AQA - Aquila Resources

[Sean K]

For you, Go Nuke.

They've got a ton of projects. Need to go to their web site I think.

Highlights from the previous quarter below.

AQA home page

 

[michael_selway]

For you, Go Nuke.

They've got a ton of projects. Need to go to their web site I think.

Highlights from the previous quarter below.

AQA home page

Hi do you know what the mine life of the coal and iron ore of this company is?

Earnings and Dividends Forecast (cents per share)
2006 -- -- --
EPS -9.8 -- -- --
DPS 0.0 -- -- --

thx

MS

 

[michael_selway]

Hi Kennas

Did you own or have bought this stock recently?

Date: 14/11/2007
Author: Peter Wells
Source: The Australian Financial Review --- Page: 25
Some directors of Australian-listed companies actively traded shares in earlyNovember 2007. Charles Bass, a non-executive director of Aquila Resources,gained $A13m from the sale of some two million of the miner's shares. TerrySmart, a director of JB Hi-Fi, has sold 115,000 of the consumer electronicsretailer's shares for just over $A1.9m. On the buying side, TranspacificIndustries' chairman Terry Peabody has increased his stake in the wastemanagement group to more than 109 million shares after buying over $A6.7m worthof the stock

Business Description
Aquila Resources Limited (AQA) is a minerals exploration company mainly focused on coal and iron ore project development. AQAs most advanced project is the 50% owned Isaac Plains Coal Project in the Bowen Basin in Central Queensland.

Company Strategy
AQA has a strong pipeline of projects at various stages of development. The 50% owned Isaac Plains Coal Project began production in November 2006. Cashflow from the project and JV partners will be used to fund AQAs various exploration projects. The company is targeting a 15 year mine life with annual production of 3.6mt (split 75% metallurgical coal and 25% thermal coal. Aquilas second advanced project is the Belvedere Coal Underground Project, which has a large hard coking coal JORC resource of 2.7bn tonnes. CVRD exercised an option and acquired a 51% interest in the project for US$90. CVRD can acquire the balance of the project at fair market value. A BFS commenced in 2H07. Project commitment is expected in 2010. AQAs Iron ore projects are progressing with the establishment of the Australian Premium Iron Ore Joint Venture (API), with CVRD-Inco (sold by AMCI to CVRD). CVRD will sole fund the first $10m of exploration expenditure, which will focus on the west Pilbara region in WA. AQA also has a number of other iron ore and coal JV projects which it is earning interests in through exploration. These projects are spread across Botswana and Australia. AQA sold its Mozambique interest in August 2007 for $59.2m Aquila Resources reported a net loss of $12.5m for the year ended 30 June 2007, down from a profit of $3.36m in the pcp. Revenues from ordinary activities were $14.597m. Net operating cash outflow was $3.652m compared to an outflow of $1.29m in the pcp. No dividend was declared.

 

[Freeballinginawetsuit]

An interesting last couple of months for Aquila, not much resistance at all with many a punter keen to hop onboard.
Entitlement ex date coming up in a few days, no doubt adding a bit of fuel to the current strong trend ATM.
Worth a look for those that haven't been riding this one of late!

 

[Sean K]

Hi do you know what the mine life of the coal and iron ore of this company is?

No, only been following it due to the CUL and HLX JVs. Don't hold CUL anymore but have a few HLX, waiting for the API JORC early next year, and exploration results from the other potential deposits. HLX are saying potentially 'hundreds of millions of tons', which sounds like a bit of a ramp to me, but I'd be happy for just a couple of hundred million which would rerate HLX considerably. Will obviously be significant in adding tonnage to the overall API project economics.

 

[bigdog]

http://www.theaustralian.news.com.au/story/0,25197,22858101-5005200,00.html

WHAT THE BROKERS SAY: Kevin Andrusiak | December 03, 2007

Aquila Resources (AQA)
Foster Stockbroking
Buy recommendation
Price target of $14.49
Last traded $9.20

HERE'S a question for the those with a penchant for all things hematite: which company has the biggest JORC-compliant hematite resource in the Pilbara outside of BHP Billiton, Rio Tinto or Fortescue?

That's right, Aquila Resources. However, the company's iron ore assets took a back seat recently as Aquila and its partners moved to advance their coal assets in Queensland. "Belvedere, Washpool and Botswana add to the coal pipeline," Foster Stockbroking analysts write. "Besides Peak Downs, Washpool and Belvedere provide a robust pipeline for the company to increase its coal production and become a major independent Australian exporter.

Additionally, the company has coal projects in Botswana which it hopes to extract value from." As for the iron ore, Aquila is targeting a production start in 2011 from its 266 million tonne project in the Pilbara.

However, the company's initial focus in iron ore will be on South Africa, according to Foster. "This is mostly because of pre-existing infrastructure and capacity (rail, port) and potential domestic customers (Mittal), meaning production could be as early as 2010."

As for what's still to come out of the Aquila headquarters before the end of the current financial year, Foster said to watch out for an inaugural resource for Washpool, and upgrade of the Pilbara resource and initial drilling results from South Africa. "A resolution of Aquila's dispute with ACMI of its joint venture with the latter is also expected, which could eventuate in Aquila buying its partner's interests at an attractive valuation."

 

[imajica]

The Directors of Aquila Resources Limited are pleased to announce that they have resolved to proceed with a bonus issue of shares to all shareholders of the Company.

This year’s bonus issue is made in recognition of the continuing significant progress and development of the Company and the invaluable support it has received from its shareholders. It is also intended to encourage greater liquidity in the Company’s shares, to ensure an active market is maintained for share trading transactions by new and existing shareholders.

The entitlements are to be issued for nil consideration and will be distributed on the pro-rata basis of “one for every five” ordinary shares held by existing shareholders at 5 pm (WST) on 12 December 2007, being the Record Date.
The shares will trade on an “ex” entitlement basis from 6 December 2007.


Just in case people have forgotten or are unaware of the imminent share issue

 

[grace]

The Directors of Aquila Resources Limited are pleased to announce that they have resolved to proceed with a bonus issue of shares to all shareholders of the Company.

This year’s bonus issue is made in recognition of the continuing significant progress and development of the Company and the invaluable support it has received from its shareholders. It is also intended to encourage greater liquidity in the Company’s shares, to ensure an active market is maintained for share trading transactions by new and existing shareholders.

The entitlements are to be issued for nil consideration and will be distributed on the pro-rata basis of “one for every five” ordinary shares held by existing shareholders at 5 pm (WST) on 12 December 2007, being the Record Date.
The shares will trade on an “ex” entitlement basis from 6 December 2007.


Just in case people have forgotten or are unaware of the imminent share issue

I wouldn't mind buying some of these, but I have never been involved in a "free" bonus issue. When it goes "ex", what is the general scenario? ie yesterday closing price divide 6 times 5? Better to buy before or after (general speaking....I know you don't have a crystal ball).

 

[michael_selway]

http://www.theaustralian.news.com.au/story/0,25197,22858101-5005200,00.html

WHAT THE BROKERS SAY: Kevin Andrusiak | December 03, 2007

Aquila Resources (AQA)
Foster Stockbroking
Buy recommendation
Price target of $14.49
Last traded $9.20

HERE'S a question for the those with a penchant for all things hematite: which company has the biggest JORC-compliant hematite resource in the Pilbara outside of BHP Billiton, Rio Tinto or Fortescue?

That's right, Aquila Resources. However, the company's iron ore assets took a back seat recently as Aquila and its partners moved to advance their coal assets in Queensland. "Belvedere, Washpool and Botswana add to the coal pipeline," Foster Stockbroking analysts write. "Besides Peak Downs, Washpool and Belvedere provide a robust pipeline for the company to increase its coal production and become a major independent Australian exporter.

Additionally, the company has coal projects in Botswana which it hopes to extract value from." As for the iron ore, Aquila is targeting a production start in 2011 from its 266 million tonne project in the Pilbara.

However, the company's initial focus in iron ore will be on South Africa, according to Foster. "This is mostly because of pre-existing infrastructure and capacity (rail, port) and potential domestic customers (Mittal), meaning production could be as early as 2010."

As for what's still to come out of the Aquila headquarters before the end of the current financial year, Foster said to watch out for an inaugural resource for Washpool, and upgrade of the Pilbara resource and initial drilling results from South Africa. "A resolution of Aquila's dispute with ACMI of its joint venture with the latter is also expected, which could eventuate in Aquila buying its partner's interests at an attractive valuation."

Thanks have to keep an eye on this one. Also looks like it has someiron ore as well

thx

MS

Business Description
Red Hill Iron Limited (RHI) is a minerals exploration company focused in the Pilbara region of Western Australia. Red Hill Iron Limited (RHI) has assembled portfolio of Exploration Licences in the western margin of the Pilbara Province. The tenement group is prospective for iron ore, gold and base metals.

Red Hill Iron was listed in February 2006 with a pre float NTA of $6.7 million. With
approximately 40 million shares on issue it now has a capitalization of approx $160
million and has cash on hand of around $9 million.
This appears to be an amazing appreciation of value in a very short time but it simply
reflects the substantial exploration success of our endeavours with our joint venture
partner in defining substantial iron ore deposits at Red Hill as reported in
announcements to date
Red Hill Iron is essentially a one project company focussed entirely on its tenements
which run along the western margin of the Hamersley Basin of Western Australia. The
iron ore project is carried out in joint venture with API Management Pty Ltd –a company
linked to the Australian listed Aquila Resources Ltd.
Huge strides have been made in less than 2 years towards completing a Pre-feasibility
Study that envisages a 15 to 20 million tonne per year Channel Iron Deposit (CID)
project railing ore to the coast. While API have large holdings in the West Pilbara in
addition to our joint venture, it is clear that the Red Hill project resources are central to
their iron ore ambitions and are likely to provide a very significant, if not dominant,
proportion of the ore supply, particularly in the first decade. The Pre-feasibility Study
budget is over $20 million and this work is expected to be completed in the first half of
next year. Credit is due to the API team for their extraordinary efforts in bringing this
project on with such efficiency.

 

[imajica]

there is every chance the share price might drop 20% after the issue - but with these fundamentals it will be a force to be reckoned with in 2008 and will apppreciate accordingly.

last year I think there was a 1 for 1 share split and the share price went from around $6 to about $3 but since has apppreciated to around $10

by Thursday close, AQA might be $11 or $12 - the sooner you get in the less initial percentage value loss you will have to face. essentially a 20% drop is in line with the free issue

 

[grace]

Red Hill Iron was yet another successful spin-off from Giralia (GIR). Watch out for their future iron ore spin-offs!

 

[imajica]

aquila up strongly this morning to $10.45 with a high of $10.49


tomorrow is the last day to be on the register to be entitled to the free shares - we might have a mad scramble on our hands over the next two days

 

[Sean K]

tomorrow is the last day to be on the register to be entitled to the free shares - we might have a mad scramble on our hands over the next two days

Yes, but watch for sell off ex entitlement. Unless you've a long term view. Not all go that way of course.

 

[imajica]

I'm expecting a 20% drop which would be in line with the free issue

ie- if it closes at $12 tomorrow - it may drop to $10 or so. If you got in early enough the capital gain experienced in the lead up will off set any capital loss - essentially providing you with free shares.

 

[imajica]

AQUILA RECEIVES US$45 MILLION FROM VALE


The Company is pleased to announce that it received US$45 million yesterday from the sale of a 25.5% interest in the Belvedere Coal Joint Venture to Vale (previously CVRD Group), following the exercise by Vale Group of its option to purchase a 51% interest in the Belvedere Coal Joint Venture from the Aquila Group and the AMCI Group, announced on July 20th 2007.

 

[imajica]

Some interesting info from the other place (HC) - thought I would reproduce it here as it provides a good summary of Aquila's projects and future potential - as always DYOR


Aquila and the API joint venture has still only scratched the surface in its WA tenements as far as the potential Iron Ore resource is concerned. The recent release from Red Hill Iron says it all...

"The target style mirrors the Robe River Deepdale deposits to our immediate north which provide the ore for the Robe River Iron Associates operations around Pannawonica. At those operations, both outcropping CID in mesas up to 60 metres high and totally buried CID occur. To date, our exploration has focussed on the more obvious mesa targets. The new ore reserve calculations that are anticipated to be ready for release first quarter next year will be based on the first 18 months of drilling of these mesas. We believe that there is exciting potential for future reserves to be defined within extensions to these mesas but, more particularly, as buried CID and there is already evidence that deep canyon incision may have occurred within the project area."

Given they have so far concentrated on the mesas (in Cullen tenements too), the buried CID potential is still largely unexplored. AND...the API West Pilbara Direct Shipping Iron resource is closer to the coast than any of BHP, RIO or FMG.

Then there is South Africa where the transport infrastructure is largely already in place. Anyone interested in the future of Iron Ore production in Australia/South Africa must look at AQA. A mid-cap resource company with 5 bagger potential (at least) over the next 3-5 years.

I haven't even mentioned the coal!!! Top quality metalurgical product and heaps of it...as well as thermal resources. This is one of the best unknown companies in the country.

 

[grace]

Some interesting info from the other place (HC) - thought I would reproduce it here as it provides a good summary of Aquila's projects and future potential - as always DYOR


Aquila and the API joint venture has still only scratched the surface in its WA tenements as far as the potential Iron Ore resource is concerned. The recent release from Red Hill Iron says it all...

"The target style mirrors the Robe River Deepdale deposits to our immediate north which provide the ore for the Robe River Iron Associates operations around Pannawonica. At those operations, both outcropping CID in mesas up to 60 metres high and totally buried CID occur. To date, our exploration has focussed on the more obvious mesa targets. The new ore reserve calculations that are anticipated to be ready for release first quarter next year will be based on the first 18 months of drilling of these mesas. We believe that there is exciting potential for future reserves to be defined within extensions to these mesas but, more particularly, as buried CID and there is already evidence that deep canyon incision may have occurred within the project area."

Given they have so far concentrated on the mesas (in Cullen tenements too), the buried CID potential is still largely unexplored. AND...the API West Pilbara Direct Shipping Iron resource is closer to the coast than any of BHP, RIO or FMG.

Then there is South Africa where the transport infrastructure is largely already in place. Anyone interested in the future of Iron Ore production in Australia/South Africa must look at AQA. A mid-cap resource company with 5 bagger potential (at least) over the next 3-5 years.

I haven't even mentioned the coal!!! Top quality metalurgical product and heaps of it...as well as thermal resources. This is one of the best unknown companies in the country.

You have indeed convinced me that it is a good company, but what about a valuation? I don't even know how to begin to value this one (I know little about coal but a bit about iron ore). Demand on these two are good though for a number of years. It is not making any money yet though. When did you buy in? I see this thread is not very old (a couple of months). I notice the shares are tightly held by Board Members and balance of TOP 20.

Sorry about the basic questions, but I have given all my profits to Commsec this year (swapping and changing) so I'm trying to buy and hold for more medium term. Just a little info on how to value would be most appreciated.

 

[Freeballinginawetsuit]

This is one of the best unknown companies in the country.

No such thing as an unknown!, the brokers over here have been flogging this one to there clients for a while .

That dosent mean much anyway .

 

[imajica]

You can't deny the fact that Aquila has a huge amount of iron ore and massive coal interests. People used to bag on Fortescue and look at its share price now. Aquila management are switched on - that's why when the stock went XB(ex-bonus) it barely lost any value - people are hanging onto this one. That's also why Foster Stockbroking has a valuation of nearly $15 on AQA.

 

[Miner]

You have indeed convinced me that it is a good company, but what about a valuation? I don't even know how to begin to value this one (I know little about coal but a bit about iron ore). Demand on these two are good though for a number of years. It is not making any money yet though. When did you buy in? I see this thread is not very old (a couple of months). I notice the shares are tightly held by Board Members and balance of TOP 20.

Sorry about the basic questions, but I have given all my profits to Commsec this year (swapping and changing) so I'm trying to buy and hold for more medium term. Just a little info on how to value would be most appreciated.

Grace

I do not know about AQA but can give some heads up on metallurgical coal. It is the quality which is used to make coking coal. This coking coal is a must for blast furnace to make pig iron. So the demand between metallurgical coal and iron ore are mutual.
THe thermal coals (non metallurgical / non coking) are those normally used for heating value only. Say for steam boilers.
Metallurgical coal with low ash is as good as gold if I can make an analogy to convey the value of metallurgical coal. Low ash content, low sulphur, low alumina, low silica and low moisture only are the additional value factors to metallurgical coal. That makes the fuel value (higher carbon) more with less slag (rubbish) from iron production.
Australia is one of the few lucky countries who have rich resources of anthracite and metallurgical coking coal in the world.
Hope that will help.

Regards