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%

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Broker Recommendations :

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

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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
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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

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.