CAPE LAMBERT (CFE) 50% capital return

[tommy]

WTF, no brainer guyz! (I now hold)

2 October 2008

The Company Announcements Office

ASX Limited
Via E Lodgement

A$100 Million Return of Capital and Unfranked Dividend

Australian iron ore company Cape Lambert Iron Ore Limited (“Cape Lambert” or the
“Company”) (ASX: CFE, AIM: CLIO) released the Company’s audited accounts for the year
ending 30 June 2008 on 30 September 2008.

Following the release of these audited accounts, the Board has been able to determine the
timetable for the equal reduction of capital (to be made via a cash distribution to
Shareholders) and payment of an unfranked dividend, which was approved by Shareholders
on 28 July 2008.

In accordance with the ASX Listing Rules, the timetable applicable for the return of capital
and dividend is outlined below:

Event Date
Announcement of Dividend and Return of Capital 2 October 2008
Effective Date 14 October 2008
Trading in Shares starts on an “ex return of capital
basis” and “ex dividend basis” 14 October 2008
Record Date 20 October 2008
Payment Date and Dispatch Date 24 October 2008

As outlined above, the record date for these payments will be 20 October 2008, which the
Board believes will provide Option holders wishing to take part in the return of capital and
receive the unfranked dividend sufficient time to convert their options.

The capital return cash distribution and dividend payment will be made to Shareholders on
24 October 2008. The Company via its share registry, Computershare Investor Services
Limited, has sent information requesting tax file number notification to all registered
Shareholders and we ask that these documents are completed and returned as soon as
practically possible.

The Board has determined that the total payment (capital reduction cash distribution and
dividend payment) to be made to Shareholders comprises approximately:

• Return of Capital 31.25%
• Unfranked dividend 68.75%

It is determined that the total payment (as at 2 October 2008) is approximately A$0.227 per
share, however, the final payment per share will not be known until the record date.
Cape Lambert Iron Ore Limited 2 October 2008

Executive Chairman, Tony Sage commented “The Board is pleased to have delivered such a
significant cash return to Shareholders so soon after 80% of the funds were received from
MCC”. He further added “In total, the Company has returned A$100 million to Shareholders”.
The Board is committed to using the successful completion of the MCC sale to build a solid
foundation for the Company’s future growth, which it believes will ensure Shareholders
continue to receive a significant return on their investment.

Yours faithfully
Cape Lambert Iron Ore Limited
Tony Sage
Executive Chairman

FOR MORE INFORMATION PLEASE CONTACT:
Cape Lambert Iron Ore Limited:
Tony Sage +61 (0)8 9380 9555
Australian Enquiries:
Professional Public Relations
David Tasker +61 (0)8 9388 0944/ +61 433 112 936
UK Enquiries:

Nominated Adviser:
Grant Thornton UK LLP
Fiona Owen +44 (0)20 7383 5100
AIM Broker:
Collins Stewart Europe Limited
Adrian Hadden +44 (0)20 7523 8353
Oliver Quarmby +44 (0) 20 7523 8354
Conduit PR:

Jos Simson +44 (0)20 7429 6603/+44 (0)7899 870 450
Jane Stacey +44 (0)20 7429 6606
Website: www.capelam.com.au

[Grand Uber]

Whats the chance of your share value dropping by 50% the day it goes ex dividend?

[shasta]

Whats the chance of your share value dropping by 50% the day it goes ex dividend?

With cash being the most precious of resources in the market at the moment, is a short term SP spruik the best thing to do?

Surely keeping the money (& getting some interest on it) & fast tracking other projects is far more value enhancing for shareholders...

Kind of like paying a dividend, then going back to shareholders later on for more cash!

[tommy]

Hi lads,

The point is not to hold long term but to trade this stock. Last closing price was 46c so 22c capital return is more than 40% of the current stock price.

It may fall after the ex date but until then, provided that DOW meltdown does not occur due to stupid yanks in congress failing to approve the bailout bill, this is a relatively low-risk, high return punt.

I know the spec sector is absolutely f@cked in terms of sentiment at the moment and yeah, I am 90% cash still but CFE seems to be a no brainer for me. If the bailout plan is passed, the likes of BNB might be worth a punt too...

But in the meantime, lets enjoy the All Ords blood bath hehehe

DOW down 3% so far, but come on guys, to make congress panic and approve the bill, they should have tanked 10%.

Politicians are not economists, but merely greedy smooth-talking representatives of their constituents. Politicians are only as dumb as the mass they represent. If the DOW nosedives more, the bill will be passed out of fear... sad but ironically this is the only hope we have.

[seadog]

Hi Tommy, thought you might find this interesting from "Money Morning" today-

Buy $3 in Cash for $1

And on that note, there's one more to look at. Cape Lambert Iron (ASX:CFE).

We've only looked at this briefly, so we could be wrong. You're welcome to inform us if you know better at moneymorning@moneymorning.com.au.

But after selling its major iron project to China Metallurgical, the company reckons it is sitting on $400 million in cash. It can invest that in new iron projects, or it can develop anything other current prospects.

It's trading at a market cap of $116 million today. According to the last annual report, it has $5 million in debt.

That means $395 million in cash is selling for $116 million. At face value, you can buy $3 for $1.

Cape Lambert jumped 30% yesterday. A big shareholder is trying to replace the board. So the company is shaking things up. It's organising a $100 million payout to shareholders too. Even those don't seem to warrant such a massive discount to this kind of liquidity though.

What we like about it most? Basically, the stock has its finger on the investment trigger. Right now, when mining projects are selling cheaper than they have in 4 years, it has a mountain of cash to buy them with.

[Grand Uber]

Is anyone else considering buying this on the day it goes ex-dividend? im guessing its going to get oversold to hell, could be a quick bounce back and its undervalued as hell anyway

[JBmurc]

About Cape Lambert Iron Ore Limited
During 2008, Cape Lambert sold its Pilbara namesake magnetite project to China
Metallurgical Group Corporation (“MCC”) and has received AUD$320 million of the
AUD$400 million sale price. The final cash payment of AUD$80 million is to be paid by
MCC on the grant of a mining lease and related construction approvals in respect of
the project.
Since acquiring the magnetite project and prior to the sale, Cape Lambert completed
182 RC holes for a total advance of 55,671 meters and 26 diamond core holes
for a total advance of 5,794 meters.
The magnetite project is located approximately 10-15km from the port of Cape
Lambert and currently has a 1.56 billion tonne JORC compliant magnetite iron ore
mineral resource defined over a strike length of approximately 5km.
As at 31 March 2009 Cape Lambert had approximately AUD$126.9 million in cash

CFE-Mrktcap-147mill

pretty astute management.

lastest news-Lambert”) (ASX: CFE) is pleased to advise that it has signed binding formal agreements to
acquire the assets of listed resources company CopperCo Limited (“CopperCo”) (ASX:
CUO).
The CopperCo assets include the Lady Annie copper project in northern Queensland. Mining
at the project has been suspended and Cape Lambert intends to conduct an exploration
program in relation to that project and the associated regional tenements also to be
acquired.
The CopperCo assets also include a 25% stake in the Queensland based Lady Loretta
copper project, a 100% interest in the Sappes gold project in Greece and shareholdings in
various listed resources companies, including Platmin Limited (TSX/AIM: PPN).
“The CopperCo asset portfolio is attractive and extensive and current market conditions now
provide an opportunity to unlock value for Cape Lambert and its shareholders through this
acquisition,” Cape Lambert Chairman Mr Tony Sage said.
As previously announced, on 6 February 2009, Cape Lambert acquired the secured debt
owed by CopperCo and its subsidiaries. This debt will be repaid at completion of the asset
acquisition in the amount of approximately A$78 million. In addition, Cape Lambert has
provided working capital facilities to CopperCo’s receivers, which will be repaid at
completion of the asset acquisition in the amount of approximately $30 million.
Under the terms of the asset acquisition agreements, after the repayment of secured debt
and receivers’ working capital facilities, CFE has agreed to pay an additional approximately
A$27 million on completion of the asset acquisition.

[Dr_Who]

How much cash?

Saves me from going through their accounts.

Cheers

[JBmurc]

looks like CUO major prob was funding think they had a flooding issue at- Lady annie-I'm sure the smart CFE managerment will ture round CUO assets to make us shareholders a nice profit ....


PRINCIPAL ACTIVITY
Copperco Limited (CUO, formerly Avon Resources Ltd ) is a copper mining and
exploration company with the projects located within the Mt. Isa region of
Queensland. As at May 2008 the company was implementing a merger with Mineral
Securities Limited.

LADY ANNIE PROJECT: The project located is located 137 km north of Mount Isa. It
is currently producing LME Grade A copper cathode at 19,000tpa, targeting an
increase to 25,000tpa in 2008 and 30,000 tpa by mid 2009. As at March 2008 total
resource was 40Mt @ 0.9% Cu for 358,700t Cu.

MOUNT KELLY PROJECT: The Mount Kelly project, located 110 km north of Mount Isa.
It comprises three prospects: Mount Clarke, Flying Horse and the Mount Kelly
Workings. As at March 2008 total resource was 14.1Mt @ 0.7% Cu for 106,400t Cu.

BUCKLEY RIVER PROJECT: The project is located 70km north of the Mount Isa and is
prospective for copper. An Indicated and Inferred Mineral Resource Estimate of
3.9 Mt @ 1.1% Cu for 43,200t Cu has been delineated at the Anthill Prospect.
Recent drilling returned 13m @ 3.45% Cu from 41m.

BUCKLEY RIVER PROJECT: The project is located approximately 40km south of the
Mount Kelly project and is prospective for copper. Two main prospect areas have
been outlined: the Anthill and the Johnson Creek prospects.

MINERAL SECURITIES MERGER: On 29 January 2008, the Company announced a proposed
merger with Mineral Securities Limited. Mineral Securities Limited (MXX,
formerly Minsec) is a Resource Investment House that makes early stage equity
investments in resource companies and projects."


Also on CFE cash balance of HC-the quarterly on the 30th april shows cash of $127m plus the convertible notes they will get.
Plus the $72.7m from the secured debt they bought plus the $33.8m bank guarantees .
Plus the final cash payment from China Metallurgical Group for the namesake Pilbara magnetite sale 70m???

[corporateraider]

As Tommy said right back at the start of this thread this one remains a no brainer. Cash on hand or to be received (80m from the balance of the sale ot the Cape Lambert tenement) is in excess of capitalisation. And to this add the assets of CUO. And that was a company that traded profitably initially till debt overcame it. Note that it had a capitalisation of 1000 million at one stage last year and CFE have bought it for about a tenth of that. Is it little wonder that since that deal we have started to see a significant rerating for CFE.
This looks like an interesting ride

Disc: Hold a few

[JBmurc]

stole this great first part from- Sydney-poster on HC--

-- the assets CFE are have just brought makes CFE a very nice growth base/precious metal holder of much prime exploration ground


1)Wholly owned CopperCo subsidiary Australis Exploration Pty Ltd, holds 56 exploration licences in Queensland and the Northern Territory, covering a total area of 41,600 km2. To date 11 tenements have been granted in the Northern Territory.

2)Copper reserve:

Lady Annie Project: 40.2Mt at 0.9% Cu, containing 348,200 tonnes of copper metal.

Mount Kelly Project: 14.1Mt at 0.7% Cu for a contained 106,400 tonnes of copper metal.

current total reserve=348200+106400= 452000t copper
reserve value= $3 billion

3)Phosphate Prospectivity:
Three areas of historically defined phosphate mineralisation have been identified at the Lady Annie East, Lady Jane South and East Galah Creek Prospects

4)Lady Loretta Project (CUO 25%), Mt Isa, Queensland, Australia – Lady Loretta is a high grade zinc-lead-silver deposit with total resources of 13.7Mt at 17% Zn, 5.4% Pb and 96g/t Ag.

5)Sappes Gold Project (CUO 100%), Greece – A high grade gold project located in Greece with a resource of 2.6Mt at 9.8g/t Au for 829,000 oz, including a high grade component of 990,00t at 22.4g/t Au for 682,000 oz.

6)Qixia Gold Project (CUO earning 75%), China – The project covers 10 exploration licences within the highly prospective Shandong Province of China

7)Platmin (CUO 17.52%), South Africa - Platmin is an explorer and emerging Platinum Group Metals (PGM) producer. All of Platmin’s projects are in the Bushveld Complex of South Africa, which is estimated to contain approximately 90% of global platinum mineral resources. The Pilanesberg Project is under construction with first production of PGM concentrate expected in 2009, and future production at the rate of 250,000 ozpa. The company has total attributable resources of 20.07Moz 5PGE+Au.

8)Tianshan Gold Project (CUO 27.6%), China – A resource of 95Mt at 0.9g/t Au (2.8Moz) has been delineated by Tianshan Gold at the Gold Mountain Project, and potential for higher grade feeder zones is evident.

9)Herencia Resources Plc (CUO 46%), Chile – The Paguanta Project is located in the northern part of the highly prospective Chilean porphyry copper belt and covers a tenement package of 39 km2. Work completed by Herencia has included diamond drilling, geochemical sampling and geophysical programmes. A maiden resource of 2.51Mt at 4.1% Zn, 77g/t Ag and 1.3% Pb was defined in late 2007.


Article from: The Australian

IRON ore explorer Cape Lambert Iron Ore has beaten stiff competition to acquire the assets of failed copper miner CopperCo for about $106 million.

Receivers Deloitte said Cape Lambert had been selected as the preferred bidder for the assets, including the Lady Annie copper mine near Mt Isa, in Queensland, which had been purchased as a going concern.

Also included in the purchase are shareholdings in various listed resources companies and the Sappes gold project in Greece.

Cape Lambert announced in February it had acquired about $78 million in secured debt owed by CopperCo and its subsidiaries, which would be repaid once the asset acquisition was complete.

The explorer has agreed to pay about $27 million extra on completion of the acquisition, bringing the total consideration to about $106 million.

Deloitte said Cape Lambert's had been the superior proposal among several bids.

"It is an excellent outcome because there will be some return to unsecured creditors," Deloitte receiver Gary Doran said. "That's always difficult with any insolvent company."

He said the sale process had been made more difficult by "huge environmental damage" at the Lady Annie mine site following widespread flooding in Queensland early this year.

An environmental remediation program is under way.

"Importantly, under the sale agreement, the receivers and managers will ensure that sufficient sale proceeds are set aside to complete all agreed remediation works," Deloitte said.

The sale is subject to court and creditor approval.

CopperCo was placed in administration in November after it was unable to retire a $45 million debt with Macquarie Bank.

[Grand Uber]

Yep this ones looking pretty promising, did you get your parcel?

Ive been watching these guys since the first post on this thread and have recently got onboard due to the above purchase of copperco assets.

[OldRider]

I've held this company since the days it was Hamill Resources, several demergers, a capital repayment and one large dividend gives a net cost of just under 3cps, so it's a 10bagger for me.

If the next few years repeats this performance it will easily be my best performing investment, just a pity my initial investment was just a small one.

[JBmurc]

Yep this ones looking pretty promising, did you get your parcel?

Ive been watching these guys since this post on this thread and have recently got onboard due to the above purchase.

my mates did still waiting on my funds to clear sub 70c is a no brainer

[JBmurc]

JBMURC,

IM backing You All The Way with CFE,

Its Only a Matter of Time.

AA

yeah going be interesting how CFE plays out they have so much for so little the market will have to take major notice sooner rather than later ,I'm glad to have been buying of late as have me mates taking 300,000 interest at this stage.

[JBmurc]

worth having a read through Copperco's may08 presentation makes me want to buy more CFE as they brought the lot for 106mill or so cheap cheap....


May 11, 2009
Article from: The Australian

IRON ore explorer Cape Lambert Iron Ore has beaten stiff competition to acquire the assets of failed copper miner CopperCo for about $106 million.

Receivers Deloitte said Cape Lambert had been selected as the preferred bidder for the assets, including the Lady Annie copper mine near Mt Isa, in Queensland, which had been purchased as a going concern.

http://www.copperco.com.au/_content/documents/895.pdf

If CFE management are smart they will build a very nice Diversified resource miner worth many multiples of today low cap.....savy

[corporateraider]

JB, I don't think CFE have even settled for CUO yet, so plenty of time before you need to talk the book.

[JBmurc]

JB, I don't think CFE have even settled for CUO yet, so plenty of time before you need to talk the book.

I for sure ,, court approval on the 25th 20 more days till CFE 100% owns all the CUO assets for only 17% of what they were worth a year ago I can't wait so am trying to increase my holding at the mo can't bet the fact:
If you buy CFE atm for 30-31c your buying a company worth 158mill 20 days from now you will get..assets with min fair value of 300mill+ not to forget CFE has penalty cash to develop with another 80m coming their way from MCC in time

IMHO we'll see CFE sell of some of the non-core assets with focus on getting lady Annie copper mine up in running with further reserve upgrades an in time to sell-down a share or lot for a nice profit .....

[JBmurc]

Sage poised to close deal on platinum play

8th June 2009, 7:45 WST




It has taken more than a year but the long-awaited friendly takeover of Tony Sage’s International Goldfields by joint venture partner Nkwe Platinum is on track to be wrapped up sooner rather than later.

The deal has been dragging on since March last year when Nkwe first made overtures to IGC in a bid to combine the two groups’ stakes in the Genorah Farms platinum project on the Bushveld Complex’s eastern limb in South Africa.

The groups have since agreed to tentative terms that would see Nkwe pay a total amount made up of $60 million for IGC’s stake in the platinum project as well as the takeover target’s cash backing when the deal is wrapped up — a figure that depends partly on how many stock options are exercised first.

Talk last week was that Nkwe has been dragging its feet because it wants to see the proposed cash deal done on a scrip basis instead and IGC is refusing to agree.

But it seems like that argument may be old news, with Nkwe’s European roadshow having apparently paid off and the platinum chaser poised to put its hands on some cash.

IGC executive chairman and veteran Perth dealmaker, Mr Sage, flew to London last night to meet Nkwe’s team and the deal could be finalised as early as tomorrow.

Although Mr Sage is apparently unwilling to see the deal done on a scrip basis, it looks likely a few terms may have to be tweaked to keep both sides happy.

Since the two groups began hammering out terms, Nkwe has unveiled a bumper resource upgrade at the Tubatse-Garatau project that would make it capable of supporting a 50-year mine life. Platinum prices have also jumped as much as 25 to 30 per cent from lows late last year.

Along with Xstrata, which has a right to earn up to 50 per cent in the project, Nkwe is fast-tracking a bankable feasibility study based on production of one million ounces of platinum a year.

Completion of the takeover should be good news for shareholders, who have been awaiting the deal, including Mr Sage’s Cape Lambert Iron Ore, which stands to pocket a profit as IGC’s biggest backer, with 8.7 per cent.

It should also cap off a busy few weeks for Mr Sage, who has also taken the helm of Cauldron Energy, the result of a merger between Scimitar Resources and Jackson Minerals. Wasting no time, Cauldron has appointed Greenday Corporate to come up with about $7.5 million to fund an exploration program.

KATE EMERY

[Xerof]

amongst the CUO assets that CFE is "stealing" is a cornerstone shareholding in NIP, which is a Vanadium/Platinum junior.........natural fit for CFE to take to a higher level with some of its cash - completely off the radar

disc: hold both

[JBmurc]

amongst the CUO assets that CFE is "stealing" is a cornerstone shareholding in NIP, which is a Vanadium/Platinum junior.........natural fit for CFE to take to a higher level with some of its cash - completely off the radar

disc: hold both

Yes just like investors buying CFE at these levels the SP is a steal

[JBmurc]

English investors take 50mill shares in CFE for the long term ,current SP-36c their will soon be a $ sign in front of CFE's SP...

[JBmurc]

Cape Lambert completes acquisition of CopperCo assets
Cape Lambert Iron Ore Limited (ASX: CFE) is pleased to advise that it has today completed
the acquisition of the assets of listed resources company CopperCo Limited (ASX: CUO).
The acquired CopperCo assets include:
• the Lady Annie copper project in northern Queensland;
• the shares in Mineral Securities Limited and its subsidiaries, including 20% of the
shares in each of Buka Gold Ltd, Corvette Resources Limited and Tianshan
Goldfields Limited;
• shares in various listed resources companies, including Platmin Limited (TSX/AIM:
PPN); and
• a 25% stake in the Queensland based Lady Loretta copper project and a 100%
interest in the Sappes gold project in Greece.
Prior to completion, a restructure was undertaken to ensure that Cape Lambert acquired no
more than 20% of any ASX-listed company. Cape Lambert will receive the benefit of any
consideration ultimately obtained for the remaining investments in ASX-listed companies
held by the receiver of CopperCo.
“We are very pleased to have completed the acquisition of these high-quality assets, and
now look forward to working with our experienced team to maximise returns for our
shareholders,” said Cape Lambert Chairman Tony Sage.
Yours faithfully
Cape Lambert Iron Ore Limited
Tony Sage
Executive Chairman



JBMurc 300k cfe
FOR

[Grand Uber]

Good news aye, good to see they didnt have to make takeover bids

[JBmurc]

Looking forward to Tony selling some of the new assets for some large gains could well be looking at returning some nice Cap-divies to shareholders over the next couple years

checkout the below Nav value of the assets CFE just brought for a song
-534 M$ NAV would effectively value CFE at 1.03 $/share + .37c cash backing = fair value to CFE $1.40 Which does't include other assets CFE have going on in Iron ore etc .

[JBmurc]

By Elisabeth Behrmann
Of DOW JONES NEWSWIRES


SYDNEY (Dow Jones)--Cape Lambert Iron Ore Ltd. (CFE.AU) is aiming for a restart of the Lady Annie copper mine in September or October, and is focusing on exploration to add value to the operation before a potential sale, the company's executive chairman said Monday.

Cape Lambert completed the purchase of Lady Annie Monday, as part of the assets of failed miner CopperCo Ltd. (CUO.AU) and subsidiaries that went into receivership last year.

"We've been on site for the past five or six weeks. With the rise in the copper price, we've been inundated with offers to buy Lady Annie and other parts of CopperCo," Executive Chairman Tony Sage told Dow Jones Newswires in an interview.

"We'd like to increase mine life to seven, eight, nine years from the current four to five years. If there's an offer we can't refuse we'll take it, but for now we want to add more value through exploration in the next few months before considering to sell," said Sage.

So far Chinese companies and "a couple of Australian producers" have lodged expressions of interest, he added.

In the past Lady Annie produced about 19,000 metric tons of copper annually, but has nameplate capacity of about 30,000 tons. At current copper prices, metal contained in past output would be worth about US$97 million.

The mine, located 120 kilometers north of Mount Isa in Queensland, has been on care and maintenance since February after severe flooding hit the area.

"We believe output can go to 40,000 tons," said Sage.

CopperCo went into voluntary administration in November last year after a financing deal fell through.

[JBmurc]

Suitors like the look of Lady Annie


Sarah-Jane Tasker | July 01, 2009
Article from: The Australian

CAPE Lambert is fielding offers for the Lady Annie copper project it acquired through the purchase of CopperCo's assets, as it moves to remove the board of another of the failed miner's subsidiaries.

Cape Lambert Iron Ore executive chairman Tony Sage said yesterday that he had already received three offers for the copper mine near Mt Isa, in Queensland, a day after the $106 million transaction for CopperCo had been officially completed.

"There have been some offers out of the blue for that asset and the board needs to sit down over the next few weeks and assess the outright sale of that to the value of us exploring it further and getting a further price by spending more money drilling," Mr Sage said.

"We knew people were interested, but since we settled on Monday we have had three offers -- one from a Chinese group, one from an Australian group and one from an eastern European group."

The sale agreement for CopperCo needed to be structured to meet the recent ruling of the Takeovers Panel, which said Cape Lambert would have to launch takeover bids for each of the listed companies it acquired or sell down the shares when the purchase was complete.

Cape Lambert acquired no more than 20 per cent of any ASX-listed company, which included an investment in Buka Gold.

Mr Sage yesterday said that Buka Minerals -- which became a subsidiary of Cape Lambert through the CopperCo acquisition -- had requested a shareholder meeting to remove the board of Buka Gold and appoint a new one including himself.

Buka Minerals has a 20 per cent stake in Buka Gold, which Mr Sage said gave it a strong case to overturn the board because its existing directors only had an 8 per cent interest.

"I don't think it will be very difficult for us to gain control of the company," he said.

Mr Sage added that he had reviewing all the assets it had acquired since it first bought the debt off Macquarie for the CopperCo transaction. He said the Perth-based company had since approached the boards of the four Australian-listed companies it acquired to ask if they needed Cape Lambert's help and all of them except Buka Gold invited him on to their boards.

"We had been keeping an eye on them (Buka Gold) for six months and basically the board hadn't done anything and the share price hadn't done anything," Mr Sage said.

"We believe that the shareholders' interests are better served by putting in a pro-active board."

Buka Gold executive chairman David Hillier said he was not in a position to comment on the hostile move until after he had spoken to the board.

[Crypto Crude]

I liked the look of this company ages ago when they were going to make that large capital distribution... I told the staretraders club im in, and they perfusely warned me off the stock claiming that management had ties to Range Resources RRS which has been a disaster... so I stayed clear...
... CFE looks the goods...
:cool:
.^sc

[dragonz]

I've got a buy order in for 31.5 that I thought was going to get filled on opening. I'm still waiting in line so will see what happens.

[JBmurc]

I've got a buy order in for 31.5 that I thought was going to get filled on opening. I'm still waiting in line so will see what happens.

Think your need to lift your bid if you want them offers at .335 now I'll think your agree after reading the news article I posted ,Tony an the boys aren't going wait round if a 100mill+ bid comes in for the lady annie copper mine we could will have a announcement to the fact before the months out ,now if you have another look at the PIE chart of CUO assets CFE could well receive back all the cash they used to buy the lot in so giving them 200mill worth of assets for free plus have near 200mill in cash +their other assets in Iron ore etc

[dragonz]

Think your need to lift your bid if you want them offers at .335 now I'll think your agree after reading the news article I posted ,Tony an the boys aren't going wait round if a 100mill+ bid comes in for the lady annie copper mine we could will have a announcement to the fact before the months out ,now if you have another look at the PIE chart of CUO assets CFE could well receive back all the cash they used to buy the lot in so giving them 200mill worth of assets for free plus have near 200mill in cash +their other assets in Iron ore etc

Yip looks pretty good at the moment. I wont chase as I'm closing shop intil I see which way the markets are heading. I have started a margin account with Prime and IG markets in the off chance that we see a downward trend. If this happens then I'll be looking for downtreading stocks that are below thier 200 ema and will only short until things pick up again.

Good spotting for this one Jmurc. You sure know how to spot them.

[JBmurc]

These guys are like Lion select group on steroids-bargain hunters
- I was looking back on CFE sale to MMC of the Iron ore for 400m(70mill yet to be paid)and I see they still have a very nice small tenement they believe will be worth a few dollars..
I really wouldn't be surprised to see CFE command a large 1bill+ market cap in a couple years ,they are just so aggressive


Cape Lambert to acquire 37% of DMC Mining.
Highlights:
 Cape Lambert subsidiary converts A$2 million Convertible Note in DMC,
 Also exercises 5 million, unlisted 15 cent options resulting in a cash
injection to DMC of A$750,000,
 Conversion of note and exercise of options will result in Cape Lambert
controlling 25 million DMC shares, approximately 37% of its issued
capital, and
 Cape Lambert to request additional board representation to enhance the
DMC board skill set.
Australian resources company, Cape Lambert Iron Ore Limited (ASX: CFE) (the “Company”
or “Cape Lambert”) is to acquire an (approximate) 37% stake in ASX listed, iron ore
exploration company DMC Mining Limited (ASX: DMM) (“DMC”) following the conversion of
a $2 million Convertible Note and exercise of 5 million, unlisted options by its wholly owned
subsidiary Dempsey Resources Pty Ltd (“Dempsey”).
Under the conversion terms of the Convertible Note issued to Dempsey on 10 December
2008, DMC will issue Dempsey 20 million fully paid shares. In addition, Dempsey has issued
DMC an option exercise notice for Dempsey’s 5 million, unlisted 15 cent options resulting in
an immediate cash injection to DMC of A$750,000.
The issue of the shares resulting from the conversion of the note and exercise of the options
received DMC shareholder approval at a General Meeting of Shareholders held on 8 May
2009.
Upon issue of shares to Dempsey under the Conversion Notice and exercise of the unlisted
options, Dempsey will hold 25 million fully paid ordinary shares in DMC, representing
approximately 37% of its issued capital. Consequently, Cape Lambert has requested
additional board representation to enhance the DMC board skill set.
“We believe Cape Lambert’s involvement with DMC provides a win win outcome whereby
DMC shareholders will have access to our strong balance sheet, and corporate and
technical expertise, and Cape Lambert shareholders will have exposure to the potentially
world class Mayoko iron ore project located in the Republic of Congo” said Cape Lambert
Executive Chairman Tony Sage.

Sage snaps up stake in DMC

3rd July 2009, 13:30 WST



Cape Lambert boss Tony Sage has cemented his reputation as an acquisitive dealmaker after securing 37 per cent of iron ore explorer DMC Mining.

Cape Lambert said today it had acquired the stake through the conversion of a $2 million convertible note and exercise of 5 million options through a wholly owned subsidiary.

The group will now lobby for additional board representation.

"We believe Cape Lambert’s involvement with DMC provides a win-win outcome whereby DMC shareholders will have access to our strong balance sheet, and corporate and technical expertise, and Cape Lambert shareholders will have exposure to the potentially world class Mayoko iron ore project located in the Republic of Congo," Mr Sage said.

The move comes at the end of a big week for Cape Lambert, which saw it finalise the acquisition of the assets of collapsed miner CopperCo and move to roll the board at Buka Gold, in which it has a 20 per cent stake.

Shares in Cape Lambert were unchanged at 35¢.

KATE EMERY

[Corporate]

JB - i'm trying to get an understanding of CFE's assets, and current financial position. Where should i start? So much is happening it hard to get ya head around what there current position is...

[JBmurc]

JB - i'm trying to get an understanding of CFE's assets, and current financial position. Where should i start? So much is happening it hard to get ya head around what there current position is...

first thing read all the posts here then wait a couple weeks as CFE are about to do a road show presentation which will wake up some major market attention

basically CFE have 500-600mill worth of assets in a good market + 150-200mill in cash now or soon to have

[Corporate]

first thing read all the posts here then wait a couple weeks as CFE are about to do a road show presentation which will wake up some major market attention

basically CFE have 500-600mill worth of assets in a good market + 150-200mill in cash now or soon to have

Thanks JB. No production though right?

Cash higher than market cap?
Do you know the history of management?

[JBmurc]

Thanks JB. No production though right?

Cash higher than market cap?
Do you know the history of management?

No production
Yes Cash once MMC pay them the contracted 80mill will be larger than their Marketcap

Managerment history-checkout their site----http://www.capelam.com.au/

some posters on other sites reckon the managerment like to look after themselves an also deal with the underworld?
Personal the proof is for all to see Tony an the boys make money for S/H just spend abit time going though all the companys new shareholdings when you own a share of CFE you have interest in
-Iron ore 3 diff project areas
-Gold 3-4 jnr gold projects
-Platinum TSX listed
-Copper 1 producing mine plus 3+ other copper projects
-zinc

Now once the cash payment comes from MMC all the above interests are basically free as the currently S/P atm is valuing est. cash in the bank

[Corporate]

No production
Yes Cash once MMC pay them the contracted 80mill will be larger than their Marketcap

Managerment history-checkout their site----http://www.capelam.com.au/

some posters on other sites reckon the managerment like to look after themselves an also deal with the underworld?
Personal the proof is for all to see Tony an the boys make money for S/H just spend abit time going though all the companys new shareholdings when you own a share of CFE you have interest in
-Iron ore 3 diff project areas
-Gold 3-4 jnr gold projects
-Platinum TSX listed
-Copper 1 producing mine plus 3+ other copper projects
-zinc

Now once the cash payment comes from MMC all the above interests are basically free as the currently S/P atm is valuing est. cash in the bank

WHen do CFE expect the additional $80m...have you considered tax to pay on any of this?

[JBmurc]

WHen do CFE expect the additional $80m...have you considered tax to pay on any of this?

Good Q something worth looking into

[JBmurc]

Cape Lambert increases stake in DMCRebecca Le May
July 3, 2009 - 7:54PM
Cape Lambert Iron Ore Ltd will take a 37 per cent stake in smaller iron ore explorer DMC Mining Ltd without triggering a takeover.

It will gain the interest through the conversion of a $2 million convertible note and exercise of five million unlisted options.

Cape Lambert executive chairman Tony Sage said the move would not trigger a takeover because the transaction had been approved by DMC's investors at a general meeting in May.

Under the Corporations Act, a company usually must signal its intention to launch a takeover when it takes a greater than 20 per cent interest in another party.

"When we signed the deal, we would have only got 15 per cent if we did it then but because the market has collapsed (and DMC's share price has fallen), we were able to take a much larger per cent," Mr Sage told AAP.

Cape Lambert has requested a seat on DMC's board.

Cape Lambert on Tuesday announced plans to oust the board of Buka Gold Ltd after that company rejected its call for a board seat to reflect its near 20 per cent interest.

Mr Sage said Cape Lambert had buyers lining up for several of its assets, particularly the Lady Annie copper mine near Mt Isa in Queensland, which would be worth "well over $150 million".

It acquired Lady Annie on Monday from collapsed miner CopperCo along with the stake in Buka, the Sappes gold project in Greece, a near 20 per cent interest in Tianshan Goldfields Ltd and other assets.

Mr Sage said Cape Lambert expected to boost its $60 million cash balance with the sale of about $400 million worth of assets including Sappes, the Tianshan stake and its interest in the Marampa iron ore project in Sierra Leone.

"It's just going to keep adding to our arsenal of funds.

"Most of the assets that we've earmarked for sale will happen before Christmas."

Cape Lambert also on Friday upped its interest in International Goldfields Ltd from 8.6 per cent to 12.2 per cent.

[Grand Uber]

http://www.theaustralian.news.com.au/business/story/0,28124,25736782-643,00.html

[JBmurc]

"When we fund them, we don't just get the interest and not take an interest," Mr Sage said.

"We want board seats, we want to be active.

"We make it clear that we are going to want to run the technical side of it.

"We aren't really a miner. I'm not going to mine anything. What I like to do is take a bit of virgin ground that we like and develop it to a stage where someone can come along and mine it."



----well if you can make 000's million by trading mines I'm all for it bring on the large capital return divies


-Looks like they want COV now

[JBmurc]

Cape Lambert set to acquire up to 18.7% of Cauldron
Cauldron to commence major exploration activities on
its Australian and Argentinean uranium projects
Highlights:
• Cape Lambert subsidiary requests conversion of A$2.3 million Convertible
Note in CXU,
• Airborne electromagnetic survey to commence, at the Yanrey Project,
• The first year operating program and $1.8 million budget has been approved for
Marree Uranium Project from Korean consortium funding,
• The Company is currently completing negotiations for the commencement of a
3,000 metre drilling program at the Rio Colorado Project in Argentina, and
• The Company has today issued a total of 3.4 million fully paid shares to various
parties to facilitate the advancement of its substantial uranium portfolio in
Australia and Argentina.
Australian resources company, Cape Lambert Iron Ore Limited (ASX: CFE) (“Cape
Lambert”) is set to acquire up to an (approximate) 18.7% stake in ASX listed,
Australian uranium company Cauldron Energy Limited (ASX: CXU) (“Cauldron” or
“the Company”), previously known as Scimitar Resources Limited (ASX: SIM),
following the conversion of an A$2.3 million Convertible Note by its wholly
owned subsidiary Dempsey Resources Pty Ltd (“Dempsey”).
Under the conversion terms of the Convertible Note issued to Dempsey on 23
December 2008, CXU will issue Dempsey 15,333,333 fully paid shares in Cauldron.
The conversion will be in two stages, pursuant to ASX Listing Rules relating to
the Company’s capacity to issue new Shares.
An initial tranche of 6,108,612 (representing approximately 8.4% of the Company’s
issued capital) will be issued immediately, and the remaining 9,224,721 Shares will be
issued upon receipt of and subject to Shareholder approval at the Company’s Annual
General meeting, expected to be convened in October 2009.
“We believe Cape Lambert’s involvement with Cauldron provides a win-win outcome
whereby CXU shareholders will have access to our strong balance sheet, and corporate
expertise, and Cape Lambert shareholders will have exposure to the potentially world
class Australian and Argentinean uranium projects” said Cape Lambert Executive
Chairman Tony Sage.
Cauldron Energy’s CEO Terry Topping believes the transaction will ensure the
Company has sufficient resources to undertake an aggressive exploration program
across its suite of advanced uranium assets in Australia and Argentina.

[Corporate]

Cape Lambert set to acquire up to 18.7% of Cauldron
Cauldron to commence major exploration activities on
its Australian and Argentinean uranium projects
Highlights:
• Cape Lambert subsidiary requests conversion of A$2.3 million Convertible
Note in CXU,
• Airborne electromagnetic survey to commence, at the Yanrey Project,
• The first year operating program and $1.8 million budget has been approved for
Marree Uranium Project from Korean consortium funding,
• The Company is currently completing negotiations for the commencement of a
3,000 metre drilling program at the Rio Colorado Project in Argentina, and
• The Company has today issued a total of 3.4 million fully paid shares to various
parties to facilitate the advancement of its substantial uranium portfolio in
Australia and Argentina.
Australian resources company, Cape Lambert Iron Ore Limited (ASX: CFE) (“Cape
Lambert”) is set to acquire up to an (approximate) 18.7% stake in ASX listed,
Australian uranium company Cauldron Energy Limited (ASX: CXU) (“Cauldron” or
“the Company”), previously known as Scimitar Resources Limited (ASX: SIM),
following the conversion of an A$2.3 million Convertible Note by its wholly
owned subsidiary Dempsey Resources Pty Ltd (“Dempsey”).
Under the conversion terms of the Convertible Note issued to Dempsey on 23
December 2008, CXU will issue Dempsey 15,333,333 fully paid shares in Cauldron.
The conversion will be in two stages, pursuant to ASX Listing Rules relating to
the Company’s capacity to issue new Shares.
An initial tranche of 6,108,612 (representing approximately 8.4% of the Company’s
issued capital) will be issued immediately, and the remaining 9,224,721 Shares will be
issued upon receipt of and subject to Shareholder approval at the Company’s Annual
General meeting, expected to be convened in October 2009.
“We believe Cape Lambert’s involvement with Cauldron provides a win-win outcome
whereby CXU shareholders will have access to our strong balance sheet, and corporate
expertise, and Cape Lambert shareholders will have exposure to the potentially world
class Australian and Argentinean uranium projects” said Cape Lambert Executive
Chairman Tony Sage.
Cauldron Energy’s CEO Terry Topping believes the transaction will ensure the
Company has sufficient resources to undertake an aggressive exploration program
across its suite of advanced uranium assets in Australia and Argentina.

TS is a directors of CXU right?

You've got to wonder what back handers etc are going on behind the scenes...

[JBmurc]

CFE market cap = 168mill ???? crazy low value



Asset A$ Value
Cash $75M
Cash Receivables $116M
Equities (mark-to-market) $50M
Lady Annie (100%) $150M?
Marampa (35%) $120M?
Sappes (100%) $50M?
Australis (100%) ?
Lady Loretta (25%) ?
Cape Lambert South (100%) ?

Total ++$500M


http://hotcopper.com.au/asx_announcements.asp?id=71078

[shasta]

CFE market cap = 168mill ???? crazy low value



Asset A$ Value
Cash $75M
Cash Receivables $116M
Equities (mark-to-market) $50M
Lady Annie (100%) $150M?
Marampa (35%) $120M?
Sappes (100%) $50M?
Australis (100%) ?
Lady Loretta (25%) ?
Cape Lambert South (100%) ?

Total ++$500M


http://hotcopper.com.au/asx_announcements.asp?id=71078

I read the presentation & i do like CFE.

However they do need to sell off some non core projects & use the funds to develop the key projects that will return the best returns.

I totally agree, way undervalued (cash & receivables = market cap :eek:)

[JBmurc]

I read the presentation & i do like CFE.

However they do need to sell off some non core projects & use the funds to develop the key projects that will return the best returns.

I totally agree, way undervalued (cash & receivables = market cap :eek:)

Its really the story of the current time masses of undervalued real asset companies it's like investors,funds etc have most their cash in the bank waiting for the next down turn before buying anything yet fundamentally an technically the CFE,IRN etc are great buying Now
I guess like sheep it takes more than one to move the masses of the sidelined funds

[Grand Uber]

Has been plenty of opportunity to make money in CFE over the past 5 years and i'd say there will be plenty more in the future

long term chart looks good

[JBmurc]

Has been plenty of opportunity to make money in CFE over the past 5 years and i'd say there will be plenty more in the future

long term chart looks good

esp. when CFE gave out a 22c divie late last yr

-CFE chart will look very good once it moves close to fair value- 80c-$1
the roadshow sage is doing on CFE should increase interest I'm sure the U.K fund buyers recently will be keen to grow their interests, I certain did today with another 32660 shares @ .315

[Brut]

I am holding a heap of these, also managed to pick up another 38000 @ .315 today.

This stock was my pick in the S/T competition.

Totally undervalued & waithing for the market to realise.

[Brut]

Buyers are building this morning, Should be a good day for CFE.

Goodluck all holders!

[Snapper]

I noticed the big volume yesterday and put an order in this morning at 35. Opened at 36.5 but may pull back???

[shasta]

I noticed the big volume yesterday and put an order in this morning at 35. Opened at 36.5 but may pull back???

Looks like you got lucky, CFE hit 37c & back to 35c ;)

[Snapper]

Looks like you got lucky, CFE hit 37c & back to 35c ;)

Got them. It can go up again now :)

[shasta]

Got them. It can go up again now :)

Yup it can do now, shifted some funds around & have taken a punt on CFE.

These guys don't sit still & i like that :D

[JBmurc]

Good to see some fellow ST on board should be a good ride once things become clearer.
To many assets to stay this low for much longer.. 60c-70c first target
looks like a major seller has been keeping a lid on the price with a sell @ 34c 750,000 on the close today...

[shasta]

Good to see some fellow ST on board should be a good ride once things become clearer.
To many assets to stay this low for much longer.. 60c-70c first target
looks like a major seller has been keeping a lid on the price with a sell @ 34c 750,000 on the close today...

With the June quarterly due this week, we should see how much cash is left, after all the wheeling & dealing.

Some asset sales should boost the cash pile, & there history of returning excess capital won't be lost on the market.

I liked your earlier reference to LST, they culled off the non core bits & pieces & were re-rated accordingly.

[JBmurc]

With the June quarterly due this week, we should see how much cash is left, after all the wheeling & dealing.

Some asset sales should boost the cash pile, & there history of returning excess capital won't be lost on the market.

I liked your earlier reference to LST, they culled off the non core bits & pieces & were re-rated accordingly.

I guy on sharescene came up with 33mill in cash atm with 56mill after tax coming once the Cape Lambert project is granted a mining lease and project approval.

so 89mill net in time

Now it sounds like Tony has buyers keen on Lady annie @ 150mill+ now whats the Aussie company tax rate ?? 30% say another 100mill net +89 =189m likely before next year some 20mill more than Mrktcap

[JBmurc]

CFE hold 5.3% of Platmin

By: Martin Creamer
22nd July 2009
TEXT SIZE JOHANNESBURG (miningweekly.com) – The life-of-mine breakeven cost of platinum miner Platmin's new Pilanesberg platinum operation was from $600/oz to $650/oz at current exchange rates and rand-dollar prices, Platmin executive chairperson Keith Liddell told Mining Weekly Online at the inward listing of Platmin on the JSE on Wednesday, which brings an investment of R1,85-billion to South Africa.

“We’re very well positioned cost-wise, and that comes from us having an openpit mine,” Liddell said of the 16-year-life operation, which is poised to begin yielding positive cash flow before the end of this year.

Liddell said that Platmin’s Pilanesberg platinum mine in South Africa’s North West province was on track to produce at a rate of 250 000 oz/y from the fourth quarter of this year.

“We don’t have costly underground operations. All of our ounces come from an openpit, and that’s much cheaper mining. It’s the rand profit margin that we focus on, given that most of our cost is in rands," he said.

The way to beat the low rand metal prices was to contain costs and ensure that production was optimal: "That's the way I've successfully brought platinum operations into production, and that’s the way we are bringing Pilanesberg into production," he added.

The inward JSE listing of the company, in which Brian Gilbertson’s Pallinghurst has a 51% interest, augments its presence on TSX and Aim, and has given the 350 000-strong Bakgatla Ba Kgafela community a platform from which to participate at listed ownership level.

Being mined at Pilanesberg, Liddell said, was a basket of platinum-group metals that included platinum, palladium, ruthenium, iridium, rhodium, copper and nickel, the bulk of the revenue coming from platinum.

“We’ve just had some research done and the projections are that by 2011, the world production of cars will be as it was in 2008, when platinum was priced at over $2 000/oz.

“What we’ll see, is the stocks of cars depleting over the next 12 months, particularly led by third-world countries, particularly China. We are still going to see the China factor coming back into the platinum prices,” Liddell forecast.

“Don’t forget, that platinum's a green metal, and when you look at the pollution of Chinese cities, they have to have autocats on their cars.

“Palladium is going to be a metal that really comes up over the next 12 to 18 months, probably before the platinum price starts to move. Palladium has been destocked a little more than platinum,” Liddell says.

On listing on the JSE, he said that the JSE listing was part of the funding arrangement with Pallinghurst: "In the near future, the Bakgatla community will move up from the South African subsidiary into Platmin, so that we all sit at the same table as shareholders."

Liddell told Mining Weekly Online that Platmin’s priority was to ensure that the three process streams at Pilanesberg were yielding at full-ounce output.

“They’re already running at full tonnage production. As we mine deeper and our recoveries come up, then we’ll move to full-ounce production of 250 000 oz a year, which puts us in a midtier producer position,” Liddell added.

Besides the Pilanesberg mine, he said that Platmin had a pipeline of other shallow long-life projects that would be developed when market conditions supported additional platinum supply.

[JBmurc]

Perth businessman Tony Sage
believes he knows a good deal
when he sees it.
For the chief executive of
Cape Lambert Iron Ore, his
company has achieved just that
with its purchase of failed miner
CopperCo’s assets – including
the Lady Annie operation,
120km north of Mount Isa.
Cape Lambert, which offi cially
took the reins of the former
CopperCo business on June 30,
has already been fi elding offers
for that mine from Chinese and
Australian players.
“It’s an absolutely fantastic
asset,” Mr Sage said of the
operation.
Mr Sage said CopperCo had
peaked at a market value of
about $800 million last year –
before the global fi nancial crisis
struck – and he believes the
Lady Annie operation alone
must be worth about $250 250mill !!!! nice one tony
million at current copper prices.
Cape Lambert paid $85
million for that asset as part
of its CopperCo acquisition
agreement with receivers
Deloitte, which Mr Sage said
had been completed at a total
cost of about $130 million.
Its initial strategy for Lady
Annie is to add value by
extending its mine life from fi ve
years to seven or eight through
exploration.
“Th ere is plenty of copper – all
it needs is an extended drilling
program to come up with
another resource calculation,” Mr
Sage said.
“We know exactly where to
drill - we know the ground as
well as anyone by now.”
Th e company has a proven
track record in adding value
to projects in this way, having
drilled 35,000m to produce
a 2 billion-tonne mineral
resource at its namesake iron
ore project in Western Australia
before its $400 million sale
last year to a subsidiary of the
China Metallurgical Group
Corporation.
New owner Cape Lambert Iron Ore reveals
its strategy to add value to the former
CopperCo site in north-west Queensland.
While the company would
consider cash off ers for Lady
Annie, Mr Sage said its
intention at this stage was to add
value through exploration.
Flooding in the mine’s pit
is expected to continue to
prevent mining there until about
September, when Cape Lambert
may consider contract mining
the site.
Processing of ore on the
operation’s leach pads is ongoing,
with stockpiles expected to last
until August.
Mr Sage said about 30 staff
remained employed at the
operation at the time of the
handover and small number of
Cape Lambert staff had joined
them to oversee and investigate
the operation.
He said the terms of Cape
Lambert’s purchase agreement
meant CopperCo’s receivers
must take responsibility for any
environmental liabilities arising
from the February fl ood events
at the mine.
In addition to Lady Annie,
the CopperCo assets include a
25 per cent stake in the Lady
Loretta copper project northwest
of Mount Isa, a 100 per
cent interest in the Sappes
gold project in Greece and
shareholdings in various listed
resources companies, including
Platmin Limited.
CopperCo went into voluntary
administration late last year
when a fi nancing transaction fell
through and its bankers moved
shortly after to appoint receivers
and managers.
So keen was a cashed-up
Cape Lambert to pounce on
the assets that it investigated its
options for moving in before the
receivers put out documents for
bids.
“We went to the bank
(Macquarie) and got into the
process (by acquiring the secured
debt owed by CopperCo and
its subsidiaries for about $78
million),” Mr Sage said.
“No one has done it this way
before – it opened up people’s
eyes.”
While acquiring the debt
didn’t guarantee Cape Lambert
would win out over other bidders
for the purchase of CopperCo,
it meant the company could
appoint its own receiver and gave
it some inside knowledge of the
operations.
Cape Lambert later sealed
the acquisition for $27 million
on top of the debt repayment
and $30 million working capital
provided to the receivers.
Lady Annie ‘a fantastic asset’

[JBmurc]

Having developed the company’s namesake
iron ore resource in the Pilbara over six years,
Sage pulled off one of the deals of 2008 when
Chinese irm China Metallurgical Group Cor-
poration (MCC) agreed to pay $400 million for
the 1.56bt magnetite project in August.
The sale not only handed CFE a war chest
with which to go on the hunt for acquisitions
but it also resulted in a $100 million return of
capital and unfranked dividend to sharehold-
ers, all done at the height of the global inancial
crisis.
Although it was Sage who drove through the
deal with MCC, he is not taking any credit for
the timing.
“The Cape Lambert deal? You could call it
luck, I certainly didn’t know the GFC was about
to strike. I had a big battle with the board to
convince them of the merits of the deal. Their
opinion was that we should continue to build
the resource to 3bt. At the time I wasn’t execu-
tive chairman, Ian Burston was in that role. I
went to China personally, negotiated the deal
then went back to the board and tried to con-
vince them.”
Sage believed the global economy’s down-
turn and the subsequent re-rating of resources
projects meant there were other ways of gen-
erating wealth than by increasing the resourc-
es at Cape Lambert.
“I thought there were more opportunities out
there to double or triple that $400 million rath-
er than spend another $10-15 million on the
project, when the Chinese were keen to buy
it there and then. I knew we would hit a wall
at about $400 million. I knew what MCC was
looking for and I don’t think they would’ve been
prepared to pay more for it even if it was 3bt.
“Burston didn’t believe such a deal could be
done but when I showed it to him, he realised
the imminent sense in making the deal.”
Remarkable as it was, Sage’s maverick ways
must have caused some distress to his fellow
board members. Though any concerns would
have been eased when 60% of the funds was
paid within six weeks of the transaction being
inalised.
“It didn’t take long to rebuild the relationship
with the board.”
There was one casualty. Burston, the former
general manager of KCGM and executive
chairman of Portman Ltd, left CFE shortly after
the deal went through.
“There is no animosity between myself and
Ian, we still meet regularly for coffee. He left
because his appointment was intrinsically
linked to the project. Once that was sold there
was no need for him to be around.”
Burston left one legacy. In the nine months
prior to the sale of Cape Lambert, he and the
CFE technical team spent their time looking for
another iron ore development opportunity for
the company.
That search resulted in CFE acquiring a
30% stake in the Marampa iron ore project in
the African nation of Sierra Leone.
“Ian Burston went there nine months before
we signed the deal and loved it. After that we
did nine months work and due diligence on it
but at the time we didn’t have anything to offer,
we had very little cash in the bank. Once the
Cape Lambert deal came through, we signed
off on Marampa very quickly.”
The company was criticised by some share-
holders for the swiftness of the deal and the
money thrown at it. A criticism compounded
by the fact that CFE’s new JV partner in the
project was AIM-listed African Minerals plc, a
company chaired by Sage’s good friend Frank
Timis.
“We took some criticism because it seemed
so quick to the market, but we had spent that
nine months looking at it so it was not a snap
decision. The comment from the market after
the acquisition was that it was bought to pro-
tect us against takeover, that’s rubbish!”
The project’s original incarnation lasted until
the 1970s when British irm Delco pulled out,
leaving the vital infrastructure in place and
valuable stockpiles.
“All the infrastructure is still in place. There
is some ore in carriages on the track, there is
some stockpiled at the mine and some stock-
piled at the port. That ore is valued at around
$US600 million, without the hard rock potential -----what the 600m =180mill of ore for CFE
which we are ready to start drilling. We only
paid scrip and cash to a value of $US200 mil-
lion for the entire project, it is very viable but
mining is not my forte, we will look to sell it on
once its viability has been proved.

”With shareholder support for the investment
now won, Sage is concentrating on leading
Marampa down the same path as Cape Lam-
bert.
“By Christmas we will have a buyer for the
whole lot. We are looking for about $US400
million for (CFE’s stake in) Marampa.”
Marampa was the irst deal Sage completed
after the sale of Cape Lambert but since then
he has turned into a whirlwind.
Armed with the rest of the $400 million wind-
fall from the Cape Lambert transaction, Sage
went on the hunt for investment opportunities
in a resources landscape decimated by the
global inancial crisis.
The central strategy of this scouting mission
was to ind projects which could prove attrac-
tive to the world’s largest consumer of com-
modities, China. Sage seeks opportunities
from which he knows he can attract Chinese
interest.
“What Cape Lambert brings is a mandate
on inance and the end-user. I can bring op-
portunities to the Chinese where normally they
might be reticent about dealing or investing in
a small junior company. I know what they are
looking for and I go out and ind it.
“Iron ore, copper and uranium are the three
commodities the Chinese are after. Cape Lam-
bert acts as a quasi-fund manager. It looks at
opportunities, buys them, develops them and
then sells them on.”
He surprised many with his irst move. In-
stead of picking up an exploration asset CFE
swooped for a crippled producer.
Queensland-focused copper producer Cop-
perCo, and its recently merged partner Mineral
Securities, had moved into voluntary adminis-
tration in November and CFE was quick to take
on the company’s $72.2 million secured debt.
“CopperCo was grossly undervalued but no
one thought of doing things the way we did,
taking out the debt.
“Usually you wait for the receivers to get the
house in order and then bid with everybody
else. This way we could get more information.
The bank usually receives a daily report from
the US

[shasta]

Having developed the company’s namesake
iron ore resource in the Pilbara over six years,
Sage pulled off one of the deals of 2008 when
Chinese irm China Metallurgical Group Cor-
poration (MCC) agreed to pay $400 million for
the 1.56bt magnetite project in August.
The sale not only handed CFE a war chest
with which to go on the hunt for acquisitions
but it also resulted in a $100 million return of
capital and unfranked dividend to sharehold-
ers, all done at the height of the global inancial
crisis.
Although it was Sage who drove through the
deal with MCC, he is not taking any credit for
the timing.
“The Cape Lambert deal? You could call it
luck, I certainly didn’t know the GFC was about
to strike. I had a big battle with the board to
convince them of the merits of the deal. Their
opinion was that we should continue to build
the resource to 3bt. At the time I wasn’t execu-
tive chairman, Ian Burston was in that role. I
went to China personally, negotiated the deal
then went back to the board and tried to con-
vince them.”
Sage believed the global economy’s down-
turn and the subsequent re-rating of resources
projects meant there were other ways of gen-
erating wealth than by increasing the resourc-
es at Cape Lambert.
“I thought there were more opportunities out
there to double or triple that $400 million rath-
er than spend another $10-15 million on the
project, when the Chinese were keen to buy
it there and then. I knew we would hit a wall
at about $400 million. I knew what MCC was
looking for and I don’t think they would’ve been
prepared to pay more for it even if it was 3bt.
“Burston didn’t believe such a deal could be
done but when I showed it to him, he realised
the imminent sense in making the deal.”
Remarkable as it was, Sage’s maverick ways
must have caused some distress to his fellow
board members. Though any concerns would
have been eased when 60% of the funds was
paid within six weeks of the transaction being
inalised.
“It didn’t take long to rebuild the relationship
with the board.”
There was one casualty. Burston, the former
general manager of KCGM and executive
chairman of Portman Ltd, left CFE shortly after
the deal went through.
“There is no animosity between myself and
Ian, we still meet regularly for coffee. He left
because his appointment was intrinsically
linked to the project. Once that was sold there
was no need for him to be around.”
Burston left one legacy. In the nine months
prior to the sale of Cape Lambert, he and the
CFE technical team spent their time looking for
another iron ore development opportunity for
the company.
That search resulted in CFE acquiring a
30% stake in the Marampa iron ore project in
the African nation of Sierra Leone.
“Ian Burston went there nine months before
we signed the deal and loved it. After that we
did nine months work and due diligence on it
but at the time we didn’t have anything to offer,
we had very little cash in the bank. Once the
Cape Lambert deal came through, we signed
off on Marampa very quickly.”
The company was criticised by some share-
holders for the swiftness of the deal and the
money thrown at it. A criticism compounded
by the fact that CFE’s new JV partner in the
project was AIM-listed African Minerals plc, a
company chaired by Sage’s good friend Frank
Timis.
“We took some criticism because it seemed
so quick to the market, but we had spent that
nine months looking at it so it was not a snap
decision. The comment from the market after
the acquisition was that it was bought to pro-
tect us against takeover, that’s rubbish!”
The project’s original incarnation lasted until
the 1970s when British irm Delco pulled out,
leaving the vital infrastructure in place and
valuable stockpiles.
“All the infrastructure is still in place. There
is some ore in carriages on the track, there is
some stockpiled at the mine and some stock-
piled at the port. That ore is valued at around
$US600 million, without the hard rock potential -----what the 600m =180mill of ore for CFE
which we are ready to start drilling. We only
paid scrip and cash to a value of $US200 mil-
lion for the entire project, it is very viable but
mining is not my forte, we will look to sell it on
once its viability has been proved.

”With shareholder support for the investment
now won, Sage is concentrating on leading
Marampa down the same path as Cape Lam-
bert.
“By Christmas we will have a buyer for the
whole lot. We are looking for about $US400
million for (CFE’s stake in) Marampa.”
Marampa was the irst deal Sage completed
after the sale of Cape Lambert but since then
he has turned into a whirlwind.
Armed with the rest of the $400 million wind-
fall from the Cape Lambert transaction, Sage
went on the hunt for investment opportunities
in a resources landscape decimated by the
global inancial crisis.
The central strategy of this scouting mission
was to ind projects which could prove attrac-
tive to the world’s largest consumer of com-
modities, China. Sage seeks opportunities
from which he knows he can attract Chinese
interest.
“What Cape Lambert brings is a mandate
on inance and the end-user. I can bring op-
portunities to the Chinese where normally they
might be reticent about dealing or investing in
a small junior company. I know what they are
looking for and I go out and ind it.
“Iron ore, copper and uranium are the three
commodities the Chinese are after. Cape Lam-
bert acts as a quasi-fund manager. It looks at
opportunities, buys them, develops them and
then sells them on.”
He surprised many with his irst move. In-
stead of picking up an exploration asset CFE
swooped for a crippled producer.
Queensland-focused copper producer Cop-
perCo, and its recently merged partner Mineral
Securities, had moved into voluntary adminis-
tration in November and CFE was quick to take
on the company’s $72.2 million secured debt.
“CopperCo was grossly undervalued but no
one thought of doing things the way we did,
taking out the debt.
“Usually you wait for the receivers to get the
house in order and then bid with everybody
else. This way we could get more information.
The bank usually receives a daily report from
the US

CFE - Quarterly Report

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=455233

Highlights:

Cash @ 30/609 = $74m

Nice bit here...

The company intends to follow a policy of distributing cash to shareholders following the realisation of assets within its portfolio...

JORC resource due for Marampa - Iron Ore Project in Sept Quarter

A nice weekend read for those wanting an undervalued resource company.

Disc: CFE is my biggest holding, the story is too good to miss ;)

[JBmurc]

CFE - Quarterly Report

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=455233

Highlights:

Cash @ 30/609 = $74m

Nice bit here...

The company intends to follow a policy of distributing cash to shareholders following the realisation of assets within its portfolio...

JORC resource due for Marampa - Iron Ore Project in Sept Quarter

A nice weekend read for those wanting an undervalued resource company.

Disc: CFE is my biggest holding, the story is too good to miss ;)

Yeah will be looking forward to going over on sunday (CFE QTR is aways a great read)
I agree from want we know so far about CFE it's plain crazy the market doesn't value CFE any where near fair value...for how much longer..............
CFE have discovery then delivered a sale of a asset of $400mill with major payback to loyal shareholders in the past...

Now they have over 20+ individual assets an prime shareholdings to deliver yet more value....
Marampa + Lady annie = easy 600mill+ in the short term
Now even if they payback 10% of the profits we should receive a very nice divie...20%+

disc:I have been buying up CFE of late an even selling down my longterm STX positions
holding 200,000 If the IRD would get busy another 50,000 will be brought straight away.

[STRAT]

These guys show some genuine talent.
This is a chart comparing CFE to the ASX.

Clearly they have performed year in and year out with enough volitility to trade into as Grand Uber points out on the previous page and havent they done well through the WFC?

[Corporate]

CFE - Quarterly Report

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=455233

Highlights:

Cash @ 30/609 = $74m

Nice bit here...

The company intends to follow a policy of distributing cash to shareholders following the realisation of assets within its portfolio...

JORC resource due for Marampa - Iron Ore Project in Sept Quarter

A nice weekend read for those wanting an undervalued resource company.

Disc: CFE is my biggest holding, the story is too good to miss ;)

CFE do look very good. I'll be reading the quarterly this weekend to. Think I'll be joining you on this one.

So many good stocks to buy at the moment.

[JBmurc]

Hope all you guys have brought up your CFE holding just checkout the depth....8.8mill shares on the buy V's 1.8 sells



Buy Market Depth Sell


Buyers Buy Quantity Prices Prices Sell Quantity Sellers
1 49,024 39.5 36 50,000 1

4 186,100 37 36.5 121,300 2

6 167,500 36.5 37 660,870 11

12 4,025,750 36 37.5 328,320 5

18 696,500 35.5 38 216,400 7

29 1,730,716 35 38.5 180,325 6

12 337,500 34.5 39 86,250 4

17 842,999 34 39.5 79,250 4

10 406,000 33.5 40 78,233 6

14 380,968 33 40.5 7,000 1


123 8,823,057 :) 1,807,948 47

[Grand Uber]

You just never know if there are sellers waiting behind the scenes

Big volume dumps every time the share moves forward a small amount, a little frustrating.

[shasta]

You just never know if there are sellers waiting behind the scenes

Big volume dumps every time the share moves forward a small amount, a little frustrating.

Whe i last checked 9m on buy side, 4m on sell side...

[JBmurc]

Whe i last checked 9m on buy side, 4m on sell side...

either way when Tony n boys announce they have sold lady Anne for 200mill+ making a 100mill+ profit those buyers will what a piece of CFE along with many 100's of traders pushing the S/P through the 40c onwards to new 1yr highs 65c+ with the greatest thing being lady Anne is only one of their many prime assets they have to sell..
CFE couldn't have timed the buyout of copperco any better with commodities now going very bullish

drilling results due soon out of Africa Iron ore project

[Corporate]

I joined the CFE club today. Couldn't ignore all the free assets :-) charts looking good to.

[shasta]

I joined the CFE club today. Couldn't ignore all the free assets :-) charts looking good to.

Mgmt have already indicated further asset sales & the fact they will continue to make returns to shareholders.

I'm with JBMurc - it won't stay undervalued for too long ;)

[Lego_Man]

I agree there has been something keeping a lid on the shareprice of late. Looks to be starting to break the shackles a bit which makes me happy!

[Huang Chung]

Nice, consistent rise JB...well picked :cool:.

[Corporate]

Mgmt have already indicated further asset sales & the fact they will continue to make returns to shareholders.

I'm with JBMurc - it won't stay undervalued for too long ;)

Maybe Phaedrus could work his magic....looks like it has broken out to me??

[Oiler]

I joined the CFE club today. Couldn't ignore all the free assets :-) charts looking good to.

Me to Corporate :D.

I put my toe in two days ago and wished now I put my "foot" in. :eek:

Will be in boots and all, when/if a retracement.

[Corporate]

Me to Corporate :D.

I put my toe in two days ago and wished now I put my "foot" in. :eek:

Will be in boots and all, when/if a retracement.


Sheash there is a few of us in for the ride. AWESOME. I wish i'd got a few more today also. Think it's up from here!

[Stranger_Danger]

I got in recently too, I hope the price rise isn't just ST'ers pushing it up!

I actually think CFE is a bit more risky than JB seems to think from his posts, but, ultimately a good bet for a small portion of one's portfolio.

[shasta]

I got in recently too, I hope the price rise isn't just ST'ers pushing it up!

I actually think CFE is a bit more risky than JB seems to think from his posts, but, ultimately a good bet for a small portion of one's portfolio.

SD

Where do you see the risk?

CFE is basically valued on it's cash & equities only?

There $116m "Receivables", aren't due for another 12 months at the earliest, but the current SP doesn't reflect any of CFE main assets (Marampa, Cape Lambert South, Lady Annie etc)

I posted the discount to "fair value" for SRL almost daily for ages, when the SP was < $1, & eventually the market woke up & started to value it's core projects (SRL now around $2.25, & still relatively cheap).

I see alot of similarities in CFE, but this time i'm on it!

I also see CFE as a T/O play, it's might be cheaper buying CFE altogether than picking off there projects, much the same way CFE sneared CUO ;)

[Stranger_Danger]

The risk is that TS is clearly an addictive, unstoppable deal maker.

Those guys tend to make or lose you a lot of money (often both!), especially after some success when they begin to believe their own hype.

At this stage of the cycle, I'm happy to be onboard with that sort of guy. After all, asset plays are useless unless there is some sort of catalyst.

With this guy, it is likely to be a catalyst a month.

Plus, he's doing his thing from what are currently solid foundations.

Don't get me wrong, i'm in and i'm keen. The risk with this sort of manager is they tend to blow up your money doubling up at the peak, cos they simply don't know how to stop.

I expect to make money here, but I won't be falling in love.

[Junior80]

I am in!!

Bought a small parcel today.

[shasta]

The risk is that TS is clearly an addictive, unstoppable deal maker.

Those guys tend to make or lose you a lot of money (often both!), especially after some success when they begin to believe their own hype.

At this stage of the cycle, I'm happy to be onboard with that sort of guy. After all, asset plays are useless unless there is some sort of catalyst.

With this guy, it is likely to be a catalyst a month.

Plus, he's doing his thing from what are currently solid foundations.

Don't get me wrong, i'm in and i'm keen. The risk with this sort of manager is they tend to blow up your money doubling up at the peak, cos they simply don't know how to stop.

I expect to make money here, but I won't be falling in love.

That's cool - we all have different risk tolerances

Thanks for your points

[Grand Uber]

Bah you've all gone quiet now haven't ya!

looks like she's just heading back to where it belongs after that spike upwards

shouldn't drop below the trend line, which at a glance is somewhere around 35 at the moment

[Corporate]

Bah you've all gone quiet now haven't ya!

looks like she's just heading back to where it belongs after that spike upwards

shouldn't drop below the trend line, which at a glance is somewhere around 35 at the moment

Wow it goes down a couple of cents. Have none of your shares ever gone down?

[shasta]

Wow it goes down a couple of cents. Have none of your shares ever gone down?

Was going to say, CFE isn't an oiler with weekly updates...:confused:

News of asset sales will push CFE along.

Keep the patienta :cool:

[Grand Uber]

Wow it goes down a couple of cents. Have none of your shares ever gone down?

Hence why I said its just following its normal charting pattern

Nothing to panic about here

Maybe I should have used some smileys on the first line :S

[JBmurc]

Hence why I said its just following its normal charting pattern

Nothing to panic about here

Maybe I should have used some smileys on the first line :S

yeah nothing to worry bout as for risky play show me another resource play round the same value that is safer ....


Interests over 500,000 CFE yeah I'm a risk taker

I judge management by their actions the CFE boys are pure gold -just take a minute to review the copperco -Cape lambert Iron ore deals smart timing smart deals with penalty more to come

Tony Sage said that Lady Annie is worth around 250m$ when Copper prices were around 2.20 USD/lb.
We could well see CFE sell Lady annie for 300mill+ now CFE believe in returning cash to shareholders so 100mill could well be returned in a special divie or say -20cps gross etc

[shasta]

yeah nothing to worry bout as for risky play show me another resource play round the same value that is safer ....


Interests over 500,000 CFE yeah I'm a risk taker

I judge management by their actions the CFE boys are pure gold -just take a minute to review the copperco -Cape lambert Iron ore deals smart timing smart deals with penalty more to come

Tony Sage said that Lady Annie is worth around 250m$ when Copper prices were around 2.20 USD/lb.
We could well see CFE sell Lady annie for 300mill+ now CFE believe in returning cash to shareholders so 100mill could well be returned in a special divie or say -20cps gross etc

CFE - Trading Volume

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=456803

Will be interesting to see who emerges from this?

[Grand Uber]

http://www.brr.com.au/event/59660/cape-lambert-reveals-strategy

Does anyone feel like they should have bought more after hearing this?

He says cash backing at 50 cents per share, 50 million back to share holders in the next 12 months and possibly a share buy back.

Any weakness and i'll be topping up

Any other companies this undervalued that you guys know about?

[Corporate]

http://www.brr.com.au/event/59660/cape-lambert-reveals-strategy

Does anyone feel like they should have bought more after hearing this?

He says cash backing at 50 cents per share, 50 million back to share holders in the next 12 months and possibly a share buy back.

Any weakness and i'll be topping up

Any other companies this undervalued that you guys know about?

Thanks for bringing this to my attention GU!

Where does TS get this 50cps cash backing from? Latest presentation from the company is nothing like that!

[Corporate]

This is a great story and so undervalued! Come monday I'm taking some more.

It almost makes me want to take all my cash (I'm only 30% invested at the moment) turn on the ASB margin leading and go huge on CFE.

[Grand Uber]

That sounds dangerous Corporate :D

I see the COV takeover offer didn't get a favourable reply either, the statement is actually quite an entertaining read

Fails to recognise corvettes unrealised potential
Undervalues Corvettes asstes
Offer has no premium

[shasta]

This is a great story and so undervalued! Come monday I'm taking some more.

It almost makes me want to take all my cash (I'm only 30% invested at the moment) turn on the ASB margin leading and go huge on CFE.

If ASB Sec had CFE on margin loan, I'd sell BPT & OEL & jump all over it :eek:

I'm not using my margin loan at the moment even though my BPT allows me 60% against it.

After the Paralana geothermal drill results, if bad, ill sell my BPT & buy more OEL.

[Corporate]

That sounds dangerous Corporate :D

I see the COV takeover offer didn't get a favourable reply either, the statement is actually quite an entertaining read

Fails to recognise corvettes unrealised potential
Undervalues Corvettes asstes
Offer has no premium


GU - I don't think TS ever thought the COV takeover offer would be recommended. They are just doing it to get ASIC over the line. Remember there is an additional 15% of COV shares as part of the CopperCO acquisition. I think the receivers are still holdings these? See HC for further discuss.

[Corporate]

If ASB Sec had CFE on margin loan, I'd sell BPT & OEL & jump all over it :eek:

I'm not using my margin loan at the moment even though my BPT allows me 60% against it.

After the Paralana geothermal drill results, if bad, ill sell my BPT & buy more OEL.

:-) I hadn't looked into CFE on margin seriously. That's shame.

Another thing I really like about CFE is that it seems so far to respect the trend line and therefore in my mind makes it fairly low risk, with massive upside.

What did you think of the BRR?

[JBmurc]

VICTORY WEST MOLY LIMITED ACCEPTS $2 MILLION CONVERTIBLE NOTE OFFER FROM CAPE LAMBERT GROUP
The Company is pleased to announce that it has accepted an offer for a $2 million convertible note with Dempsey Resources Limited, a fully owned subsidiary of Cape Lambert Iron Ore Limited (ASX: CFE), subject to completion of formal legal agreements. Under the terms of the offer, the convertible note holders have the right before the repayment date of 2 years from the date formal agreement are executed, to convert the note into ordinary shares in VWM, subject to the receipt of all necessary approvals, if required. Upon receipt of any conversion notice, VWM will have 90 days to determine whether to consent to the conversion or to purchase that portion of the note requested to be converted. The conversion price will be the higher of $0.30 per share or volume weighted average closing share price on ASX calculated using the five (5) trading days immediately prior to the issue of a conversion notice by the noteholder. The note carries a coupon rate of 12% interest per annum.
The Company is delighted to have the Tony Sage led Cape Lambert Group investing in the Company’s Malala Molybdenum Project in Indonesia.
Our respective Solicitors are currently meeting to conclude and finalise the documents by the end of August 2009.
The Company continues to further develop the project and hold discussions with interested parties to ensure the potential outcomes of this exciting project are reached.
Yours faithfully
LUKE MARTINO
Company Secretary

[Corporate]

Phaedrus - do you mind doing a chart for CFE? Looking at topping up.

Cheers

[Phaedrus]

Oh frabjous joy! Someone wanting to "top up" on a RISING stock! Unheard of! Folks, that's called pyramiding and it is a good idea. All too commonly hereabouts the practice is to "top up" on falling stocks. That's called averaging down and is a bad idea.

CFE is in a nice steady, sustainable uptrend. In a perverse way, this makes it difficult for Corporate to pick obvious lows at which to to enter - because there really aren't any. The best I can suggest is the use of a fast Stochastic oscillator, buying when it rises above its own moving average (red line) as marked by green arrows.

I notice a big buyer getting in and recently a big seller getting out. These two more or less cancel each other out and as such mean little.

A point of interest is the marked increase in volume over the last 6 weeks. Combined with the rising shareprice, this is obviously Bullish. I presume this is attributable to company announcements but regardless of the cause, this is evidence of positive market sentiment.

http://h1.ripway.com/78963/CFE824.gif

[Xerof]

Interesting how the two major share trades, well documented fundamentally, impacted on OBV - each parcel was the same seller, and (most likely) the same buyers, so it must be purely the transaction price compared to the market price at time of crossing the trades that determines whether to account for it as a "buy" or a "sell" in OBV

In this particular circumstance, unless you knew the background, the second tranche could have mislead some people.

I know you'll say don't rely on one indicator Phaedrus, but any comments?

[JBmurc]

touching 40c today really can't wait till some major postive news is announced like a sale purchase agreement on lady annie,drilling results etc 50c+ before Xmas
CFE is now my largest portfilo holding

[Phaedrus]

"Each parcel was the same seller....". No it wasn't. As marked on the chart the 10/6 seller was Power United Ltd, the buyer UK institutions. 17/8 seller Evraz Group, buyers Australian and UK institutions.

"It must be purely the transaction price compared to the market price at time of crossing the trades that determines whether to account for it as a "buy" or a "sell" in OBV". The OBV scores the volume as a "buy" if the Close is up on the previous day and as a "Sell" if the Close was down on the previous day. Look at it like this. It is all but impossible to buy a large number of shares without pushing the price up, just as it is all but impossible to sell a large number without pushing the price down.

"The second tranche could have mislead some people". Do you think so? I saw the first (upward) step as positive and the second step as negative, but doing no more than cancelling out the "up" step. The shareprice Uptrend didn't so much as flicker and more importantly, even if you take out the 2 big "steps" the OBV uptrend is still clearly evident.

[JBmurc]

VICTORY WEST MOLY LIMITED ACCEPTS $2 MILLION CONVERTIBLE NOTE OFFER FROM CAPE LAMBERT GROUP
The Company is pleased to announce that it has accepted an offer for a $2 million convertible note with Dempsey Resources Limited, a fully owned subsidiary of Cape Lambert Iron Ore Limited (ASX: CFE), subject to completion of formal legal agreements. Under the terms of the offer, the convertible note holders have the right before the repayment date of 2 years from the date formal agreement are executed, to convert the note into ordinary shares in VWM, subject to the receipt of all necessary approvals, if required. Upon receipt of any conversion notice, VWM will have 90 days to determine whether to consent to the conversion or to purchase that portion of the note requested to be converted. The conversion price will be the higher of $0.30 per share or volume weighted average closing share price on ASX calculated using the five (5) trading days immediately prior to the issue of a conversion notice by the noteholder. The note carries a coupon rate of 12% interest per annum.
The Company is delighted to have the Tony Sage led Cape Lambert Group investing in the Company’s Malala Molybdenum Project in Indonesia.
Our respective Solicitors are currently meeting to conclude and finalise the documents by the end of August 2009.
The Company continues to further develop the project and hold discussions with interested parties to ensure the potential outcomes of this exciting project are reached.
Yours faithfully
LUKE MARTINO
Company Secretary

mmmmmm VWM is only trading @ 19c Tony is happy to lend VWM $2mill with a coversion share price of 30c so tony believes VWM will be worth alot more than 30c within 2yrs if not 12% yeild paid.. might have to buy a small spec amount of VWM moly prices near doubled of late

[shasta]

mmmmmm VWM is only trading @ 19c Tony is happy to lend VWM $2mill with a coversion share price of 30c so tony believes VWM will be worth alot more than 30c within 2yrs if not 12% yeild paid.. might have to buy a small spec amount of VWM moly prices near doubled of late

http://www.brr.com.au/event/59660

A nice presentation:

Lady Annie has 5 interested parties, TS reckons $150m min ;)

Odd ball companies (non core) to be sold off before Xmas (approx $70m?)

CFE looking to return ~$50m to shareholders via dividends (~9c), & also possibly looking at buying back shares after Lady Annie asset sale.

So with ~$200m likely in asset sales before end of year, & over $100m due during 2010 ($80m from chinese deal, $36m convertible notes), not hard to see where the value lies.

The Sierre Leone Iron Ore asset could also be in play during the next 6 months due to the Marampa infrastructure, likely to be wanted by CFE's partner who have found a massive 6b tonnes of Iron Ore nearby.

[JBmurc]

http://www.brr.com.au/event/59660

A nice presentation:

Lady Annie has 5 interested parties, TS reckons $150m min ;)

Odd ball companies (non core) to be sold off before Xmas (approx $70m?)

CFE looking to return ~$50m to shareholders via dividends (~9c), & also possibly looking at buying back shares after Lady Annie asset sale.

So with ~$200m likely in asset sales before end of year, & over $100m due during 2010 ($80m from chinese deal, $36m convertible notes), not hard to see where the value lies.

The Sierre Leone Iron Ore asset could also be in play during the next 6 months due to the Marampa infrastructure, likely to be wanted by CFE's partner who have found a massive 6b tonnes of Iron Ore nearby.

Going off current Copper prices Lady annie should be worth at least 200mill you'd think min-- still they got it for a song.. 80mill or so I think it was est. in the bargin buy-up only months ago

SP- at- 43c has well n truly broken free on an upwards from here 50-60 trading soon won't be selling for along time till I've made a few 000,000s thanks to market value stupidity

[Xerof]

Tony's going to spin this off - IPO announcement just out - don't have the details yet

[Footsie]

in the AFR today... more talk of Sage doing this spin-off.... offers in by friday.


Patersons value at 1.00

i might dip into these today.

[Corporate]

in the AFR today... more talk of Sage doing this spin-off.... offers in by friday.


Patersons value at 1.00

i might dip into these today.

All I can say is Tony Sage is on fire! All action, all results!

[JBmurc]

If you haven't brought up your CFE yet be prepared to fight other investors to get a piece $1+ here we come should open round 44c today.
Glad to have brought up in the low 30's

worth having alook at VWM CFE has brought some convert notes ex price 30c 2yr term 12% yeild now tony is a smart investor so VWM SP 18.5c looks an attractive high risk spec bet tony knows more than most this could well be worth well north of 30c
have brought some VWMOA @ 6c ex 20c over 2yrs to run

--link for the Paterson research notes---
http://www.minesite.com/fileadmin/content/pdfs/Brokers_Notes_August_09/CFE%20240809%20%282%29.pdf

[Lego_Man]

New announcement - theyre spinning off the Lady Annie mine

[Corporate]

New announcement - theyre spinning off the Lady Annie mine

Looks like it's breaking out again. Phaedrus...any chance of your updated thoughts?

[Phaedrus]

Breaking out again? Nah - its just business as usual. Anyone would think you held this stock, Corporate. Please curb your enthusiasm!

Price movements are characterized by swings from one extreme to the other. Markets reflect the collective mood if its participants. When market participants are overly optimistic, prices are driven up at an unsustainable rate. Likewise, when market participants are overly pessimistic, prices are beaten down at an unsustainable rate. Markets tend to have an equilibrium point (i.e., a point towards which prices tend to be drawn). Standard deviation analysis is helpful in determining where the "extremes" lie. Elementary statistical analysis states that approximately 95% of future price movement should be contained within two standard deviations. Standard Deviation channels provide a trend-biased assessment of expected price movement.

When CFE reached 45.5 cents this morning, it was getting well up towards its upper standard deviation. A reversion to the mean was becoming increasingly likely. Look at today's (as at 1.50 pm) candlestick. Note the long upper shadow. CFE rose quite a bit, but heavy selling pressure pushed it right back down again, below its opening price and below the high of the previous day. See what happened on previous occasions when a long black candle was formed at or near the +2SD line? Note also the relationship between long upper shadows and reversals. Far from observing "another breakout", we are probably looking at a timely and not unexpected reversal.

It is not good to see Footsie contemplating buying at a time like this. Much better entry points are flagged when candles with long lower shadows are formed in the lower half of the plot - ideally at or near the -2SD line.

http://h1.ripway.com/78963/CFE826.gif

[shasta]

New announcement - theyre spinning off the Lady Annie mine

In case anyone else wants to view it...

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=457748

[Footsie]

Mr P

If I bought, it would be on the basis that it was going to break out of that channel.

I'm still jostling whether this is the kind of play I want to be involved with.

It's not really my forte, but im hardly a FA purest.

[shasta]

Mr P

If I bought, it would be on the basis that it was going to break out of that channel.

I'm still jostling whether this is the kind of play I want to be involved with.

It's not really my forte, but im hardly a FA purest.

CFE acquiring another exploration company ;)

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=457906

[Brut]

Someone has decided to take some profits today? Big seller for 1.6 mill shares @ 40c before open.

[JBmurc]

CAPE LAMBERT ISSUES A$2.4M CONVERTIBLE NOTE
TO AFRICA URANIUM LIMITED
 Cape Lambert subsidiary issues Convertible Note to private
uranium explorer, Africa Uranium Limited,
 Africa Uranium owns highly prospective uranium
tenements in Namibia and exploration applications in South
Africa,
 The face value of the note is A$2.4 million, with a term of 24
months and an interest rate of 12% pa,
 The full amount of the note can be converted into 10% of
Africa Uranium’s share capital at any time prior to the
repayment date,
 Sixth Convertible Note issued since November 2008.

----------- CFE is holding far too much value to total market cap It's not funny----

-They sold their IRON ORE discovery at the top of the market for a good price they then waited till the fear in the market place drove assets to stupidly low levels then brought up Prime assets for peanuts to think CFE is not going have a much higher value this time next year is just plain crazy--these Con note deals are smartly increasing their Large Diverse Commondity portfilo--

[Huang Chung]

A very good article on Tony sage in the August edition of 'Australia's PAYDIRT' magazine.

In Oz, available at some bigger newsagencys (at least in my neck of the woods). Not sure about Kiwiland.

[Corporate]

A very good article on Tony sage in the August edition of 'Australia's PAYDIRT' magazine.

In Oz, available at some bigger newsagencys (at least in my neck of the woods). Not sure about Kiwiland.

Oh really..anyone got access?

[Huang Chung]

I've got the damn thing sitting in front of me but that ain't doing you much good....

[Corporate]

I've got the damn thing sitting in front of me but that ain't doing you much good....

Got scanner :D

[Corporate]

A very good article on Tony sage in the August edition of 'Australia's PAYDIRT' magazine.

In Oz, available at some bigger newsagencys (at least in my neck of the woods). Not sure about Kiwiland.

I just read this article care of HC. Thank you very much.

TS is talking a US$400 sale of CFE's share in Marampa by Christmas!!!

[shasta]

I just read this article care of HC. Thank you very much.

TS is talking a US$400 sale of CFE's share in Marampa by Christmas!!!

Had to liquidate my holdings today, finds required elsewhere (not in market) :(

In at 35c, out at 42c - I'll take the 20% & be happy :rolleyes:

[Corporate]

Had to liquidate my holdings today, finds required elsewhere (not in market) :(

In at 35c, out at 42c - I'll take the 20% & be happy :rolleyes:

Thats a shame shasta..just don't tell me you kept OEL ahead of CFE..

[shasta]

Thats a shame shasta..just don't tell me you kept OEL ahead of CFE..

Nope BPT,CFE, & OEL all sold :(

CFE will likely be the first stock to be purchased when i'm sorted

[Corporate]

Nope BPT,CFE, & OEL all sold :(

CFE will likely be the first stock to be purchased when i'm sorted

Shasta I hope you are coming back soon...asset sales are very close. TS looking at $100m more than originally predicted. WOW


Cape Lambert Seeking A$250 Million for Copper IPO, Review Says


By Jesse Riseborough

Sept. 14 (Bloomberg) -- Cape Lambert Iron Ore Ltd. may tap U.S. investors as part of a possible initial share sale for its Lady Annie copper mine seeking A$250 million ($215 million), the Australian Financial Review reported.

The company has informal commitments for about A$100 million from investors in the U.K. and Australia, the Review reported, citing Cape Lambert Chairman Tony Sage. The company is seeking about A$50 million from U.S. investor, the paper said, citing Sage.

As well as studying the initial share sale, the company is also studying offers to buy the copper mine in Australia’s Queensland state, the paper said. The company has received seven bids including three from Chinese groups, it said.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

Last Updated: September 13, 2009 19:16 EDT

[JBmurc]

Shasta I hope you are coming back soon...asset sales are very close. TS looking at $100m more than originally predicted. WOW

yeah brought another 250,000 yesterday no-brainer at this levels by far the most undervalued resource stock out there the lady annie IPO if done at 250mill is more than the total value of the CFE company which is rubbish as L.A is only 1 of many top assets CFE have.
If all goes well CFE should be re-rated closer to $1 within a year

JBmurc -CFE interests 700k

[evilroyrule]

yeah brought another 250,000 yesterday no-brainer at this levels by far the most undervalued resource stock out there the lady annie IPO if done at 250mill is more than the total value of the CFE company which is rubbish as L.A is only 1 of many top assets CFE have.
If all goes well CFE should be re-rated closer to $1 within a year

JBmurc -CFE interests 700k

hey JB,

yes ive been slowly accumulating at 42.


some general advice would be appreciated. before the market opens, do you read anything into an early sizeable bid way over the lowest bid price? is that simply a trader wanting to be in? i see today opening bid of 50 cents for 185k CFE. i find this opening and closing play fascinating

[JBmurc]

hey JB,

yes ive been slowly accumulating at 42.


some general advice would be appreciated. before the market opens, do you read anything into an early sizeable bid way over the lowest bid price? is that simply a trader wanting to be in? i see today opening bid of 50 cents for 185k CFE. i find this opening and closing play fascinating

doesn't matter what the pre market bids or offers are as once the market opens they are matched up.. so if you put 50c bid depending on the volumes your'd prob be buying at 42c-43c

[shasta]

doesn't matter what the pre market bids or offers are as once the market opens they are matched up.. so if you put 50c bid depending on the volumes your'd prob be buying at 42c-43c

CFE - Presentation

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=460114

Enterprise value of just $67m, & Mgmt have earmarked min $150m for Lady Annie, which is more likely to be closer to $250m

I pop $250m sale of Lady Annie into my valuation & get $0.93 per share :eek:

[Corporate]

CFE - Presentation

http://www.stocknessmonster.com/news-item?S=CFE&E=ASX&N=460114

Enterprise value of just $67m, & Mgmt have earmarked min $150m for Lady Annie, which is more likely to be closer to $250m

I pop $250m sale of Lady Annie into my valuation & get $0.93 per share :eek:

There is so much to like about CFE. I love it how they sold their namesake project at the top of the market. Then proceeded to pick up many assets right at the bottom. The market just needs to now understand the hidden value laying out on the ground for everyone to see.

Top 20 own 60%

[Xerof]

I added more yesterday at the open

The guy's a human tornado, just trying to keep up with what they have on their plate is hard enough. WOuld like to know more about Pinnacle investment, looks like Marampa got some good news last night, and CFE have an option to buy the whole shabang, and on it goes



as will the s/p

[evilroyrule]

crikey. was going to add some more today but been chasing it all day. happy to let it fly.

[JBmurc]

Had to liquidate my holdings today, finds required elsewhere (not in market) :(

In at 35c, out at 42c - I'll take the 20% & be happy :rolleyes:

Thanks for those shares shasta brought over 250,000 @ 42c

[Corporate]

Thanks for those shares shasta brought over 250,000 @ 42c

Great rise over the last couple of days :-)

[Corporate]

Breaking out again? Nah - its just business as usual. Anyone would think you held this stock, Corporate. Please curb your enthusiasm!

Price movements are characterized by swings from one extreme to the other. Markets reflect the collective mood if its participants. When market participants are overly optimistic, prices are driven up at an unsustainable rate. Likewise, when market participants are overly pessimistic, prices are beaten down at an unsustainable rate. Markets tend to have an equilibrium point (i.e., a point towards which prices tend to be drawn). Standard deviation analysis is helpful in determining where the "extremes" lie. Elementary statistical analysis states that approximately 95% of future price movement should be contained within two standard deviations. Standard Deviation channels provide a trend-biased assessment of expected price movement.

When CFE reached 45.5 cents this morning, it was getting well up towards its upper standard deviation. A reversion to the mean was becoming increasingly likely. Look at today's (as at 1.50 pm) candlestick. Note the long upper shadow. CFE rose quite a bit, but heavy selling pressure pushed it right back down again, below its opening price and below the high of the previous day. See what happened on previous occasions when a long black candle was formed at or near the +2SD line? Note also the relationship between long upper shadows and reversals. Far from observing "another breakout", we are probably looking at a timely and not unexpected reversal.

It is not good to see Footsie contemplating buying at a time like this. Much better entry points are flagged when candles with long lower shadows are formed in the lower half of the plot - ideally at or near the -2SD line.

http://h1.ripway.com/78963/CFE826.gif


Hi Phaedrus - appreciate your posts as always. Is the friday break of the 2SD line significant from a TA point of view?

[evilroyrule]

hi corp, you or Jb have any update on lady annie? been digging around but cant any recent news??

[Phaedrus]

Is the Friday break of the 2SD line significant from a TA point of view?It meant that CFE had got a bit ahead of itself and a reversion to the mean was likely, as already discussed Here (http://www.sharetrader.co.nz/showthread.php?p=270685)

Note that Monday's candlestick was a long-legged Doji. These indicate market indecision and are often found at turning points - others are marked on the chart.

Todays candle completed a bearish "Doji Evening Star" formation, though ideally the black body of todays candle should have closed further into the white body of the first (Friday's) candle. Apart from that small detail, this is all going pretty much according to the book.

http://h1.ripway.com/78963/CFE922.gif

(Ripway is down for maintenance just now so the chart will not appear until they are back up again)

[steve fleming]

hi corp, you or Jb have any update on lady annie? been digging around but cant any recent news??

Cape Lambert decision to proceed with Lady Annie IPO based on FIRB risk on trade sale and strong investor interest, chairman says

Story
Cape Lambert Iron Ore (ASX:CFE) will almost certainly go ahead with an IPO of Lady Annie, as a trade sale would face the risk of being rejected by Australia’s Foreign Investment Review Board (FIRB), said executive chairman Tony Sage.

"We have a couple of offers but because of the implications of FIRB we don’t want to sit there and wait for a 45-day approval process and then maybe be knocked back," Sage said. "So we think we are almost 100% going down the IPO route mainly for that reason."

Although an Australian group has bid for Lady Annie, the highest bidder is Asia-based and so deal completion would face the FIRB risk, he said. Asked whether an asset sale is still a possibility should a bidder up its offer, he said that although the possibility cannot be ruled out, any offer would need to be unencumbered, and of the logical local suitors "there’s only a couple that are cashed up enough to do it."

Cape Lambert will probably pocket AUD 150m plus retain at least a 5% stake in Lady Annie, Sage said. An offer of around AUD 170-175m in a trade sale would be attractive to Cape Lambert, he said, but reiterated that it would need to be free of regulatory risk.

Sage said that a road show for the IPO has already been completed in the US and UK with "tremendous" interest. "The next one will be a bookbuild and that would commence in the first week of November once the prospectus is ready," he added. The process will likely raise between AUD 200m-250m depending on exchange rates and the copper price at the time. AUD 150m will go back to Cape Lambert for a 95% sell-down, 10-20m will be needed to ramp up and re-stock inventory at the mine, 10m for working capital and around another 10m for exploration, he said. The new managers will likely need to commence drilling immediately to increase mine life from 5 years to between 7 and 10 years, "so you want to raise that money up front," he noted. "You don’t want to raise the minimum and then go back to the market in three months."

Cape Lambert’s internal calculations have been based on an AUD 1:USD 0.86 exchange rate and a USD 2.50/lb copper price. "The NPV on the project is close to AUD 300m based on those numbers and with output at 25,000 tonnes per annum," Sage said. The new Lady Annie entity will not require any debt initially. However, this would be a decision for the new management and is possible if capacity is increased further in the future.

Retaining a stake in Lady Annie will also save Cape Lambert around AUD 5-6m in capital-gains tax, Sage added.

from www.mergermarket.com

[JBmurc]

Cape Lambert decision to proceed with Lady Annie IPO based on FIRB risk on trade sale and strong investor interest, chairman says

Story
Cape Lambert Iron Ore (ASX:CFE) will almost certainly go ahead with an IPO of Lady Annie, as a trade sale would face the risk of being rejected by Australia’s Foreign Investment Review Board (FIRB), said executive chairman Tony Sage.

"We have a couple of offers but because of the implications of FIRB we don’t want to sit there and wait for a 45-day approval process and then maybe be knocked back," Sage said. "So we think we are almost 100% going down the IPO route mainly for that reason."

Although an Australian group has bid for Lady Annie, the highest bidder is Asia-based and so deal completion would face the FIRB risk, he said. Asked whether an asset sale is still a possibility should a bidder up its offer, he said that although the possibility cannot be ruled out, any offer would need to be unencumbered, and of the logical local suitors "there’s only a couple that are cashed up enough to do it."

Cape Lambert will probably pocket AUD 150m plus retain at least a 5% stake in Lady Annie, Sage said. An offer of around AUD 170-175m in a trade sale would be attractive to Cape Lambert, he said, but reiterated that it would need to be free of regulatory risk.

Sage said that a road show for the IPO has already been completed in the US and UK with "tremendous" interest. "The next one will be a bookbuild and that would commence in the first week of November once the prospectus is ready," he added. The process will likely raise between AUD 200m-250m depending on exchange rates and the copper price at the time. AUD 150m will go back to Cape Lambert for a 95% sell-down, 10-20m will be needed to ramp up and re-stock inventory at the mine, 10m for working capital and around another 10m for exploration, he said. The new managers will likely need to commence drilling immediately to increase mine life from 5 years to between 7 and 10 years, "so you want to raise that money up front," he noted. "You don’t want to raise the minimum and then go back to the market in three months."

Cape Lambert’s internal calculations have been based on an AUD 1:USD 0.86 exchange rate and a USD 2.50/lb copper price. "The NPV on the project is close to AUD 300m based on those numbers and with output at 25,000 tonnes per annum," Sage said. The new Lady Annie entity will not require any debt initially. However, this would be a decision for the new management and is possible if capacity is increased further in the future.

Retaining a stake in Lady Annie will also save Cape Lambert around AUD 5-6m in capital-gains tax, Sage added.

from www.mergermarket.com



Great post Steve have been so busy of late, can't but like the way Tony an the boys are going if the market doesn't crash again CFE should have AUD 150m plus retain at least a 5% stake in Lady Annie(smart move on the keeping 5% stake)
Recently in the Qtrly tony said any major sell off assets will be meet with large divie payout so no reason why shareholders won't be looking a piece of at least 50mill payout IMHO say a 7-10cps dive

Am very happy to have CFE as my largest holding not selling 1 share under $1

also checkout the paterson analyst report Aug 09-
http://www.capelam.com.au/aurora/assets/user_content/File/090824%20Research%20Note_CFE_Patersons.pdf

[Xerof]

link starts here:

http://www.miningweekly.com/attachment.php?aa_id=23809

Note that their 77cent valuation includes a 20% discount

[evilroyrule]

thanks very much for the update. makes great reading.

[COLIN]

Have happily added to my holding this morning.

[Corporate]

Just quickly a couple of key items from the AGM notice posted late last night.

Lady Annie sale through IPO is happening.. $155m + $20m in shares = $175m

Proposing a 10c dividend in March 2010. This is a 14% return if no tax credits.

Share price closed on Friday at 52c and continues its steady grind upwards!

[evilroyrule]

nice work corp, thanks. how do you calc the 14% return, on the likely share price in march? cfe certainly will be close to $1 by then in my opinion. if there is a pullback monday happy to keep adding!

[Corporate]

nice work corp, thanks. how do you calc the 14% return, on the likely share price in march? cfe certainly will be close to $1 by then in my opinion. if there is a pullback monday happy to keep adding!

evil, I don't know what the share price will be in March. Gut feeling says significantly higher than friday's close. I am just highlighting that at the current share price the dividend equates to a per annum after tax return of 14% (10c/52c*(1-0.3)).

I really like CFE. However, the minute it breaks its uptrend I am out. I've learnt a fair bit this year and the biggest lesson is - don't fight the market.

[JBmurc]

evil, I don't know what the share price will be in March. Gut feeling says significantly higher than friday's close. I am just highlighting that at the current share price the dividend equates to a per annum after tax return of 14% (10c/52c*(1-0.7)).

I really like CFE. However, the minute it breaks its uptrend I am out. I've learnt a fair bit this year and the biggest lesson is - don't fight the market.

I don't think CFE will break tread till $1+ way to much going on growth wise for CFE thanks to the trillions of worthless dollars looking for real assets worldwide.





"China's Zijin Mining Group is eyeing up to $1 billion in investments in gold and copper projects in the Philippines within five years, the Philippine environment secretary said on Thursday

[JBmurc]

Haven't had a chance to go through all of CFE shareholding but I'd say CFE interest are up 50m+ over the last few weeks

I really think a $1 SP is now going to undervalue CFE going forward just read the news below from COV -CFE has some real growth pospects in PGM's


New High Grade Gold Discovery – Camaro Prospect
ASX ANNOUNCEMENT 20 October 2009
Corvette Resources Ltd (ASX: COV) (The Company) announces the discovery of a very high grade gold
intersection at the Camaro Prospect, located within the Corvette project area (Figure 1).
 CVRC88 – 3m @ 40.33g/t Au from 97m
The Company has undertaken step out Reverse Circulation (“RC”) drilling at Camaro to define the extent of gold
mineralisation previously intersected (ASX announcement 28 August 2009).
Drilling has been conducted on east west lines spaced 50m apart with holes 30m apart drilled 60° to the west.
These holes have targeted a 30° east dipping north north-east trending structure clearly defined by a magnetic
feature (Figure 1). The gold intersections are within potassic altered quartzo-feldspathic gneiss with anomalous
bismuth and tellurium, similar to the host rocks at Tropicana.
The details of the result are as follows:
Hole No. Northing
(m)
Easting
(m)
Azimuth
(deg)
Dip
(deg)
Total
Depth (m)
From (m) To
(m)
Interval
(m)
Grade
g/t Au
CVRC88 6685196 635560 270 -60 150 97 100 3 40.33
Samples assayed by standard fire assay fusion 50 g charge, flame atomic absorption spectroscopy. Projection GDA94, MGA94 Zone 51
This intersection is open along strike and at depth which will be tested by RC drilling planned for November.
Further assay results are pending and the results will be reported when received and compiled.
Figure 2 shows a plan view of the drilling completed at Camaro and the location of the new high grade intersection in
CVRC88.
Corvette is located 60km south of Tropicana in the Albany Fraser Foreland Belt (Figure 1) and is part of the
Company’s 100% owned Plumridge Project (2,302 sq km). The recent announcement by the AngloGold Ashanti
Australia/Independence Group JV of a possible planned production start in 2013 on the 5Moz Tropicana-Havana
gold deposit is a positive endorsement of the prospectivity of this region.
Managing Director, Patrick McManus said “We are particularly excited about this bonanza gold result and the
presence of multiple gold intersections over an increasing strike length. We are also very encouraged by the field
reports of similar sulphide alteration and veining recorded in the holes drilled to the south and anxiously await these
results. These results further support the occurrence of high grade gold zones at Corvette, similar to the high grade
gold shoots at Tropicana”.

[Corporate]

And how much did we pay for that state.....:-) love it!

[JBmurc]

some other CFE holds we should keep an eye on -VWM,DMM,NIP,PLA,IGC,BKA.....etc






UPDATE: IPO To Value Lady Annie At A$200M-A$220M - Exec21/10/2009 08:58PM AEST

By Jeffrey Sparshott
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--An initial public offering for the Lady Annie copper mine will value the Australian operation in the A$200 million to A$220 million range, the mine's current owner said Wednesday.

Tony Sage, executive chairman of Cape Lambert Iron Ore Ltd. (CFE.AU), said the IPO prospectus should be complete by the end of the month, to be followed by a roadshow and bookbuild. A listing on the Australian Stock Exchange is expected Dec. 15.

"We've had enormous interest out of Singapore, Hong Kong and the U.K. We did a roadshow about three weeks ago in U.S. and there was strong interest there as well," Lambert told Dow Jones Newswires.

Sage said he expects Cape Lambert to receive a net payment of about A$150 million to A$160 million and retain a 5% stake in Lady Annie.
.........
Cape Lambert decided to spin off Lady Annie rather than sell it to a Chinese investor because of potential regulatory hurdles in Australia. Australia's Foreign Investment Review Board looks at China's purchases of natural resources, potentially delaying or derailing sales, he said.

"The Chinese appetite for resources in Australia hasn't diminished. They are just thinking of different ways of going about it to avoid some of these FIRB problems in Australia," Sage said.

[evilroyrule]

like the way the pressure starting to build on the buy side today. many obviously agree with you JB

[evilroyrule]

and just like that...bang! off she goes. trying to pick more up this morning at .50 but will watch it run now.

[Ketel One]

and just like that...bang! off she goes. trying to pick more up this morning at .50 but will watch it run now.

Looked like ~15million shares in one hit. Very interesting!

[steve fleming]

More deals for CFE....

________________________________________________

Cape Lambert sees sale of Marampa project next year

* AUD 400m valuation for 100% of target
* Chinese bidder has “already had a look around the project”
* Key to deal is establishment of JORC compliant resource

Cape Lambert Iron Ore, a UK and Australia-listed commodities company, has seen buying interest from a Chinese bidder for its key Marampa project in Sierra Leone, West Africa, according to a company source.

Cape Lambert jointly owns Marampa with African Minerals Limited (AML), the UK-listed, West African mining company, with Cape Lambert holding 35% of Marampa and AML 65%.

The Cape Lambert source said that the company believed that it could achieve a sale price of AUD 400m (GBP 225m) for Marampa, but that the key to the deal was establishing a Joint Ore Reserves Committee (JORC) compliant mining resource, an official designation of mining reserves, as opposed to an informal company estimate. The source said that the JORC resource would likely be ready next year and be of the magnitude of 700m tonnes.

The source added that the Chinese bidder had already “had a look round” the Marampa project, and noted that some discussions were already taking place between the groups.

The source said that the Chinese were very strong in the mineral processing side of the business (the downstream), but that they were less so in the exploration and production side (the upstream), and that this provided the impetus for this type of deal.

The source also noted that Cape Lambert’s business model was, in many cases, to look for such assets across a range of commodities that the company could then develop and sell on to Chinese bidders.

In 2008, Cape Lambert Iron Ore sold its Cape Lambert North project to China Metallurgical Group Corporation (CMGC), also for AUD 400m. At that time, Russian iron ore group Evraz took a 19% stake in Cape Lambert, prompting speculation that it might launch a takeover for the whole group. Tony Sage, the Cape Lambert executive chairman, is also a significant minority shareholder in Cape Lambert, with 5.4%.

The source noted that Cape Lambert and AML had acquired rail and port rights to the Marampa project, and that this was key to the value of the deal.

A spokesperson for Cape Lambert declined to comment on the matter. A spokesperson for African Minerals also declined to comment.

Mergermarket

[gazprom1]

I have been watching CFE for a few months now and haven't pulled the trigger. Now looking at an entry with a medium term time horizon. Any views on why should hold off? Thanks in advance.

Hold: HZN, CUE, NZO, VPE, NGE, TSV

[Corporate]

I have been watching CFE for a few months now and haven't pulled the trigger. Now looking at an entry with a medium term time horizon. Any views on why should hold off? Thanks in advance.

Hold: HZN, CUE, NZO, VPE, NGE, TSV

Nope get in ASAP. Action is just heating up. Leading up to Lady Annie sale this will go higher.

This is my opinion. DYOR.

[Grand Uber]

Corporate, a point for discussion.

If everything about the short term future of CFE is known by you and me and any other investor who wants to know, wouldnt you have to say that all these things are already factored into the price?

Don't get me wrong I'm, not saying the price won't increase, I can't predict the future and I'm learning just like you, but I would assume that the longer term success of CFE relies on Sage continuing to aquire projects at the rate he has been.

[gazprom1]

Thanks Corporate/ GU.

I am of the view that Lady Annie is not fully priced at the moment. They have to get the float away at a good price. If the proposed dividend goes ahead in March this will also boost the stock IMO. Marampa is also out there in the short to medium term as a possible sale.

Gazprom

[Corporate]

Corporate, a point for discussion.

If everything about the short term future of CFE is known by you and me and any other investor who wants to know, wouldnt you have to say that all these things are already factored into the price?

Don't get me wrong I'm, not saying the price won't increase, I can't predict the future and I'm learning just like you, but I would assume that the longer term success of CFE relies on Sage continuing to aquire projects at the rate he has been.

GU you make good points. That is of course if you assume an efficient market...

I think what will drive the share price is assets being monetised over time and cash being returned to shareholders. At the moment in theory all of the assets have value (some of which are showing significant unrealised gains), but no one can argue with cash.

[shasta]

Corporate, a point for discussion.

If everything about the short term future of CFE is known by you and me and any other investor who wants to know, wouldnt you have to say that all these things are already factored into the price?

Don't get me wrong I'm, not saying the price won't increase, I can't predict the future and I'm learning just like you, but I would assume that the longer term success of CFE relies on Sage continuing to aquire projects at the rate he has been.

CFE has 3 or 4 projects that they would sell at the right price, & have previously stated about selling off some non core holdings acquired in the CUO/MXX takeover

I would argue CFE is still vastly undervalued as the market is still not valuing CFE's main projects

CFE have indicated a $50m return to shareholders in the near term.

The market knows about all the cash thats on it's way to CFE (>$100m), but the upside is in the asset sales yet to come.

[gazprom1]

Thanks. I appreciate the thoughts. These guys are astute investors and did exceedingly well to scoop some valuable assets for very little. I like they way they invest via convertible notes etc. My reluctance at the momet probably comes from the general market as opposed to the company itself!!!

Thanks again.
Gazprom

[Grand Uber]

GU you make good points. That is of course if you assume an efficient market...


I wouldn't say I was an advocate for Fama's hypothesis, but I do find it compelling.

I won't make any predicitons on what I think the shareprice will do, I'm happy just watch the whole thing play out and see how investors react to the asset sales.

[corporateraider]

I have been a holder of CFE for about 2 years and I don't buy all the hype. I had a six figure holding at one stage, but have very recently sold that down. (Not bitching -have done better elsewhere) Even when CFE had 400 million in cash, or at least it was coming, it was valued at way less than the value of the cash. Of course cash is only valuable to a shareholder if the company invests it profitably.

Yes CFE seems way undervalued and it probably is to some extent, but here's why I believe its valued as it is:
1) it's an investment company
2) it's an investment company largely without any assets that produce cash
3) investment companies are normally valued at a discount to their NTA. They certainly aren't valued on PE
4) it doesn't have a track record to speak of. Sure the CopperCo assets were a great buy, but the deal was a sign of the times
5) the company's ability to flick assets to Chinese interests has been diminished by decisions such as the Lynas one
6) There are still limited buyers for sales of large assets (witness Lady Annie)
6) Where do the deals come from after Lady Annie and Marampa are sold?
7) How regularly will these big deals happen? It's well over a year since the Cape Lambert sale. No dividend or cash return this year.
8) There are a tremendous number of shares on issue. The consequence is that the deals have to be large to produce a meaningful return.
9) If the company makes a meaningful buy back of shares this will greatly diminish their capital to make the substantial investments they need (see 8)

I have done well from my investment and continue to hold, but am watching for the time to exit

[Huang Chung]

I have been a holder of CFE for about 2 years and I don't buy all the hype. I had a six figure holding at one stage, but have very recently sold that down. (Not bitching -have done better elsewhere) Even when CFE had 400 million in cash, or at least it was coming, it was valued at way less than the value of the cash. Of course cash is only valuable to a shareholder if the company invests it profitably.

Yes CFE seems way undervalued and it probably is to some extent, but here's why I believe its valued as it is:
1) it's an investment company
2) it's an investment company largely without any assets that produce cash
3) investment companies are normally valued at a discount to their NTA. They certainly aren't valued on PE
4) it doesn't have a track record to speak of. Sure the CopperCo assets were a great buy, but the deal was a sign of the times
5) the company's ability to flick assets to Chinese interests has been diminished by decisions such as the Lynas one
6) There are still limited buyers for sales of large assets (witness Lady Annie)
6) Where do the deals come from after Lady Annie and Marampa are sold?
7) How regularly will these big deals happen? It's well over a year since the Cape Lambert sale. No dividend or cash return this year.
8) There are a tremendous number of shares on issue. The consequence is that the deals have to be large to produce a meaningful return.
9) If the company makes a meaningful buy back of shares this will greatly diminish their capital to make the substantial investments they need (see 8)

I have done well from my investment and continue to hold, but am watching for the time to exit

Could I also suggest that Tony Sage would have a polarising effect on potential investors. Some would love him and back him to the hilt....others would possibly run a million miles.

[soulman]

Great post corporateraider. I remember the 20 odd cap return. The shares ran up to 43 cents and drop obviously to as low as 15.5 cents during those tough GFC period.

CFE was always a huge discount to NTA, even with cash. However, since then, the investing public has changed and CFE is a hit among investors now.

To tell you the truth, this Sage is sounds similar to King and Adams (both lawyers) at MFS. Dealmaking is their forte. If Sage is a former lawyer, then it might be a potential doomsday coming. But that doesn't mean CFE won't get to a buck from here. I will continue to trade CFE as I see fit. I haven't lost yet. Then again, I haven't loss with Allco (for at least 20 trades) until I lost nearly $20K on them the last time.

Like they say, it's only good until the last time. Caveat emptor.

[evilroyrule]

jeez soulman, good to see you apply sound logic to all your posts. fact sage was/is a lawyer "doomsday" for the stock? awesome

[soulman]

jeez soulman, good to see you apply sound logic to all your posts. fact sage was/is a lawyer "doomsday" for the stock? awesome

Sorry, have edit the sentence to 'potential doomsday' to avoid being crucified here at sharetrader.

I live in Perth WA so that's where Sage is from. He is not a former lawyer. Am I saying all lawyers are crooks, maybe, but don't take the post too seriously. I might be a nay sayer but hey, if the stock is uptrending, you shouldn't sell. That's the general rule from Phaedrus.

From Wiki:

Perth Glory
In early 2007 Sage, Brett McKeon and John Spence joined to form the PG Partnership which bought the rights to the Perth Glory Football Club from the Football Federation Australia. After the withdrawal of Spence and McKeon, Sage is the sole survivor of the original partnership.

Business interests
Sage is Executive Chairman of Cape Lambert Iron Ore (ASX: CFE), Executive Chairman of International Goldfields Limited (ASX: GFE), Executive Chairman of Global Iron (ASX: GFE) and formerly a non-Executive Chairman of NFX Gold Inc (now Bear Lake Gold (TSX:BLG)). Sage is also a non-Executive Director of SGC Securities.

Sage was a founder of RedFM, a radio network focused on mining areas particularly in the goldfields of Western Australia.

Sage owns a charter bus company, Goldrush Charters.

Fashion
Sage is the proprietor of fashion magazine Kurv and is the director and part-owner of the Perth Fashion Festival.

Nightclub owner
Sage is a former owner of the Onyx Bar in West Perth.

[Corporate]

NIP up 39% yesterday to 61c.


Oh and CFE own 30m shares which is about $18m. And as a post on HC puts "CFE is trading at half its asset basket price. But the basket keeps getting bigger"

[evilroyrule]

geez wayne, 10% in one day is a bit rough. still im not selling so no pain there. if anything just presents more opportunity i say!

[JBmurc]

NIP up 39% yesterday to 61c.


Oh and CFE own 30m shares which is about $18m. And as a post on HC puts "CFE is trading at half its asset basket price. But the basket keeps getting bigger"

Yes over couple months CFE holds -IGC 21c now 30c cfe 12.4%
-URL 1.5c now 1.9c cfe 6.4%
-SMZ 6c to 8c cfe 1.8%
-GFE 15c to 14.5c cfe 19.6%
-CXU 30c to 44c cfe 18.7%
-DMM 20c to25c cfe 36.3%
-TGF 7.5c to 9.5c cfe 19.9%
-COV 14c to 21c cfe 46.5%
-BKG 7c to 9c cfe 19.9%

Now that was only their ASX holding CFE also hold sizeable holdings in TSX & AIM listed -BAO,LMY,ZRL,HER,PPN

45mill in convert notes to the likes of VWM,CNF ,pinnacle & latin resources

other CFE interests

-Cap lambert south IRON ORE prospects 100% another deal with MCC likely.
-Lady annie 150mill IPO 5% hold
-Marampa Iron ore project 35%(holds very valuable rights for rail port huge Chinese interest)
-Sappes gold discovery 830,000oz high grade gold 100%
-Australis Phosphate 100% next IPO
-Lady Loretta 25% - total Mineral Resource is 13.7Mt at 17% Zn,5.8% Pb and 96g/t Ag
Xstrata 75% owner..

-cash 50mill odd
-top 20 hold 75% of company

where's all the hype?? looks bloody sound to me.

[Huang Chung]

Tony Sage interview on Sky Business Channel's 'The Week in Business' program.

The program is repeated several times tomorrow here in Oz....not sure if you have Sky Business in NZ or not.

[JBmurc]

Tony Sage interview on Sky Business Channel's 'The Week in Business' program.

The program is repeated several times tomorrow here in Oz....not sure if you have Sky Business in NZ or not.

yeah we do will have to record it on the hard drive

[JBmurc]

well was well sold off today pretty crazy really current market cap-240mill
Lady Annie is planned to IPO at 170mill
thing is Lady Annie makes up at the most only 20% of CFE asset base
Once the IPO is out of way CFE should have at least 200mill in cash

[JBmurc]

http://www.capelam.com.au/aurora/assets/user_content/File/CFE-Adding%20Value%20to%20Early%20Stage%20Projects.pdf

[Dusty]

Thanks for that JB, have been researching CFE for a while and that article was great. Sold some more IRN (not all in case of TO) and looking at putting that into CFE after recent sell off

[Lego_Man]

I'd suggest you'll realise your profit quicker on IRN. Still a 50% gain from current prices in the pipeline...whereas the stubbornness of CFE's share price suggests to me it will take longer to realise the value. Also the tax consequences of a large foreign dividend payout (planned for CFE) make IRN (takeover play) still the more attractive trade IMO. Especially so when it was sitting in the 90s.

[JBmurc]

Me oldlady is now thinking bout investing outside her bonus-bonds My pick for her CFE it's safe with large upside as it has a very diversified commodity holdings which limits the downside in another market pullback-Don't get me wrong in the very short term IRN will outperform but CFE is still a safer play with more upside in the mid-long term

IRN $1.30-$1.50 to buy now $1-1.05

CFE 80c-$1 to buy now-47c-48c likely (plus CFE will pay a good Divie)

[Huang Chung]

This Lady Annie deal seems to be getting less attractive as time goes by.....

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01009555

[Snapper]

This Lady Annie deal seems to be getting less attractive as time goes by.....

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01009555

I only gave this a cursory read but the only change I could see was that Lady Annie was going to be transferred via a share sale than an asset sale. What's your take on it?

[Huang Chung]

Hi Snapper

Just seems that the expected consideration for Lady Annie has dropped over time, and the disposal method has gone from a clean trade sale to an IPO, with condideration to CFE being both cash and shares in Q Copper (from what I can see the proportion of shares is not limited).

Happy to be corrected if I've got this wrong in any way.

[Snapper]

As far as I was aware they were always going to keep 5-10% of Lady Annie (for tax purposes??) Re the price, because CFE sells Lady Annie to Q Copper for a certain price, does that necessarily mean that the IPO is set at that price? The way I read it CFE is selling Lady Annie to the IPO company for $169 mil and the total IPO is being priced at $225 mill with CFE retaing between 5 and 10% of the shares depending on subscription levels. I had heard up to 250 mill for Lady Annie but 225 sounds pretty close.

Tony Sage's Cape Lambert tweaks Q Copper IPO for up to 10pc stake

CITY BEAT: Michael Bennet From: The Australian November 11, 2009 11:11AM


TONY Sage's Cape Lambert Iron Ore has swapped $8 million in cash for up to 10 per cent of the float of its Lady Annie project in Queensland after tweaking the terms of the deal.

The company had originally planned to sell the project to its subsidiary and market hopeful Q Copper, which is based in the British Virgin Islands, for $177m.

But the company this morning said, before its AGM on November 16 where it is seeking approval of the deal, that it will now sell the asset via a share sale rather than an asset sale as previously stated.

Q Copper is seeking up to $214m from its IPO and will now have to pay its parent Cape Lambert $169m through a combination of cash and 11m shares, or about 5 per cent, if the full amount is raised.

If the minimum $203m is raised Cape Lambert gets an even bigger equity slice of about 10 per cent.

The change of plans will see directors of the new float issued with about 10 per cent of Q Copper as part of their remuneration package prior to the AGM and prospectus.

Cape Lambert will safeguard the rest until the IPO and hold about 5 to 10 per cent afterwards.

Unfortunately, for the directors their post-IPO holding will be diluted to less than 0.02 per cent.

However if the IPO doesn’t launch by April 1 next year, Cape Lambert said it would buy back the directors initial 10 per cent.

Cape Lambert said the prospectus would be lodged in “coming days”.

Mr Sage’s shareholders liked the play, with Cape Lambert’s shares up 2.06 per cent at 49.5 cents in early trade.

[evilroyrule]

one opening bid for 800k at 50. someone likes something....

[JBmurc]

CAPE LAMBERT TAKES CONTROL OF
$17.4M STAKE IN NIPLATS
Key Points:
 Cape Lambert receives shareholder approval to acquire
a 37.6% shareholding in NiPlats, and
 Secures a strategic stake in a company developing
Australia’s largest vanadium deposit.
Australian resources company, Cape Lambert Iron Ore Limited (ASX: CFE)
(the “Cape Lambert” or “Company”) is pleased to announce that
shareholders of NiPlats Australia Limited (“NiPlats”) today approved the
acquisition by Mineral Securities Operations Limited (Receivers and
Managers Appointed) (“MSOL”) of a relevant interest in 30 million existing
shares in NiPlats. MSOL is a wholly owned subsidiary of Cape Lambert.
MSOL was acquired by the Company as a part of the transaction earlier this
year that saw Cape Lambert acquire the assets of CopperCo Limited (see
ASX announcement 7 May 2009).
The Company now controls 30 million shares in NiPlats, representing a
37.6% interest with a market value of approximately $17.4 million (based on
NiPlats closing share price of $0.58 on 11 November 2009). NiPlats is a
mining and exploration company whose prime focus is the definition and
development of its vanadium, platinum and fluorite discoveries in the East
Kimberly region of Western Australian.
“This shareholding provides Cape Lambert with a strategic stake in a
company developing Australia’s largest vanadium deposit, and is a part of
the Company’s value adding strategy,” said Cape Lambert Chairman Mr
Tony Sage.
“We are looking forward to working with NiPlats and its endeavours to
achieve maximum returns for NiPlats and its shareholders” Mr Sage added.
Yours faithfully
Cape Lambert Iron Ore Limited
Tony Sage
Executive Chairman

[JBmurc]

Nice break in recent resistance levels goood to see CFE once again start moving into new trading grounds bids to sells looking bullish to keep the slow but steady rise to current fair value north of $1 likely next year
current SP- 56c

O dusty your be happy if you brough in at those recent lows mid 40c nice wee 20% couple week profit
I'm current over the moon CFE is my largest holding some 206,000 plus helping family an friends buy another 600,000 odd in the mid low 30's

[JBmurc]

---here's the post-----I never fall in love with a company but old CFE near makes me heart flutter when looking at their assets LOL

Good Evening Viewers.

Finally, its Sunday & I can put in writing what I
observed from last Mondays' AGM.

But first. "The Value Of The Tick".
A big thanks to all who read last weeks work.
Many who did gave it a thumbs up. So much so, CFE
ended up being the most read / most ticked story
for all of last Monday.
Thanks to You lot, this has got to be good for CFE.

Okay. Now for the meeting.

All three directors present.
Tony Sage, Tim Turner & Brian Maher.
It was mentioned that in around 6 weeks, a non - executive director will be added. This time with a legal background.

A small amount of explaining took place regards the reasoning behind the allocation of shares to: Geologist, Staff & Consultants.
T.S. also mentioned that for taxation reasons, CFE could
only offer key personnel shares in escrow until 30/06/10.

Q COPPER.
Monday (16/11/09) ended up being the day that the Q COPPER
IPO was launched. T.S. mentioned that the global treking
had begun for the, "Q COPPER BOOK BUILD". He mentioned for
those who wanted to participate that they should get the documents filled out asap and get in touch with the CFE office. It was only at the meeting that the exact figure
of $1.00 per share was confirmed.
T.S. indicated with all going well, an announcement of a
$150 million return to shareholders by Christmas may be possible.
I guess this is why many believe a payment of a 10 cent
per share dividend early next year is possible.

What I found really clever was this.
When CFE sold Cape Lambert North (C.L. Nth). They became liable for taxation of around $80 Million.
By taking over MinSec / CopperCo, CFE gained tax credits
of around $70 Million.
This now allows CFE to look at paying CFE shareholders with at least a PARTLY FRANKED DIVIDEND.
The 3rd and final payment from MCC is due 3rd 1/4 2010.
T.S. said this figure of $80 million may end up arriving earlier.
CFE were going to use it to pay tax... Now Look. (Darn it!)
Like most I thought, why would MCC pay early?
Now I think, if its MCC who are all over the Marampa project looking at it now, then may be C.L. Sth will get thrown in as a sweetner. Marampa is all yours for just $120 Million.

AFRICA MINERALS.
Although nothing to do with CFE, Africa Minerals have now got the attention of the whole world with what they have
discovered.
CFE as project managers of Marampa find themselves in a great position to be able to gain value with railway and port issues.

AIM / TSX LISTED COMPANIES.
You may recall the blue shaded boxes from the CFE GROUP STRUCTURE CHART.
T.S. said the sale of these should be confirmed by Christmas. He mentioned the amount of $90 million.
This includes the Sale of Platmin for a tidy $30 Million.

1) Herencia Resources 46%
(AIM: HER)

2) PlatminLimited 4.4%
(TSX: PPN)

3) Chaarat Gold 7.5%
(AIM: CGH)

4) Baobab Resources 5.2%
(AIM: BAO)

5) Lithic Metals & Energy 1.2%
(AIM: LMY)

6) Zambezi Resources 4.4%
(AIM: ZRL)



DMC MINING (ASX: DMM 36% CFE).
This project is amazing.
The location is Republic of the Congo.

The size should be around 1 billion tonnes Iron Ore.
location for transport is only 3 Km from major railway.
This means we only have to build 2 looping lines to get the ore form the mine to the major line then down to the ships. Our famous neighbours (Sundance) have a stack of extra costs to do what we already have got in place.
This is looking like a return of $120 million but its only cost us $2 million - $3 million so far.

SAPPES GOLD PROJECT (GREECE).
Its close! The project is being looked at right now by several mobs. Problems with acids etc are over.
Ore gets shipped from Greece and goes North.
First in with $50 Million will probably get it!

CORVETTE
We all know about this little beauty.
Not too much mentioned on Monday, but now of course we know why! So I guess the question is to buy TGF or COV ?
T.S. only real comment was it's located only 70 Km from the Tropicanna 5 million oz gold project.
(8 Digit Calculators are not much use with CFE are they!)

AUSTRALIS PHOSPHATE.
So here we have 43km2 of Rock Phosphate selling for around $100 u.s. / tonne. (Watch this space!)

LADY LORETTA.
XTRATA 75% CFE 25%
The question is what will XTRATA do?
Well I know I'm interested now. T.S. mentioned the Lady Loretta area value of around $400 million to $600 Million.

IGC LTD
The AGM is on this Monday 23rd November.
Major news should arrive this Friday 27th.

UNIVERSAL
This project is near Q COPPER.
CFE have a 5% involvement. The CFE team are on the job!

NIPLATS.
CFE now have a 37% interest in this BIG VANADIUM project.
(Oh its BIG!) 100 billion tonnes in the ground BIG.
Located near Wyndham (Western Australia).
The whisper was watch out for an announcement in the next few weeks.

FUTURE DIRECTIONS...
Latin Resources.
I reckon this one will take around 18 months - 24 months
to get cracking, but if You think there is Iron Ore in them there hills of Peru, then join the club!
(This one, like the incubator idea is just one of my hair brain ideas).

Thanks For Your Time.
PJN

[JBmurc]

Gong for Sage.

MARK HAWTHORNE.
November 23, 2009

IT HAS been a big year for Cape Lambert Iron Ore boss and Perth Glory A-League club owner Tony Sage.

After Cape Lambert sold its namesake iron ore project in the Pilbara to China Metallurgical for $400 million at the peak of the resources boom, including $320 million of cash, Sage had to fight off a number of sharks circling his company.

Those circling included Evraz, controlled by Russian oligarch Roman Abramovich, who just happens to own a slightly bigger football team than Sage, called Chelsea FC.

Others with an interest in Cape Lambert included Mick ''Manynames'' Shemesian, through his Hong Kong company Power United. Shemesian tried to have Melbourne day trader Leo ''The Gun'' Khouri appointed to the Cape Lambert board.

In the end, Sage won the day.

But only after Mick Gatto and business associate John Khoury, under the banner of Arbitrations and Mediations, flew to London for a secret meeting at The Mayfair hotel to help broker a peace deal between the warring parties.

Sage has been rewarded for all that hard work, picking up a gong as Resourcestocks magazine executive of the year award for 2009.

Sage accepted the award in Perth last week, and was applauded for his job taking Cape Lambert from a small-cap explorer called International Goldfields to one of the top 300 companies on the Australian Securities Exchange.

And for fighting off all those sharks.

The judges noted that Cape Lambert had returned $100 million to shareholders, and bought a number of former CopperCo assets, including the Lady Annie copper mine in Queensland.

Last week Cape Lambert lodged its prospectus for the $214 million float of a spin-off called Q Copper, which contains the Lady Annie mine.

It's due to hit the boards by the end of the year.

Sage beat Jake Klein of Sino Gold Mining and Robert Hosking of Karoon Gas Australia for the award.

http://www.smh.com.au/business/a-rocky-road-ahead-for-airport-link-20091122-isti.html

[COLIN]

JBM (& other CFE devotees): I take it that none of you will be poking funds into the Q Copper IPO, by way of some diversification? I don't intend to - would rather put more loose change direct into CFE, partly on the principle that "the greater contains the lesser" (or something like that) although I realise that CFE's ongoing interest will be minimal.

[Huang Chung]

JBM (& other CFE devotees): I take it that none of you will be poking funds into the Q Copper IPO, by way of some diversification? I don't intend to - would rather put more loose change direct into CFE, partly on the principle that "the greater contains the lesser" (or something like that) although I realise that CFE's ongoing interest will be minimal.

My broker went on a tour of Copperco's operations before the collapse, and certainly didn't come away thinking he nor his clients needed to buy in. So, good on CFE if they can make a buck or two out of Q Copper by on selling it.

BTW, does anyone think that Tony Sage looks a bit like Marcie's first husband in Married With Children :confused:. Just as long as it's not Al Bundy running the show I guess :eek:.

http://t1.gstatic.com/images?q=tbn:xjdJqN7lakk6MM:http://l.yimg.com/a/i/us/tv/blog4/davidgarrisonthencropped.jpg (http://images.google.com.au/imgres?imgurl=http://l.yimg.com/a/i/us/tv/blog4/davidgarrisonthencropped.jpg&imgrefurl=http://skullzneyez.blogspot.com/2009/10/married-with-children-cast-then-and-now.html&usg=__Lf0Er9_fOOB1KfhJGdHOOhKcHm8=&h=128&w=128&sz=15&hl=en&start=22&um=1&tbnid=xjdJqN7lakk6MM:&tbnh=91&tbnw=91&prev=/images%3Fq%3Dmarried%2Bwith%2Bchildren%2Bdavid%2Bg arrison%26gbv%3D2%26ndsp%3D21%26hl%3Den%26sa%3DN%2 6start%3D21%26um%3D1)http://t1.gstatic.com/images?q=tbn:Gwwdvodg-6l7eM:http://www.sgcsecurities.com.au/images/headshot_tony_sage.jpg (http://images.google.com.au/imgres?imgurl=http://www.sgcsecurities.com.au/images/headshot_tony_sage.jpg&imgrefurl=http://www.sgcsecurities.com.au/board.asp&usg=__p0Om-rlKiKHIbjgbkqzhfr-e65g=&h=148&w=120&sz=6&hl=en&start=4&tbnid=Gwwdvodg-6l7eM:&tbnh=95&tbnw=77&prev=/images%3Fq%3Dtony%2Bsage%26gbv%3D2%26hl%3Den%26sa% 3DG)

[Corporate]

JBM (& other CFE devotees): I take it that none of you will be poking funds into the Q Copper IPO, by way of some diversification? I don't intend to - would rather put more loose change direct into CFE, partly on the principle that "the greater contains the lesser" (or something like that) although I realise that CFE's ongoing interest will be minimal.

Q Copper is a bit of an unknown for me. I'd prefer to push more funds into CFE. Especially with the 10c divi coming our way in the near future :D

[JBmurc]

copper overnite hit a new 14month high current price $3.12lb
alls looking great for the IPO CFE will get well re-rated if it all goes well 70c+ is my pick
the Gold price is alos making alot of CFE holdings look very cheap I wouldn't be surprised to see CFE sell there Geek gold mine for 50mill+ next yr aswell

[Dusty]

Nice break in recent resistance levels goood to see CFE once again start moving into new trading grounds bids to sells looking bullish to keep the slow but steady rise to current fair value north of $1 likely next year
current SP- 56c

O dusty your be happy if you brough in at those recent lows mid 40c nice wee 20% couple week profit
I'm current over the moon CFE is my largest holding some 206,000 plus helping family an friends buy another 600,000 odd in the mid low 30's

Yes very nice couple of weeks after getting in at 46.5, I thought that IRN had alot of the Tampakhan factored into the SP already whereas the consistent flow of news is what will continue to drive CFE up with returns in a shorter period.

As for the entry I took another look at the Phaedrus standard deviation chart post #112 and the latest pull back was the reversion back to the mean of the mid 40's. This was the opportunity to get in at a good price that I had been looking for.

I advise anyone looking at an entry into CFE to refer to JB's breakdown of the company for value and Phaedrus's standard deviation chart for timing.

Should have a nice run up to christmas with MCGC looking at gaining economies of scale and synergies by owning both the North/South Projects and another record gold day in the US (just closed at $1165) making Sappes look more attractive by the day. Ofcourse the 10 cent dividend or even just the news of a possible divvie will keep the momentum flowing especially with the Pommes over here and the fellas in the states looking at loose monetary policy in the foreseeable future. African mining has been increasing the visibility of CFE over here by the way with a mate in the City inquering about Cape and I was only too happy to point him towards these forums.

[Xerof]

I see the Energiser Bunny has said "I'm all in" on the Marampa Fe project....

[JBmurc]

I see the Energiser Bunny has said "I'm all in" on the Marampa Fe project....

Yeah the CFE guys don't believe in taking it slow

CFE TO LIFT STAKE IN MARAMPA IRON ORE PROJECT
TO 100% THROUGH AUD$31M SCRIP DEAL
Key Points:
 Cape Lambert reaches agreement with AIM listed, African
Minerals Limited to increase its stake in the Marampa iron ore
project in Sierra Leone from 35% to 100%;
 Cape Lambert to issue African Minerals 57,162,723 shares in
the Company (in two tranches);
 Post transaction African Minerals will hold a 19.90% interest
in Cape Lambert; and
 Cape Lambert advancing exploration and evaluation work
programs at Marampa.
Australian resources and investment company, Cape Lambert Resources
Limited (ASX: CFE) (“Cape Lambert” or the “Company”) has entered into an
agreement to increase its stake in the Marampa iron ore project ("Marampa
Project"), located in Sierra Leone, West Africa, from 35% to 100% through an
all scrip deal with AIM listed, African Minerals Limited (“African Minerals”)
valued at approximately AUD$31M.
Under the terms of the transaction, Cape Lambert will issue African Minerals
57,162,723 fully paid ordinary shares in the capital of the Company, thereby
taking African Minerals’ interest in the Company to 19.90%.
The issue of shares to African Minerals will be done in two tranches;
 24,569,934 shares to be issued at time of settlement; and
 32,592,789 shares to be issued subject to Cape Lambert shareholder
approval.
On 1 October 2008, the Company formalised an agreement with African
Minerals for a 30% investment in the Marampa Project.
Under the terms of the agreement, Cape Lambert paid an initial scrip
consideration of 44 million fully paid ordinary shares, committed to sole fund
US$25 million towards a feasibility study, and assumed management of the
Marampa Project. The Company was also granted an option to acquire the
Marampa Project for US$200 million less the value of scrip issued and
feasibility study expenditure incurred to the date of exercising the option (see
ASX announcement dated 1 October 2008).

[Corporate]

Yeah the CFE guys don't believe in taking it slow

CFE TO LIFT STAKE IN MARAMPA IRON ORE PROJECT
TO 100% THROUGH AUD$31M SCRIP DEAL
Key Points:
 Cape Lambert reaches agreement with AIM listed, African
Minerals Limited to increase its stake in the Marampa iron ore
project in Sierra Leone from 35% to 100%;
 Cape Lambert to issue African Minerals 57,162,723 shares in
the Company (in two tranches);
 Post transaction African Minerals will hold a 19.90% interest
in Cape Lambert; and
 Cape Lambert advancing exploration and evaluation work
programs at Marampa.
Australian resources and investment company, Cape Lambert Resources
Limited (ASX: CFE) (“Cape Lambert” or the “Company”) has entered into an
agreement to increase its stake in the Marampa iron ore project ("Marampa
Project"), located in Sierra Leone, West Africa, from 35% to 100% through an
all scrip deal with AIM listed, African Minerals Limited (“African Minerals”)
valued at approximately AUD$31M.
Under the terms of the transaction, Cape Lambert will issue African Minerals
57,162,723 fully paid ordinary shares in the capital of the Company, thereby
taking African Minerals’ interest in the Company to 19.90%.
The issue of shares to African Minerals will be done in two tranches;
 24,569,934 shares to be issued at time of settlement; and
 32,592,789 shares to be issued subject to Cape Lambert shareholder
approval.
On 1 October 2008, the Company formalised an agreement with African
Minerals for a 30% investment in the Marampa Project.
Under the terms of the agreement, Cape Lambert paid an initial scrip
consideration of 44 million fully paid ordinary shares, committed to sole fund
US$25 million towards a feasibility study, and assumed management of the
Marampa Project. The Company was also granted an option to acquire the
Marampa Project for US$200 million less the value of scrip issued and
feasibility study expenditure incurred to the date of exercising the option (see
ASX announcement dated 1 October 2008).

JB what's your view on this?

A couple of things I can't get my head around:

Why did Affrican Min sell for less that the original agreement? I can't have been for the need of cash because CFE is issuing more shares.

I'm not sure I like the strategy of issuing CFE shares for asset purchases when I see them as being worth in excess of $1 not 54c.

TS must see a lot of value to increase our stake to 100%

None-the-less I am sticking with CFE as TS has done a great job thus far.

[JBmurc]

JB what's your view on this?

A couple of things I can't get my head around:

Why did Affrican Min sell for less that the original agreement? I can't have been for the need of cash because CFE is issuing more shares.

I'm not sure I like the strategy of issuing CFE shares for asset purchases when I see them as being worth in excess of $1 not 54c.

TS must see a lot of value to increase our stake to 100%

None-the-less I am sticking with CFE as TS has done a great job thus far.

-Well my take is TS already has a major IRON ORE buyer for MARAMPA an maybe even Cape lambert south together from the likes of MCC(the guys that brought Cape lambert north)
-African Min see how undervalued CFE is as a company as they deal with them see a sale of the above bringing in CFE 400mill+ which in turn should put a rocket under the SP which A.M will hold 19.9% an in turn making them a mint
also their could well be sweetener director roles within CFE or any of the many other companies T.S has control in for the A.M top management

Either-way I'm over the moon because the deal clearly shows CFE shares are better than cash an are still being very under valued by the market


Currently the market values CFE at 295mill

cash=50m + 80mill to come from MCC
lady annie IPO=169mill
Marampa 100%=400mill+ (T.S value quote interview)
Sappes gold-50mill+
AIM / TSX holds-90mill(T.S quote)

An these are just the short term deals I see likely

Conservative fair value of CFE looking forward is going be north of $2 IMHO

[shasta]

-Well my take is TS already has a major IRON ORE buyer for MARAMPA an maybe even Cape lambert south together from the likes of MCC(the guys that brought Cape lambert north)
-African Min see how undervalued CFE is as a company as they deal with them see a sale of the above bringing in CFE 400mill+ which in turn should put a rocket under the SP which A.M will hold 19.9% an in turn making them a mint
also their could well be sweetener director roles within CFE or any of the many other companies T.S has control in for the A.M top management

Either-way I'm over the moon because the deal clearly shows CFE shares are better than cash an are still being very under valued by the market


Currently the market values CFE at 295mill

cash=50m + 80mill to come from MCC
lady annie IPO=169mill
Marampa 100%=400mill+ (T.S value quote interview)
Sappes gold-50mill+
AIM / TSX holds-90mill(T.S quote)

An these are just the short term deals I see likely

Conservative fair value of CFE looking forward is going be north of $2 IMHO

Don't forget around $40m held in convertible notes to come back to CFE ;)

[Stranger_Danger]

JB - Just to clarify, you believe this company is worth roughly $1,200,000,000 based on your posts?

I'd love to see a P/E for that! :)

Disc : Mainly just teasing. Am holding, but, $2 bucks?

[JBmurc]

JB - Just to clarify, you believe this company is worth roughly $1,200,000,000 based on your posts?

I'd love to see a P/E for that! :)

Disc : Mainly just teasing. Am holding, but, $2 bucks?

well if everything goes to plan I wouldn't be shocked to see a $2 S/P within the next couple yrs remember in the mid term they could well hold cash an assets to the tune of 1 billion thats of course is if gold copper keep bullish an the deals CFE are currently involved in play out,do the research yourself see want you reakon from my study of CFE 295mill is far to cheap the 100% ownership of- Marampa -Iron ore 1 billion ton est. should be worth 400mill+ on it's own (this was stated by tony sage,an if anyone's going to know Iron ore values I'd say he would)

[evilroyrule]

JB, any chance you can chuck your IRN proceeds into CFE to stiffen it up a bit. im taking a toweling on this at the mo. is it now in a confirmed downward trend?

[drillfix]

ER, I wouldnt say CFE is in a down trend, there has been a pull back sure, but down trend? Nahhh~!

If it falls below 50c start sweating with your towel.

If falls past 48c support, then get out~! (imo)

If it fall and breaks 44c, then Hello 30's but look at the over all markets in general, not just CFE. If the stock falls and the markets are falling too, then its probably best to STAY out with many stocks should that be the case.

Of course, all this is just my view (for what its worth).

[evilroyrule]

thanks drilly. i think im more sulking coz last week i weighed up between more cfe and mel. went cfe. mel up more than 50% today! doh!

[gazprom1]

ER,

The beauty of this forum is that everyone has a view and we all have different time horizons, risk profiles and objectives. However, when the views are taken together, it gives a good sense of a stock IMO.

I am more a medium term investor and while I watch the market everyday, I only trade 6 or 7 times a month. CFE has its own particular set of risks (directors, investment co, etc) but has great assets. Unless the world goes into a freefall again, I am going to continue to accumulate even if the price continues to drift downwards. If the IPO of LA goes well, we can all look forward to a nice dividend in the New Year...20% return?!?!

[evilroyrule]

thanks GP. mental valium.

[soulman]

thanks drilly. i think im more sulking coz last week i weighed up between more cfe and mel. went cfe. mel up more than 50% today! doh!

Me too Evil. Bought more ESG instead of MEL. MEL was there on Friday for the taking, closing at their SPP price. I looked and looked but no trigger. Not sure of the significant of that announcement so won't be buying at current prices.

[drillfix]

Well, gotta admit, thats the markets for ya hey~!

Dont feel bad guys, always more opportunity. If it comes to it, hire out some Monkee's and get them to throw darts at stock lists in your garage or something, I hear that works really well :D

[Corporate]

JB, any chance you can chuck your IRN proceeds into CFE to stiffen it up a bit. im taking a toweling on this at the mo. is it now in a confirmed downward trend?

I wouldn't worry about it. Chart looks like business as usual to me and the fundamentals are only getting better.

[evilroyrule]

hey corp, it was something you posted re mel that made me have a good look. hope you got in!

[Corporate]

hey corp, it was something you posted re mel that made me have a good look. hope you got in!

Really? It's been a while since I've even looked at MEL.

My pick is WCL at the next mover in the CSG sector.

[evilroyrule]

think it was the link between the 2 and likely jv over costs/piping. are their fields in close proximity? been a bad day. maybe i dreamt it. apologies

[Corporate]

think it was the link between the 2 and likely jv over costs/piping. are their fields in close proximity? been a bad day. maybe i dreamt it. apologies

No worries. It might have been BUL and WCL since both have juicy permits in the Galilee Basin

[gazprom1]

Does anybody have a view on whether or not the IRN takeover will impact on CFE's share price? I appreciate that CFE has a wide range of commodity interests but does have a reasonable amount of gold in the ground at Sappes.

IMHO there may be a little rub off....

[shasta]

Does anybody have a view on whether or not the IRN takeover will impact on CFE's share price? I appreciate that CFE has a wide range of commodity interests but does have a reasonable amount of gold in the ground at Sappes.

IMHO there may be a little rub off....

Indirectly yes, there will be a few people looking for the next story to pour there funds into.

CFE is as good a place as any, & Management have already highlighted the capital returns ahead to the market.

[corporateraider]

Shasta,
But will the Q Copper float succeed? Logic would say that Sage has found buyers, but I see little support demonstrated in the comments of CFE shareholders

[shasta]

Shasta,
But will the Q Copper float succeed? Logic would say that Sage has found buyers, but I see little support demonstrated in the comments of CFE shareholders

With the price of Copper still north of $US3/lb, i can't see why not.

TS is a shrewd operator, & i would back him to add value for CFE shareholders.

[gazprom1]

Is the Q Copper IPO still due to close today (2 December)? IMO given where we are in terms of commodity prices and the state of the markets, one would think the raising of $200 million would not be a big deal!!! If it is indeed good news then that 10 cent dividend early next year is guaranteed!!!!

CFE should be trading at closer to $1.00 than 50 cents IMHO.

[Dusty]

Is the Q Copper IPO still due to close today (2 December)? IMO given where we are in terms of commodity prices and the state of the markets, one would think the raising of $200 million would not be a big deal!!! If it is indeed good news then that 10 cent dividend early next year is guaranteed!!!!

CFE should be trading at closer to $1.00 than 50 cents IMHO.


Yes based on cash costs for Lady Annie in 2008 at $US 1.08/lb and Cu currently trading at $US3.23/lb, LA is looking more attractive by the day. Recent TO action for aussie copper projects also indicating alot of prospective buyers looking for projects. Havent had the run up in volume yet so this has got plenty of room for sp to move. TS has indicated March 2010 as the target div release date if everything goes well.

Latest news I could find on the QCopper IPO was on Nov 27th The Australian

"Q Copper, which is seeking just over $200m and at last report on Saturday was halfway there. It's Tony Sage's spinout from Cape Lambert Resources that will house the Lady Annie copper mine and is planning to list on December 21."

Gold prices North of $1200oz today, looking good for Sappes 100k oz/a at less than $450oz operating costs.

[gazprom1]

Bought some more today...first time I have bought CFE over 50 cents. Hope LA news is out in the next couple of weeks and it is positive. Would not be pretty in the short term if there is a hitch with the IPO!! However, if the IPO succeeds we shoudl see the price go higher....what will be the next deal on the block??

[dragonz]

Bought some more today...first time I have bought CFE over 50 cents. Hope LA news is out in the next couple of weeks and it is positive. Would not be pretty in the short term if there is a hitch with the IPO!! However, if the IPO succeeds we shoudl see the price go higher....what will be the next deal on the block??

Good move Gaz. The charts do look good. I have traded in and out of this stock for more then a year now. looking good for a med term hold

[Dusty]

Bought some more today...first time I have bought CFE over 50 cents. Hope LA news is out in the next couple of weeks and it is positive. Would not be pretty in the short term if there is a hitch with the IPO!! However, if the IPO succeeds we shoudl see the price go higher....what will be the next deal on the block??

Chinas Iron Ore imports set to reach 600m tonnes in 2009, up from 443.7m last year.

I would be think we could see the focus move to Cape Lambert South and another deal with CMGC or after lifting the stake in Marampa to 100% it would indicate that TS has the big plans for this one.

http://www.mineweb.co.za/mineweb/view/mineweb/en/page39?oid=93950&sn=Detail

[JBmurc]

Chinas Iron Ore imports set to reach 600m tonnes in 2009, up from 443.7m last year.

I would be think we could see the focus move to Cape Lambert South and another deal with CMGC or after lifting the stake in Marampa to 100% it would indicate that TS has the big plans for this one.

http://www.mineweb.co.za/mineweb/view/mineweb/en/page39?oid=93950&sn=Detail

yeah for sure the lady annie an the greek gold will be great for the sp 70c+ but the iron ore deal TS is working on will push the sp well over $1 in no time the number will wake the market

[Corporate]

Trading Halt pending annoucment on the completion of the Q Copper IPO. Significant milestone for CFE.

I wish they could have held off a day. I intended to double my holding.

[gazprom1]

Hey Drillfix,

Do you own a few of these? I am assuming (hoping) that the float went well and the news will be positive. I bought a few more late last week. If a positive result is achieved, I would hope that we will go through the recent highs. Nice divvie on the way...!!!!

Gazprom

[evilroyrule]

im sure you've still got plenty corp! ive been buying for the last week since they been pulling back from 57, was wondering if i had made the right call....hopefully i have.
seems to be one up, one down at the mo.......taking a hiding on mpo at mo.

[drillfix]

Hey Drillfix,

Do you own a few of these?


Nope, not holding GP.

Previously I did buy a while back but only was visiting. Goes to show that sometimes its good to stay put rather than jump around. ;) Ahh well~ cant be everywhere on every stock as they say.

[evilroyrule]

cmon Jb, where are you? cfe trading halt and nothing... you busy countng the zeros......

[COLIN]

cmon Jb, where are you? cfe trading halt and nothing... you busy countng the zeros......

He's been switching his affections to TGF and CUE - both of which have been continuing their downward slide. What ever has come over him.

[Corporate]

Cape Lambert wraps up Q Copper IPO
Finance: 8-December-09 by Rebecca Lawson


Shares in Cape Lambert Resources have entered a trading halt as it prepares to release details of the completed $214 million initial public offer for Q Copper.

Cape Lambert today said it expects to release details by the start of trade on Thursday. Q Copper is aiming to list on the Australian Securities Exchange on December 21.

Q Copper will buy the Lady Annie copper operation in Queensland from Cape Lambert for $158 million if full subscription is achieved. A minimum target of $203 million has been set.

Cape Lambert has proposed to return funds from the sale of Lady Annie to shareholders.

Q Copper is aiming to restart operations at Lady Annie by July next year before ramping up to an annual copper production target rate of 20,000 tonnes for the remainder of 2010.

The company will then ramp up operations to 25,000t of copper a year in 2011.

The mine life is planned to be extended to seven years.

Lady Annie was placed on care and maintenance in February this year, primarily due to heavy rains.


Looks like Thursday's annoucement with be GOLD. Lets hope it finally wakes the market up to TS abilities.

What a masterstroke it would be if TS could move Marampa before Christmas - that would be a suprise annoucement!

Also remember that Platmin is slated for sale after the 17th or 18th of December (tax advantage). I wouldn't be suprised if TS doesn't already have a buyer lined up for these shares.

[Dusty]

Looks like Thursday's annoucement with be GOLD. Lets hope it finally wakes the market up to TS abilities.

What a masterstroke it would be if TS could move Marampa before Christmas - that would be a suprise annoucement!

Also remember that Platmin is slated for sale after the 17th or 18th of December (tax advantage). I wouldn't be suprised if TS doesn't already have a buyer lined up for these shares.

I think we could see the Marampa news become more prominent
after this IPO but unless TS already has a buyer lined up (which as stated I wouldn't put past him) an early 2010 sale looks more likely, a perfect combo for the dividend if news is positive.
Not bad timing for a trading halt either after the big sell on the Dow and FTSE markets worried after Greece credit downgrade who along with Italy isn't in great shape. News of a possible UK downgrade aswell today which could really cause a slam on the brakes.
This trading halt eases the pain of the IRN one after selling some IRN a month before TO to buy CFE, although returns from CFE in that time arn't far behind anyway, bring on Thursday!

[evilroyrule]

Jb, if you dont speal up soon im sending out a search party to your flash part of the world.

anyone got a guess as to where this will go today? im focussing on the positive, given everything else is up the wonk!

[Ketel One]

Q Copper IPO delivers for Cape Lambert, Tony Sage

Michael Bennet From: The Australian December 09, 2009 10:48AM


CAPE Lambert's spin-off of its Lady Annie mine into Q Copper - the biggest resources float of the year - has raised the full $203 million after it came in oversubscribed.

Q Copper allowed for oversubscriptions of up to $214m, but we hear the initial public offer was cut off at $203m despite strong demand from investors in Australia, US, Singapore and Hong Kong.

Tony Sage-run Cape Lambert is to make the announcement tomorrow morning, when it is tipped to come out of trading halt.

The West Australian iron ore miner will get about $150m in cash and about 15 per cent of Q Copper from the IPO, after it purchased the Lady Annie asset for about $40m as part of its $135m acquisition of failed miner CopperCo in May.

Lead manager Patersons is also set to do alright, earning about $12.9m in fees from the IPO, which was not underwritten.

Cape Lambert last month said it would give shareholders about 10 cents a share from the IPO.

Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
Q Copper will be chaired by John Moore of Corvette Resources, which Cape Lambert unsuccessfully tried to takeover in September, and run by Peter Mulroney, who will be managing director and CEO.

Mr Sage will not sit on the board, in a rare move by the prominent West Australian businessman.

Q Copper is scheduled to list on the ASX on December 21

I think the claimed 15% that CFE will retain is a mistake - only 10% will be retained. Interesting though (if true) that the offer was cut off at $203m - sounds like TS preferred more shares to the extra $10m cash.

[Corporate]

I have a feeling that this was oversubscribed and TS cut it short to create additional demand on listing.

[evilroyrule]

now really, who is buying this 10c per share dividend talk?> a 20% return really? surely on this basis alone (IF it were true) one cld reasonably expect the shares on friday to lift 30+ %. i knw JBM has mentioned 10 cents, but i let it go. now ketel says the same thing??

[Corporate]

now really, who is buying this 10c per share dividend talk?> a 20% return really? surely on this basis alone (IF it were true) one cld reasonably expect the shares on friday to lift 30+ %. i knw JBM has mentioned 10 cents, but i let it go. now ketel says the same thing??

It's definitely 10cps. TS has mentioned it many times. That's why I was buying up large at 40c.

[evilroyrule]

ok, well thanks corp. im glad i got some. but still, i dont get why this/SP is sitting as it is.

im out of everything else tomorrow and into this. my bid will be at 57. seems good protection against possible choppy waters. but really, 15-20% guaranteed return in 3 months? what am i missing. wouldnt you mortgage your house (or close) to get in????

[shasta]

It's definitely 10cps. TS has mentioned it many times. That's why I was buying up large at 40c.

Actually the talk about a capital return/dividend was Tony Sage making a comment CFE would look to return ~$50m to shareholders.

Based on the shares on issue at the time it equates to around 9 - 10cps

[evilroyrule]

so basically every sixth share we buy is free?

[shasta]

so basically every sixth share we buy is free?

Pretty much, & there has already been further asset sales pre-empted, from the many shareholdings CFE acquired when buying CUO's assets.

(Remember CUO took over MXX & thats where all the odd ball holdings originated from)

Could easily achieve another $50m+ cash from these sales = more returns???

2010 is going to be a great year for CFE, money coming in from all over the show, the $80m from the last deal, & ~$40m in convertible notes.

It's fast becoming a cash box ;)

[evilroyrule]

thanks fellas. im still shaking my head at this dividend thing. surely there must be a catch? what arent the insto's onto this for the dividend play alone? maybe waiting for an annoucement like 2morrow? i kinda feel stupid for not loading up more. its still more than half my holding, but still...........seems a sure thing to me.

anyhoo ill be quiet now. but cant help feel im missing something. a 10c dividend per share wld be exceptional for a $1 stock, but @ 53c??????????? seems to me you could do worse things than transfer majority of stocks into cfe, take dividend, by which time markets may be a little friendlier. great if youre in i guess.:)

[corporateraider]

Gidday Evilroyrule

It's not a dividend of 10c but a return of capital. (sure it's money back by another name). Last year there was another significant return of capital and the share price fell to reflect that.

I think that part of the likelihood for future success for CFE can be seen in its history . 18 odd months ago the company was sitting on a huge cash box after having sold Cape Lambert. And yet it traded at a very significant discount to its cash value. Why? I think the market was saying, what value are we going to get from this cash? And the market was right. The company has spent a significant period of time investing and then extracting value from its investment. And the financial crisis had nothing to do with this process as CFE had the money to proceed.

My concern is after Q COPPER and Marampa where too from here? (I have concerns about Marampa but lets ignore that!) Where is the pipeline of investments that will drive a satisfactory return on 550 odd million of issued shares -and provide for further investment?

Unlike most others I don't think that the share price is a one way bet. I have done very nicely from CFE, but I am out at the moment.

[evilroyrule]

hi CR,

well thanks for that, food for thought and always good to have another view. i certainly wasnt trying to cheerlead, simply thinking out loud re the capital return vs current sp. im still working my way through that! appreciate yr thoughts. err

[Corporate]

Gidday Evilroyrule

It's not a dividend of 10c but a return of capital. (sure it's money back by another name). Last year there was another significant return of capital and the share price fell to reflect that.

I think that part of the likelihood for future success for CFE can be seen in its history . 18 odd months ago the company was sitting on a huge cash box after having sold Cape Lambert. And yet it traded at a very significant discount to its cash value. Why? I think the market was saying, what value are we going to get from this cash? And the market was right. The company has spent a significant period of time investing and then extracting value from its investment. And the financial crisis had nothing to do with this process as CFE had the money to proceed.

My concern is after Q COPPER and Marampa where too from here? (I have concerns about Marampa but lets ignore that!) Where is the pipeline of investments that will drive a satisfactory return on 550 odd million of issued shares -and provide for further investment?

Unlike most others I don't think that the share price is a one way bet. I have done very nicely from CFE, but I am out at the moment.

corporateraider, you make some very good points. However, in my opinion I believe you are "out" at a very wrong time. The value not recognised by the market is just starting to be unvailed. Personally I don't care if TS can't pull further deals. CFE have enough on there plate for the next 12-24 months. I'll be long gone by the time we are running out of assets (if that happens).

Remember we have DMM, COV, NIPS (plus many more) that are all potential company makers.

[corporateraider]

Corporate
My recollection is that they only have 4% of NIPS and they intend to sell this.

Judging by their recent attitude to assets i.e. they look to flog them in the very early development stage, I can' t see CFE ever having a company maker. I struggle to see what they have done at Marampa that gives it the value of 300 mill US that many talk of. A good result there may change my mind.

I'd like to see them keep something of significance that gives them a regular stream of cash, but that doesn't seem as though that will happen.

As you say there may be an appropriate time in the near future to jump this ship. I have as I saw a better opportunity elsewhere.

[Corporate]

Corporate
My recollection is that they only have 4% of NIPS and they intend to sell this.



Nope they have 37%+





I'd like to see them keep something of significance that gives them a regular stream of cash, but that doesn't seem as though that will happen.



I'd also like to see this. However, TS has clearly stated that if your not a miner, why mine. I have to accept this strategy or sell.






As you say there may be an appropriate time in the near future to jump this ship. I have as I saw a better opportunity elsewhere.



Good to hear :-) If I needed more money for another investment I'd consider selling CFE. But at the moment if something comes up I'm happy to keep holding and raid the bank account.


Cheers
C

[evilroyrule]

when are we out of this trading halt/suspension? sorry, not been paying attnetion

[COLIN]

when are we out of this trading halt/suspension? sorry, not been paying attnetion

When the receivers have been appointed!

SORRY, I mustn't joke like that. Like most of you, I'm expecting great things out of this.

[evilroyrule]

jeebers colin, steady on! we wont have any talk like that around these parts thank you. you need to redirect yourself to the hgd thread!

[gazprom1]

Maybe I am reading the announcement wrong but they stated yesterday that the voluntary suspension be extended until the earlier of "....the announcement...or...commencement of trading on Friday.."

Trading has commenced today (Friday, 11th) and they are still suspended??

[evilroyrule]

i read that too! so when nothing happened on opening i thought i must have read it wrong??? what gives?

[evilroyrule]

i see there is an announcement out re voluntary suspension. but i cant open it! at least obrien doing well in napier!

[evilroyrule]

Looks like Thursday's annoucement with be GOLD. Lets hope it finally wakes the market up to TS abilities.

What a masterstroke it would be if TS could move Marampa before Christmas - that would be a suprise annoucement!

Also remember that Platmin is slated for sale after the 17th or 18th of December (tax advantage). I wouldn't be suprised if TS doesn't already have a buyer lined up for these shares.

ipo not yet completed????? what happened?????

[JBmurc]

jeebers colin, steady on! we wont have any talk like that around these parts thank you. you need to redirect yourself to the hgd thread!

LOL HGD would have been gone along time ago if it wasn't for shareholders money CFE pays shareholders an will do again early next year really to companies with totally different outlooks

[JBmurc]

He's been switching his affections to TGF and CUE - both of which have been continuing their downward slide. What ever has come over him.

LOL still here just been busy the zero's I've been counting of late is the ones in my likely tax payment getting very large unless me paper growth reduces which it has been
TGF CUE CFE if there not 30%-40% higher than today before march 30th 2010 I'll be very surprised great buying atm

[corporateraider]

JBmurc
You are a braver man than me to be contemplating a further investment in CFE with the debacle that the QCOPPER float is turning into