Author Topic: ALS.TO - Altius Minerals  (Read 1766026 times)

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #650 on: May 16, 2012, 07:32:04 PM »
Does Altius have a new website? I don't remember it being such a nice design:

 http://www.altiusminerals.com/

Must be pretty new, first time I see that design.
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JAllen

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Re: ALS.TO - Altius Minerals
« Reply #651 on: May 16, 2012, 07:33:22 PM »
Why couldn't the auto-buyback be because the stock has gotten quite a bit cheaper recently?

alertmeipp

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Re: ALS.TO - Altius Minerals
« Reply #652 on: May 16, 2012, 07:46:21 PM »
Why couldn't the auto-buyback be because the stock has gotten quite a bit cheaper recently?

There was a buyback going on, they switch it to auto.

beerbaron

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Re: ALS.TO - Altius Minerals
« Reply #653 on: May 18, 2012, 03:52:12 PM »
135$ Spot iron ore is still 15$ above the 120$ calculation for Alderon estimates.

BeerBaron

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #654 on: May 21, 2012, 07:44:08 PM »

http://www.bloomberg.com/news/2012-05-22/china-leading-index-rose-0-8-in-april-same-as-march.html

More of the same.....but china is now looking at bumping up growth...they had the brakes on for quite awhile.....we are happy to stay right here...

Dazel.


value-is-what-you-get

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Re: ALS.TO - Altius Minerals
« Reply #656 on: May 30, 2012, 07:52:51 AM »
What am I missing here - don't private placements normally get priced at around or a slight discount to market price?  Is it possible the largest steel producer in China and second largest in the world have their numbers wrong?   ;D

bathtime

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Re: ALS.TO - Altius Minerals
« Reply #657 on: May 30, 2012, 10:50:41 AM »
Interview with Alderon CEO by Grandich:

http://www.grandich.com/2012/05/grandich-client-alderon-iron-ore-4/

Regarding the Hebei investment, I don't understand the phrase, "if the stock price rose or fell between announcement of the deal and closing a contractual mechanism is in place to shift allocation as between the stock price and the project interest." That implies to me the terms can change, but then he proceeds to say the deal will go ahead as announced.

---
Q- The share price for Alderon has come off from the $3.42 close at the time of the Hebei announcement. Is there any risk the deal won’t close?

“ The real deal we have with Hebei is for C$194m for 19.9% of the corporate equity and 25% of the project. Our Chairman Mark Morabito was alive to the market volatility issue at the time the deal was being constructed and he convinced Hebei to agree to the C$194m price with the understanding that if the stock price rose or fell between announcement of the deal and closing, a contractual mechanism is in place to shift allocation as between the stock price and the project interest.  So, the short answer to your question is that market volatility was considered and factored into the negotiations and both sides are comfortable with the outcome. Look at today’s news release on Liberty Metals and Mining firming up their C$13m commitment alongside Hebei for $13M and you get a strong indication this deal is going ahead as originally announced.
---

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #658 on: May 30, 2012, 12:53:59 PM »
What am I missing here - don't private placements normally get priced at around or a slight discount to market price?  Is it possible the largest steel producer in China and second largest in the world have their numbers wrong?   ;D

I'm not 100% sure, but I think Liberty group just got the same price as Hebei, which was exactly 3.42.
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bathtime

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Re: ALS.TO - Altius Minerals
« Reply #659 on: May 30, 2012, 01:09:45 PM »
Interview with Alderon CEO by Grandich:

http://www.grandich.com/2012/05/grandich-client-alderon-iron-ore-4/

Regarding the Hebei investment, I don't understand the phrase, "if the stock price rose or fell between announcement of the deal and closing a contractual mechanism is in place to shift allocation as between the stock price and the project interest." That implies to me the terms can change, but then he proceeds to say the deal will go ahead as announced.

---
Q- The share price for Alderon has come off from the $3.42 close at the time of the Hebei announcement. Is there any risk the deal won’t close?

“ The real deal we have with Hebei is for C$194m for 19.9% of the corporate equity and 25% of the project. Our Chairman Mark Morabito was alive to the market volatility issue at the time the deal was being constructed and he convinced Hebei to agree to the C$194m price with the understanding that if the stock price rose or fell between announcement of the deal and closing, a contractual mechanism is in place to shift allocation as between the stock price and the project interest.  So, the short answer to your question is that market volatility was considered and factored into the negotiations and both sides are comfortable with the outcome. Look at today’s news release on Liberty Metals and Mining firming up their C$13m commitment alongside Hebei for $13M and you get a strong indication this deal is going ahead as originally announced.
---

After looking at this again, maybe what he's saying is that Hebei buys 19.9% of the equity, but gets not 19.9%, but 25% of the Kami project. So there's a built in discount to offset market volatility. Just a guess.