Zeehan Zinc Share Discussion Threads

[fairdeal2008] 23/2/2009 21:25

8T just noticed the TMN comment. Am totally happy for any recommendations, in fact dont know where I would be without them. Cheers.

[andrbea] 23/2/2009 12:07

more about Avebury mine

Evidence of reduced asset values in mining industry is the OZ nickel mine (on care and maintenance) at Avebury in Tasmania. The exclusive preferred bidder is (Hegarty associated) Range River Gold Ltd, as previously advised. The offer price of $US 80 million is a fraction of book value and as a consequence, the operation may be retained by Minmetals rather than sold.

Range River would have to raise funds from the market to complete purchase, but the Hegarty affiliation (i.e. potential shareholder support based on Oxiana success), will help in this regard.


The "sale is not concluded, so will not be included in Friday announcement.

The Golden Grove mining operation in Western Australia will be sold to a consortium headed by Kerry Harminis, the former executive Chairman of Jubilee Mines Ltd, which was taken over by Xstrata at the top of the mining boom in late 2007. He wants to return to mining and is familiar with the project and has an affinity to the general area.


Gold Grove was one of the foundation assets of Oxiana and has a number of prospective future deposits in the ground nearby.

Like Hegarty, Harmanis has big potential shareholder support based on earlier company success. Both have a large group of followers in the small shareholder part of the market who would support both, even in the current economic climate.

[andrbea] 23/2/2009 12:07

more about Avebury mine

Evidence of reduced asset values in mining industry is the OZ nickel mine (on care and maintenance) at Avebury in Tasmania. The exclusive preferred bidder is (Hegarty associated) Range River Gold Ltd, as previously advised. The offer price of $US 80 million is a fraction of book value and as a consequence, the operation may be retained by Minmetals rather than sold.

Range River would have to raise funds from the market to complete purchase, but the Hegarty affiliation (i.e. potential shareholder support based on Oxiana success), will help in this regard.


The "sale is not concluded, so will not be included in Friday announcement.

The Golden Grove mining operation in Western Australia will be sold to a consortium headed by Kerry Harminis, the former executive Chairman of Jubilee Mines Ltd, which was taken over by Xstrata at the top of the mining boom in late 2007. He wants to return to mining and is familiar with the project and has an affinity to the general area.


Gold Grove was one of the foundation assets of Oxiana and has a number of prospective future deposits in the ground nearby.

Like Hegarty, Harmanis has big potential shareholder support based on earlier company success. Both have a large group of followers in the small shareholder part of the market who would support both, even in the current economic climate.

[linslader] 18/2/2009 17:21

I am more intrigued with the statement that a further trading update is to follow.

[8trader] 18/2/2009 16:43

ps FD...i so nearly recommended TMN last night to you at 4p offer !

Not sure how you would have took it if you had bought it considering
it was suspended today but it looks like it might return at a substantial
premium so you might have been very happy with it !
You should get back in Atc...online limits were excellent at the close,
i'll post them on the thread.

[8trader] 18/2/2009 16:41

Ah i see, just a standard accounts sentence :-))

Do they put that in all rns's then and i'm not noticing them ?

[fairdeal2008] 18/2/2009 16:39

sounds like a new standard paragraph to cover the auditors in the credit crunch environment - so what really we should realise this anyway

[8trader] 18/2/2009 16:33

Hey did nobody notice they came out with their interims at 10am today !

Somebody is buying these in a big way yet read this paragraph.

"The financial report has been prepared on a going concern basis. However
uncertainties exist in terms of the ability to generate cash flows in the future
which cast doubt upon the Company's ability to continue as a going concern"

Dont add up does it ?

[linslader] 18/2/2009 14:51

I wonder if the trading update might give us a clue as to whom is buying in large amounts.

[monis] 18/2/2009 10:37

is that another 1m buy?

[monis] 18/2/2009 10:25

Another update due though.

[jonnyred] 16/2/2009 15:13

I had been hoping that ZZL may some how get their hands on Avebury or Rosebery but this now seems unlikely. What we are now looking for is some update on the nickel resource in ZZL's tenemant area. Then at least we can put a value on the nickel. And let's see if Creat can find another acquisition to put into ZZL - I'm convinved their Plan A was to buy Ave or Ros from a distressed seller. Of course OZ Minerals is no longer distressed assuming the Oz/Minmetals deal gets Australian regulatory approval.

[monis] 16/2/2009 14:32

That's what i'm thinking.

[monis] 16/2/2009 10:18

I'm going nowhere...

[8trader] 16/2/2009 10:09

No patience as normal, Cana get back their 500k and drop back in
line, nobody prepared to wait and see what the 10 mil trade was
all about.

[monis] 16/2/2009 08:40

Interesting news...

Could be good for zzl.

-----------------


2nd UPDATE: OZ Minerals Recommends A$2.6 Billion Minmetals Offer

(Adds comment from OZ CEO and Minmetals Vice President)

By Alex Wilson
Of DOW JONES NEWSWIRES

MELBOURNE -(Dow Jones)- Embattled miner OZ Minerals Ltd. (OZL.AU) has become the latest Australian mining company to turn to China to solve its debt woes, recommending a A$2.6 billion takeover bid from China Minmetals Nonferrous Metals Company Ltd., or Minmetals.

The deal follows hard on the heels of Rio Tinto Ltd.'s landmark US$19.5 billion deal with Aluminum Corp. of China and poses a fresh dilemma for an Australian government weighing the benefits of investment by Chinese-government backed entities in the nation's key mining sector.

OZ Minerals is carrying A$1.1 billion of debt and has been struggling to refinance US$560 million worth of loans by a Feb. 27 deadline.

Under time pressure and facing the very real prospect of being forced into receivership, OZ's directors are unanimously recommending the Minmetals deal, which will see the Chinese group take on all of the miner's debt.

OZ has been pursuing possible asset sales and other refinancing options but Chief Executive Andrew Michelmore said the takeover offer delivered the best outcome.

"The Minmetals offer provides, in our view and in the time that we have available to us, the best option for our shareholders, employees and all other stakeholders," he told reporters.

Minmetals is offering 82.5 Australian cents per share, which represents a 50% premium to the last trade in OZ, which has been suspended since Nov. 28 due to the debt talks.

The A$2.6 billion on offer is still well shy of the A$12 billion miners Oxiana and Zinifex were worth when they were merged to form OZ in July last year.

One OZ shareholder said the offer looks to undervalue the company but that, with a weak commodity outlook and OZ struggling with its debt, most shareholders will probably be happy to take what they can get.

"It has been suspended for so long and, as they have kept extending and extending, I think a lot of people have psychologically written the investment off," he said.

"If the deal gets (Foreign Investment Review Board) approval and actually goes to a vote, I think it will get up," he added.

The decision on FIRB approval falls to Australian Treasurer Wayne Swan, a man with a lot on his plate after Rio last week announced its deal with Chinalco, the biggest overseas investment to date by China.

While OZ's assets are of far less national importance to Australia than Rio's, the government will have to wrestle with the fact that if it rejects the deal, the company could fold, resulting in job losses.

But the deal will still be a full takeover of a once significant Australian miner by China, one of the biggest consumers of Australia's exports, and coupled with the Rio deal last week will certainly give Swan food for thought.

A spokesman for Swan declined to comment on the Minmetals deal.

Michelmore said Chinese investment in Australian mining was in the best interest of the country and that Minmetals bid would see OZ's assets continue to generate jobs and taxes.

"That is in the best interests of Australia," he said.

Some in Australia fear China is buying up Australian mining assets cheap at the bottom of the cycle and will then use its ownership to drive down metals prices.

Minmetals Vice President Mark Liu told reporters that, while the group is state-owned, it operates in accordance with market principles.

He said the Chinese group does not intend to close any of OZ's mines.

OZ operates the Sepon copper and gold mines in Laos, and the Century and Rosebery and Golden Grove zinc mines in Australia and is ramping up a significant new copper and gold mine at Prominent Hill in South Australia.

BHP Billiton Ltd. (BHP.AU) is processing some of the output from Prominent Hill at its nearby Olympic Dam site and had been rumored as a possible bidder for the asset.

One OZ shareholder said if BHP had been thinking about bidding for Prominent Hill, the Minmetals bid could prompt it to act, but that OZ's other assets would not be of interest to the mining giant.

A spokeswoman for BHP declined to comment.

OZ must now convince its lenders to extend its loans until at least two weeks after the takeover scheme is implemented, which it expects will be late May.

The company's stock will come off its extended trading halt Tuesday. It last traded at 55 Australian cents.

-By Alex Wilson, Dow Jones Newswires; 61-3-9671-4313; [e-mail]

[jonnyred] 13/2/2009 10:51

RAB is the seller I think - it's probably a tiny part of their portfolio and many fund managers are looking to clear out the shrapnel at the bottom of their funds.

8Trader - defnitely 453 million shares - the trade is a positive anyway especially if it emerges that it was a Chinese buyer

[monis] 13/2/2009 10:44

I am listening and understand but I'll say again

Why if they have a confident buyer would they want to sell?

(as surely it indicates a positive future especially if the buyer wants 10m)

[8trader] 13/2/2009 10:42

JonnyRed.

Dont tell be advfn have this one wrong as well...grrrr

[jonnyred] 13/2/2009 10:40

Only 2.2% of the equity - 453 million shares in issue following Creat capital raise. Looks like Evolution did the business which is highly unusual as I've never seen them deal in this one before

[8trader] 13/2/2009 10:40

You are not listening are you !

When you hold a huge % in a penny stock you cant pick and choose
when you want to sell, sometimes you have to unload when there's
demand otherwise the rest of the time you wont get a fair price.

Surely that's common sense !

[monis] 13/2/2009 10:39

Why if they have a confident buyer would they want to sell?