Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

25 Pages (Click to Jump) V   1 2 3 4 > »    
 
  
Reply to this topic

CUO, COPPERCO LIMITED
diana
post Posted: Dec 16 2008, 07:22 AM
  Quote Post


Posts: 6,624
Thanks: 361


In reply to: vegemite on Monday 15/12/08 06:15pm

Thanks vegemite. Unbelievable situation here. ohmy.gif
R/Di



--------------------
"Adversity does not build character; adversity reveals character."
Sandy Dahl
 
vegemite
post Posted: Dec 15 2008, 06:15 PM
  Quote Post


Posts: 454
Thanks: 20


In reply to: vegemite on Wednesday 03/12/08 10:02am

On another forum (HC), a shareholder group has been created to explore what options might be available for anyone caught out by the CUO collapse. The more the better as there is strength in numbers and a bigger range of ideas etc. From Susan's emails so far it seems like all hope is not yet lost.

To join the group, email Susan at the address below:

hayman_and_king@hotmail.com

(Permission has been obtained to post this)

Cheers, V

 
vegemite
post Posted: Dec 3 2008, 10:02 AM
  Quote Post


Posts: 454
Thanks: 20


In reply to: diana on Friday 28/11/08 09:19am

From today's SMH...


...Oz retains the advantage, at least, of still being extant. Not so Copperco.

Copperco tanned

Just one month ago, Copperco was travelling along quite nicely. It had declared a maiden profit of $11 million for 2008. Its Lady Annie copper project in Queensland was on track, it was mostly covered on the commodity front thanks to a robust hedge book over two-thirds of production. Things were good.

Next thing you know, it's vanished. Eaten. Voluntary administration. McGrath Nicol appointed. Victim of another alien monster of disclosure.

The culprit appears to be Mineral Securities, which had a nasty little $45 million debt which nobody seems to have known about. Notwithstanding the dubious logic of the deal, Copperco saw fit to take over MinSec early this year and Copperco had arrived at the threshold of compulsory acquisition of its target in September.

A month later however, in the week of October 10, Copperco shares began tanking. With nary a reverse speeding ticket, that is a ``please explain'' from the ASX, the stock dropped from 22.5 cents to close at 11.5 cents on volume of 38 million shares. In the week ending October 24, the shares fell from 14 cents to 9.9 cents on turnover of 13 million.

Still nothing.

Then came an upbeat presentation by Copperco boss Brian Rear to the Queensland Resources Conference on October 30. Quality asset, profitable company, hedging in place. All good.

Twenty days elapsed with no announcement. Then, on November 20 came ''Trading Halt'', November 24 ``Suspension from Official Quotation'', and the piece de resistance on November 27, ''Appointment of Administrator''. Horror movie.

Not-so Champion move

Early this year, Copperco's mining veterans Keith Liddell and Brian Rear had put a proposition to shareholders to buy the Robert Champion de Crespigny-chaired MinSec (de Creps had previously sold Scarborough into MinSec). Though theirs was a clean little one-mine operation with some cash and heading into profit they would merge with a company with a platinum prospect in South Africa and a gold project in China.

At the time there was nothing particularly wrong in chasing growth - you wouldn't do it right at the moment - though MinSec was more of a mining investment house and its projects required funding.

As the lady who ran the exclusive Queens Club on Sydney's Elizabeth Street is reputed to have once told her counterparts from Tattersalls Club a few doors' down the road upon the occasion of a visit from Tatts directors with a merger proposal: ''It's a marriage made in heaven. We have money, and you need money''. She politely declined their affections.

In retrospect it seems de Creps and his asset trading troops from MinSec probably had their eye on Copperco's cash and cash-positive status all along. Mind you, this was a scrip offer and it's worth considering the plight of poor MinSec shareholders whose stock was changing hands at $2.30 before they accepted an offer of 2.2 Copperco shares for every one of their bits of paper.

Also with the benefit of hindsight, and much digging, it appears that MinSec had managed to max out a $45 million credit facility. Try to find a mention of that $45 million in Copperco's disclosure material, or MinSec's for that matter, and you will have your work cut out for you.

The only mention we could manage to find - without the assistance of a forensic team - was interred in the auditor's report to the annual accounts where Ernst & Young expressed its concern over Copperco's capacity to continue as a going concern.

Digging for details

Whatever the case, and we stand to be corrected on this, two broking analysts who covered the stock knew zero about the $45 million liability and there is no doubt that the information was not sufficiently in the public domain.

''You could spend a week dredging through the releases and the presentations and not find it,'' said one. Since the debt appears to have brought Copperco undone, it was surely a material disclosure.

There is the matter of course of the banks, especially in the present environment, pulling their funding. In Oz Minerals' case, the two foreign banks mentioned above are rumoured hold-outs. In the Babcock & Brown saga it is a German bank freezing a Babcock deposit, and in the Copperco debacle it could be Macquarie, which is not only the banker but also ran the hedge book.

Unless it had laid-off its risk on the Copperco book, Macquarie would have been taking a belting on its forward positions. But it also has shares.

Mining companies with half a decent hedge book in this market are sitting pretty - as long as they are meeting their obligations. Albidon and Bass Metals spring to mind as two who have been able to cash up by closing out their forward positions.

Sadly this was not available to Copperco. It will be interesting to see who emerges with the profitable Lady Annie asset out of the administration of the company.

In the meantime, the lightning demise of Copperco presents a salutary warning to mining companies. Not only are they subject to the stock market implosion and the dramatic decline in commodity prices but now they are on a heightened alert over the risk appetite from their own bankers.


 
diana
post Posted: Nov 28 2008, 09:19 AM
  Quote Post


Posts: 6,624
Thanks: 361


In reply to: boundless on Thursday 27/11/08 07:31pm

Yes ... indeed. A great shame as they made their first profit in September Q. So the financiers have pulled the rug at the 11th hour and the copper price falls out of bed all at once ... I just hope all the work that has been done with CUO doesn't go completely to waste. What will the Administrators do I wonder and will any other company pick up the pieces. sad.gif
R/Di



--------------------
"Adversity does not build character; adversity reveals character."
Sandy Dahl
 
boundless
post Posted: Nov 27 2008, 07:31 PM
  Quote Post


Posts: 203
Thanks: 7


Sorry to hear about this one Diana. I'm sure you are hurting. We all feel for you and the other shareholders.

It seems like companies are lining up to go bust in this market!

 
BSA
post Posted: Nov 27 2008, 02:56 PM
  Quote Post


Posts: 8,001
Thanks: 403


Another one with horror wobbles/credit crunch victim,..administrators called in.



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


 

sentifi.com

Share Cafe Sentifi Top themes and market attention on:


brett19
post Posted: Nov 26 2008, 09:51 AM
  Quote Post


Posts: 11
Thanks: 1


any body know what is happening here

 
jamiroquai
post Posted: Nov 19 2008, 08:55 AM
  Quote Post


Posts: 323
Thanks: 6


In reply to: jamiroquai on Wednesday 19/11/08 08:52am

P.S copper up today on the back of the DOW closing up 151 points .....lets hope for a bear rally

 
jamiroquai
post Posted: Nov 19 2008, 08:52 AM
  Quote Post


Posts: 323
Thanks: 6


In reply to: diana on Thursday 25/09/08 01:30pm

can you all believe the shareprice.....5c at yesterdays close............COPPER/PLATINUM/GOLD (china project) 15 million in the bank

Merryl Lynch major shareholder......cash operasting margin of $2500/t

markt is down but 5c come on......i bought at the close yesterday as i think in 2 -3 years i can get 200-300% GAINS
CHEERS Jam

 
diana
post Posted: Sep 25 2008, 01:30 PM
  Quote Post


Posts: 6,624
Thanks: 361


In reply to: arty on Thursday 25/09/08 12:34pm

Well I get fed up of talking to myself arty. Sometimes it's just nice to sit and watch and wait as things unfold as you think they will. No arguments, no hassles, no dramas. smile.gif
R/Di



--------------------
"Adversity does not build character; adversity reveals character."
Sandy Dahl
 
 


25 Pages (Click to Jump) V   1 2 3 4 > » 

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING