SA Minenhaus: Metorex

Metorex

Posted: Wed, 18 Jan 2006
[miningmx.com] --METOREX’S headline earnings are to double to about 15c/share, a statement released by the company on Wednesday reported.

Metorex, a junior mining company, announced that its headlines earnings for the six months leading up to 31 December 2005 are expected to be between 13c/share and 15c/share. This is almost double the 7.17c/share recorded in the previous year, said Metorex.

The statement also showed that the company’s basic earnings would be up to between 20c/s and 22c/share from the 4.24c/share recorded on the 31 December 2004.

Prices for base metals have increased in the last 12 months touching $4,000/t in the case of copper, a metal Metorex produces.
http://www.miningmx.com/wts/817304.htm

Metorex-Präsentation auf der 11. Mining Indaba in Kapstadt: Allein das Kongoprojekt Ruashi rechtfertigt den Aktienpreis von 7R, somit gäb´s die anderen Unternehmensteile umsonst.
Ruashi´s Phase 1 kommt April/Mai ins Laufen mit 10000 t Kupfer (Kupferkathode) und 1000 t Kobalt (Kobaltkarbonat ) jährlich.
Phase 2 beginnt 2008 mit 45.000 t Kupfer und 3.500 t Kobalt. Projektbarwert bei 2100 USD/t Kupfer und 10 USD/lb Kobalt mehr als 450 Mio USD. Cash Cost nur 0,13 USD/lb Kupfer nach Abzug der Kobalterträge.
Weitere Projekte im Kongo geplant.
Flußspatkapazität wird um 50% erhöht, Kohleproduktion in Wakefield wurde im Januar um 25% erhöht.
„Malones Zahlen sind verlockend und er ist – von Natur aus – sehr konservativ“

Ruashi's copper gives a free ride into Metorex
By: Jim Jones
Posted: '08-FEB-06 15:18' GMT © Mineweb 1997-2004

CAPE TOWN (Mineweb.com) -- If you go along with chairman Simon Malone, anyone buying his company’s shares at their current price of R7 is getting the whole lot for free. How? Well, Malone said Wednesday at Indaba 2006 in Cape Town that his company’s Ruashi copper/cobalt project in the DRC (Congo) is worth between R7 and R10 a Metorex share – in other words the rest is thrown in for nothing.

Malone was positively bullish on Ruashi. He believes that the strategy of locating the mine and concentrator in the DRC 10km from the southern Congolese city of Lubumbashi and the processing plant at Kabwe in neighbouring Zambia splits country risk. Metorex has an effective two-thirds interest in Ruashi.

As it is, the first phase of Ruashi is due to come on stream this April/May at a total capital cost of $41 million -- $26 million at Ruashi and $15 million at Kabwe. Phase 1 will treat a monthly 70,000 tons of existing surface stockpiles to produce an annual 10,000 tons of copper cathode and some 1,000 tons of cobalt carbonate.

Then, by the first quarter of 2008 the $140 million second phase should create an operation processing a monthly 120,000 tons of mined ore to produce an annual 45,000 tons of copper cathode and 3,500 tons of cobalt carbonate for 25 years or more.

Again according to Malone’s reckoning, calculated on a $10/lb cobalt price and $2,100/ton copper the net present value (NPV) of Ruashi is greater than $450 million. And every $500/ton shift in the copper price changes that NPV by $80 million. Looked at another way, the internal rate of return for Ruashi is 50% and operating costs are $0.13/lb of copper net of the cobalt revenue.

But Malone and Metorex are ambitious. Way across to the west in the DRC are the Musonoi East and Sokoroshe prospects. The aim is to prove a reserve containing 4 million tons of in situ copper and capable of sustaining mining operations producing an annual 200,000 tons of copper.

All of which ignores Metorex’s other assets in South Africa – its 70%-owned Vergenoeg fluorspar mine which is a month away from completing a 50% capacity increase, its 74%-owned Wakefield colliery where production was increased by 25% in January, its Consolidated Murchison antimony/gold mine and its Barberton gold properties.

Malone’s figuring is seductive, and he is, by nature, very conservative.
http://www.mineweb.net/events/…06/indaba_2006/886566.htm

Ruashi im Plan, Produktionsbeginn vor Juni, Interview mit CEO Needham.

Metorex
Allan Seccombe
Posted:

[miningmx.com] -- MININGMX spoke to Charles Needham, CEO of Metorex, a South African listed firm that is breathing new life into the Democratic Republic of Congo’s copper and cobalt production through the development of the 42 million ton Ruashi resource.

MININGMX: Morning Mr Needham. How is the Ruashi project proceeding?

CHARLES NEEHAM: Ruashi is about three months away from production. The site is significantly well established and we will be producing before June.

MININGMX: And how much production would you be looking at for this calendar year?

CHARLES NEEHAM: It’s a stockpiled resource. So the ramp-up is fairly rapid, over a period of probably one to two months. Then we would be in full production. The target for core production levels is 10,000 tons of copper a year and 1,000 tons of cobalt for the year.

...

MININGMX: Charles, last time I spoke to you, you mentioned something about other exploration projects in the DRC. I was wondering if there is any more to add to that?

CHARLES NEEHAM: We have secured four more projects or prospects [in the DRC] which are the Musonoi East and Musonoi East Extension, and Sokoroshe 1 and 2. In terms of the exploration we are going to have to get involved in an exploration program on those prospects.

Certainly. Musonoi must be the first that we look at, which we will be doing in the next year. We will be drilling up that orebody. There is certainly significant signs of mineralisation that we think is most attractive. There after we will move to the Sokoroshi 1 and 2 which is closer to the Lubumbashi, which has had less exploration to date.

MININGMX: What kind of finance are you putting aside for exploration of those four areas?

CHARLES NEEHAM: I think to answer that question, we will put aside what is required. We haven’t established an exploration budget at this point in time. However, we are going through the feasibility or bankable feasibility study on Ruashi 2. It is certainly well affordable for the company and we have done that drilling. We have commenced and have almost completed that drilling program at Ruashi.

MININGMX: What is coming from that drilling program?

CHARLES NEEHAM: We are confirming that the results produced many years ago are accurate. We are most confident and have had no surprises at all in that ore body.
http://www.miningmx.com/events/indaba_2006/887628.htm

D A U S E N D !!!

Schlusskurs 10.04.06: 1025 Rand +55 +5,67%

[Blockierte Grafik: http://www.cosgan.de/images/smilie/musik/h055.gif]

Kurs läuft wie auf Schienen seit Threaderöffnung:

Metorex chairman sells himself short
Brendan Ryan
Posted: Thu, 20 Apr 2006

[miningmx.com] -- SIMON Malone, chairman of diversified junior miner Metorex, sold 5m shares - equivalent to 25% of his total holding in the company - on April 12 and right now must be kicking himself for that decision.

Reason is the Metorex share price has carried on up driven by the rocketing copper price as well as rising prices for coal, gold and fluorspar which are the other main commodities produced by the group's mines.

Malone sold his shares at 970c each to realise a total of R48,5m. But the Metorex share price hit 1,190c during trading on the JSE today - April 20 - before pulling back to close at around 1,160c level. Had Malone sold at 1,160c he would have made R58m on the trade and pocketed an additional R9,5m.

Malone describes the situation as "embarrassing." He adds there was "nothing sinister" in his decision to sell which he says was driven by a desire to balance his personal investment portfolio. Malone says it had taken him some six weeks to reach his final decision to sell the stock.

He's not alone in selling too soon. An inability to anticipate the full extent of what's about to happen in their particular business sectors and to their stock prices is not unusual amongst chairmen and CEO's. The most recent example, apart from Malone, is that of Impala Platinum (Implats) CEO Keith Rumble.

In September last year Rumble sold 8,884 of his Implats share options at a price of R690.31. No sooner had he done so than the Implats shares started to run hard setting a series of all-time highs until they peaked at R1,270 on April 6.

Rumble realised R6,1m from the sale of those options. Had he held onto the shares and sold at the peak he would pulled in R11,3m equivalent to 85% more than what he sold for.

It's worth noting that prior to the September sale Rumble had disposed of another 22,000 of his Implats options at even lower prices in the financial year to June. Metorex has been one of the top performing commodity stocks on the JSE over the past two years and has risen to current levels from an all-time low of 190c which it hit on September 15, 2004.

The group operates the Chibuluma mine in Zambia which produces around 15,000t of copper annually and is developing the Ruashi-Etoile copper/cobalt project in the Democratic Republic of Congo.

Phase 1 of Ruashi-Etoile is due to start up in May/June this year producing around 10,000t/year copper and about 1,000t/year of cobalt.

Phase 2 of this project is forecast to be completed by the first quarter of 2008 and will push total annual copper production to 45,000t and annual cobalt production to 3,500t.
http://www.miningmx.com/mining_fin/250131.htm

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

Das südafrikanische Rechtswesen bietet immer neue Überraschungen. Eine Firma, die Forderungen gegen den Kongo hat, diese aber nicht durchsetzen kann, kann die Bezahlung dieser Forderung von Firmen einklagen, die mit dem Kongo Handel treiben. So fordern jetzt zwei Firmen, die mit Metorex an sich überhaupt nichts zu tun haben, Geld von Metorex. MTX bestreitet die Forderungen, da nicht der kongolesische Staat selbst , sondern nur eine staatliche Firma ihr Handelspartner ist. Erst wars nur eine Firma, die ihre Kongoforderungen von Metorex bezahlt haben wollte, bald sinds zwei; zu hoffen, daß nicht noch andere Schmarotzer kommen. Zum Stand der Auseinandersetzung:
Congo's Creditors Go After Adastra?
http://www.resourceinvestor.com/pebble.asp?relid=19001

Und Up!

Jetzt gehts bald los mit Ruashi Phase 1. Das Werk Sable im Sambia ist nun bereit, Kupfer aus Ruashi zu verarbeiten, soll im Juli so weit sein.

Chibuluma sollte jetzt plangemäß auf volle Kapazität hochgefahren sein und 15.000t/Jahr produzieren können. Ruashi wird weitere 10.000 t beitragen, in der zweiten Phase ab 2008 dann 45.000t.

Metorex mines come on stream
Charlotte Mathews

Resources Editor

DIVERSIFIED metals miner Metorex has started to produce copper cathode at its newly commissioned Sable plant at Kabwe in Zambia as the $43m Ruashi copper and cobalt project in the Democratic Republic of Congo (DRC) moves towards production.

The Sable plant would start to process copper and cobalt concentrate from Ruashi by July, as scheduled, CE Charles Needham said yesterday.

At present the Sable plant is processing copper that has been brought from elsewhere as part of the commissioning process to ensure the plant is in good working order to process from the Ruashi mine.

At Ruashi, a critical issue for the mine is adequate power supply. Metorex has now brought in a transformer, which is currently being installed, and erected power lines. It expects the mine will have power within the next two weeks.

As Metorex’s financial year-end is June, its report for the 2006 financial year will reflect only the relatively small proportion of copper cathode being processed at Kabwe. But the group has said previously it expects to produce about 10 000 metric tons of copper and 1000 tons of cobalt from Ruashi in the 2007 financial year.

Copper prices have soared to about $8420/metric ton for three-month delivery yesterday from about $2 000/ton two years ago on fears of supply shortfalls, but market analysts have questioned how long the boom can continue.

Needham said Metorex had put in place a small hedge on its copper production because when it did its feasibility study on the Ruashi project it had assumed copper prices of $2100/ton. With the price well above that, it wanted to be able to protect some of the cash flows from the project, especially as it has decided to fast-track the second phase of Ruashi.

Although there could be some further upside in the copper price, Needham said some analysts were predicting the price could come off fairly sharply but stabilise at a higher level than before, possibly about $3500 to $4000/ton, underpinned by Chinese and Indian demand. But new copper supply would come on stream in the next four to five years, particularly from projects in Zambia and the DRC.

Metorex is finalising the due diligence study on Ruashi’s second phase to secure project funding of $120m-$140m and bring it into production by January 2008 instead of 2010, as originally planned.
http://www.businessday.co.za/a…panies.aspx?ID=BD4A201886

Metorex dampft mit Kohle voraus

>Metorex hat die Grenzen seiner südafrikanischen Zechen erreicht, aber es gibt mehr Gelegenheit zuhause und sonstwo.

Metorex´ Kohlezechen arbeiten fast bei voller Kapazität und weitere Wachstummöglichkeiten werden gesucht.
Problem der abnehmenden Reserven der bisherigen Gruben. Jedoch neue Bohrerfolge und teilweiser Übergang zur Untertageproduktion. Ferner schaut man nach Kohlegebieten in Mozambik, Sambia, Simbabwe, Botswana oder Tansania. <

Metorex steaming ahead with coal
By: Gareth Tredway
http://www.mineweb.net/sections/547942.htm

Phase II des Ruashiprojekts soll beschleunigt werden:
Metorex
Posted: Wed, 14 Jun 2006
http://www.miningmx.com/wts/544180.htm

Ruashi startet diese Woche

>Kohlegruben verkauft, lt Needham 25% über Betriebswert. Durchschnittliche Lebensdauer der Kohlegruben 7 Jahre, was nicht mit Metorex´Strategie, in langlebige, werthaltige Anlagen zu investieren, zusammenpasse. Hört, hört. Möglicherweise wird Metorex in Zukunft wieder in Kohle einsteigen.
Kupferproduktion startet diese Woche in Ruashi. Hochfahrphase soll bereits im November beendet sein. Phase 2 wird ebenfalls beschleunigt. Kapital für 2. Phase soll über Schulden, nicht über Kapitalerhöhungen finanziert werden. Der Kongo ist teurer als gedacht, Phase 1 überstieg geplante Kosten um ca. 8-10% teurer.
Zwei neue Kupferexplorationsgebiete nahe Chibuluma werden m.W. zum erstenmal erwähnt. Auch Zink soll in Sable verarbeitet werden, Durchführbarkeitsstudie soll in den nächsten Monaten erstellt werden. <

Metorex shifts focus to copper
http://www.miningmx.com/mining_fin/664109.htm

The price was 25% sexier than the enterprise value - Charles Needham, Metorex
http://www.miningmx.com/radio/669122.htm

Wüßte allerdings gerne, wieviel Kupfer sie vor kurzem gehedgt haben und zu welchem Preis.

oder: Das Pfeifen im Walde

Who’s afraid of the DRC?
By: Julius Cobbett
Posted: '23-AUG-06 15:35' GMT © Mineweb 1997-2006
http://www.mineweb.net/base_metals/953828.htm

“JOHANNESBURG (Mineweb.com) -- Metorex with interests in the Democratic Republic of Congo (DRC), says that it is still accelerating its activities there despite the fierce fighting that broke out in the capital city of Kinshasa following the recent presidential elections.”

Ruashi II von Juli 2009 auf 1. Quartal 2008 vorverlegt, also die Erhöhung des Kupferausstoßes um 35.000 t.

Jahresergebnis Metorex:
Gewinn um 478% gestiegen, von 27 Mio Rand auf 156 Mio Rand
d. wären 0,54 R pro Aktie, mithin ein KGV von etwa 20 ( Aktienkurs 10,70 ).

Nach Greg Potter, Trader von Nedcor Securities, wäre beim gegenwärtigen Kupferpreis fürs nächste Jahr ein (Headline)-Gewinn von 1,30 R erwartet, wäre KGV von 8,2.

Erscheint bei den enorm hohen Kupferpreisen nicht allzu doll, aber MTX ist noch in der Hochfahrphase: 8000 t Kupfer im abgelaufenen Jahr, schätze mal über 17.000 t im kommenden Jahr, über 25.000 t in 2007/08, vielleicht schon bis zu 60.000 t in 2008/09 ( ?). Als Fernziel waren 150.000 – 200.000 t genannt worden, wäre ne Verzwanzigfachung. ( Leider gibt’s keine Daten zu den Explorationsgebieten, um das besser einschätzen zu können ).

Hedge fürs nächste Jahr: 4775 t Kupfer zu ca. 4517 $/t (ca 2,05 $/lb ), schätze mal unter 28% der Produktion. Da die Produktionskosten für Ruashi I unter 0,75 $/lb liegen sollen, wäre das immer noch ne hübsche Marge. Über den Gold-Hedge für die Barberton Gruben reden wir nicht, der ist wieder unter aller Sau.

Greg Potter: "It's a buy. We like the management,"

CEO Needham ist optimistisch zu den Rohstoffpreisen:
"Commodity prices led by copper will remain stronger for longer."
Metorex earnings will more than double - Greg Potter, Nedcor Securities
http://www.miningmx.com/radio/

“These were really good results. I think we’re going to see a very strong earnings growth profile out of this company for the next two year, which will be primarily copper driven,” said a Johannesburg-based analyst.
Metorex zinc output in nine months
Allan Seccombe
Posted: Wed, 23 Aug 2006
http://www.miningmx.com/mining_fin/953407.htm

Bei der Sable Anlage in Sambia sollen nun auch Zinkhalden verarbeitet werden, bis zu 5.000 t Zink im Jahr. Zunächst in 9 Monaten eine Anlage für 8 Mio $, um 400.000 t Oxidationserze mit 12% Zink zu verarbeiten, danach weitere 5 Mio $ Investition für 3-4 Mio Tonnen Sulfiderze mit 7% Zink.

And UP!

Auszug aus dem langen Interview mit dem CEO über die Lage im Kongo

Charles Needham: CEO, Metorex
By: Alec Hogg
Posted: '24-AUG-06 16:39' GMT © Mineweb 1997-2006
http://www.mineweb.net/radio/mineweb_radio/959548.htm

MINEWEB: Last night our investigations editor and regular visitor to trouble spots in Africa, Barry Sergeant, was bringing us up to date on the DRC situation. Barry, we had results today from Metorex. It is one of the more favoured shares on the JSE, not surprisingly, because their financial numbers are spectacular – profits up from R27m to R155m. That’s for the year to the end of June. We’ve got Charles Needham, the chief executive in the studio. But, Barry, these numbers are huge, they are a big turnaround. But risks are high – they are playing around in the DRC.
...

MINEWEB: And has there been war and military action in that part of the Democratic Republic of Congo?

BARRY SERGEANT: Yes, in that part of the DRC, it’s more Militia groups known as Mai-Mai and one of the particular dangers of the Mai-Mai is that they in many senses control the border crossing. And this is a challenge for many companies, including possibly Metorex, because Metorex is building a concentrator at Ruashi which has considerable material, copper cobalt. And it’s going to be trucking that across the border ad that border, Kasumbalesa, for anyone who has been there, is absolutely notorious. If you want a version of hell on earth, go and study what goes on at that border crossing. And you will not also believe the number of trucks that are crossing out of DRC, most of them are headed for Dar-es-Salaam in Tanzania, with copper concentrate, cobalt and other interesting materials.

...

BARRY SERGEANT: Alec, I don’t think it’s any secret that over the past roughly 10 years or so, that just the sheer presence and threats posed by militia groups such as the Mai-Mai have extracted – this has been independently verified by a number of groupings– many hundreds of millions of dollars in just call it straight bribes, otherwise you can’t get your trucks across the border. But that is changing. Big companies and companies with a vested interest, such as Metorex, are holding their own ground. I can’t speak for Metorex, but they are holding their ground and they’re saying this system is going to work in a formal way, otherwise it’s not going to work at all. But those are very sensitive type of discussions, and exactly what happens on the ground at the border crossing is something which at the moment is still changing day by day.

...

MINEWEB: Barry, last night in our discussion on this, we had an expert telling us that he would be worried if he was invested in the DRC.

BARRY SERGEANT: Yes Alec, I think one of the points, as Charles is saying, it’s a huge country, the size of Western Europe. If you go back to when Mobutu took over in 1965 up to when he was forced out in 1997, his control was critical in the Katanga province. His control was critical over minerals. And going north of Katanga, you get Kasai province where you’ve got Mbuji-Mayi, and that’s diamonds. And then further to the East you’ve got the Kivus and right at the top you’ve got Ituri, as Charles mentioned, that’s where you’ve got really, really dangerous things going on. It's one of the Ugandan resistance movements that’s really bad news. But the bottom line is, the person who controls that spine through the DRC, Ituri, the Kivus, Kasai and Katanga is the person with the money. And in the DRC, politics is money is politics. You can’t separate the two. And that’s really what the fight is. The fight at the presidential level is about who controls that spine.

MINEWEB: And Charles, from your perspective, if you are continuing to invest there, what kind of guarantees do you have that some politician isn’t going to come and swoop on your plant?

CHARLES NEEDHAM: There’s nothing certain in life. But in terms of where we are now – and I say it again – with the World Bank and the world looking over the shoulder of whoever the government may be, I really don’t believe that they would revert to the situation that existed prior to Joseph Kabila coming into power. I really don’t think it would be sensible for the country and I think that they are all mindful of the fact.

...

MINEWEB: Well, Barry Sergeant, Metorex is one of the favoured stocks. In fact last year Stephen Mildenhall, who is an admired asset manager, said it was his number one share on the JSE. It’s performed terribly well, it’s also produced strong profit returns. It’s the kind of share that the more adventurous investor, I guess, would be going for?

BARRY SERGEANT: Yes indeed. I think if you look today, even at the results coming out of Zambia, Chibuluma, the profit margin there was about 45%. You mentioned Gold Reef City earlier. Now Ruashi, the materials there are all above the ground, and goodness knows what those sort of margins are going to look like. Any stab at that, Charles?

CHARLES NEEDHAM: They are most exciting. I would think that they are probably, with the current copper price, in the order of plus 50%.

MINEWEB: So, it’s better than a Gold Reef City.

Ruashi

Posted: Fri, 15 Sep 2006

[miningmx.com] -- Four miners were killed on September 14 and dozens more are unaccounted for after a copper mine collapsed in the Democratic Republic of Congo (DRC), according to a report by Sapa, a South African newswire service.

Thirteen miners got out of the mine alive, which is owned by South African firm Ruashi Mining, said Sapa.
http://www.miningmx.com/wts/172132.htm

Hallöchen an Eldo,

ja schlechte Nachrichten heute,

"copper mine collapsed" und ebenso PoG

Dennoch schönes Wochenende

[Blockierte Grafik: http://www.cosgan.de/images/smilie/froehlich/a010.gif]

Hoffentlich keine Gefahr für MTX:

28.11.2006 - 13:35 Uhr
Kongo: Joint Ventures von Gecamines auf dem Prüfstand

LONDON (Dow Jones)--Das neu gewählte Parlament der Demokratischen Republik Kongo hat mit einer Untersuchung der Joint Ventures zwischen der staatlichen Bergbaugesellschaft Gecamines und ausländischen Partnern begonnen. Nach Aussage des Regierungsberaters Georges Ndebolo könnte im Ergebnis eine komplette Umgestaltung des Managements stehen. Außerdem sei es möglich, dass bestehende Joint Ventures erneut ausgeschrieben würden. Zum gegenwärtigen Zeitpunkt ist Gecamines an 40 Ventures mit ausländischen Bergbaugesellschaften beteiligt. Für 2006 wird eine Produktion von 25.000 t Kupfer, 2.000 t Kobalt und 5.000 t Zink erwartet.
...
http://www.finanztreff.de/ftre…n&awert=nemetalle&u=0&k=0