chinese to be joined by indian resource raider

http://business.theage.com.au/business/chinese-to-be-joined-by-indian-resource-raiders-20090816-emek.html?page=-1

August 17, 2009

INDOPHIL RESOURCES The stunning turnaround in copper prices in response to the easing of the global financial crisis has worked wonders on the share price of Melbourne-based Indophil Resources, a partner in the Xstrata-managed Tampakan copper/gold deposit in the Philippines.

The stock put on another 5¢ on Friday to close at 67¢ which is a far cry from the 21¢ a share low back in late January.

Copper's 86 per cent rebound in the last six months from $US1.50 a pound to $US2.80 a pound has been the main driver in Indophil's resurgence.

But some potential corporate action is also at work.

Indophil has opened a data room for prospective buyers of its 34.23 per cent stake in Tampakan, one of the world's biggest undeveloped copper deposits.

Several tier-one companies and sovereign investments funds have signed confidentiality agreements to get access to the data room.

While it will take time for any deal to be reached, it could well be worth the wait given the sheer size of Tampakan - a likely $US5 billion development capable of producing 340,000 tonnes of copper and 350,000 ounces of gold annually for more than 20 years.

Indophil's current market capitalisation values its share of Tampakan's riches at all of A2.2¢ a pound of copper in-the-ground.

That is a fraction of the A7¢ a pound implied in recent copper asset deals elsewhere in the world and the A20¢ a pound that Xstrata - it's got 62.5 per cent of Tampakan - is considering accepting for its interest in the El Morro copper project in Chile from Chinese interests.

Indophil chief executive Richard Laufmann isn't giving anything away on the Tampakan sale process.

But it's worth noting that Laufmann's new business cards are double-sided affairs, English on one side, and Chinese on the other.