Insightful- are you sure you sold CAFat a profit. They only made losses and they are not listed on the AIM market.
I have a recent message from Weatherly's Co Sec to say there is no dealing in them except privately but Weatherly is in the process of taking over CAF with a 60% holding. They might bid for the other 40% but have not decided yet
This announcement includes release of insider information
Weatherly International plc (AIM:WTI)
("Weatherly" or "the Company")
Agreement to purchase additional 65% of Berg Aukas
Weatherly is pleased to announce that it has entered into a binding agreement to increase its ownership of China Africa Resources Namibia Limited (CARN) from 25% to 90%. CARN is a private Namibian company which owns 100% of the high-grade Berg Aukas underground zinc-lead-vanadium project near Grootfontein.
CARN share purchase
CARN was previously held 100% by China Africa Resources plc (CAR), formerly listed on AIM, and now known as Pembridge Resources, listed on the standard list of the LSE.
In December 2016, 100% of the shares in CARN were distributed via a dividend to existing shareholders of CAR. The two largest shareholders of CAR at that stage were Weatherly with 25% and Hong Kong East China Non-Ferrous Mineral Resources Co Ltd (ECE) with 65%.
As a result, Weatherly owns 25% of CARN, ECE owns 65% of CARN, and the remaining 10% of CARN is held by the remaining minority shareholders of CAR at the time of the dividend.
Weatherly and ECE have now entered into a binding agreement whereby Weatherly will purchase all of ECE's shares in CARN for cash consideration of US$600,000 in order to increase Weatherly's ownership of CARN to 90%. The transaction is subject to regulatory approval in Namibia, following which the full consideration will be paid to ECE immediately. The Company expects to fund the transaction through operating cash flow but in the event that it cannot, Weatherly has obtained a waiver from Orion Mine Finance to use part of the uncommitted US$10m loan announced on 28 July 2017 to fund the transaction.
Berg Aukas Project
In 2014, CAR published a PFS for Berg Aukas which indicated the following key parameters.
-- JORC-compliant Mineral Resource Estimate of 1.23Mt @ 15.47% Zn, 3.84% Pb and 0.33% V(2) O(5) (Indicated classification) using a cut-off grade of 3.0% Zn
-- JORC-compliant Ore Reserve Estimate of 1.7Mt @ 11.16% Zn, 2.76% Pb and 0.23% V(2) O(5) (Probable classification) at a 5% Zn equivalent cut-off
-- Post-Tax NPV10 of US$29m
-- Post-Tax IRR of 25%
The 2014 PFS was based on assumed prices of US$2,000/tonne for zinc and lead. The vanadium is present in the mineral descloisite which has a limited market and the PFS assumed no credit was received for the vanadium content.
Prices for all three of these commodities have improved markedly since that time, and Weatherly has initiated an update of the PFS to examine the impact of these improved prices and updated capital and operating cost estimates on the Project's key financial metrics.
Further announcements on the progress of the share purchase and the PFS update will be made in due course.
The Company and its subsidiaries are unlikely to generate sufficient surplus cash to meet all loan repayments when due, particularly in the near term. The Company continues to positively engage with Orion on the subject.
Today 17:45 Price: 1.65
pedro57 73 posts
RE: Strong catalyst timeline
We are looking at a very strong catalyst timeline here: 1) Intrepid Mine EGM approval of Kitumba sale (this sale is very likely to go ahead as Intrepid Mines does not have the ability to develop project and they will pay special dividend from the disposal). 2) 121 Mining conference (we should have new presentation and more detail on Kitumba). 3) Interim results in Feb-Mar showing possible profit and better than expected cash situation. 4) End of March (possible restructuring of Orion loans reflecting Tschudi performance and potential small cash payment). 5) Quarterly production update (forward hedging of currency and completion of leach pads will mean decent C1; I also suspect Tschudi expectations are being lowballed). 6) Logiman exit (in next week large Logiman seller will be done stopping the drag on share price). My expectation is that by the summer we will be at 4p level, which was key resistance level a few years ago. Next year 10p or even earlier if most important catalyst converts, quarterly production update in July with confirmation that small change in procedure and full leach pad performance C1 cost for Tschudi is somewhere between $4,000-4,500. Another key catalyst is South African budget in Feb where dire state finances cause drop in ZAR (this is what caused early 4Q17 Rand collapse).
#WTI Current price just over £15m. Think it highlights again just how far this could go. The potential has also been highlighted for bringing back Centrals Ops too for $10m (10,000tonnes/annum with a 10 year LOM at $2/Ib). Copper going higher would result in many multiples up
This morning Cu was $7,008 on the LME and stocks reducing. We have seen some good movement over the last week and all we need now is a steady stream of good news over 2018. Crucial will be the payment of the loans on the 31st Dec. I must admit I am struggling to see how Weatherly can come up with $20M+ but if they do it will almost certainly mean that C1 is under control. I suspect they will pay some but not all as even a C1 of $4000 with the hedges wouldn't generate enough cash. My wishes for 2018 are loans paid on time, C1 around 4K and CO opening. Then we will be talking! Happy Xmas and the very best luck for all in 2018.
Great, the LSE chat board is more active than here so its useful to have a look over there also. The outlook for copper is looking really strong. I have been invested "stuck" in WTI for several years now. My average is now just under 8p, so although we have a long way to go I'm fairly confident we'll reach that point and more. Previously around 2009 the SP went from below 2p to 14p in about 2 weeks.
Hi everyone. Here are some facts on the Kitumba project from Intrepid. It is an underground mine with a low estimated C1 of $3500 ton based on Intrepid's work. BUT we all know about BFS's so maybe assume $4000. That said it is a rich deposit at over 2% so maybe ok. Their estimation is a build cost of US$433M and LOM of 13 years based on 37K TPA. I would like to think that Weatherly could make some saving here based on their experience with SXEW and the safe mining project at CO. So potentially this gives Weatherly a total CU production of 60-80K PA for the next 10 years plus. Therefore once the Orion debt is sorted we could see a very very profitable company $150-200M PA. And share price 15-25p or a strong takeover target. Not to mention the Zambian exploration licence. So those nice folks at Orion obviously see the commercial end game of owning 25%! Sit tight my friends and you just may see the water turn into wine! A £1K stake now could be worth 20x that in 2-3 years. BTW the real strong point about this is the confidence that Orion has in the team!
This is very welcome news. It clearly shows that Orion are in it for the longer term and that they have confidence in the current management that the business will thrive. Add this to getting the open pit under control and new output from central operations and we have a sustainable business. Current cu price is still based on short term thinking. We only need one interruption in supply in what are very unstable parts of the world both politically and geographically and I think $7K plus is realisable. All we need now is for the good news to come steady and often and we will fly. I see no reason why we shouldn't see 2p + with a better operational report. Many thanks to Craig and the team for making my Christmas and hopes for 2018 a little better than last year!
Fellow WTIers. Yesterday the cash price of copper hit $7008 ton and $7115 for futures. The Weatherly quarterly update and 16-17 accounts are a little late by usual standards which probably means it is either a blessing or bad news. Using their quoted figures of C1 $5288 on 14759 tons and the hedges that cover most of the production I estimate a GP of around -$3.1M for the year on revenue of $74.9M. That probably means an overall loss of £15-16M. Given that the new hedges are between 6000 and 6500 Craig needs to hit a C1 of below $4K this quarter if they stand any chance of paying back Orion schedule B at the end of the month. Unless there are some hidden funds I can't see any way they could pay back C&D at the same time so I expect we will see some sort of deal with Orion. Weatherly needs to make $2500-$3000 per ton just to meet the B loans and admin costs. So it all rests on getting those C1 costs below $4K as has been frequently spoken about. Hopefully we will know more next week and I wish everyone good luck.
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