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Magnum Hunter Resources Announces Pricing of Public Offering of Depositary Shares Representing 8% Series E Cumulative Convert...
Magnum Hunter Resources Corp. (NYSE:MHR)
Wednesday 5 December 2012
Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (the "Company") announced today that it has priced an underwritten public offering of depositary shares ("Depositary Shares"), each representing a 1/1,000th interest in a share of its 8% Series E Cumulative Convertible Preferred Stock (with a liquidation preference of $25,000 per share, which is equivalent to $25 per Depositary Share) (the "Series E Preferred Stock"). The Company is offering 1,000,000 Depositary Shares at a public offering price of $23.50 per share. In connection with the offering, UBS Investment Bank, MLV & Co. LLC and Wunderlich Securities, Inc. have acted as joint book running managers.
Net proceeds to the Company after underwriters' commissions and before offering expenses are expected to be approximately $22.4 million, assuming the offering is fully subscribed. The Company plans to use the net offering proceeds to repay indebtedness under its senior revolving credit facility. Further, the expected listing of the Depositary Shares on the NYSE MKT will satisfy assurances made to the former stockholders of Viking International Resources Co., Inc. ("VIRCO") who received approximately 2.8 million Depositary Shares as a portion of the purchase price when a subsidiary of the Company acquired all of the stock of VIRCO in November 2012.
The offering is being made on a "best efforts" basis pursuant to an effective shelf registration statement that the Company previously filed with the U.S. Securities and Exchange Commission (the "SEC"). A final prospectus supplement relating to the offering will be filed with the SEC. Before you invest, you should read the prospectus in the registration statement and related prospectus supplement and other documents that the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting the SEC's website at http://www.sec.gov, or by written request to Magnum Hunter Resources Corporation, 777 Post Oak Blvd., Suite 650, Houston, Texas 77056, Attention: Investor Relations. Alternatively, you may obtain these documents by contacting the underwriters as follows:
UBS Investment Bank
Attention: Prospectus Department
299 Park Avenue
New York, NY 10171
or by telephone at 888-827-7275
MLV & Co. LLC
1251 Avenue of the Americas
New York, NY 10020
Attention: Randy Billhardt
Email: rbillhardt@mlvco.com
or by telephone at 212-542-5882
Wunderlich Securities, Inc.
6000 Poplar Ave., Ste. 150
Memphis, TN 38119
or by telephone at 800-726-0557
The Company anticipates that the record date for the initial dividend payment on the Depositary Shares issued in this offering will be January 15, 2013 and that the initial dividend payment will be made to holders of record as of that date on January 31, 2013.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Kentucky, Ohio, Texas and North Dakota and Saskatchewan, Canada. The Company is presently active in five of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, Eagle Ford Shale, Pearsall Shale and Williston Basin/Bakken Shale.
For more information about Magnum Hunter, please visit www.magnumhunterresources.com.
Forward-Looking Statements
The statements and information contained in this press release that are not statements of historical fact, including any estimates and assumptions contained herein, are "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, referred to as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the Exchange Act. These forward-looking statements include, among others, statements, estimates and assumptions relating to our business and growth strategies, our oil and gas reserve estimates, our ability to successfully and economically explore for and develop oil and gas resources, our exploration and development prospects, future inventories, projects and programs, expectations relating to availability and costs of drilling rigs and field services, anticipated trends in our business or industry, our future results of operations, our liquidity and ability to finance our exploration and development activities and our midstream activities, market conditions in the oil and gas industry and the impact of environmental and other governmental regulation. In addition, with respect to any pending acquisitions described herein, forward-looking statements include, but are not limited to, statements regarding the expected timing of the completion of the proposed transactions; the ability to complete the proposed transactions considering the various closing conditions; the benefits of such transactions and their impact on the Company's business; and any statements of assumptions underlying any of the foregoing. In addition, if and when any proposed transaction is consummated, there will be risks and uncertainties related to the Company's ability to successfully integrate the operations and employees of the Company and the acquired business. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "could," "should," "expect," "intend," "estimate," "anticipate," "believe," "project," "pursue," "plan" or "continue" or the negative thereof or variations thereon or similar terminology.
These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Factors that may cause our actual results, performance, or achievements to be materially different from those anticipated in forward-looking statements include, among others, the following: adverse economic conditions in the United States, Canada and globally; difficult and adverse conditions in the domestic and global capital and credit markets; changes in domestic and global demand for oil and natural gas; volatility in the prices we receive for our oil and natural gas; the effects of government regulation, permitting and other legal requirements; future developments with respect to the quality of our properties, including, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of our oil and natural gas reserves; our ability to increase our production and therefore our oil and natural gas income through exploration and development; our ability to successfully apply horizontal drilling techniques; the effects of increased federal and state regulation, including regulation of the environmental aspects, of hydraulic fracturing; the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in our drilling plans and related budgets; regulatory, environmental and land management issues, and demand for gas gathering services, relating to our midstream operations; and the adequacy of our capital resources and liquidity including, but not limited to, access to additional borrowing capacity.
These factors are in addition to the risks described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's 2011 annual report on Form 10-K, as amended, filed with the Securities and Exchange Commission, which we refer to as the SEC. Most of these factors are difficult to anticipate and beyond our control. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. You are cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date of this document. Other unknown or unpredictable factors may cause actual results to differ materially from those projected by the forward-looking statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We urge readers to review and consider disclosures we make in our reports that discuss factors germane to our business. See in particular our reports on Forms 10-K, 10-Q and 8-K subsequently filed from time to time with the SEC. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements.
Contact:
Magnum Hunter Resources
ir@magnumhunterresources.com
(832) 203-4539
Tom Parker knew how to run a mining company. Cash was being generated and the share price was growing. Now, cash is dwindling, costs continue to go up, and there is a need to borrow funds to develop the gold assets, as stated by the new CEO.
I'm not saying there's not value here. In my view it is less than it was. If the company can stay afloat long enough it could become very valuable.
I'm looking to buy some more silver and welcome any discounts the bankers are willing to offer. Silver will ALWAYS have value because it costs so damn much to get out of the ground and it's needed for such a large number of products we buy everyday.
I stand with Ann Barnhardt, in that, I can protect anything physical that I own. I can do nothing to protect what's in cyberspace, including all the 1's and 0's that we call "money". My Scottrade account shows I have "money" but it goes up and it goes down. The thing that concerns me is there is nothing I can put my hands on. I look at my Scottrade activity on the same computer monitor that I look at to see all your posts. Our posts aren't really real; all they are is more 1's and 0's.
I don't see the value in USGIF like I did when I first started following USSIF 2 1/2 years ago. BN, I hope for your own sanity that this stock starts going back up. I wish I could be optimistic about it, but I see the share price continuing to fall until it sees $1.50. That gives an equivalent price of $0.20 pre-R/S and pre-merger. That may be a good time to get back in. Gordon Pridham did the former USSIF shareholders no favors when he sold out to RX Gold & Silver. Remember his $3.00 per share post-merger prediction?
USSilverBug
Banro Provides Production Update for its Twangiza Gold Mine
BAA (AMEX:BAA)
Tuesday 4 December 2012
Banro Corporation ("Banro" or the "Company") (TSX:BAA)(NYSE Amex:BAA)(NYSE MKT:BAA) is pleased to provide a production update for its Twangiza Gold Mine in the Democratic Republic of the Congo (the "DRC").
Following the reinstatement of Ball Mill 1 in September 2012, gold production at the Twangiza Gold Mine has been steadily increasing as a result of improved plant availabilities. This is demonstrated by November's performance with production of 8,559 ounces poured and unit costs below US$700/oz. These are the best results for Twangiza since start up. Recovery for November was also a record since start up at 85.4%, where previously recoveries had averaged 81.5%. At times during November, gold recoveries reached the 90% mark at lower throughputs, illustrating that residence times are material to performance, which confirms the Company's confidence that additional CIL capacity included in the upcoming expansion will have a positive impact upon plant recoveries.
Despite frequent disruption to mining activity due to the onset of the rains, November's material movement from the Twangiza Main open pit has also increased to record levels since start up, mainly as a result of the benefits of owner operator management and improved mining fleet availabilities.
As previously reported, the Twangiza metallurgical plant will undergo an upgrade and expansion in 2013, and preparation for this is well underway. This expansion is expected to be completed during Q3 2013, which is expected to enable throughputs and recoveries to be increased to 1.7Mtpa and 90% respectively. At these throughputs and recoveries, gold production is expected to reach 10,000oz/month during Q4 2013 at unit costs in the range of US$500-600/oz.
Qualified Person
Colin J.S. Belshaw, FIMMM, I.Eng., Banro's Vice President, Operations and a "qualified person" (as such term is defined in National Instrument 43-101), has reviewed and approved the technical information in this press release.
Banro Corporation is a Canadian gold mining company focused on production from the Twangiza oxide mine and development of three additional major, wholly-owned gold projects, each with mining licenses, along the 210 kilometre long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the Democratic Republic of the Congo. Led by a proven management team with extensive gold and African experience, Banro's plans include the construction of its second gold mine at Namoya, at the south end of this gold belt, as well as the development of two other projects, Lugushwa and Kamituga, in the central portion of the belt. The initial focus of the Company is on oxides, which have a low capital intensity to develop but also attract a lower technical and financial risk to the Company and as such maximize the return on capital and limits the dilution to shareholders as the Company develops this prospective gold belt. All business activities are followed in a socially and environmentally responsible manner.
For further information, please visit our website at www.banro.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of future gold production, gold recoveries and costs, potential mineralization, potential mineral resources and mineral reserves, projected timing of future gold production and the Company's development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions used in the economic studies of the Company's projects; failure to establish estimated mineral resources and mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurance can be given that the intended levels of gold will be produced); fluctuations in gold prices and currency exchange rates; inflation; gold recoveries being less than those indicated by the metallurgical testwork carried out to date (there can be no assurance that gold recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production or less than those expected following the expansion at the Twangiza plant); uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; political developments in the DRC; lack of infrastructure; failure to procure or maintain, or delays in procuring or maintaining, permits and approvals; lack of availability at a reasonable cost or at all, of plants, equipment or labour; inability to attract and retain key management and personnel; changes to regulations affecting the Company's activities; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 26, 2012 filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Contacts:
Banro Corporation
Simon Village
President & CEO, United Kingdom
+44 (0) 788 405 4012
Banro Corporation
Arnold T. Kondrat
Executive Vice-President, Toronto, Ontario, Canada
+1 (416) 366-2221
Banro Corporation
Naomi Nemeth
Investor Relations, Toronto, Ontario, Canada
+1 (416) 366-9189 or +1-800-714-7938, Ext. 2802
info@banro.com
www.banro.com
Gold and silver are on their way down as the banks try to protect their collapsing dollar. (Of course this is counter-intuitive as gold and silver should command more US Dollars if the dollar is getting weaker.)
On 12 DEC 2011, gold was $1,747; on 31 DEC 2011, it was $1,531. There is no question that the bankers can bring the PMs down by yearend, and they will.
On 02 Dec 2011 London PM Fix on gold was $1,747 and closed out the year on 31 Dec 2011 at $1,531. So, the bankers can still take this down before year end. They will try!
US Dollar continuing to get weaker today so the bankers are taking down gold to try and give it some support.
Notice though how gold and silver should go UP when the USD gets weaker. How transparent is the manipulation...?!
Seems that the bankers try to take down the COMEX gold price whenever their dollar starts to fall. Logic says gold should go up with a weaker dollar, but that seems never to be the case.
So, I bought 10,000 BAA on Friday 11/30/12 at $3.29. Can see this easily coming back to $5.00, maybe by year end.
Picked up a small position this morning, 2,000 @ $3.10. I think there is a lot of undiscovered value in this little gem.
The Settlement Delay Of MBS Purchases Under QE3 And The Price Of Risk Assets
David Vengerov (On Seeking Alpha)
There has been a lot of speculation lately as to why the Fed's balance sheet has not been growing at the rate of $40B per month since the QE3 announcement on September 13 (the Fed had promised to buy $40B of MBS securities every month). The recent $20B drop in Fed's assets as announced on 11/29/2012 has only intensified the sentiment on this topic. Some people were also wondering why the risk assets such as the iShares Silver Trust (SLV) and the SPDR Gold Shares (GLD) had a noticeable pullback right after that announcement.
I decided to do a little research on this topic and found a web site for the NY branch of the Fed, which actually performs the purchases of the MBS securities for the Fed. This web site lists all MBS purchases made by the Fed and their corresponding settlement dates. That web site shows that the NY Fed has indeed been buying around $40B of MBS per month on top of their planned reinvestment purchases. It also shows that for all the outright MBS purchases made between 9/14/2012 and 10/11/2012, the earliest settlement day was 10/11/2012. Here is a quote from Wikipedia about the settlement date: "As part of performance on the delivery obligations entailed by the trade, settlement involves the delivery of securities and the corresponding payment." This suggests that NO money from QE3 purchases was transferred from the Fed to commercial banks until 10/11/2012, which explains the pullback in gold and silver that happened after the QE3 announcement (gold and silver had a large rally in *anticipation* of a QE3 announcement, and then a natural "sell the news" phenomenon took place, which was not counteracted by any real money flowing into the system due to QE3 purchases of MBS securities).
The NY Fed web site also shows that of the $78B of MBS purchases made between 9/14/2012 and 10/11/2012, around $15B of purchases have not been settled yet, and of the $75B of MBS purchases made between 10/12/2012 and 11/13/2012, around $60B of purchases have not been settled yet (as of 11/29/2012). However, by early November a large enough part of securities purchased under the QE3 program has settled to start a new leg up for gold and silver, which was likely purchased with the money newly injected into the system.
Most interestingly, the data shows that the earliest settlement date in December is 12/12/2012, and a whooping $46B of purchases made over the last two months will settle on that day!
To me, this implies... (continued here http://seekingalpha.com/article/1037431-the-settlement-delay-of-mbs-purchases-under-qe3-and-the-price-of-risk-assets )
Seeing some nice gains in recent days, including today!
Seeing a nice little run today!
I don't understand all the intricacies of the PM markets. What I do know is if the prices for PMs skyrocket, all faith in the Federal Reserve Note is gone and the ponzi scheme collapses. Tends to make me think the Fed is involved and therefore provides unlimited funds for those who benefit from the scheme.
Everything has a risk. The least of my worries is the amount of tax I pay. When I hold physical metals, well, I hold them. Like Ann Barnhardt says, if you can't stand in front of it with a gun, you don't own it. Mining shares have a risk as well beyond all the other risks. I know it sounds as if it could never happen, but the barry hussein obama administration, as directed by the banking elite, could nationalize the Au & Ag mines. Then what do you have?
I still own the miners, but I like my physical best. I don't own any USGIF right now, but am getting tempted to pick up 10 or 20k shares at $1.90...
Patience Mr. optimist! Development takes time. Mr. Evans is a genius at growing profitable oil & gas companies. Management is the key and MHR has the best in my opinion and has the assets to make it cashflow big-time. It will not be long and you will be looking at $15 for your shares.
So tell me, why did gold drop $25 in a matter of seconds this morning?! How many naked contracts were shorted to get that drop?
DO NOT TELL ME THE PM MARKET IS NOT MANIPULATED!
The open interest for December delivery is huge for both gold and silver. There is no way out for the bankers but to get the weak hands to capitulate. As it stands right now, the COMEX is liable for 90,000,000 ozs of silver delivery in December. They simply do not have the metal. The only way out is to get the weak hands to capitulate and throw in their contracts. Our only hope is those holding the contracts have deep pockets and will stand for delivery. We continue to be at the mercy of the JPMorgue and other big banks and they will continue to screw as many investors as they can.
Catalysts Coming For Magnum Hunter Resources
By Mike Maher on Seeking Alpha
Shareholders in Magnum Hunter Resources (MHR) have had a rollercoaster year. After moving steadily higher in the first five months of the year, shares have crashed from their highs of $7.71 in February, to a price of $3.92 at the end of last week. Investors have been scared off over the year by lower energy prices, a secondary offering, a somewhat complex share structure, a restatement of earnings from an accounting mistake, and continued acquisitions by management. However, investors seem to be ignoring the possibilities of several catalysts being realized in the next several months, which should provide meaningful improvements to the profitability, production, and financial standing of Magnum Hunter.
The first catalyst will be the opening of MarkWest Energy's (MWE) Mobley processing plant, which was scheduled to open at the end of November. The opening of the plant could slip into December, as MarkWest has blamed the recent storm that struck the Eastern US as causing a slight delay. However, whenever this plant opens, Magnum Hunter is expecting to see an uplift of realized natural gas prices of $1.25-$1.50 per MCF. This will push IRR's on wells drilled in Appalachia upwards of 60%, on par with the IRRs seen in the oil focused plays the company has. Even more exciting, Magnum Hunter has been holding production back, shutting wells and not completing other wells, in anticipation of this plant opening. Once it finally opens, MHR should see a meaningful jump in both production and revenue almost instantly, and those gains will continue as previously uncompleted and shut in wells come back online. The most recent conference call details about 1,900 barrels a day shut in, and another 1,500 barrel a day of NGLs that should be realized once the Mobley plant begins operations, in addition to three 100% owned wells and five 50% owned wells that will begin producing once the plant is up and running. Most of this production can be turned on quite quickly, meaning production should step up meaningfully after the plant begins operating.
A second catalyst is...
See more here:
http://seekingalpha.com/article/1029071-catalysts-coming-for-magnum-hunter-resources
Lots of buying pressure today. Nice to see an "up" day. Lot's of good activity going on keeping MHR in the news.
Gary Evans is a brilliant entreprenuer and knows how to build shareholder value. Holders of MHR shares will be richly rewarded.
BB1, Let Mr. canadapetro scare everyone out of their shares. I'll take all the cheap ones I can get. There are few stocks out there that are greater than 50% cash with a P/E of 2.0 and paying a 5% yield. I hope canadapetro continues to let all interested parties know that "CALVF is doing a 1 for 10 R/S."
Maybe we can get the price down to $0.50 after the R/S. That will be a P/E of 1.0 or less, 100+% cash value of stock giving the company a ZERO or negative enterprise value. The divvy yield will be 10% to boot!!! I love Caledonia Mining!
Agreed jsc! I look forward to accepting the gifts as well.
canadapetro, did you know that Caledonia Mining Corporation announced a potential 1 for 10 reverse split?
Gold and silver both seeing a nice rise in spot today.
I am interested in acqiring more CALVF so I'm looking forward to a potential sell-off due to R/S. $0.05 per share divvy (post R/S) on a sub $1.00 stock, a gold miner at that, with a P/E under 2.5 is the perfect stock! Are there any other gold miners paying a 5% yield?
The company has positioned themselves well with the Zimbabwean indiginisation rules. And the work force owns a good share of the company.
$23,000,000.00 in the bank and more to come. The company is growing their cash position by $0.01 per share every three months based on its increase in cash from $9,000,000 at 31 DEC 2011 to $23,000,000 at 30 SEP 2012.
I look forward to acquiring more CALVF shares at deeply discounted rates!
Dividend yield rising!
It will triple from here! Look for $5+ within a year as DVR expands services outside of the GoM.
Yes, you are correct on the R/S. I think CALVF management was wise to announce the divvy at the same time. That should negate some of the downward pressure.
The interesting thing is how low the market cap is already on this company. It is hard to believe the share price would dropped much below $1.10 after the 1 for 10 split. Using fully diluted shares the market cap is about $58,000,000 with nearly 1/2 of that in cash..., which is in Canada.
With the growth this company expects, their market cap should grow well above $1/2 Bln! I'm holding about 120,000 shares in my Roth account. Would be nice to pull out $120,000 tax free!
Caledonia Mining Proposes Initial Dividend, Stated Capital Reduction, and a Share Consolidation
Toronto, Ontario - November 19, 2012: Caledonia Mining Corporation ("The Company") (TSX: CAL, OTCQX: CALVF, AIM: CMCL) is pleased to announce that it proposes to pay an initial dividend of 0.5 cents (i.e. $0.005) per ordinary share.
Highlights
• Caledonia proposes to pay an initial dividend of 0.5 of a cent per share on a pre-consolidation basis (equivalent to $0.05 on a post-consolidated common share basis).
o Driven by the Company’s sustainable business model and significant free cash generation.
o Caledonia believes the combination of a dividend combined with Caledonia’s continued growth is the appropriate way to optimize its capital structure and enhance shareholder value.
• Caledonia’s strategy will be to continue to invest, principally in its projects in Zimbabwe and Zambia.
• The proposed dividend will only be declared after Caledonia shareholders have approved the Stated Capital Reduction.
• After the dividend declaration, it is further proposed to consolidate the Company’s common shares on the basis of 1 new Caledonia share for 10 existing Caledonia shares.
• A Special Meeting of Caledonia’s shareholders will be held in late January 2013 at which shareholders will vote on resolutions to effect the reduction in Stated Capital and share consolidation.
Mr Stefan Hayden, Caledonia’s President and Chief Executive Officer said: "I am delighted to announce Caledonia’s maiden dividend. Over the past 3 years Caledonia has become a profitable and cash generative company with exciting growth and investment opportunities. In light of our cash position and strong cash generation, the Caledonia Board feels it appropriate to propose a dividend of one-half cent per existing common share and is confident that the proposed dividend will not reduce our ability to continue to invest in our exciting portfolio of assets, expanding gold production at Blanket, and continuing exploration on our Nama Project".
Further Information
Dividend Policy
Caledonia continues to generate significant free cash flow and believes that its business model is sustainable. Caledonia’s first priority will be to continue to invest in its current and new projects. Caledonia’s cash flow provides the financial capacity to distribute cash to its shareholders without adversely affecting liquidity or the ability to continue to invest for future growth. The Board will annually review the Company’s ability to pay a dividend with regard to its cash resources, prospective cash generation and investment opportunities at that time. The next review will take place in May 2013 after the finalisation of the annual financial statements for the calendar year 2012.
Caledonia believes that the combination of a dividend with Caledonia’s continued growth is the appropriate way to enhance shareholder value at this time.
As noted below, Caledonia’s ability to declare and pay the dividend is conditional upon shareholders approving a reduction in its Stated Capital which is detailed below. Accordingly, the dividend will not be payable until the Stated Capital reduction is implemented. The record date for determining shareholders entitled to receive the dividend will then be determined and announced thereafter.
Reduction in Stated Capital
The reduction is necessitated by the provisions of the Canada Business Corporations Act, the Act under which the Company exists, which states that a company cannot pay dividends if its Stated Capital plus liabilities exceeds the realizable value of the company’s assets. The Company’s Stated Capital, which as shown in the Company’s September 30, 2012 unaudited balance sheet is $196,657,000, is a reflection of historical capital raising via share issues. The proposed capital reduction will not affect the Company’s operations or the value of the Company or its issued shares. Caledonia’s Board considers that, notwithstanding the on-going development of the Company’s properties and its increased earnings, it cannot at this stage be conclusively determined that the Company’s assets have a current realizable value in excess of the current Stated Capital plus liabilities. Management, in conjunction with its financial advisors, will, prior to the mailing of the Notice calling the Special Meeting, finalise the calculations necessary to determine the extent of the reduction in the Stated Capital that will be required, and circulate the requisite documentation to shareholders.
Share Consolidation
Caledonia has 507,899,280 shares outstanding, the closing price of which on the Toronto Stock Exchange on November 15, 2012 was 11 cents per share. Caledonia’s Management believes the large number of issued shares and the low current share trading price discourages new investors. Accordingly and only after payment of the dividend, Caledonia proposes to consolidate its shares in issue on the basis of one (1) new Caledonia share for every 10 existing Caledonia shares. Caledonia expects that the reduced number of shares in issue, in conjunction with its growth profile and new dividend policy, will increase the attraction of Caledonia to investors.
Caution regarding Forward-Looking Information and Statements
This news release contains certain forward-looking statements regarding Caledonia and the proposed Special Meeting and dividend. These statements are based upon assumptions regarding Caledonia’s current operating results and current intentions of Management of Caledonia. Actual developments may differ as a result of risks relating to market conditions, global political uncertainties, investor reaction and the timing of the special Meeting. Caledonia disclaims any obligation to update any forward-looking statement contained in this news release except to the extent required by law.
For more information, please contact:
Caledonia Mining
Mark Learmonth
Tel: +27 11 447 2499
marklearmonth@caledoniamining.com
Canaccord Genuity Limited
Andrew Chubb / Sebastian Jones
Tel: + 44 20 7523 8000
Newgate Threadneedle
Terry Garrett /Beth Harris/Graham Herring
Tel: +44 20 7653 9850 CHF Investor Relations
Jeremy Hill
Tel : +1 416 868 1079 x 238
jeremy@chfir.com
Notes to Editors:
Background on Caledonia
Caledonia is a mining company, whose major asset is the Blanket gold mine in Zimbabwe ("Blanket"). Blanket produced 12,918 ounces of gold at an average cash cost of $508 in the quarter ended September 30, 2012 and has an attractive portfolio of exploration and development projects. Caledonia also owns the Nama base metal exploration project in Zambia ("Nama"). Exploration at Nama has identified a new copper-bearing mineralised zone. Further work is in progress at Nama with the objectives of identifying a possible extension to the mineralised zone and improving the confidence level of the resource data.
As at September 30, 2012 Caledonia had net cash and cash equivalents of $24,615,000.
If you wish to unsubscribe from our newsletter simply reply to this email message using the account that you wish unsubscribed.
This quote is from Gary Evans during the 10/25/2012 3rd quarter conference call:
Penny, I'm holding 40,000 at $4.52. I would double my position at these prices if I had the cash. Just consider this a massive buying opportunity! I watched several 100,000 and 50,000 share orders go through yesterday at the asked. Any time you have a falling knife people don't want to buy. But someone knew a bargain when they saw it.
When this stock turns around, which could be today, it will rise rapidly. Consensus estimates is $7.00 in 12 months. I think they are low. Even the low estimate of $5.00 is $1.62 above yesterday's closing price.
I'm not a chartist, but investors seem to put a lot of confidence in the P&F charts. When you combine that with analysts' strong buy and buy recommendations with 12 month average target of $7.00, it seems reasonable. One analyst has a 12-month price target of $11.00. We are now trading in the same range as 2 1/2 years ago. There could not be a better entry point in my opinion.
$8.25 BULLISH PRICE OBJECTIVE on stockcharts P&F!
http://stockcharts.com/def/servlet/SC.pnf?chart=MHR,PLTADANRBR[PA][D20121109][F1!3!!!2!20]&pref=G
Looks like we may have found a bottom after the wall street bastage shorts flushed out all the margin account calls.
Magnum Hunter Resources Announces Definitive Agreement to Acquire Appalachian Basin Properties for $106.7 Million
Thursday 25 October 2012
Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) ("Magnum Hunter" or the "Company") announced today that Triad Hunter, LLC, a wholly-owned subsidiary of the Company, has entered into a definitive purchase agreement to acquire 100% of the stock of privately-held Viking International Resources Co., Inc., or Virco, for a purchase price of approximately $106.7 million.
The total consideration for this transaction will be paid 65% (or approximately $69.4 million) in the form of a convertible preferred stock (the "Preferred Stock") of the Company and 35% (or approximately $37.3 million) in cash. The Preferred Stock consideration will be payable in the form of depositary shares representing a new 8% Series E Cumulative Convertible Preferred Stock of the Company, with each depositary share having a liquidation preference of $25.00 per share and a dividend rate of 8.0% per annum (based on liquidation preference) and being convertible at the option of the holder into shares of common stock of the Company at a conversion price of $8.50 per share (based on liquidation preference and subject to customary anti-dilution adjustments). The transaction, which is subject to customary closing conditions, is expected to close on or about November 2, 2012, with an effective date of January 1, 2012. The cash portion of the purchase price is expected to be paid from additional sales of Preferred Stock and/or availability under Magnum Hunter's existing Senior Revolving Credit Facility. The borrowing base under Magnum Hunter's Senior Revolving Credit Facility is currently being re-determined by the Company's bank group, and the Company anticipates a sizeable additional increase.
The Company is acquiring approximately 51,500 net Appalachian Basin mineral acres located in West Virginia and Ohio. This acreage position includes approximately 27,000 net acres in the liquids-rich Marcellus Shale, of which 19,000 are located in Ritchie County, West Virginia and 8,000 are located in Washington and Monroe Counties, Ohio. Additionally, the acreage position in Ohio includes approximately 9,000 net liquids-rich Utica Shale acres and more than 19,000 net dry Utica Shale acres. Approximately 98% of the total acreage position is held by shallow existing production or "HBP."
Current net production from the producing assets associated with this acquisition is approximately 475 barrels of oil equivalent per day with a very low decline rate. Total estimated proved reserves are 3.7 million barrels of oil equivalent as of January 1, 2012.
Management has identified 105 gross drilling locations on the Virco acreage which is broken down as follows:
•74 Marcellus drilling locations
•31 Utica drilling locations
Upon the financial closing of this transaction, the Company will have over 85,500 net acres in the liquids-rich Marcellus Shale and 81,800 net acres located within the Utica Shale.
Magnum Hunter Management Comments
Mr. Gary C. Evans, Chairman and Chief Executive Officer, commented, "We have been working on this acquisition for almost one year now. Our team is excited to bring on board the existing pool of employees of Virco to our combined organization in this region. Virco's leasehold acreage position is located in the States of Ohio and West Virginia, and fits extremely well with our existing acreage owned in this region. Additionally, we have identified over 100 new drillable locations with both Marcellus and Utica potential on a significant portion of this new leasehold being acquired at a very attractive price per acre. This new liquids-rich gas potential will have a significant impact to our Eureka Hunter midstream division as they will have the capability to provide gathering and transportation to processing facilities in West Virginia and/or Ohio. The southern part of the wet gas window in the Utica Play in Ohio appears to be some of the most prolific in the area. Recently drilled wells in this immediate region have had the highest initial production rates in the entire Utica Play. Our Company has planned our first Utica test in the first quarter of 2013. With the combination of the recent improvement in natural gas prices this year from $2.00/mcf to approximately $3.50/mcf, our new midstream cryogenic gas processing capabilities beginning in late November (will add approximately $1.25/mcf to our net price), and improving overall well economics in this region, this liquids-rich area becomes highly profitable. Management anticipates that this Division of the Company will garner a significant portion of our 2013 capital expenditure budget."
Investor Conference Call
Magnum Hunter will host a conference call this morning, October 25, 2012, at 8:00 a.m. CT to discuss the Virco acquisition, the Company's third quarter 2012 operations update (with respect to which the Company issued a press release yesterday afternoon) and related matters. To access the conference call, please go to http://us.meeting-stream.com/magnumhunterresources_102412 for a live webcast or dial (866) 373-1422 (international dial-in use (706) 645-4823) and provide the access code #57064664 when prompted.
An audio recording of this conference call will be available on Friday, October 26, 2012 on the Company's website, www.magnumhunterresources.com, under 'Investors.' The audio recording will be available for 12 months.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas-based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Kentucky, Ohio, Texas and North Dakota, and Saskatchewan, Canada. The Company is presently active in five of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, Eagle Ford Shale, Pearsall Shale and Williston Basin/Bakken Shale.
For more information about Magnum Hunter Resources, please visit www.magnumhunterresources.com. This press release and the Company's third quarter 2012 operations update press release have been posted on this website.
Forward-Looking Statements
The statements and information contained in this press release that are not statements of historical fact, including any estimates and assumptions contained herein, are "forward looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, referred to as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the Exchange Act. These forward-looking statements include, among others, statements, estimates and assumptions relating to our business and growth strategies, our oil and gas reserve estimates, our ability to successfully and economically explore for and develop oil and gas resources, our exploration and development prospects, future inventories, projects and programs, expectations relating to availability and costs of drilling rigs and field services, anticipated trends in our business or industry, our future results of operations, our liquidity and ability to finance our exploration and development activities and our midstream activities, market conditions in the oil and gas industry and the impact of environmental and other governmental regulation. In addition, with respect to any pending acquisitions described herein, forward-looking statements include, but are not limited to, statements regarding the expected timing of the completion of the proposed transactions; the ability to complete the proposed transactions considering the various closing conditions; the benefits of such transactions and their impact on the Company's business; and any statements of assumptions underlying any of the foregoing. In addition, if and when any proposed transaction is consummated, there will be risks and uncertainties related to the Company's ability to successfully integrate the operations and employees of the Company and the acquired business. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "could," "should," "expect," "intend," "estimate," "anticipate," "believe," "project," "pursue," "plan" or "continue" or the negative thereof or variations thereon or similar terminology.
These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Factors that may cause our actual results, performance, or achievements to be materially different from those anticipated in forward-looking statements include, among others, the following: adverse economic conditions in the United States, Canada and globally; difficult and adverse conditions in the domestic and global capital and credit markets; changes in domestic and global demand for oil and natural gas; volatility in the prices we receive for our oil and natural gas; the effects of government regulation, permitting and other legal requirements; future developments with respect to the quality of our properties, including, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of our oil and natural gas reserves; our ability to increase our production and oil and natural gas income through exploration and development; our ability to successfully apply horizontal drilling techniques; the effects of increased federal and state regulation, including regulation of the environmental aspects, of hydraulic fracturing; the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in our drilling plans and related budgets; regulatory, environmental and land management issues, and demand for gas gathering services, relating to our midstream operations; and the adequacy of our capital resources and liquidity including, but not limited to, access to additional borrowing capacity.
These factors are in addition to the risks described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's 2011 annual report on Form 10-K, as amended, filed with the Securities and Exchange Commission, which we refer to as the SEC. Most of these factors are difficult to anticipate and beyond our control. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. You are cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date of this document. Other unknown or unpredictable factors may cause actual results to differ materially from those projected by the forward-looking statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We urge readers to review and consider disclosures we make in our reports that discuss factors germane to our business. See in particular our reports on Forms 10-K, 10-Q and 8-K subsequently filed from time to time with the SEC. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements.
Contact:
Gabe Scott
Vice President - Capital Markets and Corporate Development
ir@magnumhunterresources.com
(832) 203-4539
Yes, but on what logic should the PMs require fewer FRNs when the FED is just creating them out of thin air?
Just vote for the "right" man and all will recover. I'm still holding 40,000 in my IRA at $1.70. I bought 10,000 at $1.33 a week or three ago and sold it yesterday for $1.48. I was temptempted to get back in today, but am waiting until I see the knife hit the floor. You are not late for the party!
BN or others on this board, any thoughts on why gold and silver are tanking with the announcement of QE infinity?
Magnum Hunter Resources Announces the Appointment of a New Senior Vice President of Accounting and Chief Accounting Officer
Tuesday 23 October 2012
Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) ("Magnum Hunter" or the "Company") announced today that the Company has appointed Fred J. Smith, Jr., as Senior Vice President of Accounting and Chief Accounting Officer (CAO), effective October 23, 2012. The Company's current CAO, David S. Krueger, will assist with the transition through December 31, 2012.
Mr. Smith brings more than 35 years of broad oil and gas financial and operational accounting experience. Prior to joining MHR, Mr. Smith was Corporate Controller of Pioneer Natural Resources from 2008 to 2012. Prior to that time, Mr. Smith was employed by ConocoPhillips and held leadership positions in the Lower 48 Exploration and Production Finance division and Global Financial Services organizations from 2000 to 2008. Mr. Smith was Vice President of Finance and Chief Financial Officer from 1998 to 2000 of River Gas Corporation, a privately-owned coal bed methane operator which was acquired by ConocoPhillips in 2000. Mr. Smith joined ConocoPhillips following the acquisition of River Gas Corporation. Mr. Smith was previously employed by The Louisiana Land & Exploration Company in New Orleans, Louisiana, for over 20 years where he held a number of management positions within various financial and operational accounting areas. Mr. Smith began his professional career as a member of the audit staff of Ernst & Young (formerly Ernst & Ernst). Mr. Smith graduated from the University of New Orleans with a Bachelor of Science degree in Accounting and has been a licensed CPA since 1975.
Magnum Hunter Management Comments
Mr. Ron Ormand, Executive Vice President and Chief Financial Officer, commented, "We are extremely pleased to have the opportunity to bring on the Magnum Hunter Team an individual with the years and the breadth of experience in accounting, systems and processes with a number of high quality companies in the oil and gas field. Fred will be responsible for managing Magnum Hunter's accounting department including all personnel, processes and financial reporting in order to make sure that the Company is well prepared to manage the Company's current operations as well as its further growth. I would also like to thank David Krueger for his invaluable contributions to Magnum Hunter over the last three years and wish him well in his future endeavors."
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas-based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Kentucky, Ohio, Texas and North Dakota, and Saskatchewan, Canada. The Company is presently active in five of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, Eagle Ford Shale, Pearsall Shale and Williston Basin/Bakken Shale.
For more information about Magnum Hunter Resources, please visit www.magnumhunterresources.com.
Contact:
Gabe Scott
Vice President - Capital Markets and Corporate Development
ir@magnumhunterresources.com
(832) 203-4539
This creates a good buying opportunity...
Oil and natural gas company Magnum Hunter Resources Corp. (MHR, $4.14, -$0.21, -4.83%) said its management discovered an inadvertent error in the calculation of noncash share-based compensation expense related to common stock options granted to certain employees during the second quarter of 2012. Net loss per common share for the three-month period ended June 30 should have been 12 cents rather than 10 cents.
I picked up another 10,000 discounted shares yesterday at $4.06. I will pick up more should it fall below $4.00 today.
We need to remember that 35,000,000 shares were sold for $4.50 in early May. The company has continued to increase revenues since then and is operating with positive cash flow now. They will have a positive bottom line beginning in 2013. Consensus has 12-month stock price at just under $7.00 with a low of $5.00 (which is 20% higher than today's premarket trading) and a high of $11.00, which is nearly 3 times today's premarket trading. There is plenty of insider buying going on right now.
They also recently released information that showed they increased their reserves significantly, which in essence increased share book value by over $1.00. MHR is a winner that has 20% of its outstanding shares shorted. I don't think it will take much to get these short sellers to begin covering.
QS, that was an excellent presentation! I've never seen one of those videocharts before. And it is all good news for us, at least up to the $1.90 mark. Thank you!
DVR, the top Company in the Oil & Gas Equipment & Services Industry With the Lowest Price to Book Ratio
Cal Dive International has the lowest price to book ratio in the Oil & Gas Equipment & Services. Often companies with the lowest ratio present the greatest value to investors. Cal Dive's price to book ratio is 0.46.
Cal Dive International, Inc. is a marine contracting company. The Company's services include manned diving, pipelay and pipe burial services to the offshore oil and natural gas industry, all of which will become more active with a more energy friendly POTUS.
AUMN Short Interest
9/28/2012 - 3,593,053
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
9/28/2012 3,593,053 942,326 3.812962
9/14/2012 3,816,050 961,747 3.967831
8/31/2012 3,689,663 294,386 12.533419
8/15/2012 3,740,676 147,696 25.326861
7/31/2012 3,881,162 217,585 17.837452
7/13/2012 3,841,619 233,412 16.458533
6/29/2012 3,778,996 322,260 11.726544
6/15/2012 3,727,753 414,991 8.982732
5/31/2012 3,636,777 420,567 8.647319
5/15/2012 3,406,892 284,275 11.984494
4/30/2012 3,258,535 170,201 19.145217
4/13/2012 3,034,290 209,797 14.462981
3/30/2012 2,901,454 270,431 10.728999
3/15/2012 2,827,984 228,484 12.377164
2/29/2012 2,641,466 257,567 10.255452
2/15/2012 2,561,513 218,184 11.740151
1/31/2012 2,472,875 324,864 7.612031
1/13/2012 2,343,799 359,685 6.516255
12/30/2011 2,368,552 236,676 10.007572
12/15/2011 2,251,305 264,019 8.527057
11/30/2011 2,369,213 344,365 6.879947
11/15/2011 1,800,125 266,267 6.760601
10/31/2011 1,729,609 263,428 6.565775
10/14/2011 1,802,018 248,226 7.259586
Read more: http://www.nasdaq.com/symbol/aumn/short-interest#ixzz29B7P6s8g