KAT Exploration Inc (KATX)

[birdmanbob4]

THE BIRD WORD REPORT ((((everything))) ....Topic:WHAT SHOULD WE KNOW ABOUT OUR PREFERED JV PARTNER FOR HANDCAMP..... Tek owns Duck Pond and China buying up loads of Tek. PS: Ken said Tek/Duck Pond is best suited to JV with Handcamp PReply to Topic.Displaying all 4 posts..Bob Nordberg Tek owns Duck Pond and China buying up loads of Tek. PS: Ken said Tek/Duck Pond is best suited to JV with Handcamp PS: That email is located in Dussions area http://www.vancouversun.com/business/China+offers+landmark+billion+deal+Canada+Teck/1757732/story.html
30 minutes ago.Bob Nordberg Toronto-based copper mine Aur Resources (TSX: AUR) had not even contemplated putting the company up for sale when Vancouver-based Teck Cominco (TSX, NYSE: TCK) made a cash-and-share offer of Cdn$41/sh (US$38.69/sh).
In fact, Aur’s shareholders didn’t even want an all-cash bid although Teck has plenty of money in the till. They preferred a tax-free rollover.
The chance to immediately increase Teck Cominco’s copper production by 43% or over 200 million pounds in the politically stable, mining-friendly region of Chile was just too good for Teck to ignore, President and CEO Don Lindsay told metals analysts during a conference call Tuesday.

As Lindsay noted, the Cdn$4.1 billion (US$3.9 billion) does not even offer Aur or Teck much in the way of synergies, nor does Teck want to eliminate a single Aur job in the name of cost savings because good miners are just too hard to come by. Meanwhile, several analysts on Tuesday’s conference call grumbled that Teck is paying more than full value for Aur stock.
Aur Resources President and CEO James Gill told analysts Tuesday that he believed Teck Chairman Norm Keevil is so “clearly focused on shareholders’ value” that Aur shareholders will gain substantially as Teck continues to acquire copper and gold projects and mining companies, as well as increase its investment in Canadian oil sands. Gill also said he felt Aur’s size and low-risk profile would make it challenging for his company to acquire the additional assets that the bigger Teck Cominco can easily obtain.
In fact, Gill believes that, of all the up and coming Canadian mining and exploration companies, Teck Cominco has the best chance of becoming new world leader in mining. Lindsay told analysts that the company will triple both its gold and copper production over the next five years. If that isn’t enough for shareholders, Lindsay said Teck has returned Cdn$1 billion to shareholders this year.
Even after the proposed friendly M&A of Aur is completed, Teck will still have Cdn$2 billion (US$188.7 billion) of cash in the bank, he added. The deal is expected to close in August.
Nevertheless, at least two analysts, Tony Lesiak of UBS Investment Research and Orest Wowkodaw of Canaccord Adams speculated that, respectively, Antofagasta and Xstrata will make rival bids.
The provisions of the deal include Aur shareholders receiving Cdn$30.75 (US$29.02) in cash and 0.2187 of a Teck Cominco share per Aur common share. The offer is a 29% premium to Aur’s closing share price of C$31.70 on Friday. Teck Cominco will finance the cash portion of its offer using its own substantial cash reserves. If Aur decides to accept another proposal, it will have to pay a break fee of Cdn$140 million (US$132.1 million) to Teck.
With the acquisition of Aur, Teck’s annual copper production is expected to increase by 72% or 342 million pounds by 2010, with its copper reserves and resources increasing by 136% or 15 billion pounds.
Aur holds a 70% interest in the Quebrada Blanca copper mine in northern Chile, which produced 796,242 tonnes of copper cathode last year and has a projected mine life until 2016. It also owns 90% of the Andacollo mine, which produced 212,240 tonnes of copper last year and has a projected mine life until 2009. Andacollo also includes a copper-gold deposit now under development in the Coquimbo Province in central Chile. Finally, Aur owns the entire Duck Pond copper-zinc mine in central Newfoundland, Canada, which began production early this year. Production is expected to average 41 million pounds of copper, 76 million pounds of zinc, 574,000 ounces of silver and 5,000 ounces of gold annually from 2007-2011
When analysts noted that Teck was paying a significant premium relative to where Aur’s stock has been for the past year or two, Lindsay said he is convinced that circumstances bode well for sustained copper consumption, especially by developing nations. He suggested that the longer term copper outlook compares to a similar period from 1960 to 1980 when Japan’s record growth consumed substantial amounts of copper. Copper prices have doubled since last year and have increased 22% this year.
Bloomberg reported that there have been 352 mergers and acquisitions in the mining industry this year, valued at US$70 billion.
17 minutes ago · Delete Post.Bob Nordberg [11:36:42 PM] PJ: FORGET EVERYTHING ELSE THIS IS THE WHOLE IT.................-y 3 (Bloomberg) -- Teck Cominco Ltd., the world's second-largest zinc producer, agreed to buy Aur Resources Inc. for C$4 billion ($3.77 billion) to raise copper output by 43 percent as metals prices rally.

Aur investors will get C$30.75 in cash and 0.2187 of a Teck Class B share, the companies said today in a statement. Shares of Aur, based in Toronto, traded as much as 4.3 percent above the offer, indicating expectations of a higher bid.

Teck, led by Chief Executive Officer Donald Lindsay, will gain control of mines in Chile, the world's biggest source of copper. Metal prices have more than tripled since mid-2003, leading to $80 billion of mergers among mining companies. The deal marks Teck's largest acquisition ever.

``Aur is a high-quality, long-life producer with significant expansion potential and low political and operational risk,'' UBS AG analysts led by Tony Lesiak in Toronto said in a report. ``We see the risk of a follow-on bid as possible, albeit low.''

Shares of Aur jumped C$9.86, or 31 percent, to C$41.56 on the Toronto Stock Exchange. The Teck offer was valued at C$40.64 a share, 28 percent above the Aur closing price on June 29.

Teck, based in Vancouver, climbed 60 cents, or 1.3 percent, to C$45.80. The shares have gained 37 percent in the past year.

Copper Rally

The price of copper has quadrupled since mid-2003. Futures for September delivery rose 1.8 cents, or 0.5 percent, to $3.545 a pound today on the Comex division of the New York Mercantile Exchange. The metal has gained 23 percent this year. Copper reached a record $4.04 in May 2006.

There have been 352 mergers and acquisitions in the mining industry this year valued at $80 billion, compared with 337 deals worth about $65 billion a year earlier, according to data compiled by Bloomberg. Teck lost a three-way contest last year for Canadian nickel producer Inco Ltd. to Brazil's Cia. Vale do Rio Doce.

Aur's assets will add 15 billion pounds of copper to Teck's reserves, doubling the existing amount. Teck's annual copper output will rise 342 million pounds, or 72 percent, by 2010. Teck's annual copper production will increase immediately by more than 200 million pounds, or 43 percent.

Growth in China and India ``bodes well for consumption'' of copper, CEO Lindsay, 49, said on a conference call with analysts. ``Mining companies are finding it very difficult to bring on new supplies or keep current production.''

Aur Valuation

Teck's takeover values Aur at 7.3 times its earnings before interest, tax and depreciation, or ebitda, based on the past four quarters. When Freeport-McMoRan Copper & Gold Inc. paid $26 billion for Phelps Dodge Corp. last year, it paid 5.9 times the target company's ebitda. The deal is scheduled to close in August, Lindsay said on the call.

Teck has ``tremendous cash given the lucrative metal prices of the past few years,'' said Patricia Mohr, an analyst at Scotiabank Group in Toronto. ``They're trying to diversify away from zinc and shore up their copper production.''

Teck will get a C$140 million breakup fee should the deal be canceled because of a higher offer. Teck has the right to match a higher bid.

Chilean Expansion

Mining companies are increasing spending in Chile. London- based Antofagasta Plc yesterday said it will spend $1.5 billion to develop Esperanza, its fourth copper mine in the South American nation. The company might make a rival bid for Aur, UBS said.

``Of the large U.K. miners, we see Antofagasta as the most likely to come in due to its Chilean copper presence, its large cash balance and its lack of recent merger and acquisition activity,'' UBS said.

``The company never comments on market speculation,'' Antofagasta spokesman Oliver Winters said.

Aur CEO James Gill said on June 22 that the company plans to spend $336 million to triple copper output at the Andacollo mine in northern Chile. By 2009, the company planned to produce about 80,000 tons of copper and 60,000 ounces of gold at Andacollo, he said.

Aur also has 77 percent of the Quebrada Blanca copper mine in Chile and is the sole owner of the Duck Pond copper and zinc mine in Newfoundland.

Aur's board recommended the offer to shareholders. CIBC World Markets Inc. advised Aur.

`Strong Market'

The deal for the copper mines ``shows you that the people who are in the business see this is a strong market,'' said William O'Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey. ``We're going to see much more of this in copper and pretty much all the metals as demand remains strong and the supply situation is tight.''

Xstrata Plc is the biggest zinc producer with 2006 revenue from the metal at $3.72 billion. Teck's zinc sales were $1.53 billion. Teck also produces coal, gold and specialty metals.

Cominco was formed in 1906. Teck started as Teck-Hughes Gold Mines Ltd. in 1913. The companies merged in July 2001. Aur was formed in 1981.

To contact the reporter on this story: Millie Munshi in New York at [e-mail]; Choy Leng Yeong in Seattle at [e-mail]

Last Updated: July 3, 2007 16:44 EDT
[11:38:41 PM] PJ: When Freeport-McMoRan Copper & Gold Inc. paid $26 billion for Phelps Dodge Corp. last year, it paid 5.9 times the target company's ebitda. The deal is scheduled to close in August, Lindsay said on the call.

Teck has ``tremendous cash given the lucrative metal prices of the past few years,'' said Patricia Mohr, an analyst at Scotiabank Group in Toronto. ``They're trying to diversify away from zinc and shore up their copper production.''
[11:41:23 PM] PJ: Duck Pond Operations
The Duck Pond copper-zinc mine is located in central Newfoundland approximately 100 kilometres southwest of the city of Grand Falls-Windsor, Canada. Duck Pond achieved commercial production in April 2007.

We own 100% of the Duck Pond mine, which we acquired through our acquisition of Aur Resources Inc. in 2007.

The Duck Pond deposit is to be mined through a combination of open pit and underground mining methods. Differential flotation produces copper and zinc concentrates that are trucked to the port of St. Georges on the west coast of Newfoundland.

Copper and zinc concentrates produced at the Duck Pond mine are sold under concentrate sales agreements to smelters in North America and overseas.

Last updated: March 2010
[11:41:56 PM] PJ: Sustainability
Careers at Duck Pond
Current Job Postings: 2

Position Location Closing Date
Senior Management Accountant Highland Valley Copper - Logan Lake, BC, Canada Apr 15, 2010
Mobile Crane Operator Highland Valley Copper - Logan Lake, BC, Ca
[11:44:32 PM] PJ: During the third quarter, Teck Cominco completed its acquisition of Canadian-based copper producer Aur Resources Inc. According to Teck Cominco, the acquisition would add substantial copper assets to its mining portfolio. Through its purchase of Aur Resources, the company gained interests in the Andacollo (90%) and Quebrada Blanca (76.5%) copper mines in Chile and the Duck Pond (100%) copper-zinc mine in Canada, resulting in an addition of 90,000 t of annual copper production and 34,000 t of annual zinc production to its production profile (Teck Cominco Ltd., 2007a, p. 14).
15 minutes ago · Delete Post.Bob Nordberg [11:45:19 PM] PJ: Teck Cominco’s Duck Pond copper-zinc mine in central Newfoundland achieved commercial production in April and produced 8,400 t of zinc in concentrate from August (when Teck Cominco acquired Duck Pond from Aur Resources) through yearend 2007. Duck Pond’s mine life was expected to last an additional 6 years, and production in 2008 was expected to be 30,000 t of zinc in concentrate. Copper and zinc concentrates produced at the mine were sold to Xstrata under life-of-mine
[11:45:40 PM] PJ: http://minerals.usgs.gov/minerals/pubs/commodity/zinc/myb1-2007-zinc.pdf
14 minutes ago · Edit Post · Delete Post