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RCI - Rocklands Richfield

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agro

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I was told this one today from someone who owns shares in Bowen - BWN.

i was suprised that i couldn't find a thread on here either - does that suggest that this stock is not popular? looking at volume today 258,000, up 27%

 
Re: RCI - Rocklands Richfield Limited

G'day Agro

It seems to be standing on the spot for the last two years or so.

Anything above 30c would be a breakout!

Cheers

dutchie
 
Re: RCI - Rocklands Richfield Limited

dutchie said:
G'day Agro

It seems to be standing on the spot for the last two years or so.

Anything above 30c would be a breakout!

Cheers

dutchie
Click to expand...

looking at the graph it appears that there is "higher lows" so maybe an uptrend is forming?

are you suggesting it is only heading sideways?

i would have assumed being a coking coal company in QLD this stock would be only headed upwards.

reading the activities report it suggested $7m EBIT end of june 08..
 
Re: RCI - Rocklands Richfield Limited

back in april posted in commodities threads:

not alot wrtten about emeging coal explorers/producers Did a bit of research about RCI but can't remeber where i posted it !
RCI recently bought a Chinese mine and also have exploartion going on in Aus.At 17c a cheap play. Only down side i can see is a Whopping 50 million dollar loan to a chinese business man. Sounds a bit sus Does anyone have more info on RCI that is not available on their website ?
anythoughts on Bowen BWN ?

managed to find very little about the $50 million loan which looks very suspect to me. Chinese mine is cash flow positive but one wonders what ability they will have to extract price increases of the magnitude that Aus coal mines have achieved. The loan to the Chinese may have strings attached about prices.
 
Re: RCI - Rocklands Richfield Limited

RCI aim to produce 120,00 tonnes of coal out of their Chinese mine in 08. profit has increased due to higher coal prices.

they are expanding the production to 1.2 mill tonnes...a ten fold increase.

Exploration in QLD Bowen basin to commence very soon

Share Price of 17.5c
due for massive rerating
 
Market has no interest in this coal play. Volume was less than 20,000 today I recall seeing. No need to raise capital for its exploration...profits from present coal mine will pay for this and pay debt off quicker.

Is there somthing I'm missing ?
 
RCI rocklands is just up the road from the bowen basin action with Santos and Petronas

quote: Recent drilling undertaken by the company in 2005 indicate that a targeted section of the lease to the south western of the deposit contains relatively shallow coal with measured, indicated and inferred resources of approximately 274 million tonnes. These are contained within the two mineable Aries and Argo seams. Such seams have the potential to be mined by underground methodologies including longwall mining

Any coal experts here able to give an opinion on whether this field has Coal seam gas potential?

Its in the right neighbourhood!
 
Countryboy
You are wondering why the share price of RCI is so good compared to its coal mining peers, when it is already producing and has credible plans to increase production by 10 times. I wondered that myself.

I decided against buying in as it was looking like dodgy management- posters on various forums mentioned a $50m "loan" by RCI to a Chinese businessman, and something about interests in toxic waste dumps and/or missile manufacture (some of these comments could have been in jest and I just didn't get it). This would not be the first company I liked till it looked to me like directors were fleecing shareholders (not that it is actually happening here, just my paranoia).

It could just be a sleeper, though given the flurry of shareprice spikes in the rest of coal miners, even for explorers like TCM, this is looking less likely.

As for coal bed methane, all underground coal mines have it (it is a dangerous waste item that till now miners paid to get rid of). As this technology progresses, many unminable coal seams become economic. I don't see CSM/UGC (there are lots of acronyms for this stuff) being a huge money spinner for RCI, they have good quality coal but not massive quantity compared to competitors.
 
RCI - Roklands Richfield Ltd

Forget about the Chinese. The Indians are here. RCI, a little coal player has 2 Indian offers on the table.

Offer 1 (23 Sept): 42c by Jindal Steel and Power Limited. Term sheet signed, the chairman already agreed to sell his 10% to them. Subjected to due diligence and FIRB approval as usual, with a view to complete the transaction on 15 Nov. Exclusivity until that time.

Offer 2 (7 Oct): 50c by Essar Group. Unsolisitated competing proposal by either scheme of arrangement or takeover bid. Still have due diligence to be done, but RCI can't help them due to exclusivity arrangement with Jindal ( I think). Minimum 60% acceptance.

The 50c offer is a remarkable 900% above 6 moth VWAP to end of August 09.

News link here http://www.smh.com.au/business/standard-chartereds-loss-might-be-anzs-gain-20091005-gjcn.html

The chairman Benny Wu still holds 60% of the company (after the 10% sale) so he will definitely act in the best interest of the shareholder.

It's a potential bidding war brewing here, but the market doesn't seem to think so. It's only trading at 41c. Remarkable!
 
Re: RCI - Roklands Richfield Ltd


One bid drop off and another emerges...

The share price fell to a low of 32c when Essar dropped it's 50c bid. The market ignoring the fact that the Jindal 42c bid was still under DD. Now the Chinese (yes them again) are joining in the party and got an indicative 52c bid! the board decided that the Chinese (Meijin proposal) is superior. No $hit. But it's subjected to DD as per usual.

Jindal is well into it's due diligence and they have the right to match or better the Meijin bid. Very interesting development.

Discl. Holding a few
 
Think the Meijin bid is the premier bid now. Jindal should have responded with a matching or better offer by 6pm Perth time on 4/11/09. As no announcement has been made by RCI, Meijin must have not met the deadline, so the exclusivity on due diligence has now swung over to Meijin.
They appear to be a better fit for RCI and at least benny will get some shrapnel out of his options with the 50c exercise price.
 

Call me cynical.
But why Essar put a bid of 51 cents and then withdrew. Did they undertake any insider due diligence ?
THere is no guarantee that company can hold Jindal to stick to their offer.
Why Jindal does not start to buy off market gradually when the market value is so cheap.
Now the Meijin bid could be to entice Jindal ? Who knows. I am just making wild guess.
I will not be surprised if we see Jindal pulled the pin and RCI returned to base value.
 

Messar walked away quite shortly after the bid announcement was made, before they were allowed in to do any due diligence.

The whole situation smells a bit funny I agree. Although I am not sure why Meijin would want to entice Jindal, or if it is legal or advantageous for RCI just to ask Meijin to put in a bid. Reason being that RCI will need to withdraw the right to due diligence from Jindal and give it to Meijin, effectively showing Jindal the door.

If they only have 1 bid of 52c on the table the share price would probably trade at say 10% below that. But because they have a lower bid of 42c the price decides to trade 10% below the lower bid. A bit irrational imo.

If both bids are gone 33-35c would be where the price first go to...as RCI would enjoy the takeover aura for a little bit yet. Then no news for another couple of weeks and holders start to bail... back to square one then I guess.
 
Jindal has matched Meijin's offer. So now 2 offers at 52c on the table with exactly the same conditions.

Jindal has been doing due diligence for a while so clearly they like what they've seen. One would have to think that the chances of a firm offer is very good.

RCI is trading at 41c still yesterday... after Jindal raised the offer to 50c. Hard to believe.

Discl. Still holding. Will add more if market continue to ignore these news.
 
Jindal Steel and Power have announced a new on market offer at 25c.

Executive chairman Benny Wu holds over 50% of RCI shares so remains the key to success or otherwise.

 
I have no idea what RCI and Jindal are doing? This game has been played since Nov 2009. Is it real this time? At least it is on market. May be that Meijin mob will join the party as well. Really makes no sense to me.
 
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