For those that have a copy of the Australian Financial Review (AFR) from yesterday there was a nice little artice on page 18 regarding the intentions of OZ Minerals (OZL) and their stake in Sandfire Resources (SFR). The article details how the OZ Minerals chief executive says that the company will not be a passive shareholder in any of the companies that it invests in (including Sandfire Resources). He goes on to say that OZ Minerals will not be an investment house investing a bit here and a bit there because investors can do this themselves. This suggests that any company that OZL invests in could be a takeover target as it will simply not just 'sit' on an investment.
Unfortunately I cannot provide a URL link to the article because AFR does not provide the full story unless you are a subscriber.
Showing posts with label Sandfire Resources (SFR). Show all posts
Showing posts with label Sandfire Resources (SFR). Show all posts
Tuesday, September 14, 2010
Friday, September 3, 2010
Chrysalis Resources - Writing on the Wall?
I posted about Chrysalis Resources (CYS) when the company still remained in trading halt on Wednesday (01/09/2010) and briefly mentioned that I was wondering if the pending drilling results were to be negative considering the sudden drop in share price the day it went into trading halt. Take a look at the trading data below:
Date Open High Low Close Volume
02-09-2010 $0.140 $0.160 $0.140 $0.140 1,733,132
25-08-2010 $0.230 $0.230 $0.200 $0.210 686,500
24-08-2010 $0.265 $0.270 $0.260 $0.260 44,230
23-08-2010 $0.270 $0.270 $0.260 $0.265 130,502
20-08-2010 $0.280 $0.290 $0.255 $0.260 215,007
19-08-2010 $0.295 $0.295 $0.280 $0.280 132,000
You can see that the stock was slowly drifting down in the lead up to 25-08-2010 which seems nothing out of the ordinary. Suddenly, on 25-08-2010 (late afternoon trading halt) the stock dropped $0.05 on volume of 686,500 units raising my suspicions.
Whilst it is hard to react to daily share price movement if you are not sitting at the screen all day it does go to show how important having a stop loss in place can be. Anyway, on 02-09-2010 the company announced that "the assay results of our drilling at the 5 target areas have returned no results of significance. At this stage the Company has no explanation why the assays have not returned any anomalism." Back to the drawing board. The shares were punished and closed at $0.14.
At least the shares have slightly rebounded to $0.15 today.
Neighbour Sanfire Resources (SFR) remains it it's own trading halt pending a resource upgrade announcement. I think that this news has been factored into the share price already and the upgrade has been expected so I dont think there will be too much movement in the share price unless it is a blockbuster upgrade. I did read somewhere lately that if OZ Minerals were to make a move on Sandfire Resources that it would have to be sooner rather than later because the way that Sandfire Resources is upgrading resources the share price is only going to appreciate and make it more expensive to acquire.
Date Open High Low Close Volume
02-09-2010 $0.140 $0.160 $0.140 $0.140 1,733,132
25-08-2010 $0.230 $0.230 $0.200 $0.210 686,500
24-08-2010 $0.265 $0.270 $0.260 $0.260 44,230
23-08-2010 $0.270 $0.270 $0.260 $0.265 130,502
20-08-2010 $0.280 $0.290 $0.255 $0.260 215,007
19-08-2010 $0.295 $0.295 $0.280 $0.280 132,000
You can see that the stock was slowly drifting down in the lead up to 25-08-2010 which seems nothing out of the ordinary. Suddenly, on 25-08-2010 (late afternoon trading halt) the stock dropped $0.05 on volume of 686,500 units raising my suspicions.
Whilst it is hard to react to daily share price movement if you are not sitting at the screen all day it does go to show how important having a stop loss in place can be. Anyway, on 02-09-2010 the company announced that "the assay results of our drilling at the 5 target areas have returned no results of significance. At this stage the Company has no explanation why the assays have not returned any anomalism." Back to the drawing board. The shares were punished and closed at $0.14.
At least the shares have slightly rebounded to $0.15 today.
Neighbour Sanfire Resources (SFR) remains it it's own trading halt pending a resource upgrade announcement. I think that this news has been factored into the share price already and the upgrade has been expected so I dont think there will be too much movement in the share price unless it is a blockbuster upgrade. I did read somewhere lately that if OZ Minerals were to make a move on Sandfire Resources that it would have to be sooner rather than later because the way that Sandfire Resources is upgrading resources the share price is only going to appreciate and make it more expensive to acquire.
Wednesday, September 1, 2010
Moment of Truth for Chrysalis Resources
Chrysalis Resources (CYS) still remains in suspension and has done so since 26/08/2010 pending release of an announcement of drilling results on it's Doolgunna West tenements.
There has been so much excitement surrounding the Doolgunna area since the success of Sandfire Resources (SFR) that I think the results from Chrysalis Resources will be widely anticipated. The companies tenements are about 20km away from Sandfire Resources Degrussa project so it could provide an indication if the belt extends from Degrussa and by how much.
Keeping an eye out for this announcement will definitely be worthwhile and help determine a little if it is all just hot air...
For those holding CYS my only concern is the lack of share price appreciation in the lead up to the trading halt. Usually, if the news is good, there is a nice spike in share price and volume before any annoucements. In fact with this case the share price dropped on increased volume which makes me wonder.
There has been so much excitement surrounding the Doolgunna area since the success of Sandfire Resources (SFR) that I think the results from Chrysalis Resources will be widely anticipated. The companies tenements are about 20km away from Sandfire Resources Degrussa project so it could provide an indication if the belt extends from Degrussa and by how much.
Keeping an eye out for this announcement will definitely be worthwhile and help determine a little if it is all just hot air...
For those holding CYS my only concern is the lack of share price appreciation in the lead up to the trading halt. Usually, if the news is good, there is a nice spike in share price and volume before any annoucements. In fact with this case the share price dropped on increased volume which makes me wonder.
Thursday, August 5, 2010
Northern Uranium in Trading Halt
I was seriously considering taking a position in Northern Uranium today. The stock piqued my interest after trading volumes spiked (along with share price) yesterday which was backed up again this morning. I commenced my research.
The basis of my research was to determine if there was any exploration results due or maybe simply renewed interest in the stock because of it's rare earth projects which is a sector that can be hot and have renewed bursts (Lynas Corporation LYC has been strong in the last month).
One of the first things I do like to check is the market capitilisation, number of shares on issue and cash on hand. Market capitilisation gives me a good idea of what the company is valued at already considering I like to target low value companies with lots of potential upside. Number of shares will give me an idea of how many shares could potentially flood the market, stifle the share price and thus prevent any upside. Finally, cash on hand is a good way of seeing if the company has enough cash to keep exploring and won't have to raise cash soon (and thus dilute my share holding). Northern Uranium ticks most of the boxes - small market capitilisation of $11 million (undiluted), about 100 million shares on issue which is okay but slightly pushing it and $2.5 million in cash, enough for now. The next step? The industry that it lies in. Uranium and Rare Earths. I always like to go for companies in a sector that is favourable now. At example at the moment would be companies that surround Sandfire Resources (SFR) Doolgunna region such as Sipa Resources (SRI), Thundelarra Exploration (THX), and Resource & Investment (RNI). Rare Earths would fit into one of those favourable sectors. The other thing I did notice was Areva was on the register. It is always a plus having a big boy such as Areva around because they don't take an interest in little tidlers like NTU without a reason.
However before my research was complete and whilst writing up this post the stock went into pre-open followed by a trading halt. Talk about disclosure! There was definitely a leak on this one. The announcement due to be released on or before Monday is in relation to "a potential corporate transaction". Hard to know what to make of this. The company has completed soil sampling at it's rare earth projects recently so I intially thought maybe we may have some further information on that but the mention of corporate transaction blows that idea!
The basis of my research was to determine if there was any exploration results due or maybe simply renewed interest in the stock because of it's rare earth projects which is a sector that can be hot and have renewed bursts (Lynas Corporation LYC has been strong in the last month).
One of the first things I do like to check is the market capitilisation, number of shares on issue and cash on hand. Market capitilisation gives me a good idea of what the company is valued at already considering I like to target low value companies with lots of potential upside. Number of shares will give me an idea of how many shares could potentially flood the market, stifle the share price and thus prevent any upside. Finally, cash on hand is a good way of seeing if the company has enough cash to keep exploring and won't have to raise cash soon (and thus dilute my share holding). Northern Uranium ticks most of the boxes - small market capitilisation of $11 million (undiluted), about 100 million shares on issue which is okay but slightly pushing it and $2.5 million in cash, enough for now. The next step? The industry that it lies in. Uranium and Rare Earths. I always like to go for companies in a sector that is favourable now. At example at the moment would be companies that surround Sandfire Resources (SFR) Doolgunna region such as Sipa Resources (SRI), Thundelarra Exploration (THX), and Resource & Investment (RNI). Rare Earths would fit into one of those favourable sectors. The other thing I did notice was Areva was on the register. It is always a plus having a big boy such as Areva around because they don't take an interest in little tidlers like NTU without a reason.
However before my research was complete and whilst writing up this post the stock went into pre-open followed by a trading halt. Talk about disclosure! There was definitely a leak on this one. The announcement due to be released on or before Monday is in relation to "a potential corporate transaction". Hard to know what to make of this. The company has completed soil sampling at it's rare earth projects recently so I intially thought maybe we may have some further information on that but the mention of corporate transaction blows that idea!
Subscribe to:
Posts (Atom)