RIV - Riversdale Mining

[Dutchy3]

Nice little entry in a stock with a proven trend after a rest. STOP's 1.80ish.

Todays price a bit sold off on the close yet volume increase encouraging ...

 

[Dutchy3]

3.20 on the close this week ... been a nice one in an increasing choppy market. Anyone know what they actually do?

 

[hypnotic]

Hey Dutchy,

These guys had a stellar run was recommended by Wise-owl back in Oct 06 to buy in at 1.30 and price target was only $2.50! representing a 140% increase. I've copied some of the company background from wise-owl

Unfortunately i didn't buy into it!

Courtesy of Wise-owl.com.au

Company Background
In March 2001, Riversdale Mining Limited (RIV), formerly known as Wave Capital Limited and WaivCom Worldwide Limited went into voluntary administration. In July 2003, the administrator then sold the assets and operations to a group of investors. After acquiring Riversdale Anthracite Colliery in July 2004, RIV’s activity is concentrated on exploration and development of coal mining in Africa. At this point in time, RIV has got several projects in South Africa and, recently, is moving into Mozambique.

Investment Summary
In the last 12 months, RIV have really been involved in ramping up their operations and are close to seeing their efforts come to fruition. RIV is starting make a name for itself in the resources industry in Southern Africa, an area known for its rich reserves. RIV has several projects on their plate including the Zululand Anthracite Colliery (ZAC) mine in South Africa, the Mozambique Coal project from their tenements recently purchased in July 2006 and the Riversdale Anthracite Colliery (RAC) also in South Africa.

In Mozambique, their area covers about 203,000 hectares and is seen as a strategic holding in the Moatize Coal Province, known to be the largest undeveloped coking and thermal coal region in the world. The Benga licence in the Moatize area is adjacent to the licence held by Companhia Vale do Rio Doce (CVRD). At the moment, CVRD is looking to establish rail and port facilities for their 2.4bn tonnes of deposits and RIV can benefit from these infrastructures put in place.

At ZAC, production for the year was 741,144 tonnes with the average yield of 78.1% as expected. Development of the Deep E project is progressing well with mining production expected in November. The mine life after surveys has now been extended to 17 years from 10 at ZAC. Great news for the company.

There are political risks to keep in mind whenever a junior company has projects in Southern Africa, but political stability is progressing and this will play a factor in the success of the company. At current levels RIV is a 'Buy' for members.

Let me know if you need anymore info about them..

Hypnotic

 

[Dutchy3]

Hi H(i)yp

Thanks for all this ... real little beaut this one and I see the SA exposure and position size accordingly ...

From my TA perspective, as there is no history to see, this stock could do anything

 

[Peakey]

Bit surprised there's not more posts on the RIV thread, stock is having a great run!!! I thought I'd post the following chart. We saw alot of volume go through today with the stock closing almost on the intraday high. Perhaps $6.00 is not that far away. Doesn't appear to be alot of sellers (supply) either. Good luck to those holding.

Cheers
Peakey

 

[greenfs]

This stock was reported in the press this week as a takeover rumour @ $6.50 by I think a majoe European listed entity.

They better hurry up or the offer will be ancient news. And to think that I could have bought for $2.50

 

[Peakey]

This stock was reported in the press this week as a takeover rumour @ $6.50 by I think a majoe European listed entity.

They better hurry up or the offer will be ancient news. And to think that I could have bought for $2.50

Thanks for that info greenfs, I wasn't aware of the rumour. We'll have to wait and see if there is any truth to the rumour.

Peakey

 

[HarryLen]

Hey there, I'm pretty new to trading, have been reading a lot of books over the last couple of years, written down my plan and have now placed my first trade. just so happens the first trade was RIV at 6.20 and I've been pretty wrapped with the results so far.

Can anyone tell me what the trading halt is about? Anything to do with the takeover rumor from early October?

Have learnt a lot from this one trade anyway.

 

[greenfs]

Very positive JV ann this morning. From my reading I think this will result in a further substantial increase in the sp after the market has absorbed the detail.

In other words, shareholders can expect a double digit value for the sp going forward.

 

[bigdog]

ASX ANN details today

Market liked the ANN
RIV 9.60 0.190 2.02% 4,535,896 shares $43,085,437 @ 30-Nov 11:46:50 AM

Look at todays high volume will exceed yesterday's volume very shortly!!!
Date Close Volume
29-Nov-07 9.41 5,239,285
28-Nov-07 8.92 887,085
27-Nov-07 9.25 1,129,448
26-Nov-07 9.44 855,103
23-Nov-07 9.42 1,692,025
22-Nov-07 10.2 0
21-Nov-07 10.2 0
20-Nov-07 10.2 0
19-Nov-07 10.2 395,321
16-Nov-07 10.15 454,819
15-Nov-07 10.25 4,990,356
14-Nov-07 9.96 2,346,277
13-Nov-07 9.5 762,734
12-Nov-07 9.91 0
09-Nov-07 9.91 1,067,846
08-Nov-07 9.46 1,018,363
07-Nov-07 8.8 760,661
06-Nov-07 8.26 678,498
05-Nov-07 8.8 1,210,369
02-Nov-07 8.42 707,780
01-Nov-07 8.01 830,549


RIV 9:32 AM Tata Steel and Riversdale Joint Venture
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00789741

• Tata Steel signs JV with Riversdale Mining for Mozambique Coal Project
  
• Tata Steel and Riversdale sign joint venture agreement on 30 November 2007
  
• Tata Steel to pay AUD100 million (approximately 88.2 million USD) to acquire 35% of Riversdale’s Benga and Tete licences

Project Interest comprises approximately 25,000 hectares (96.7 square miles) in the Moatize region

Riversdale Mining Limited (ASX: RIV and “Riversdale”) and Tata Steel Limited (“Tata”) have signed an agreement to establish a special purpose joint venture vehicle (“JV”) to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.

Under the terms of the agreement, Tata will pay AUD100 million (approximately 88.2 million USD) to acquire a 35% Project Interest. For this consideration, Tata secures a key position in the JV formed to develop the Mozambique Coal Project, as well as a 40% share of the off-take for coking coal.

Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities on Riversdale’s surrounding tenements.

The JV comprises two licences (the Benga and Tete licences) and covers an area of 24,960 hectares (approximately 96.7 square miles). Riversdale Mining holds a total acreage of over 290,000 hectares (1,120 square miles) in Mozambique.

Riversdale Mining had recently announced a major coal resource in the Benga Licence. Based on the drilling results undertaken by Riversdale, the total Resource is estimated at 1.225 billion tonnes categorized as Inferred Resources and is in accordance with the JORC Code 2004. Of this, a total of 720 million tonnes is considered to have the potential to be extracted by open-cut methods.

The coking coal derived from this project will be supplied to the Tata Steel Group’s facilities in Europe, Asia and elsewhere.

At the signing ceremony in Sydney on 30 November 2007, Riversdale Chairman and CEO Mr Michael O’Keeffe said “the formation of the Joint Venture with the global steel major Tata Steel would ensure the coal project in Mozambique was well positioned to exploit the full potential of the Moatize region. The value of Tata’s on-the-ground experience should not be under-estimated for a project of this scale. This was a major consideration for Riversdale, and we look forward to working with Tata as the project advances.”

ANN continues in linked document

I hold RIV shares and my tip for December ASF Stock Tipping

 

[michael_selway]

ASX ANN details today

Market liked the ANN
RIV 9.60 0.190 2.02% 4,535,896 shares $43,085,437 @ 30-Nov 11:46:50 AM

Look at todays high volume will exceed yesterday's volume very shortly!!!
Date Close Volume
29-Nov-07 9.41 5,239,285
28-Nov-07 8.92 887,085
27-Nov-07 9.25 1,129,448
26-Nov-07 9.44 855,103
23-Nov-07 9.42 1,692,025
22-Nov-07 10.2 0
21-Nov-07 10.2 0
20-Nov-07 10.2 0
19-Nov-07 10.2 395,321
16-Nov-07 10.15 454,819
15-Nov-07 10.25 4,990,356
14-Nov-07 9.96 2,346,277
13-Nov-07 9.5 762,734
12-Nov-07 9.91 0
09-Nov-07 9.91 1,067,846
08-Nov-07 9.46 1,018,363
07-Nov-07 8.8 760,661
06-Nov-07 8.26 678,498
05-Nov-07 8.8 1,210,369
02-Nov-07 8.42 707,780
01-Nov-07 8.01 830,549


RIV 9:32 AM Tata Steel and Riversdale Joint Venture
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00789741

• Tata Steel signs JV with Riversdale Mining for Mozambique Coal Project
  
• Tata Steel and Riversdale sign joint venture agreement on 30 November 2007
  
• Tata Steel to pay AUD100 million (approximately 88.2 million USD) to acquire 35% of Riversdale’s Benga and Tete licences

Project Interest comprises approximately 25,000 hectares (96.7 square miles) in the Moatize region

Riversdale Mining Limited (ASX: RIV and “Riversdale”) and Tata Steel Limited (“Tata”) have signed an agreement to establish a special purpose joint venture vehicle (“JV”) to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique.

Under the terms of the agreement, Tata will pay AUD100 million (approximately 88.2 million USD) to acquire a 35% Project Interest. For this consideration, Tata secures a key position in the JV formed to develop the Mozambique Coal Project, as well as a 40% share of the off-take for coking coal.

Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities on Riversdale’s surrounding tenements.

The JV comprises two licences (the Benga and Tete licences) and covers an area of 24,960 hectares (approximately 96.7 square miles). Riversdale Mining holds a total acreage of over 290,000 hectares (1,120 square miles) in Mozambique.

Riversdale Mining had recently announced a major coal resource in the Benga Licence. Based on the drilling results undertaken by Riversdale, the total Resource is estimated at 1.225 billion tonnes categorized as Inferred Resources and is in accordance with the JORC Code 2004. Of this, a total of 720 million tonnes is considered to have the potential to be extracted by open-cut methods.

The coking coal derived from this project will be supplied to the Tata Steel Group’s facilities in Europe, Asia and elsewhere.

At the signing ceremony in Sydney on 30 November 2007, Riversdale Chairman and CEO Mr Michael O’Keeffe said “the formation of the Joint Venture with the global steel major Tata Steel would ensure the coal project in Mozambique was well positioned to exploit the full potential of the Moatize region. The value of Tata’s on-the-ground experience should not be under-estimated for a project of this scale. This was a major consideration for Riversdale, and we look forward to working with Tata as the project advances.”

ANN continues in linked document

I hold RIV shares and my tip for December ASF Stock Tipping

This was one of the coal stocks that got away from me!

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 3.5 5.8 6.0 51.7
DPS 0.0 0.0 0.0 0.0

thx

MS

 

[michael_selway]

Hm not bad but is it expensive?

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 3.5 8.2 10.1 13.7
DPS 0.0 0.0 0.0 0.0


http://business.theage.com.au/tata-signs-deal-to-develop-mozambique-coal-assets/20071130-1e2k.html

Riversdale's coal project has an estimated 1.225 billion tonnes of inferred resources, with a total of 720 million accessible via open-cut mining.

Brazilian mining giant CVRD is also active in Mozambique, with plans to advance a "massive" coal project that is next to Riversdale's tenements in Moatize.

 

[bigdog]

Today's SMH

http://www.smh.com.au/news/Business/Stocks-to-watch/2007/12/03/1196530514419.html

Stocks to watch
December 3, 2007 - 8:04AM

Stocks of interest on the Australian Stock Exchange today.

RIV - RIVERSDALE MINING LTD - up 49 cents at $9.90

Coal miner Riversdale Mining Ltd has signed a joint venture with India's Tata Steel Ltd to develop a hard coking and thermal coal project at key exploration tenements held by Riversdale in Mozambique.

Under the terms of the deal, the global steel major will pay $100 million to acquire a 35 per cent interest in the project.

Tata secures a key position in the joint venture to develop the Mozambique Coal project, as well as a 40 per cent share of the off-take for coking coal.

 

[bigdog]

RIV is off to flying start this morning with one large special trade

Date------- Time----- Price$ Quantity ---Value ($) Conditions
03-12-2007 09:18 AM $9.900 1600000 $15,840,000 Special Crossing Trade,Crossed

 

[greenfs]

RIV is off to flying start this morning with one large special trade

Date------- Time----- Price$ Quantity ---Value ($) Conditions
03-12-2007 09:18 AM $9.900 1600000 $15,840,000 Special Crossing Trade,Crossed

Was thay you buying this stock big dog with your spare change?

Woof Woof Woof Woof Woof Woof Woof Woof Woof

 

[michael_selway]

RIV is off to flying start this morning with one large special trade

Date------- Time----- Price$ Quantity ---Value ($) Conditions
03-12-2007 09:18 AM $9.900 1600000 $15,840,000 Special Crossing Trade,Crossed

Hi yep not bad, but so you reckon ist expensive at current prices?

thx

MS

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 3.5 8.2 10.1 13.7
DPS 0.0 0.0 0.0 0.0

 

[bigdog]

http://www.news.com.au/heraldsun/story/0,21985,22863814-664,00.html

Coal king Ken Talbot in splurge for Riversdale stake
James McCullough
December 04, 2007 12:00am

COAL king Ken Talbot has spent $70 million to acquire almost 5 per cent of Riversdale Mining as part of his ambition to build a global mining investment portfolio.

Mr Talbot paid $9.30 a share in a recent placement to acquire 7.5 million shares in Riversdale as part of a $235 million capital raising taken up predominantly by Australasian, European and North American institutional clients of Hartleys and RBC Capital Markets.

The funds raised will mainly be used for the development of the Benga licence and further exploration of other tenements in the Moatize Basin in Mozambique.

"We think it is a very good investment and it is part of our strategy of getting in on the ground floor of junior and medium-sized explorers," Mr Talbot said.

The share price of Riversdale has leapt from a low of $1.79 in the past year to close yesterday up 43c at $10.33.

The latest move comes as Mr Talbot, the former CEO of Macarthur Coal who remains a director of the group with a personal stake of just under 30 per cent, has amassed a considerable mining portfolio around the globe.

The total worth of the portfolio is now more than $700 million, the key investments being his Macarthur Coal stake, Sundance Resources, Karoon and now Riversdale.

Mr Talbot has a 19.9 per cent stake in Sundance, a West Australian-based iron ore company.

He bought into Sundance for about 12c a share and the price yesterday closed up 1c at 50.5c.

He also acquired 18.2 million shares in Karoon Gas, or 13.8 per cent, for about $2.30 a share and the stock closed yesterday down 5c at $3.40.

One of the main funding mechanisms for his recent buying has been the sale of his Talbot Hotel Group, which raised $130 million.

"I had a holiday and I came back and said to my staff, 'We are selling the pubs', " Mr Talbot said.

"They were a bit shocked, but I believed there was greater opportunity in the resources sector and to date it has worked well for us."

 

[michael_selway]

Thanks, have to keep an eye on this one

Business Description
Riversdale Mining Limited (RIV, formerly known as Wave Capital Limited and WaivCom Worldwide Limited) is involved in exploration and development of coal mining in Africa.

Company Strategy
RIVs principal objective is to build a successful coal exploration and mining business operating in South Africa and Mozambique. Main asset is a Zululand Anthracite colliery, where company targets 17 years mining operation. Exploration upside is seen through Mozambique Coal project. Work also continued on a bankable feasibility study for development of the Riversdale Anthracite Colliery (RAC). RIV continued to accumulate coal prospective tenements in Mosamibique and entered in to a JV deal with Tata group to facilitate development. RIV aims to apply funds in an efficient manner with a view to provide above average and sustainable returns to shareholders. RIV also adopts high standards of occupational health and safety, environmental management and ethics. Riversdale Mining reported NPAT down 80.2% to $5.02m for the year ended 30 June 2007. Revenues from ordinary activities were $72m. Revenue and net profit for the year ended 30 June 2007 includes a full year of operating contribution from Zululand Anthracite Colliery (ZAC). Diluted EPS was 3.52 cents compared to 29.81 cents last year. Net operating cash flow was $18.2m compared to $2.34m last year. No dividend was declared.

 

[bigdog]

ASX ANN today

This ANN sounds fantastic, however the market did not like the ANN!!

Are there any opinions out there?

RIV $8.69 -$0.61 -6.56% high of $9.27 & low of $8.56 traded 678,731 shares $6,093,232 @ 09-Apr 12:13:50

Riversdale Mozambique Project - Updated Coal Resource
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00830856

COAL RESOURCE IN MOZAMBIQUE DRAMATICALLY INCREASED
• Major Coal Resource in the Benga Licence in Tete Province dramatically increased by 58% since November 2007
• Inferred Resource of over 1.9 Billion tonnes has been assessed in accordance with the JORC Code 2004
• Compares with 1.2 Billion tonnes Inferred Resource announced in November 2007
• More than 1 Billion tonnes of this is less than 300m deep and likely to be amenable to open cut mining
• This increased Coal Resource confirms the Moatize Basin in Mozambique as an emerging coal province of global significance
• Potential products include hard coking coal and thermal coal

 

[Kelpie]

Seems odd doesn't it? Anyway, a chance to buy more now that its back on support (~$8.40)... ready for the next leg up?