Interesting reading for all Sundancers, half way through this article.
Print Email Chinese firms keen for Cape Lambert mine 23-September-09 by AAP
View all of today's news on our homepage Chinese parties are eyeing Cape Lambert Iron Ore's Lady Annie copper mine in Queensland that the deal-focused miner expects will be among several asset sales by Christmas worth about $430 million in total.
Chinese firms are also interested in Cape Lambert's 35 per cent-owned Marampa iron ore project in Sierra Leone, executive chairman Tony Sage told a briefing in Perth today.
"I can tell you right now, we've got three Chinese groups crawling all over Lady Annie," Mr Sage said.
"We've got three Chinese groups crawling over Sierra Leone trying to buy either the (African Minerals-owned) Tonkolili asset or the Marampa asset.
"I know they're in Cameroon talking to Sundance. They'll be on our (doorstep) very shortly."
Mr Sage said Cape Lambert expected to receive at least $150 million in cash from the Lady Annie sale.
The mine, which was expected to bring in more than $1 billion in revenue at the height of the copper price boom, was acquired by Cape Lambert for a mere $80 million from the collapsed firm CopperCo in May amid depressed prices for the commodity.
"We've gone out and marketed this operation and had two offers, but the best process for us is an IPO (initial public offer) process," Mr Sage said.
"We get to retain an interest ... of five to 10 per cent .... mainly for tax reasons.
"I think we'll be pretty safe raising between $200 million to $250 million but that's all dependent on doing a full bookbuild on our next roadshow."
Mr Sage said the company expected to receive $US100 million ($A114 million) for its stake in Marampa.
"What did it cost us? $2 million," he said.
"I think something will happen before Christmas on that one."
The company's other assets will be proved up to make them attractive for acquisition, then offloaded at presumably a substantial profit.
Mr Sage said the market was now aware Cape Lambert wanted to be a mine developer, not a miner.
He said the company was producing copper at Lady Annie because stockpiled ore could be processed with minimal effort.
"We're doing that just to cover our holding costs," he said.
"I've always vowed not to be a (mine) operator."
Mr Sage said a $50 million dividend would be paid to shareholders in the March quarter, subject to the sale of Lady Annie.
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