Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Share premium for La Mancha, gold discount for Sawiris
La Mancha gets a sweet looking premium in all cash takeover, but then a nice looking discount on a per ounce gold basis goes to the buyer.
Posted: Tuesday , 17 Jul 2012
HALIFAX, NS (MINEWEB) -
The premium Naguib Sawiris, an Egyptian billionaire, is paying for La Mancha Resources (TSX: LMA) in cash is catching some attention. Sawiris, through Weather Investments II, is buying La Mancha Resources, which owns a handful of gold mines, for $493 million in cash. That's a 56 percent premium to La Mancha's pre-deal closing price and it also stacks up nicely versus La Mancha's shareprice high in the past year - heights so many juniors, intermediates and majors alike now look back upon wistfully.
But from Sawiris' perspective the deal also looks good. On the basis of the price he is paying per ounce gold, La Mancha is going for pretty cheap.
To break it down: As La Mancha counts $115.5 million in cash and cash equivalents, we'll say the La Mancha takeover offer is really worth about $377.5 million. La Mancha's gold ounces in the ground are about 4.5 million ounces in total reserves and resources and mostly at producing gold mines. Now take the revised pricetag and divide it by those 4.5 million gold ounces and we get the overall price paid for La Mancha's in the ground resources: $84 per ounce gold.
Broadly speaking, for Sawiris that compares nicely to typical prices paid in gold mergers and acquisitions in recent years. IBK Capital, a Vancouver-based investment banking firm, puts the average per ounce gold price at just over $200 in the past couple years. Indeed the price Sawiris is paying is more like valuations in deals involving non-producing assets. To give an all-cash example from this year, Iamgold bought junior-explorer Trelawney Mining for about C$608 million. This translated to about C$89 per ounce gold.
In this light, as La Mancha commanded a premium on its shareprice, it looks as if Sawiris caught a discount on gold price.
Auguries—You Bet Your Life
February 23, 2012
By Kevin Michael Grace
Gold was up (at press time) $51 (+2.9%) for the week to $1,781.10, and silver was up $1.96 (+5.8%) to $35.48. Bloomberg reported, “Gold climbed to a three-month high…as the dollar weakened, spurring demand for the precious metal as an alternative investment. Silver jumped to a 15-week high.”
Bloomberg attributed gold’s rise to “strong economic numbers out of the US [if you say so] and Germany.” Reuters cited (wait for it) “a stronger Euro, coupled with growing concern over the impact on inflation from oil trading above $120 a barrel.” The Wall Street Journal quoted commodities analyst Ira Epstein, “What really got gold going was once Europe made up its mind that it was going to keep Greece alive with printing presses.” And FastMarkets quoted MKS Finance, “Even though Greeks received a 130 billion Euro package, there’s still perception that the Greek debt has been delayed rather than solved.” MKS concludes, “The macroeconomic picture is looking rather in favour of higher prices.”
Read the rest of this article. http://resourceclips.com/2012/02/23/auguries%E2%80%94you-bet-your-life/
With operations in Australia, Sudan, Ivory Coast and Argentina, this one certainly has a different risk profile than many of the others. Of course, it certainly provides a means of expanding one's geographic diversity beyond Mexico.
La Mancha looks to be one of those flying quietly under most radars out there.
Its very quite on this board LMA has come a long ways and from a .06 cent to over 2.00 dollars stock LMA is still highly reccomended .
The stock is back into the 1.50 range now but watch it move up big time once gold breaks out above 1300 per oz
Well LMA is hitting the 2.00 range what a investment only to think that LMA was trading at .06 cents a person could of retired on this company
Looking good thanks for posting the news
more good news as VMS target continues to grow in resource. This is the second of several open pits that have already had the easily accessible oxide ore removed. LMA believes that there is a very large VMS system UNDER the existing open pits.
La Mancha Resources Inc.: Second Hassai Mine VMS Target Boosts Project's 43-101 Inferred Resource to Over Two Million Ounces of Gold
PARIS, FRANCE--(Marketwire - Nov. 4, 2009) - La Mancha Resources Inc. (TSX:LMA) - All amounts are expressed in CA dollars, unless otherwise indicated.
HIGHLIGHTS (Hadal Awatib):
- 1,089,500 ounces of gold in inferred resources (435,800 attributable to La Mancha)
- 132,640 ounces of gold in indicated resources (53,050 attributable to La Mancha)
- 279,000 tonnes of copper in inferred resources (111,600 tonnes attributable to La Mancha) and 36,800 tonnes of copper in indicated resources (14,720 tonnes attributable to La Mancha)
- A large part of the resource appears accessible by open pit mining method
- 54,000 ounces of additional gold resources in the oxide zone
HIGHLIGHTS (VMS - cumulative)
- More than 2 million ounces of gold (over 800,000 attributable to La Mancha)
- More than 575,000 tonnes of copper (over 230,000 attributable to La Mancha)
- Resource remains open at depth and/or along strike
- La Mancha reaffirms its goal of growing its consolidated M&I resources to 4 million ounces of gold within the next few years
La Mancha Resources Inc. (TSX:LMA, hereinafter "La Mancha" or the "Company") is pleased to announce the 43-101 compliant resource estimate for the second VMS target (Hadal Awatib pit) on its Hassai property in Northeast Sudan. The resource for the first VMS target at Hassai was reported on September 10, 2009. The cumulative inferred resource for the VMS project at Hassai now exceeds 2 million ounces of gold and 575,000 tonnes of copper. The gold equivalent of the cumulative copper resource represents 3,369,500 ounces of gold (1,347,800 ounces attributable to La Mancha) using a long-term gold price of US $750/oz and a long term copper price of US $2/lb.
A summary of the cumulative VMS resource estimate is presented below. More details on the resource are presented in Table 1 at the end of this press release.
---------------------------------------------------------------------------
43-101 resource Ore Au Total Au Au attribu- Cu% Total Cu attribu-
as of November (t) (g/t) (in oz) table to Cu (t) table to
3, 2009 LMA (in oz) LMA (in t)
---------------------------------------------------------------------------
Hassaï pit
(target #1)
Supergene
inferred
resource 1,530,000 2.29 112,000 44,800 2.75 42,000 16,800
Primary
zone
inferred
resource 18,620,000 1.49 894,000 357,600 1.37 255,000 102,000
---------------------------------------------------------------------------
Subtotal
inferred
resource 20,150,000 1.55 1,006,000 402,400 1.48 297,000 118,800
---------------------------------------------------------------------------
Hadal Awatib
(target #2)
Indicated
resource 2,898,000 0.93 86,700 34,680 1.27 36,800 14,720
---------------------------------------------------------------------------
Inferred
resource 28,330,000 1.18 1,072,000 428,800 0.99 279,000 111,600
---------------------------------------------------------------------------
Total
(target 1
& 2)
---------------------------------------------------------------------------
Indicated
resource
(i) 2,898,000 0.93 86,700 34,680 1.27 36,800 14,720
Inferred
resource
(i) 48,480,000 1.33 2,078,000 831,200 1.23 576,000 230,400
---------------------------------------------------------------------------
-------------------------------------------------------------------------
43-101 resource Ore Au Total Au Au attributable Cu Cu
as of November (t) (g/t) (oz) to LMA (oz) (%) (t)
3, 2009
-------------------------------------------------------------------------
Indicated
Resource 159,150 8.98 45,936 18,374 - -
Inferred
Resource 65,500 8.32 17,500 7,000 - -
-------------------------------------------------------------------------
Guess we're the only ones that are celebrating LaMancha. This latest move must be related to Sprott coming onboard and recommending LMA. Still don't think many retail investors know about the stock. The three small mines aren't really exciting but Hassai could be the spark that sends the stock up. If they keep releasing similar resource reports of 1 million oz equivalent for each of the six targets, LMA will look like a stupendous bargain at C$1.45.
Profits, cashflow and no dilution while the ounces pile up. This is a legitimate 10bagger candidate. One of these days, we will have a lot of company. Bobwins
I knew this stock was a winner, gotta like the trading going on here
Nice breakout LMA.to/lachf.pk +.22 to C$1.38
1 million oz inferred at first VMS target at Hassai. 5 more targets. Next resource calculation will be published by 10/09.
Hassai could become a huge deposit.
http://www.lamancharesources.com/servlet/dispatcherservlet?selectedContentID=1233&lang=2&action=2
Sprott is buying LaMancha!!
http://www.sprott.com/Docs/Reports/tripleA_Asset.pdf
Things are sure looking good for LMA this stock price was .10 cents a year ago now look where it is over 1.00
Cheers to the holders
Excellent Q2 report. .042 eps and .05 cashflow.
Reiterated guidance of 100K oz for 2009
Close to announcing a tolling agreement that will allow White Foil mine to reopen. Mine is ready to go so could open prior to year end. Short term deposit that is slated to produce 69,000 oz over 27 months of production. Should add 30-35K oz/yr to 2010-2011.
La Mancha should double from here to get to a 15 p/e. If investors realized how deep the portfolio of prospects is, I think LMA would go a lot higher. The support of Areva is also a big plus.
Bobwins
http://finance.yahoo.com/news/La-Mancha-Posts-Record-ccn-2893426432.html?x=0&.v=1
Added a few shares last week at C$.75. Not sure why it's been weak lately. Gold has been holding up pretty well and bounced late in the week. Let's hope they had a good qtr in Australian mines and will report another good qtr. We need more investors to understand how fundamentally cheap La Mancha is.
At today's prices, LMA.to is just over 2 X forward cashflow. Very difficult to find other junior golds that cheap.
Some don't like multiple small mines but that diversification can payoff because La Mancha is not reliant on just one mine for production and can keep production going even if there are political or labor problems at one of their sites.
Bobwins
It would seem that LMA has finished with the retracement ,we should be seeing some news very soon .
LMA is pulling back a bit after the run to over 1.00 just and to see that this stock was trading @ .06 cents last year what a opertunity that was to buy at .
This stock price is sure reacting great with the rise of gold and the potential of the vms LMA went over 1.00 this week,looking for a little correction in the sp and then head higher again if gold breaks the mighty 1000.00 then its really show time.
La Mancha has been especially lately. The report showing a second area beneath old open pit operations at Hassai has focused attention on the tremendous potential of this possible VMS deposit.
http://finance.yahoo.com/news/La-Mancha-Confirms-the-ccn-15344886.html?.v=1
Same here. I use Interactive Brokers to buy LMA.to. Bought a couple of months ago with avg price of .46. Decided to buy after seeing that price to cashflow was less than 2 based on projected production and cashflow. So far so good.
Bobwins.
La Mancha will be moving there head office to Paris I thought that was odd but did,nt realize that is where Areva are from and they hold over 60 % of the company.
Are you holding shares in this company
I have shares in LMA on the canadian side
You did the work, ask them to put you back as moderator.
Yes I put it together looks like they took my name off due to lack of posting or not keeping up with my ihub membership
LMA was featured on the BNN market report show last week and made an impressive speak.
Did you start this board? How come you didn't list yourself as moderator?
Yes LMA has been doing great over the past few months.need this comapny to prove up more res and put out a nr stating over 2 million oz,s would blow the lid right off
LaMancha agrees to process ore from Frog's Leg mine thru the mill owned by their minority partner. No indication of the cost savings that will accrue to LMA. Bobwins
http://www.proactiveinvestors.com.au/companies/news/1470/dioro-exploration-in-new-toll-mill-agreement-for-frogs-let-project-wa--1470.html
Nice reaction to earnings. Stock was at C$.45 before earnings and is now holding near C$.70. Still very undervalued.
Cashflow of 11 million should be more stable than profits, due to changing diesel and power costs as well as the impact of changing USD/AUD ratios.
Frog Leg is their newest mine and is expected to produce more in Q2, further increasing cashflow.
White Foil is a short mine life project that is expected to startup late 2009/early 2010 to further boost production and cashflow.
Further down the road, the Hassai exploration program holds the promise of a very large VMS deposit that could lead to very large copper/gold production.
All in all, the future looks bright for La Mancha.
Bobwins
La Mancha finally caught up to it's potential!
Q1 was great with 18,515oz of gold produced at a cash cost of $451/oz.
Net profits of 3.5 million or .025eps
Cashflow of 11million or .0775
Cash is building at 20 million
Stock had a surge on Thursday and Friday, popping from the mid .40's to Friday's close of C$.66.
I expect further appreciation as the market realizes that La Mancha has big upside from here.
FWD p/e ratio is 6.6
FWD price to cashflow is just over 2.
Normal numbers for small cap juniors would be in the 20 range for p/e and 10 for cashflow ratio. Since La Mancha is new to profits, it will take several qtrs of similar performance before the market is convinced and aware of LMA.to and gives them something close to the average valuation.
http://finance.yahoo.com/news/La-Manchas-Profits-Surge-as-ccn-15180640.html?.v=1
Bobwins
NEWS TODAY
LA MANCHA TAKES ADVANTAGE OF STRONG GOLD PRICES
Montreal, February 4, 2009
La Mancha Resources Inc. (TSX: LMA, hereinafter "La Mancha" or the "Company") announces that it has implemented a hedging program designed to secure significant cash flow from approximately 34% of its 2009 gold production while maintaining significant exposure to future gold price increases. The program was designed to guarantee a minimum selling price of AUD1, 210 and €580 per ounce for approximately 50% of La Mancha's combined 2009 attributable production respectively from the Frog's Leg and Ity mines. It is important to note that while secured by a strong minimum selling price, the portion of production covered by the program allows La Mancha to fully benefit from any future rise of up to AUD1,795 and €893 in the gold price per once for production from the Frog's Leg and Ity mines, respectively.
Michel Cuilhé, President and CEO of La Mancha, commented: "Recent record gold prices in Australian dollars and Euros provide a unique opportunity for proactive gold producers such as La Mancha. With today's program, La Mancha is better positioned than ever to generate its strongest operational cash flows to date while taking yet another step towards profitability. Moreover, the important upside that the program allows will enable La Mancha shareholders to benefit from the current run-up in gold prices up to unprecedented levels."
As mentioned before, the program only applies to 34% of La Mancha's forecast 2009 production.
Listed on 4 exchanges too ! Looks like a potential mover. IMO
Now I have been searching for gold producing companies for some time now and have been doing DD on La Mancha Resources and find this company to have some huge potential.
Followers
|
1
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
39
|
Created
|
02/02/09
|
Type
|
Free
|
Moderators |
http://www.lamancharesources.com
Share Structure
As of Sept/08
142 Issued and Outstanding
143 Fully Diluted
Info From Company Website
LA MANCHA TAKES ADVANTAGE OF STRONG GOLD PRICES
Press Release Date - February 04, 2009
view news post
LA MANCHA'S 2008 YEAR END PRODUCTION INCREASES 33% TO 71,550 OUNCES
Press Release Date - January 22, 2009
view news post
--------------------------------------------------------------------------------
HASSAÏ MINE TAILINGS BEGIN ADDING TO LA MANCHA'S GOLD RESOURCES
Press Release Date - January 07, 2009
RESOURCE AT LA MANCHA'S ITY MINE JUMPS 50% ON EXCELLENT DRILL RESULTS
Press Release Date - January 05, 2009
La Mancha was created in September 2006 following the fusion of the gold assets of AREVA NC a large French multinational, with the exploration properties held by La Mancha Resources Inc., a Canadian-based gold exploration company.
The result is an internationally-diversified gold producer based in Montreal with 1,200 employees operating three gold mines, in Australia and Africa, and developing an additional gold project in Australia.
Our strategic objectives for 2008 are to resume production at our Frog's Leg mine, which entered production on May 13, 2008, and to increase profitability at our two African operations. Our mid-term objective is to capitalize on the Company's substantial exploration potential in order to assure a steady increase in reserves and production. In 2008, more than $18.3 million ($10.6 million attributable to La Mancha) will be spent on our properties to that effect.
La Mancha intends to increase its production by more than 32% in 2008 to 71,000 ounces. Moreover, the Company intends to double its resource base within the next 2 years.
La Mancha's shares trade on the Toronto Stock Exchange (TSX) under the symbol "LMA
view news post
--------------------------------------------------------------------------------
RESOURCE AT LA MANCHA'S ITY MINE JUMPS 50% ON EXCELLENT DRILL RESULTS
Press Release Date - January 05, 2009
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |