ALB - Albidon Limited - Aussie Stock Forums

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  1. #1

    Post ALB - Albidon Limited


    Just want to let everyone know of this attractive Nickel stock i have been following. IT is also listed in london in AIM.

    Project is located in the east african nickel belt, in Zambia. They have commenced development already. Zambia is a low political risk country with extremely favourable mining policies. Already over 100,000t JORC compliant resources of nickel sulphides at a grade of nearly 2%, with significant platinum credits as well. It will be a relatively simple underground mine. It plans to produce 9,000t of nickel from early 2008, with box -cut development already commenced. All approvals have been granted.

    The advantage Albidon has over australian miners is the low cost of production in Africa. It will be producing nickel for only $2 USD/lb(not including platinum credits), as opposed to Mincor which is $4/lB and SMY $6USD /lb. Additionally there are a lot of tax incentives.

    Blue sky is evident in the fact that they have many other anomalies in their district which have had little or no drill testing. The east african nickel belt is undervalued and under explored (much like the sister Copper belt). So the potential to increase their resources from 100,000t and grow their mine life is significant.

    Current price: $1.45 currently, mkt cap is about $200m. As a low cost nickel miner it will be fine at any nickel price, whereas australian producers might struggle.

    Just as a comparison, MCR has about 70,000t resources and SMY about that as well. WSA has about 90,000t resources. JBM has about 120,000t high grade, but also a lot more low grade disseminated. CSM also has about 120,000t recoverable, but mkt cap >$500m.

    Even if nickel prices go down, ALB will be untouched, but it is likely SMY,MCR will get hammered due to high cost profile.

    As a side note they also have uranium j/v with EVE in Zambia as well.

  2. #2
    Black Gold! Caliente's Avatar
    Join Date
    May 2005

    Default Re: ALB - Albidon (Nickel stock)

    Great find halba and a nice summary.

    Can you elucidate on the platinum credits please?

    "Even the mightiest warrior can be crippled by self doubt" Sun Tzu (The Art of War)

  3. #3

    Default Re: ALB - Albidon Limited


    15,000oz per annum. small but that shaves over $20M AUD off costs?

  4. #4

    Default Re: ALB - Albidon Limited

    Wow this is going well. Anyone in this?

  5. #5

    Default Re: ALB - Albidon Limited

    hummm... strange to see no one is taking about alb these days
    but for the ones listening...
    alb ended at a record high of 2.9
    bear with me, bull

  6. #6

    Default Re: ALB - Albidon Limited

    Quite amazing rise really

    Key reasons/things to look out for

    -Advancement of construction activities at Munali nickel project. The project is starting to get derisked with most land acquisitions(key to the success) finalised. There was a problem last month re: the acquisitions/relocation of villagers. This is resolved, as exemplified by the latest quarterly(where villagers are shown smiling and well taken care of). Taking care of communities in Africa are key to success of these projects esp. when key mining projects have to coexist with villagers.

    -Commencement of near mine exploration drilling(this month). Was delayed due to rains. So they can increase their nickel reserves/hence their value will go up. All nickel stocks are valued on a proportion of in ground metal regardless of production. ALB's nickel anomalies seem quite extensive and there is a significant chance of doubling their reserves from 100,000t to 200,000t long term.

  7. #7

    Default Re: ALB - Albidon Limited

    fantastic overview on ALBIDON project... s
    with a link to to a 30 min video
    i was entertained by it
    hope you enjoy it too
    excellent for the sunday afternoon
    bear with me, bull

  8. #8

    Default Re: ALB - Albidon Limited

    handy to include the link....
    well it is sunday....
    bear with me, bull

  9. #9

    Default Re: ALB - Albidon Limited

    ALB is still ticking along in an upward direction - slowly but surely. Closed at $3.16 today. But down on the 52 week high of $3.47.

  10. #10

    Default Re: ALB - Albidon Limited

    No announcements, but the share price is rising again. Today ALB is at $3.42 with an intra day high of $3.50. Both amazing and pleasing.

  11. #11

    Default Re: ALB - Albidon Limited

    And I sold out at $3.60 and took profit.
    But you know the drill, I can't stop looking and today ALB rises to a new high of $3.85 on the news that their new uranium discovery might lend itself to the cheapest recovery option - open pit mining. Maybe ALB will be the world's next uranium producer...

  12. #12

    Default ALB

    wonder when any of this info is going to be factored into the Stock price and voume. Heres hoping. nice bit of consolidation and triangle forming around all time high, just hope it breaks into blue sky

    Nickel miner Albidon seeks to protect itself from possible takeover bids
    Albidon is looking for new acquisitions in Africa to insulate itself from big miners that may be after its promising nickel properties and to add value to its shareholders.

    Author: Rodrick Mukumbira
    Posted: Monday , 12 May 2008


    Vultures are reportedly circling Albidon Ltd., days before it brings its Munali nickel project in Zambia on stream, such that it has decided to try to insulate itself through acquisitions in Africa.

    First ore from the underground Munali sulphide mine is due to start production anytime this week, producing up to 10,500 tons a year of contained nickel - a small figure, but one that is likely to get big metal producers drooling at another opportunity to satisfy China's consumption binge.

    Signs of desperation to save itself from possible bidders emerged in April when the Perth-based company hired the Royal Bank of Canada as a corporate adviser to help it study potential overseas opportunities.

    It said it believed the financial institution could "greatly" assist it with the implementation of pursuing an "aggressive" growth and development strategy. Royal Bank "will assess potential corporate opportunities and progress its ongoing growth strategy," Albidon announced in a statement sent to the Australian Stock Exchange.

    According to The Age's report last week, the Royal Bank's Sydney desk had, days before the engagement, revised Albidon's price target to A$4.50 per share - a fair value to shareholders if a bid was made.

    Nevertheless, big miners such as global nickel producer the acquisitive Anglo-Swiss group Xstrata, Perth-based Zinifex and Russia's Norilsk are currently on a prowling spree, characterised by a flurry of mergers and acquisitions the two companies have signed so far that have sent waves of nervousness through the ranks of smaller producers.

    Of recent note, Xstrata has paid US$3.1 billion for a 100% stake in Jubilee and Zinifex, Albidon's joint venture partner in a lead and zinc exploration project in Tunisia, is in the process of swallowing Allegiance in a deal worth US$950 million.

    According to a Dow Jones Newswire report on Saturday, the two nickel mining giants are currently rumoured to be looking at Albidon "as a potential US$700 million-plus addition to their expanding nickel units".

    "Everybody at the moment is predator and prey," Dow Jones quotes Albidon's managing director Dale Rogers as saying in a weekend report confirming the search for new opportunities to insulate the company.

    "We're at a critical stage for the company -- we're just about to receive cash flow," he added, referring to the near-producer Munali.

    Albidon's vulnerability may well be coming from inside, from some of its major shareholders. The presence of Melbourne-based Lion Selection Group in its shareholding has sparked speculation that it may soon find itself fighting a takeover bid. Lion indirectly owns a 5.7% stake in Albidon, reportedly worth about US$36 million, and its part-owned African funds hold about 21% of the group.

    The next biggest shareholder is Chinese nickel group Jinchuan, which owns a 5.6% stake. It has also signed an offtake agreement for Albidon's Munali production.

    For the Lion Group, disposing of its stake in Albidon could become handy for its bank balance. Lion has until June this year to pre-empt the US$200 million that Beadell Resources has offered for Newcrest's 70% stake in the Cracow goldmine in north Queensland.

    Lion owns the remaining 30% of Cracow and has to pre-empt the Beadell offer as it moves forward with its plans to transform from a resource investment group into a mining company, according to The Age's report.

    But a Lion spokesman dismissed such a move as being out of question in an interview with Dow Jones. "That's because Lion Selection doesn't have the direct investment in Albidon, it is only a passive investor in African Lion," he was quoted as saying.

    Lion also recently sold its shares in Allegiance to Zinifex, a company that is reportedly having a good relationship with Munali's production offtaker Jinchuan through its boss Andrew Michelmore, who has worked with the Chinese company before.

    Besides having an offtake agreement with Allegiance's Tasmanian mine, Jinchuan has a 10.4% shareholding in the company and is currently awaiting Chinese government's approval to accept an offer from Zinifex.

    Russia's Norilsk may seek to expand its assets in Botswana, where it acquired the Tati nickel project from LionOre last year, by taking over Albidon. Albidon's nickel exploration project is in the same area as the Tati nickel project, and the company keeps on reporting promising nickel sulphides intersections.

    Its uranium project in Zambia, a joint venture with African Energy Resources, is currently in the Bankable Feasibility Study stage. It also has exploration joint ventures in Tanzania and Tunisia with BHP Billiton and Zinifex, respectively.

  13. #13

    Default Re: ALB - Albidon Limited

    I sold out of ALB a while back, and I haven't been following the news, so I was stunned to see it trading today at under $1.50. I've scanned the comapny announcements and spotted the departure of two folks from management ... and aside from the worst year for shares, does anyone know why it has crashed back from $5 so quickly? I also note that ASB have a pending ALB review on their securities site - the old review from July has a target price of $2.95. I'd be tempted to pick up a few at this price for the uranium prospects alone - assuming I haven't missed some bad news somewhere.

  14. #14

    Default Re: ALB - Albidon Limited

    Picked up this stock today for 12 cents, sure there is risk, but if she rides out the credit crunch then the reward will be sweet.

  15. #15

    Default Re: ALB - Albidon Limited

    i was surprised to see ALB go back to .16 after falling to .105, i really dont rate this stock.at cash operating costs for nickel @ $7 they are making losses without considering all other costs, in my personal opinion, if the nickel price does not rise quickly(to at least us$15,000t) i think alb may kick off the australian spec mining stocks to go broke, with many more to follow.good luck mate

  16. #16

    Default Re: ALB - Albidon Limited

    Thanks for the luck, ALB got slammed again this morning, but on the rise now. I reckon its going something to do with BHP closing its nickel mine.

  17. #17

    Default Re: ALB - Albidon Limited

    I took a punt on this from near enough to bottom and got out with a nice but modest profit - I then proceeded to kick myself as it headed in to multibagger territory and promised myself another look on any retrace.

    First time round was no brainer - it had been written off and priced for failure and yet it still had a whiff of survivability about it. When the December update talked of $5/lb for Mar quarter and $4/lb thereafter, it felt like a pretty fair gamble on the likelihood of them achieving the cost reduction and of nickel doing a bounce and it duly obliged.

    Now though we have a very different situation. Current costs of $7/lb are a long way from the previously indicated $5/lb and a long long way from the $4/lb they would need in order to have any chance of covering direct cash costs and overheads.

    Apart from the little matter of profitability they still have some very near term financing concerns. They are obliged to find another 6million in working capital by end of March in order to satisfy their bankers. Short of selling their stake in the Uranium project it is hard to see how they can cross the funding hurdle.

    If they fail it won't be for lack of effort. They have made the best of their relationship with Jinchuan and they are trying hard to whack the costs down, but the odds of survival are against them now.

  18. #18

    Default Re: ALB - Albidon Limited

    Well I have done my dosh on this one, bought in way too soon at 12 cents. Got to hold in now and ride out the crisis. Someone pass the popcorn, its going to be a very long wait

  19. #19

    Default Re: ALB - Albidon Limited

    ALB on the run today, bouncing off its lows. Great to see it moving up over 25% big grin for me today

  20. #20

    Default Re: ALB - Albidon Limited

    Albidon proposing up to $US26m in funding package

    Albidon (ASX:ALB) has reached agreement for up to $US26 million in funding from Pacific Road Resources Funds, a private investment fund specialising in
    mining projects.

    The funding is via five-year, zero coupon loan notes with attaching warrants in three tranches.

    The tranche 1 of 110 million convertible notes will raise $US6 million by February 28 at conversion strike price of 8c a share.

    Tranche 2 of 92m notes will raise $US10m by June 30 at 16c conversion strike price per share.

    Tranche 3 will raise $US10m by September 30 at a strike price to be determined on a 10pc discount to the 30-day volume weighted average
    price during September.

    The funds will be used for working capital and ramp-up costs at
    the Munali nickel project.

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