Resources Investment Trust Share Discussion Threads

[energyi] 07/1/2003 09:22

unaudited net asset value
on 3rd January 2003 was 95.95p
per share.

Share Price: 60.0p
Discount...:

[hypocrite] 15/12/2002 04:18

The Sunday Times - Business



December 15, 2002

Sharewatch: Zinc price makes Arcon a real punt
Renewed global industrial production could trigger an increase in demand for the metal, says Brendan McGrath



ANYBODY with less than fond memories of Atlantic Resources, Tony O'Reilly's late, unlamented oil exploration company, as well as more recent investors in mining outfit Arcon, may want to stop reading now.
Given the number of people who got burned in the Atlantic fiasco back in the 1980s, it is hard to blame investors for steering clear of resource shares. The Irish exploration market is littered with the remnants of shooting stars.

Last week's crash at Navan Mining and the previous week's delisting of Bula Resources serve to underline the scale of losses incurred by investors in recent years. However, there is still a case to be made for small exploration companies, purely on the basis of their speculative appeal. Arcon, which has just endured a roller-coaster 12 months, falls into that category.

Arcon's main asset is the Galmoy zinc-lead mine in Kilkenny, and various exploration licences in the vicinity of the mine. Galmoy was brought into production in 1997 with a planned 10-year life span.

Galmoy's biggest problem is the price of zinc on world markets. At just over $800 (€788) a tonne, the zinc price is at a 60-year low, although there are tentative indications that renewed growth in global industrial production in 2003 and 2004 will trigger a rise in demand for the metal.

If the price of zinc rises in line with an economic upturn, then the prospects for Galmoy improve immeasurably as recent financial and exploration developments mean that Arcon's finances are finally in order.

In addition, recent exploration results nearby suggest that the life of the mine could be extended well beyond the remaining five-year production schedule.

Arcon's crippling $100m-plus debt has been reduced after a restructuring this year which, inter alia, resulted in O'Reilly increasing his stake in the company to more than 71% after underwriting a €28m rights issue.

O'Reilly also bought most of the debt from the banks, who swapped the rest of this debt for a 10% equity stake in Arcon.

If that restructuring hadn't taken place, Arcon was in real danger of going out of business or being taken over by the banks.

Now Arcon's only debt is the $20m owed to shareholder O'Reilly, and he is unlikely to make heavy demands on a company into which he is estimated to have pumped more than €100m.


Outlook: The key to Arcon's future is the price it gets for its zinc over the next few years. Some observers believe that the industry globally needs to cut production further before there is any prospect of a sustained improvement in prices.

Others point to the decision by Outokumpu to reopen the Tara mine as a sign that a recovery is in the offing and that Galmoy will boost production as prices improve.


Verdict: Investing in Arcon requires a great deal of faith in a zinc recovery. The company's shares have doubled from 2c to 4c in the past few weeks as investors priced in the improved outlook, but further growth will depend on a sustained improvement in the zinc price.

Worth a punt - but only if your nerves can cope with what remains a very speculative investment.

Factfile

Price: 4c
Market value: €63m
Daily volume: 556,000
Share price performance: no change since 31/12/01; -75% since 31/12/00
Major shareholders: Sir Anthony O'Reilly 71.7%
EPS consensus: 31/12/02 -0.5c; 31/12/03 2c
Prospective p/e: not applicable
Risk grade: n/a
Risk ranking: n/a
Website: www.arcon.ie

[energyi] 16/10/2002 16:07

Have since slumped to 42p against an NAV of 79p.

That's a 47% discount!

[energyi] 27/8/2002 14:22

27 August 2002 / RESOURCES INVESTMENT TRUST PLC
Resources Investment Trust Plc announces that the unaudited net asset value of
its Ordinary Shares as at the close of business on 23rd August 2002 was 94.05p
per share.

Discount: 70 / 94.05 = 25.6%

[rambutan2] 01/5/2002 20:11

NAV still climbing and now 140p.
Now has website where major holdings listed, at
rei-trust.com
one of them, olympia pacific, has piece about it on minesite today due to potential big find in vietnam.

[energyi] 12/4/2002 14:55

Yesterday's NAV:
11th April 2002 was 130.27p
130.27 x 70% = 91.2 P
Today's Bid/Offer: 87 - 96, Mid: 91.5. There's the 30%.
Will the offer now go to 30% discount??

Anybody know the portfolio?
Includes some:

EEN.. Emerald Energy at 1.50P
CER.. Celtic Resources at xxP
MANA Mano River at 3.25P x 2,100M shs
???

Mano will raise 68,250 stg in cash through the issue of 2.1 mln
shares at 0.0325 stg each

[energyi] 09/4/2002 22:05

Hector,
There's likely to be some selling pressure as the Hold
periods on swapped stock end. I expect the discount to
hit 30% or more... particularly if we get a bit of a
selloff (temporary?) in Resource shares.

Calculation:
Bid / Offer: 90 / 99 : 94.5P mid
124.37 x 70% = 87.1P, current 90P bid is 28% discount

[hectorp] 02/4/2002 11:18

Would be good to get x shares in this at 25% discount to purchase price woultn't it? around 90p?
H

[energyi] 02/4/2002 10:57

Looks like the Sellers are coming in...
Latest NAV:
27th March 2002 was 121.97p
Today's Bid / Offer : 97 - 105 ...
Last Trade: 25,000 shares at 95 P / more than 25% discount.

I am expecting this stock to trade at a 20-30% Discount to NAV
until the Sellers-who-have-been-waiting for the Hold to expire
are out of the way. This could take weeks or longer

[energyi] 25/3/2002 13:42

So far, so good. Some price pressure. But no collapse.
(Some of their investments: THT, for example. Have been
going well. Others like CER have good potential.) However,
I do think the discount to NAV will widen towards 20-30% as ther
shares swapped become freetrading shares.

Latest NAV:
unaudited net asset value of its Ordinary Shares as at the close of business on 22nd March 2002 was 120.45p per share.

[joe batley] 05/3/2002 14:41

Emerald Energy Plc is pleased to announce that it has issued 55,000,000 new
ordinary shares of 1p each (the 'new Emerald Shares'), to Resources Investment
Trust plc ('REI') in consideration for the issue by REI of 715,000 new ordinary
5p shares in REI (the 'new REI Shares') at a price of £1 per
share, giving an effective issue price to Emerald of 1.3p per share. The new
REI Shares are being held in escrow until 31 March 2002.



The new Emerald Shares represent approximately 4.14 per cent of Emerald's
existing issued ordinary share capital and 3.97 per cent of its enlarged issued
ordinary share capital.



Application will be made to the UK Listing Authority for the new Emerald Shares,
which rank pari passu with the existing issued ordinary share capital, to be
admitted to the Official List of the UK Listing Authority and to the London
Stock Exchange for such shares to be admitted to trading on the London Stock
Exchange's market for listed securities.

[hectorp] 01/3/2002 19:08

So THIS is the Fund that can't afford to hold onto 12 M CER stock,. if so I'd worry about holding this Fund , which I'm not.

[karzy] 28/2/2002 20:50

I see they have had an equity swap with Thistle Mining (tht:tse) Run by Willie Mclucas ex. Waverly mining,Montague and Perseverance.All bombed-out now but a roller coaster ride when he was in charge. P.s. Perseverance had good drilling results on Tuesday (psv: asx)

[energyi] 26/2/2002 16:49

Ashley,
Had I failed to set up this thread, I might have missed out on
a chance to read your effective de-ramping...
I agree that CER-tic needs more institutions and that REI is likely
to trade at a 20-30% discount before long. Their portfolio will have
to sprint forward to prevent a price drop to 100P or lower. I understand
that those that have swapped stock in have accepted a two month
or longer hold, so watch for some selling pressure in April or later.

[big black dog] 26/2/2002 16:37

A chara,

The professionals are running rings around you.

Mise le Mas

[mr ashley james] 26/2/2002 16:31

Wirral,

Exactly, this is a trust run by Davbid Hutchins Chairman of Minesite, who was IMHO tied up with Joe Guttnick until 2000 (now who has I believe done a runner to Oz!), Soros walked away from previous vehicle,David Williamson, a man IMHO who has lost more resource sector investors money than any man alive!

Also a whole plethora of politely put "marginal resource sector investments", I read sh1te like Central African Mining And Exploration Plc, River Diamonds Plc, with the loveable Bruce Rowan.

IMHO One to be avoided at all cost.

Most CER investors are desperate to see these people out of CER IMHO, and many have pleaded with KF to ditch them as soon as possible.

Best regards

Ashley

[wirralowl] 26/2/2002 16:25

Are these not the same people who have today announced the sale of their CER holding ?

[mr ashley james] 26/2/2002 16:19

Energyi,

Be careful IMHO some of the sh1te these guys have in this trust does not bear thinking about! EG IMHO CAMEC, RDI to name a few!

These guys have previous, and remember trusts tend to trade at a 25% discount to Net Asset Value!

You watch the next to go in will be EUA

Best regards

Ashley

PS BTW REI share of CER is 12.72%, would it not be better if you did some research before setting up your zillionth thread?

[energyi] 19/2/2002 18:31

Try:

...or contacting the Fund Manager, David Hutchins,

Email: [e-mail]

[crystalclear] 19/2/2002 12:37

energyi
I can't find much on them. Do they have a phone number, email address, web site, etc?