da capo. so far.

[trading blue] 24/6/2003 08:27

Can see this going bust ?

[currypasty] 24/6/2003 08:08

Not looking too good

[skipster] 04/6/2003 15:21

Shares down 8.3% with not one share traded. It gets worse.

[skipster] 03/6/2003 10:48

CRU presentation to Tin Technology Board points to global supply shortfall

Tin Technology Press Release – May 2003

A presentation made by independent analysts CRU International at Tin Technology’s Board meeting this month in Kuala Lumpur showed that world tin consumption is likely to exceed production by some 12,000 tonnes in 2003. Although demand is forecast to decline slightly, the main feature in the market is a sharp fall in production by Asian custom smelters.

CRU’s analysis of tin consumption trends in recent years, based largely on statistics collected by the World Bureau of Metal Statistics, shows continuing growth through 2001 and 2002 despite the sharp downturn in the electronics industry. Tin was the only LME metal to register an increase in global usage in 2001, thanks to the strength of Asian demand.

In 2002 Asia was estimated to have accounted for 51% of world consumption, with China (21% of world consumption) having displaced the USA as the largest national market and tin usage in Japan (10% of world demand) stimulated by a switch to lead-free solders.

The presentation highlighted the importance of measures taken in Indonesia to manage small-scale “unconventional” production and the reversal of the long-term growth in Chinese productio n since 2000 as the key features of the world tin supply picture. As a result of the ban on Indonesian exports introduced in June 2002, production by ASEAN custom smelters is forecast to fall by over 50% this year. Meanwhile lack of smelting capacity in Indonesia is resulting in stockpiling of concentrate there. Chinese production is expected to be little changed from last year’s level (estimated by CRU at 88,000t)

Looking ahead to 2004, CRU forecast a further world refined tin supply shortfall, although this was dependent on the continuing control of small scale production in Indonesia, implying a further accumulation of concentrate stocks there.

Commenting on the statistics, David Bishop, Managing Director of Tin Technology stated: “The statistics are pleasing and demonstrate the resilience of tin demand in an unfavourable economic environment. With improved supply side management and emerging new technologies for tin, driven by an active research programme, we remain confident about future prospects for the metal”.

[bbbb] 27/5/2003 20:31

6 - 8 weeks suspension of mining amd treatment operations could really whack profitability at the margin in the current year in spite of the presently favourable tin price and dollar exchange rate, as the workforce presumably still need to be paid. it could also crank up the volatility a few more notches but the question is whether it will also knock the share price back to or below the previous low below 1p.