I attended the Perth Shareholders Meeting and will summarise opening comments made by Tony Sage and will then summarise TS's answers to questions asked. Approx 200 people attended.
*African Petroleum. Cape Lambert has decided to delist from ASX and move solely to NSX. This will save significient ASX fees. CFE is obviously unhappy with actions and attitude of ASX. Shares are trading on NSX at around 70c which caps company at approx $1B.
*Tonkolili. Will be exporting by end of next year.
* Marampa. Annual tonnage estimated at 1B. Value of Marampa is $500M.
*Railway Line. 8M of African Minerals tonnage will go on the Marampa Railway Line. This will ensure signifient ongoing income. The remaining 2M will be Marampa tonnage.
*Port Facilities. The Port will handle 85M tonnage of which 45M will come from African Minerals.
*In Tony's words the jewel in the crown of holdings is sites 4B & 4C (Marampa is site 4A). He estimates that these are much larger and are held by the Pinnicle Group of which Cape Lambert ownes 37.2%.
*DMC. Results of holes drilled will be coming out in a few weeks. TS is very happy with this acquistion.
*Sappes. Will probably be ready for sale by Christmas. Estimated value $50M (100% owned).
*Lady Loretta. Has over $20M in bank. CFE holds 25%.
*Mayoka. Valued at $100M (CFE ownes 100%).
The following comments are from questions raised.
Chameleon. Court decision is a huge win. An offer has already been made by Murchison and negotiations are proceeding. The court appeal by IPL will delay proceedings but this is the Australian legal system.
MCC. The $80M will be paid. The company has acknowledged this debt. Negotiations were delayed by the initial announcement of the Mining Tax. Payment is expected shortly.
Marampa. Proposed sale is estimated for March 2011 quarter.
Share Price. A major shareholder held 27M and retained holdings to receive recent dividend. He has since sold 16M. Negotiations are now being held regarding the remaining 11M shares.
Potential Takeover. TS acknowledged that CFE was potentially subject to a potential takeover. He indicated we have loyal major shareholders and was confident that CFE was reasonably safe from attack.
Sale of Assets. Proceeds will be applied as follows. 1. Payment of dividend to shareholders. 2. Buy back of shares to offset takeover. 3. Invest in infrastructure costs.
Leichardt. Intends to hold asset.
It was mentioned that the holding of the shareholders meeting was an initiative of D J Carmichaels. I suggest Eastern Staters ask Caemichaels for a similar seminar in your State. (Sorry Tony S but I had to suggest it).
DISCLAIMER The above summary is done in good faith and if there are any inaccuracies would other Perth attendees please feel free to correct as any errors were not intentional or meant to mislead. I hold CFE.
CFE Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
(20min delay)