20th Oct 2006 - Media Bid Comment : Link to Hemscott Article Click Here


8th Oct 2006 - Mineweb Article : Link Click Here




Web Site : http://www.monterrico.co.uk

Major Shareholders :

Framlington 9.05%
ISIS Asset Mgmt PLC 8.44%
Raymond John Angus 5.59% (Director)
Lehman Brothers International (Europe) 5.40%
Christopher John Eager 4.96%
AMVESCAP PLC 4.56%
Frederic Zachary Haller 4.28% (Director)
Aviva PLC 3.50%
Allianz AG 3.08%

****************************

Broker Recommendations :

Fortis Private Inv Mgt 15-09-06 BUY
Collins Stewart 14-08-06 BUY
Hargreave Hale 18-05-06 BUY

***************************
Shares in Issue

26.31 million

If the links do not auto open the player on clicking, then open WM or RP and then copy and paste the link into the "Open URL" function.


Interview With:
Richard Ralph CMG, CVO
Executive Chairman

Dated September 14, 2006


Listen with Windows Media - Link Below :
http://www.wallstreetreporter.com/uploaded_files/2006/September/14/wma/MonterricoMetalsPlc.wma

Listen with Real Player - Link Below :
http://www.wallstreetreporter.com/uploaded_files/2006/September/14/ram/MonterricoMetalsPlc.ram
______________________________________________

Director Trades :

Director Buys :

21/12/2005 R Angus BUY 10,000 @ 376p = 37.6K
21/12/2005 C Eager BUY 5,000 @ 376p = 18.8K
20/09/2006 Frederick Haller BUY 10,000 @ 167p = 16.7K

2

3

Given BFS will be Q1 07 and in 4 weeks we have a BFS update, along with some board appointments, this one should be having a good run now, all the way into Q1 07.

Good to see some positive PR starting now, with the WSR interview.



If the links do not auto open the player on clicking, then open WM or RP and then copy and paste the link into the "Open URL" function.


Interview With:
Richard Ralph CMG, CVO
Executive Chairman

Dated September 14, 2006


Listen with Windows Media - Link Below :
http://www.wallstreetreporter.com/uploaded_files/2006/September/14/wma/MonterricoMetalsPlc.wma

Listen with Real Player - Link Below :
http://www.wallstreetreporter.com/uploaded_files/2006/September/14/ram/MonterricoMetalsPlc.ram

Director backing up the words of "undervalued" with actions to show its undervalued.......good, and I hope we get some more of these.

Monterrico Metals PLC
22 September 2006
MONTERRICO METALS PLC
('Monterrico' or the 'Company'
Directors' Purchase of Shares

Monterrico announces that on Wednesday, 20 September, 2006, Mr Frederick Haller, Non Executive Director, purchased 10,000 ordinary 10p shares in the Company at a price of 167p. After this transaction, Mr Haller's current shareholding in Monterrico is 1,060,431 ordinary 10p shares, representing 4.03 % of the issued share capital of the Company.

http://money.independent.co.uk/personal_finance/invest_save/article1603795.ece

Published: 16 September 2006

MONTERRICO METALS

Alan Garcia, Peru's new president, has been supportive of Monterrico's planned Rio Blanco copper mine. Building is expected to start in 2008 and production in early 2010. If it finds a partner to share the 550m costs, it will own Peru's largest copper mine, one of the 10 biggest in the world. Monterrico's shares should be tucked away....................

Some nice buys at the end, 10K and 22.3K.......directors ? Find out Monday.

Peru's PRO-Mining President and Government start the ball rolling on other projects - is anyone doubting that MNA will get those permits come Q1 07 ? I am not. This government wants Peru producing as much copper as possible, and along with that comes MNA and their project.


http://www.bnamericas.com/story.jsp?idioma=I&sector=7&noticia=367331



ProInversi launches Michiquillay bidding - Peru

Published: Friday, September 22, 2006 11:04 (GMT -0400)

Peru's state investment promotion agency ProInversi launched Friday the bidding process for the Michiquillay copper project in Cajamarca department.
Michiquillay is a porphyry copper deposit that contains "reserves" of 544Mt grading 0.69% copper, 0.1-0.5g/t gold and 2-4g/t silver, using a 0.4% cut-off, according to ProInversi.
A feasibility study exists for a 40,000t/d open pit operation.
Interested companies have until November 25 to pre-qualify for the auction, which is programmed to take place on December 16, according to documents on ProInversion's website.
The bidding rules and contract are now available from ProInversi and the base prices (minimum offers) will be announced on November 15.
The contract to transfer the 19 Michiquillay mining concessions to the winning bidder is divided into an initial four-year exploration and a subsequent three-year implementation timeframe.
A bankable feasibility study must be completed during the first stage and both periods are extendable by two semesters, subject to extra payments.
The auction will consider the amount offered for the transfer of Michiquillay and the amount of promised investment at a national level, according to the bidding rules.
Michiquillay is in Encada district of northern Peru's Cajamarca department.

The market appears to be doubting according to the chart. I believe there is huge potential which is why I'm in. I hope that I'm right.

From the chart you can see it peaked too early, as Richard Ralph said "like a premature ejeculation".

However, there are some key events in the coming 6 months that will redefine the company, and the SP.

First up is the technical completion of the BFS, due in October. New CEO, due October.
Final permit approval, anytime from Dec 06 to Feb 07, and the BFS complete by end March 07.

Now, those are events which mean that the MNA share price should be much higher.

The previous up was mostly on speculatin of a takeover, however, I cannot see anyone interested until permitting is approved, then perhaps they might be.

So all in all, a very exciting 6 months ahead, after a very boring 12 months previous.

Let's hope so - next stop October then :-)

Strong day today, lets hope more of the same next week.

A post from TMF today - http://boards.fool.co.uk/Message.asp?mid=10197041


"I received this note from my broker this morning. It's a BUY recomendation from Numis Securities with the heading:

WHY IS NOBODY BUYING THIS SHARE?

Morning Meeting Note
29 September 2006

World-class copper project at Rio Blanco advancing towards feasibility study completion

Feasibility study: Key details of the Rio Blanco feasibility study on operating and capital costs should become available to the market in the next two to three weeks. These details are being confirmed by independent consultants to the project.

Management: A management reshuffle led to the resignation of Chris Eager and Robert Guy. The new chairman, Richard Ralph was previously the British ambassador to Peru endorsing the project in diplomatic terms. Jeff O'Leary, formerly head of mining M&A at HSBC is also a director. Jeff's technical endorsement gives us great confidence in the quality of this project and confirms our belief that this is a world-class quality copper project.

Market selling: many reasons are given for market selling we believe these excuses are largely unwarranted and should not present significant reason to sell the shares.

Farmers local farmers may show some opposition to the mine, but the absence of settlement in the region and little farming activity should provide little opposition compared to many other areas.

Change of government - the recent change of government appears to have returned Peru to pro-mining governance. Boarder area many mines operate near to sensitive boarders around the world. This is an issue, which rarely stops mining activity.

Other projects: management should spin out the other projects in the Monterrico portfolio, which may distract the team from progress on Rio Blanco where the most immediate value should be gained.

Conclusion: We are raising our target price to 607p from 476p due to our higher long term copper price of 150c/l from 140c/lb. In reality we believe the Rio Blanco copper project has far greater value than our target price suggests. This is a world-class copper project along the size of Antofagasta's giant Los Pelambres project and is a company-making project in our view.

BUY

Target upgraded to 607p from 476p

Current share price 173p

Target Price 474p

Market Capitalisation 45m

Current share price(s) timed at 4.30pm on 28/9/2006

I will be picking up some more."

Thats one bit of news from the Numis note, along with the new CEO appointement due October :

"Feasibility study: Key details of the Rio Blanco feasibility study on operating and capital costs should become available to the market in the next two to three weeks. These details are being confirmed by independent consultants to the project."

I'm definitely expecting this to be a star performer in my SIPP. A relatively small holding, but a return to 5 would be nice. ;-))

Looking strong, actual bid being offered is above published mid price.

On line its :

Bid 195p max 10,000

Offer 197p max ONLY 100

Buy orders to be filled it looks like (not forgetting plenty of news due this month)

A very nice read here from 8th Oct 2006 Mineweb article on MNA.

http://www.mineweb.net/junior_mining/255324.htm

Excellent article PapalPower.

Very interesting read Papalpower - thanks

TOP PERFORMING FUND ADDS MORE MNA 'on weakness'.......

Stellar growth sees Old Mutual fund top sector

by margaret taylor


Group's top-rated smaller companies team produces almost double average sector growth over three years

Daniel Nickols' Old Mutual UK Select Smaller Companies fund topped the UK Smaller Companies sector over three years to the end of August, growing by 111.97% bid to bid against the average fund's 69.48%.

According to data from Standard & Poor's, the portfolio was the second top performer in each of the three discrete years under examination, having returned 18.26% against 13.45% between September 2003 and August 2004, 40.88% against 31.02% during the following 12 months and 27.23% over the final year.

Looking at recent portfolio activity, Whiteoak said he added to a number of positions on weakness with Monterrico Metals, Paragon, Rensburg, Titan Europe, Imprint, Punch Grapix and Playtech among them.

"These companies all appear to have strong trading backgrounds and undervalued share prices," he said.

read full article here >>>>>>>>>>>>>>>>

http://www.investmentweek.co.uk/public/showPage.html?page=348650

Fill your boots at these levels.....I hope!

Nice to see it tick up on a 5K buy earlier

Nice start to the week.

L2 now 2 v 1 @202/210

Another good day :)

L2 now 2 v 1 @213/222

Good strong finish to the day, at this rate 270p end of the week is possible.

;-))

I got in at 300p so 270p by the end of the week would make me feel a whole lot better than I have been of late!

I got in at 171p and 180p for my SIPP according to these records. Don't you just love divergences of price and indicators coupled with volume?

;-))

200K X trade.

Big buyer is around, is it a potential bidder ?

Some chunky buys going through, 200K is half a million pounds.

Are there announcements due on progress updates?

Yes, but the strength of this move could point to a potential bid ???

Taken part out. ;-)

JV ?

Cashed in a couple more. ;-)

No selling from me, expecting news next week, and not going to sell myself short of what potential gains are to be had on major news.

Cannot knock people for taking profits, sometimes you miss out on bigger gains but that is part of the game.

PP

Been taking profits when I've deemed fit for many years. No regrets. Made about 45% in around 4 weeks. Compound that over the year!! ;-))

Expecting short term pullback so may increase holding again if appropriate, but for now, that's nice and I'll run the rest.

Rio Tinto on the prowl for new projects......would be nice if they are after another Copper play, but in Peru ;)

Yestedays Rio Tinto RNS :

http://www.investegate.co.uk/Article.aspx?id=200610181256446585K

Yes :)

Possible bid news released on RNS today :)

Nice one PP

Out completely ;-)

No bid below 500p IMO, and we should see some more gaps up, when the weak sellers dry up.

The reason for a big mark up this morning and come slowely down is to get people to sell IMO, will not be too many sessions before its up above todays open IMO.

Do we have a flavour as to who may be doing the bidding? You mentioned Rio tinto earlier PP. Any other thoughts?

500p may be a tad ambitious IMO PP. She's not spent much time above that in the conpany's whole existence. 400p is a possibility, but I'm sure they'd have opened it higher if 500p was likely.

Best of luck with it and never forget it could all come to nothing too.

Big Al, its grossly undervalued.

Small cap takovers are often way above the price when the bid talk comes out. They are buying the future, not the now, and so must pay a premium is the potential in future is large.

queen1, no idea, happy to keep holding and adding and waiting.



A reminder :

* Numis has a buy rating and 607p target price for Monterrico Metals

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=85962&MenuKey=News.Home

PP - I'm fully aware of the Numis rating and I've been caught up in numerous takeovers before. They are buying value and in their eyes. That's never a broker's target price unfortunately - I wish it were.

http://www.hemscott.com/news/comment-archive/item.do?id=14641

Monterrico leaps on approach

Kam Patel, 20/10/06 14:17

Shares in Monterrico Metals, the copper miner boasting a potentially world class find in Peru, shot up after it revealed it is the subject of a 'very preliminary approach'.
The company's shares have raced ahead in recent days, rising a hefty 33% in just the last seven days to yesterday's close of 261p. The announcement of an approach today led to them soaring another 20% or 51.5p to 312.5p by midday.

In its very short statement, Monterrico says that no terms have been indicated or details provided by the party that has approached it.

Monterrico's flagship project is the 100% owned Rio Blanco copper/molybdenum prospect in Northern Peru. A bankable feasibility study for the prospect is underway with the group reckoning on low-cost open pit mining operation.

Production is due to start in 2010 and reach 25m tones per annum of ore producing 220,000 tonnes per annum of copper in concentrate and 2,500 tonnes per annum of molybdenum, which would make Rio Blanco one of the 20 largest copper mines in the world.

There is plenty of upside potential, however, with broker Numis reckoning that there is 'excellent' potential to double ore production at the site, which would more than compensate for a fall off in the grade.

Results of the feasibility study are due for release in December. An environmental impact survey is also near completion.

In the wake of today's statement from Monterrico, broker Numis reiterated its buy stance on the stock. It has a price target of 607p.

Seymour Pierce, meanwhile, cautioned todays news might be a little premature as any bidder may want to await full details from the feasibility study. Still, it believes the shares look 'very good value' and reiterates its 'buy' stance.

It has not been plain sailing for Monterrico in Peru. Last year its share price suffered after violent protests by protesters who allege mining at Rio Blanco will contaminate coffee crops and water supplies for farmers across the region.

The company has always insisted it has strong local and national political support for the operation.

A delay to the bankable feasibility study for Rio Blanco earlier this year further dented sentiment over the stock.

Even after the sharp appreciation in the share price in recent days and today, the stock is well off the 590p all time hit in October 2004.

It may be that a bid is coming now, before the results of the feasibility study in December, because the bidder knows they will be good, which will send the sp soaring, so they are now trying to get it on the cheap.

PP & q1

Don't wish to stick a downer on things, but feasibility studies, etc are very subjective. Keep a calm head here. ;-))

Well, even after the rise through 310p, Numis say buy, so do Seymour, and even conservative Seymour say MNA is "very good value" at present levels.

It would make sense to start bids now, ahead of BFS finalising.

It is obvious the BFS should greatly increase the prospective resource.

After BFS Numis could raise their target price to anywhere near 1000p if the BFS confirms the thoughts, so a takeout pre-planned and ready at say 750p would make sense.

Its all speculative, but the very good thing is weak holders have sold out, and now we should hopefully see the big buyers push the price upwards, as they will know over time exactly how much this will go for.

Happily holding and adding :)

Agreed Big Al but I also feel there's legs in PP's figures as well. I guess we'll just have to wait and see!

20:20 Oct 06 Copper Day presentation by MNA for those who would like some more info on MNA :

http://www.mclwebcasts.com/Copper-monterrico-6-10-06_files/Default.htm

Very surprised to see no movement today. Couldn't find anything in the weekend press either, although I wasn't searching thoroughly.

Price is getting marginally stronger actually.

There is potential for more news this week or next, so plenty of things going on.

Trying to read this and they're heading negative. This doesn't smell like a high price take-out. Will continue to watch with interest. ;-0

Some profit taking at present, which is to be expected given the big rise up from 165p to where it is now, and the fact that its only a "very early approach".

If people want to take profits then fine, I will wait for any drop to stop, and buy a load more, just like most others will I am sure, whether they sold or not ;)

Profit-taking on very low volume this morning PP? Hmm

I will re-enter if they come back far enough, but that is some way below current levels. I do hope they get taken at a decent price, but please don't over-expose yourself as these things can easily fall apart.

Best of luck,
Al
;-)

Big Al, I think 400p would be the very minimum offer, however once a BFS is done and more details out, then a figure far ahead of this easily possible.

Interesting times ahead.

Just bringing this to where I can find it without going right down the BB.

I'm still watching, but it's all gone quiet. More perturbingly the share price has done nowt. Hmmm.

Its still undervalued imo Big Al, even after the rise.

Share price up today. There's support out there.

PP - may be, maybe not. Don't see it myself, but hey! ...... such is life in the market

;-)

If this does suffer from a takeover I'm going to go right off my trolley.

Why "suffer" from a takeover Arf Dysg? Doesn't sound like too bad a strategy to me, dependant on the price obviously, especially if there's more than one interested party.

queen1, I was being ironic. What I'm actually doing is buying more, hoping that there WILL be a takeover. I reckon that the net present value of the mine is 12 pounds a share. This goes up a bit if they borrow money from the banks instead of paying for the mine infrastructure costs immediately. 12 pounds a share assumes a very low copper price, around $1.50/lb. Every $0.10/lb increase on the copper price adds 3 pounds sterling per share to the net present value.

The feasibility study, out any day now, should clarify things.

It was planned for December, but if it slipped a month or two it should not make any difference.

Fair enough Arf Dysg. 12 a share would be lovely but a little rich I feel. A takeout price around 5 though shouldn't be out of the question.

December would be nice but I'd still be happy with a little new year present.
5 a share would value the company at 130m. That really isn't much considering the likely yearly output of copper.

Suppose the mine capital cost is half a billion pounds, that means there's only a fraction of that left over for the shareholders. I suggest that if the value of the mine (in today's money) is only slightly greater than the capital cost, margins are thin enough that the whole enterprise is dubious. I think margins are a lot better than that.

If even a fiver was in the offing, I'd really expect this to be trading at higher levels than this.

12 is sheer fantasy IMO

Fair points both. I'm sure the market will lead the way eventually.

Shares Mag of 26th Oct quotes Seymour Pierce as saying that a bid is likely to be around 403p a share.

Which is only 107 mil and seems cheap to me.

however, if the market is only valuing the co at 67 mil, then the likelihood of a half-billion pound takeover seems a bit reomote to say the least.

Will be interesting to see if the BFS has an effect on the SP. Might have a pop at this if I can free up some cash.

st - see my post 69.

There are always those in the know and on the day of announcment the price didn't even threaten 4. That says it all IMO.

Big Al, you have to admit that the "announcement" was couched in the vaguest of terms and concerned a "very preliminary" bid approach.

So less of a bid, more of an expression of interest. Surely one would expect the SP to go a lot higher if i.) the JORC/BFS was in place; ii.) the bid was looking a lot more serious and real money was actually being mentioned.

I think 5 a share, or 140 mil, for this co would be pretty cheap.

WDIK, but would be interested to hear others' thoughts.

Good news considering the recent political instability in the region recently:

Monterrico Metals said the government of Peru confirmed the legal title held by Montericco unit Minera Majaz SA over the surface rights of the Rio Blanco project, a copper-molybdenum deposit situated in northern Peru.

The company said it is now beginning the development phase of the project, following complertion of exploration at Henry's Hill. Monterrico added it will be applying to the Ministry of Energy and Mines for the Environmental Impact Assessment permit needed to construct and operate the mine.

FWIW I now think that 5 would be cheap as well.

Only question of time on this one....

Not what the price action continues to say, unfortunately.

Al, do you mean this price action? MNA Bid: 260p Offer: 266p Change: 11.5

I meant overall since the initial news on possible takeover - it's gone down ever since. I'm afraid today hardly makes up for it.

;-)

It's not exactly "gone down ever since" Big Al. It's actually fluctuated quite a bit. And back in August it was down at 180p so although we've retraced from 320p over the last few weeks there's been a definate improvement.

queen1 - beg to differ - since the announcement of the possible takeover on 23rd October, it has "gone down ever since", ta-wise, from about 345p to 245p and a wee rise the past couple of days.

I'm intriuged by the volume increase today however. ;-0

So here we have it!!
;-0



Monterrico receives offer
MoneyAM
Monterrico Metals PLC said it has received an indicative takeover bid from an unnamed party.

The offer was a 'modest premium' to 257.5 pence a share, the closing share price of the group on Dec 21, a day after it announced it received a preliminary approach.

The bid is subject to a number of pre-conditions, including a due diligence audit of the business, Monterrico said.

'The company is making the requisite due diligence information available and discussions are ongoing,' it added.

It cautioned, however, that there can be no certainty that these talks could lead to a firm offer being made for the group.

A further announcement on the progress of these discussions will be made by end-January, at the latest, Monterrico said.

Richard Ralph already saying it should be rejected. Numis have commented there could be up to 19 companies making a bid in 2007 for MNA, therefore, this is just the start of the process, with a potential bidding war to come.

By my estimates I would say 375p to 400p will be any final offer, just IMO.

I wouldn't hold out a lot of hope there, PP. Sorry!

Big Al , How about 4.00/5.00... I hold quite a few of those and would not sell below that.
Time will tell...

MNA has got to be worth more than a "modest premium", surely. I am not a holder, but have toyed with the idea of getting in.

I haven't read your Numis source, PP, but their idea is plausible, even if the true figure is only three or four potential bidders rather than 19.

The story on pricing was in the action of the last couple of months IMO.

The point is they're hardly queueing up, are they? Every chart tells a story more often than not!

No, a few months back there was the worry over the elections, along with a concerted campaign by the "flower power crew" about enviromental impact "worries".

That is now all clear and things are looking a lot more "derisked" - and as it derisks then so potential bidders will start to take a more real view on the potential.

If it does go for a price so high then it would be highly unusual in that whenever you see a situation such as this, it invariably attains a level not far removed from the take-out. The fact MNA drifted back from about 350 to 250 speaks volumes IMO.

Mind you, jumping in at this level might now seem sensible given the "opening bid". Hopefully little more downside? As for myself, I'm glad to have bailed during that initial surge and cashed in. I'm also glad I wasn't tempted to add instead.

Do not forget to get your 5 top picks for 2007 into the Stock Challenge competition.

Link below, click on the "Entry Form" tab, and then "2007 Annual"

http://www.stockchallenge.co.uk/sc/index.htm


Happy New Year to All

From AFN :

rrr - 30 Dec'06 - 20:29 - 761 of 761 moderate post | add to banned list


Came across this company via OXB. See this link which is to a mention of (OXB and) Monterrico by Patrick Evershed in the Telegraph. May help next week!

He says: "I also favour Monterrico Metals. This company has found enormous deposits of copper. When mining starts early next decade it could be one of the largest copper mines in the world. I hope a bidding war for the company will start in 2007."

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/30/cmfore30.xml&page=2

From http://www.minesite.com/

You can get a 30 day free trial of Minesite at the link here : http://www.minesite.com/subscribing.html


The article ties in with what I am thinking and have said, that a final offer should be around the 400p levels. The timing is the problem, it could be early, mid or late in 2007......



December 22, 2006

An Early Christmas Turkey From Monterrico Metals And Its Advisers

As Charles Kernot, the highly respected mining analyst at brokers Seymour Pierce, points out the announcement put out today by Monterrico Metals is mighty strange in its timing. Half the population is trying to get to its Christmas destination in the fog and the other half is either shopping or in the boozer. Whichever corporate financier insisted that such a press release be sent out today has clearly taken leave of the last vestiges of common sense.

From here one can almost hear him mouthing the words sensitive information. Yes ducky, confirmation that Monterrico has received an indicative proposal from a party interested in making an offer for the entire issued and to be issued share capital of the company at a modest premium to the closing middle market share price on 21 December 2006 of 257.5 pence is indeed sensitive information. But the point about releasing sensitive information is to ensure that as many shareholders as possible are fully informed about company developments at the same time. Might it not have been rather more sensible to have made the announcement when everyone reassembles after Christmas and the New Year instead of bang in the middle of pre-Christmas chaos?

Mr Kernot puts it rather more politely, pointing out that as so few people are in their offices and looking at their screens, his firm plans to re-send the announcement in the New Year to ensure it is not missed by investors. Not that it actually amounts to much if read carefully. This announcement is being made without the agreement or approval of the potential offeror. This announcement does not amount to a firm intention by any party to make an offer for Monterrico. Accordingly, there can be no certainty that any offer will be forthcoming, even if the pre-conditions are satisfied or waived, nor as to the terms on which any offer might be made. Not a lot to get excited about there and another announcement is going to be made in January, anyway.

The whole episode has left Seymour Pierce very unimpressed as they say they are concerned that Monterrico is spending an inordinate amount of time working with a potential offeror that is only willing to pay a modest premium to 257.5p. As they point out, it is really only a sighting shot and recent bids in the sector have seen these being trumped handsomely in final offers . The brokers therefore remain very firmly of the view that a level of 400p/share is a realistic prospect for the company over the next six or so months. Good news for shareholders in Monterrico, but will they have read it?

John Meyer at Numis Securities thinks along the same lines and points out that at least 20 mining companies have reviewed the project in recent years indicating that there is considerable interest in the potential acquisition of the business. Political, local and social considerations have almost certainly have held back interest from third parties for Monterricos Rio Blanco project, but Chinese smelters are reported to be desperate to sign up supplies of copper concentrate. After all this is not just another copper project. According to Meyer, Rio Blanco is a world-class scale copper porphyry deposit and is very similar to Antofagastas Los Pelambres copper project which is also in Peru.

He expects other offers in the New Year as third parties assess the just received, detailed feasibility study. This study should confirm for third parties a number of cost and technical issues and can then be used to form the basis of the companys application for environmental permits and a subsequent licence to mine. The fat lady has not even got to the theatre yet, let alone started to climb on the stage.

Drifting down again after the intial excitement. Hmm.

Continues to drift downwards.

At this rate I'll have to buy coz it's value again. ;-))

Funny

;-)

Comments?

Looking cheap?

WDIK though - wish I'd had the "minerals" to get in when this was in the 160's!

Whoosh! Up we go! Up 9p yesterday and 18p today. This has legs.

Needs to break the top of the downtrend channel, Arf. It's a short if not IMO.

Since the announcement of talks in October, all it's done is tail off unfortunately.

Still watching.

RNS Number:3872Q
Monterrico Metals PLC
30 January 2007
Monterrico Metals plc
("Monterrico" or the "Company")
AIM: MNA
Update re: Offer period

LONDON: 30 January, 2007: Further to the announcement made on 22 December 2006 that Monterrico had received an indicative proposal (the "Proposal") from a party interested in making an offer for the entire issued and to be issued share capital of the Company (the "Potential Offeror"), Monterrico confirms that it has provided the Potential Offeror with all due diligence information requested and that discussions are ongoing.

The Proposal received from the Potential Offeror is subject to a number of pre-conditions which must be either satisfied or waived before any offer could be made.

This announcement is being made without the agreement or approval of the Potential Offeror. This announcement does not amount to a firm intention by any party to make an offer for Monterrico. Accordingly, there can be no certainty that any offer will be forthcoming, even if the pre-conditions are satisfied or waived, nor as to the terms on which any offer might be made.

A further announcement will be made in due course.

Why is it all small outfits feel the need to release these inconsequential RNSs which clog up the newswires.

That tells us nothing new .................... unfortunately! ;-)

Big Al, as obvioulsy the buyer is trying to buy cheap, and MNA are doing there best to get the best price, which means keeping everyone aware of events.

That is why the news is released "without" the potential buyers consent.

Yeah, they're all at it, PP. It pisses me off the management take the time to release this crap - they could be adding value by other means IMO! ;-)

I suppose the one snippet which is new is that MNA have supplied all the "due diligence" information but fundamentally that means serious talks have been going on and continue.

Price is up some more... what does this to to the downtrend?

...... and the moral of the story, Al, is take notice of volume. Muppet!

;-)))

My calculations of NPV put these shares as worth more than recent trading levels. I've been a long-term holder for a relatively short time. :)

Arf - I looked at the chart whilst away working. I knew the 220-240p level was important. I know an increase in volume is important. What did I do? You guessed it.

BTW - this has nothing to do with bids, etc. It's simple TA at support, including a retest of a double-bottom (+/-)

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/04/cnchina04.xml


I was expecting around 400p, but cannot complain at 340p considering we were allowed to buy at 170p recently, its a bagger for me, but the Chinese will get it cheap.

You'll notice on the first rise that the price went straight to 340p before falling back.

And for those who still remain under the impression that the Chinese are stupid and need foreigners to help them exploit their own resources, you'll see that in fact they are continuing to buy up all the resources in the world, and sell their own defunct or non-viable resource area's to AIM companies :) imo.

Much better than the "modest premium to 257p" that was touted initially.

Just goes to show, the price was known all the way back in October, PP? ;-0

Indeed it was Big Al.

Not that I'd imply anything by that, don't you know. Stange how it always seems to happen that way, isn't it? ;-)))

There were rumours of more than one interested party - several in fact. Do we feel there will be any counter bids or is this likely to be as good as it gets?

Trading only at a slight premium, queen1. Might imply little chance of anything better, but you never know. Must say I'm not inclined to take the risk.

How do you get 350p as only a slight premium to 257p Big Al?!

queen1 - meant the current trading price. Often I notice that in bid situations, once the first bid is in, companies can trade significantly higher that the bid price because those in the know expect a better offer to come. I'm not seeing that this morning really. Sorry for the confusion. The 257p bid is irrelevant.

From AFN :

grigor - 5 Feb'07 - 12:13 - 1006 of 1018



http://investing.reuters.co.uk/news/articleinvesting.aspx?type=stocksNews&storyID=2007-02-05T115057Z_01_NOA532653_RTRUKOC_0_MONTERRICO-ZIJIN.xml&pageNumber=2&imageid=∩=&sz=13&WTModLoc=InvArt-C1-ArticlePage2

Monterrico Metals agrees Chinese takeover
Mon Feb 5, 2007 11:51 AM GMT

(Reuters) - Peru-focused copper miner Monterrico Metals has agreed to a takeover by a Chinese consortium valuing the company at around 94.6 million pounds but the miner believes the offer underestimates its value and hinted at an auction.

........

"We have made soft irrevocable undertakings and that yardstick (the 350p/share offer) may greatly underestimate the intrinsic value of the company," he said.

"An auction, if it were to occur, could extract greater value for shareholders."

........

"I think the project is worth a lot more and this is a bit of a cheeky bid by Zijin ... which should flush out other interested parties," Numis Securities analyst John Meyer said. He raised his price target to 633p from 589p.

........

Meyer recommended shareholders wait before making a decision on the Zijin offer because other offers could come in.

I hope for holders that it comes to fruition, but I've always been a bit sceptical of analysts!! Mind you, a valuation of 5 was bandied about in the Telegraph (from memory) 2-3 years ago.

Time will tell, I guess.

Just as a matter of interest, has anyone sold into this rise?

I'm not selling, no no no no no. The price peaked at 370p today. That was just a symptom of the fact that MNA is worth more than 350p. That was just to whet our appetite for the real bid which is doubtless coming along.

Big Al, I notice that in post 107, on 2nd February (Friday) you said "BTW, this has nothing to do with bids, etc. It's simple TA..."
I disagree completely. It was entirely to do with the bid.

C'est la vie Arf. Did the bid drive the TA? Did the MMs manage to drive it down to a natural buying level in the timescale it took for the TA to work? Strange place these markets.

Either way, nice one for those who still hold. Congrats. I'm only jealous because I failed to re-enter at a good level last week. LOL!

Hi all - As I questioned a few days ago, are there more bids in the wings? A SP of 366p when the bid is 350p seems to suggest so.

Big Al - thanks for the explanation.

Numis seems to think it's worth 6+
Seymour Pierece says "ultra-conservative" assumptions give a price of 4+

It seems that the Chinese are trying to get it on the cheap then. The worry is that the MNA Board seem content with 350p.

potentially interesting play if one dares .... that said, downside looks very small

I bought at 300p and held my nerve when it fell do sub 200p as I had faith in the assets and prospects of the company. So 350p would be a nice profit but 400p would be better!

not sure what to do about this one .....am quite tempted to buy, but volumes are small (avr about 98k tho today 168k) which implies low liquidity

Missed the last bid therefore potential value gone?

not necessarily - i.e. if there is a counter

High risk now, cynic?

Not for me I'm afraid - better targets. ;-))

http://news.independent.co.uk/business/analysis_and_features/article2328853.ece


Small Talk: Bid battle looms for Peru copper miner Monterrico

By Michael Jivkov

Published: 05 March 2007

The Chinese consortium bidding for Monterrico Metals will this week post its offer document to shareholders in the Peru-focused copper miner. If a deal is accepted, it will be the first takeover of a London-listed company by the Chinese, but with hedge funds hoovering up stock at above the 350p offer price it looks unlikely that their bid for Monterrico will remain the only one on the table for much longer.

Things started getting interesting at the Alternative Investment Market-listed group last month when Zijin Mining unveiled its 91m takeover. Although the offer was recommended by Monterrico, its board has done everything possible to leave the door open for another bidder. Some directors have even reserved the right to tender their shares to a higher bidder as long as it is 10 per cent above the present offer.

There is a consensus among City analysts that Zijin's proposal significantly undervalues Monterrico and its Rio Blanco copper project - widely expected to become one of the 10 biggest of its kind in the world.

Charles Kernot, mining analyst at Seymour Pierce, says that if the group had been able to publish profit forecasts alongside its recent feasibility study, they would have shown how derisory the Zijin offer actually is in comparison with the potential value of the project.

He believes Monterrico is worth at least 486p a share, and that a counter-bid for the group is highly probable. As does John Meyer, analyst at Numis Securities. In a recent research note Mr Meyer pointed out that around 20 significant mining companies have previously expressed an interest in the Rio Blanco project.

Meanwhile, a look at the history of mining takeovers over the past few years shows that an initial approach very often flushes out higher bidders.

A counter-bid is certainly what hedge funds such as Elgin Capital are betting on. Elgin has built up a 2.69 per cent stake in Monterrico, with the investment firm paying a few pence above the 350p offer level for a good chunk of this holding.

From a risk/reward point of view, this strategy makes a lot of sense. If a counter-bid does emerge, it is likely to spark a bidding war that would send Monterrico shares substantially higher than current levels. Given the amount of time that Zijin has spent working on this deal, it is unlikely to give up very easily.

Of course, if a fresh bid fails to emerge, Elgin will lose out, but the important point is that it is risking only a few pence a share in order to win significantly more.

If Charles Kernot's estimate proves is correct, the likes of Elgin stand to make over 120p a share. Now those are good odds.

Monterrico's recent feasibility study - a master plan for its project, detailing everything from how much it will cost to its environmental and social impact - showed that its Rio Blanco mine is capable of producing 25 million tonnes of copper per year.

The group expects construction of the mine to start in 2008 and production in early 2010.

Great note, thanks PapalPower.

Not high risk now at all - even lower risk.

Reuters and Bloomberg have reported that Monterrico Metals's biggest shareholder (Greater Europe Fund) have rejected the offer. Their valuation is quoted as being in the range USD 500M to USD 1000M. Wow! That puts the share price at a minimum of 9.76

Shareholders rejecting the offer means positive price action. The risk just got even lower.

I was surprised no-one commented on this yesterday. Any thoughts, guys?


Zijin group says level of acceptances needed for Monterrico offer cut to 51 pct
AFX


LONDON (AFX) - Xiamen Zijin Tongguan Investment Development Co Ltd, or the Zijin consortium, said the level of acceptances required for its acquisition of Monterrico Metals PLC to become unconditional has been lowered to more than 50 pct from 70 pct.

As of yesterday, Zijin had received acceptances representing about 39 pct of Monterrico's share capital.

The consortium said it will not increase its 350 pence per share offer for Monterrico and added that the deadline for the offer, which had been extended from March 27 to April 13, will not be extended again.

The consortium comprises Zijin, one of the largest gold producers in China, copper producer Tongling and Xiamen, a large state-owned conglomerate.

sounds like a fairly typical chinese ploy to frighten some undecideds into selling out .... whether or not they should is a personal view

Indeed.

I was fairly astonished that such a large proportion as 39% had accepted. Only 11% and they could block other moves effectively. I don't see it a very bullish for an upward price move or am I overly pessimistic?

Interesting developments this week.

I see no response from anyone over yesterday's announcement that the Chinese have declared the thing unconditional.

There was a piece in the Times this morning - you have 2 weeks to accept the offer or risk diluting your holding should Zijin keep the listing an draise new funds.

Anynoe still holding as it seems "game over"?

I'm still holding - not sure what to make of it at the present.....

Long-term: as we move towards production, you'll have a share in a mine, so the price will go up.

Short-term: the Chinese might need to buy in the market to get up to 70% but I'm only guessing. That would put the price up.

Raising funds shouldn't be a problem for holders of the shares. Any calculation of value of the shares includes future profits and dilution. Even including all this, the price will go up as we move towards production.

I think you miss the point. The Chinese have more than 50%. I refer you to my post #136. They are in control and it's pointless really for the average punter such as ourselves to expect any premium down the road.

It'a game over unfortunately. Take the money and stick it somewhere with potential IMO. MNA treated you well, but it must be time to move on.

So what happened to the other 10-20 parties that were supposed to be interested??!!

Red herrings?

The Chinese are picking up all sorts of companies with commodities assets for their own ends. They've been doing it for several years. My belief is that once they have >50% of a company they won't sell out as they wish to control their own destiny, i.e. they are picking up supplies of oil, copper, etc, etc at current prices which in several years will look cheap.

They ain't going to sell out for any price, therefore IMO, the share price of MNA will remain 350p or thereabouts. Time to pick something that might rise?

I think my logic stands up.

Interesting turn of events the past couple of days, but I can find no news to be driving this price fall.

Have I missed something?

ttt

Anybody out there? Is there anyone still holding out now?

I sold out at 350p Big Al. I still feel that it was undervalued but was looking more and more risky to hold. Good luck if you're still in though.

I flogged my last on the day of the bid, queen1. I've said all along it was never going any higher than that. It's unfortunate for those clinging on, but I've put the money to far better use in the intervening months! ;-))

Me too Big Al. Have invested in XTR this week and seen an 18% rise already which is nice!

spoke to co, dismayed at the further fall, expect 'action' soon, shares started tick back up.

coming back nicely now, got the impression they were to announce something good but obviously couldn't say over the phone.

Is penalpower still in this? All the hallmarks.

forced sellers pulled it down to crazy levels, coming back nicely and proving tricky to buy in size.

AGR has also been brought to my attention on another bb. Missed buying them today and again it appears a seller has been cleared and they rose after the 4:30pm auction. Will look to buy in the morning, having fallen from 160p to 114p we may have a similar gift. That one looks an even better opportunity than here as it's a profitable property health company and alot more liquid than this one

why such a big rise within seconds.

take my words back.

Keep an eye on AGR next few days, done a bomb on these last few days, AGR next. getting some good info from these distressed seller stocks.

Kate why has AGR sp plunged around 40% during the past few weeks?

;-0

Crooks in MNA...


Friday November 14, 2008

A former British ambassador has been handed a hefty fine after he confessed he secretly asked a friend to buy shares in his mining company just weeks before a major takeover deal.

Richard Ralph, who was Britain's official representative in Peru, Romania and Latvia during his diplomatic career, was told he must pay the Financial Serices Authority (FSA) 118,000 for insider trading.

It was when Ralph was serving in Peru that he established close links with British mining company Monterrico Metals, which operated in the South American country.

He joined the firm as executive chairman in 2006 after retiring from the Diplomatic Service.

The FSA launched a probe when suspicious trading in London-listed Monterrico Metals was noted shortly before its takeover by a Chinese mining consortium in February 2007.

This was a serious example of insider dealing by a person in a key position of responsibility and trust.

FSA statement

In January 2007, when the company was still in confidential talks over the deal, Ralph's friend Filip Boyen bought Monterrico shares worth 77,162.05 for himself and shares worth 30,533.59 for Mr Ralph.

Ralph admitted he had given Boyen the benefit of inside information regarding the forthcoming deal.

After the takeover was announced, Mr Boyen sold all the Monterrico shares, making a profit of 12,691.41 for Mr Ralph and a profit of 29,482.95 for himself.

FSA director of enforcement Margaret Cole said Boyen and Ralph had co-operated fully with its investigation "by coming forward and providing us with information about market misconduct and as such we were more lenient.

"But for that co-operation, we would have seriously considered taking criminal proceedings," she said.

The FSA described the market abuse as "a serious example of insider dealing by a person in a key position of responsibility and trust."

It fined Ralph 12,691.41 (the profit derived by Mr Ralph of the shares) and an additional penalty element of 105,000. Boyen was fined 81,982.95.

It is not the first time Ralph has hit the headlines - he was also involved in the Mittal "steelgate" affair when he served as Britain's ambassador to Romania.

Surprised no-one is around these. ;-)))

Made a lot of money on this when it first dropped to 100p and then recovered to 200p. Been watching closely ever since and aware of it's rise in the last couple of days. Haven't particpated because of the large spread + not sure I'd be able to sell back.