CONGOMINING Posted March 2, 2008 Report Share Posted March 2, 2008 CONGOCLUB, I found this article on www.moneyweb.com, on 1 March 2008, regarding LSE, LSE, NYSE Listed Metorex Ltd: Who’s flogging Metorex? Investors continue to batter the stock price, as dozens of other listed copper stocks around the world continue a dazzling upwards rip. Barry Sergeant 29 Feb 2008 19:14 JOHANNESBURG - Metorex (MTX SJ, R18,46 a share), which depends heavily on copper earnings, continues to be sold down by investors while dozens of other listed copper stocks around the world continue a dazzling upwards rip. On January 24 Metorex took the unusual step of publishing an announcement dealing specifically with the activity in, and decline of, the stock's share price. Investors were told that "the fundamentals of the Metorex Group have never been as positive or robust as they are at present, which has not been borne out in the recent decline in the share price". Over the past three weeks the Metorex stock price has been hammered once again, falling by more than any of 38 selected copper stocks listed around the world. In the background, bulls and bears may be locked in a low level war over the outlook for prices in the base metals complex but there is no argument about price movements seen over the past thirty days or so for copper, nickel, lead, zinc and aluminium. Tin, which trades in more opaque markets, hit record prices on Thursday. Copper prices have rallied by nearly a dollar a pound from a low point in December, breaking through $3,90/lb on Friday, to within a whisker of cracking all time records set in 2006. Rising base metal prices, accompanied by recent record prices in precious metals such as gold, platinum and rhodium, along with significant increases in iron ore contract prices, and in spot coal prices, continue to underpin strong price performances among the world's dominant and diversified mining names. World's dominant mining stocks Stock From From Value price high* low* US$bn BHP Billiton £16.56 -12.8% 72.5% 195.0 Vale $36.20 -5.5% 132.6% 178.1 Rio Tinto £58.13 -2.0% 125.2% 166.4 Shenhua HKD 40.80 -29.6% 131.8% 138.7 Anglo American £32.50 -11.7% 50.0% 84.6 Xstrata £40.42 -4.9% 80.9% 75.1 Chalco HKD 15.70 -40.4% 130.9% 61.9 Norilsk $29.45 -12.4% 85.5% 56.1 Average -14.9% 101.2% * 12-month A selection of 38 listed copper stocks, representing names that earn the majority of earnings from the world's most heavily used and traded base metal, shows significant recent outperformance. Since February 7, the selection of stocks has picked up an additional $30bn in combined market value, to currently reflect total combined market value of $161bn. Over the past three weeks, investors have shown a distinct appetite for the big copper names. The sector leader, Freeport-McMoRan (FCX US, $104,59 a share), which also produces significant ounces of gold, has gained 20%, pushing its market value up by $6,7bn. Some concern has been expressed over the ongoing government review of mining contracts and concessions in the Democratic Republic of the Congo (DRC), creating a perception that stocks with exposures have been sold back. Freeport-McMoRan holds a stake in the DRC Tenke Fungurume copper-cobalt deposit, which remains under development. Katanga Mining (KAT CN, C$17,23), with interests exclusively in copper and cobalt in the DRC's southern Katanga province, has recorded a gain of 29% in its stock price over the past three weeks. Across the border, the Zambian government remains intent on extracting more taxes from its mainly copper mining sector, also creating a perception that investments in the country have been sold off. Equinox (EQN CN, C$5,77), with interests exclusively in Zambian copper (with a significant potential uranium byproduct), has posted a price gain of 24% in the past three weeks. First Quantum (FM CN C$91,89), which operates in both Zambia and the DRC, has posted a 22% increase in its stock price over the past three weeks. The Metorex stock price has declined 16% in the past three weeks. Metorex holds significant interests in both the DRC and Zambia. On 24 January, Metorex pointed out that its offer to minority shareholders of DRC-focused Copper Resources Corporation (CRC LN, £1,85) had been completed. Metorex holds a 46% interest in CRC and 5% in Miniere de Musoshi et Kinsenda SARL, the operating company and a 75% owned subsidiary of CRC. It was Metorex's opinion that the extended time required to finalise the CRC transaction "has had an unnatural effect on the Metorex share price given the current fundamentals of the group". Metorex has long declined to detail the nature of the manner in which it acquired 80% of the DRC's Ruashi copper cobalt mine. Selected copper stocks Stock From From Value price high* Feb. 7 US$bn Freeport-McMoRan $104.59 -13.0% 20.1% 39.95 Southern Copper $117.52 -18.0% 27.4% 34.61 Antofagasta £8.27 -6.7% 21.9% 16.05 Kazakhmys £15.53 -3.7% 31.1% 14.30 Vedanta £22.16 -8.4% 21.9% 12.55 First Quantum C$91.89 -19.5% 21.5% 6.25 Oxiana A$3.97 -8.1% 30.3% 5.68 Ivanhoe C$13.35 -25.8% 34.4% 5.00 Inmet C$87.29 -22.0% 22.9% 4.21 Lundin C$8.76 -44.7% 10.0% 3.42 Equinox C$5.77 -17.6% 24.0% 3.26 Katanga Mining C$17.23 -38.6% 29.2% 3.41 Pan Australian A$1.08 -6.5% 20.2% 1.43 Northern Dynasty C$12.16 -27.4% 17.7% 1.12 Metorex R18.46 -39.3% -16.0% 0.86 Quadra C$20.95 -6.8% 6.2% 1.15 Camec £0.55 -32.1% 20.1% 1.21 Anvil C$13.55 -33.3% 7.3% 0.96 Northgate C$3.19 -29.4% 7.6% 0.81 Palamin R116.50 -4.9% 21.2% 0.73 Taseko C$5.25 -13.9% 46.1% 0.74 Northern Peru C$13.61 -1.2% -0.5% 0.43 Frontera C$4.78 -39.2% -7.9% 0.31 Corriente C$5.35 -10.1% 18.3% 0.40 Teal C$4.50 -26.2% -5.1% 0.24 ZCI R10.60 -63.4% -8.3% 0.17 Chariot C$1.00 -24.2% 22.2% 0.30 Mwana Africa £0.36 -56.9% 1.7% 0.18 Copper Resources £1.85 -1.3% -0.6% 0.22 Amerigo C$2.42 -29.4% -0.2% 0.23 New Gold C$7.04 -27.0% 34.6% 0.26 African Copper £0.48 -52.5% -10.9% 0.12 Monterrico £3.14 -12.4% 0.4% 0.16 Candente C$1.91 -22.4% 9.3% 0.14 Weatherly £0.26 -8.0% 82.4% 0.18 Inca Pacific C$1.64 -30.2% 8.8% 0.06 Zambezi Resources £0.14 -52.5% -3.2% 0.05 Africo C$1.65 -60.5% 2.7% 0.04 Coro C$1.34 -40.4% 27.8% 0.05 African Eagle £0.09 -44.5% 1.7% 0.03 Constellation C$0.09 -94.6% 21.6% 0.02 Simberi C$0.06 -45.5% 0.2% 0.01 Lithic £0.06 -18.5% 13.1% 0.00 Averages/total -27.5% 23.0% 161.29 * 12-month Link to comment Share on other sites More sharing options...
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