They're a dozy lot down at IC. Today they have a piece on the flotation of Asia Energy plc on AIM. Chunky coal deposits in Bangladesh. Market cap. expected to be about 30m.

What IC fails to notice is that CBM has a 55% stake in AE. 55% of 30m wd be 16.5m.

CBM's current total market cap at 63p is er... about 16m!!

So we get Western Canadian Coal (about to float on AIM), Pageton Coal in West Virginia, AGD Mining, Subranum Gold in Ghana, and CBM'z most recent acquisition Zhibek Resources (again planned to float on AIM in 2004) FOR NOTHING.

Fill your boots folks, this is set to double.

Market cap of CBM is now about 110m

CBM up 17% so far today.

asia energy flying

Buy note out from Cazenove on AEN today.

CBM has come onto my bottom feeders watchlist after a price drop was followed by significant director share buying. And the news all looks good: a five fold increase in profits was reported at the end of March in addition to the earlier items noted on this BB. Hope that others are watching.
sd.

Hi Squidd,

Yes agree with your analysis. I think it still has a little way down to go. Hard to judge where the bottom will be but there is little resistance until about 1. Long term its ridiculousy cheap. The SP has always been very news driven - AEN and WTN being its main shareholdings. It now also has COIL and also the linked company CLN which it does not currently have a shareholding in.

The share price fall is way overdone.

B1

beaufort1: Thanks for the additional information. I rarely gauge the bottom exactly, so I try to straddle it. I hope soon to be looking to scatter takings from ELA - an earlier bottom feeders ready meal - and CBM is high on my watchlist.
sd.

Having looked again at the charts, I can see no sign of the bottom; the good news and directors buys have been brushed aside and now both the SP and OBV are rolling speedily downhill. In the present gloom over AIM , there must be a lot of investors who came aboard last year at between 40 - 100p, still sitting on decent profits and looking nervously at the exit. So I think this could stay on my watch list for some time.
The shape of chart I like to watch is IGE, and readers interested in recovery stocks could have a look at exchanges with PpP on ELA and APH.
sd.

Shares Mag Today:

"Cambrian Mining is becoming increasingly vulnerable to a hostile takeover bid.........Cambrian's investment portfolio is worth close to 162 million, more than double its market value of 77 million.......the shares look too cheap".

Market value is actually about a 100m. There are about 78m shares in issue.

This has come up on the radar again following more share buying by a director.
The CEO has got to get it right sometime and it could be now - the chart certainly looks very interesting.
Any views.
sd.

Yes looks as though its bottomed out for now. At the moment the SP depends largely on the fortunes of AEN and WTN

Recovery seems to be taking hold - fairly respectable volumes as well.
sd.

MAJOR STORY HAS BROKEN TODAY'S GUARDIAN LEADER STORY
..........
FTSE 100 mining company Xstrata was in focus yesterday amid rumours that it is poised to purchase a large stake in a London-listed rival.
Ever since Xstrata lost out in the $7bn (4bn) battle for Australia's WMC Resources to BHP Billiton, 2p weaker at 841p, the Swiss-based company has been on the acquisition trail.

Last month it paid almost 1bn for a 19.95% stake in Canadian nickel miner Falconbridge and speculators in the Square Mile believe it has now turned its attention to Asia Energy, the Aim-listed company that is developing the Phulbari coal mine in Bangladesh.

According to the City rumour mill, Xstrata, the world's biggest exporter of thermal coal, has approach Asia Energy's largest shareholder, Cambrian Mining, 3p higher at 165p yesterday, with an offer for its 23% holding.
By all accounts Cambrian, one of Asia Energy's pre-flotation backers, is willing to sell as long as it can reach an agreement with Xstrata over royalty payments from Phulbari.

Before Asia Energy was listed on Aim at 75p in the spring, Cambrian struck a deal whereby it would retain a $1 a tonne royalty on coal production from Phulbari.

To give readers an idea of how much that might be worth, the latest estimate is that Phulbari has coal reserves totalling 572m tonnes. Production is due to begin in 2007.

Asia Energy shares, which have enjoyed a good run this week, closed 7.5p higher at 695p, meanwhile Xstrata climbed 17p to 13.30.

some excellent news for any holders out there

Cambrian Mining PLC
29 September 2005


Cambrian Mining Plc

Sale of 4.3 million shares in Asia Energy Plc

Cambrian Mining Plc ('Cambrian') advises that it has sold 4.3 million shares in
Asia Energy Plc ('Asia Energy') at 640p per share in cash to financial
institutions that have been long-standing supporters of Asia Energy and its
plans to bring the massive 572 million tonne Phulbari coal deposit in Bangladesh
into production.

As a result of the sale, Cambrian will book a pre-tax profit of approximately
27 million, equivalent to about 30p per Cambrian share. The proceeds of this
sale will be used to support its broader coal, iron ore, nickel, gold and other
investments.

Cambrian has given an undertaking to W.H. Ireland, who acted for Cambrian in the
transaction, that it will not sell any further Asia Energy shares before 30
June, 2006.

Cambrian retains 4,515,000 shares, or 11.3% of Asia Energy's capital, and has a
$US1 a tonne royalty on future coal production from Asia Energy's Phulbari
deposit.

GREAT announcement...

SOMETHING NEW TODAY:



Funds News

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Framlington's Luckraft says investment opportunities abound
Thu Oct 13, 2005 9:18 AM BST



By Laurence Fletcher

LONDON (Citywire) - The UK economy's current difficulties needn't translate into tough times for the stockmarket, argues Framlington star income fund manager George Luckraft.

Luckraft, who runs the Framlington Monthly Income, Equity Income and Managed Income funds and who holds an AA rating from Citywire, notes the inflationary pressures in the UK economy as well as the continuing consumer slowdown. Nevertheless he sees opportunities to make money.

He commented: "There has been a definite slowdown, with oil prices acting as a tax out of consumer pockets. We'll see more of this as electricity and gas prices continue to increase.

"Oil is likely to stay above $50 a barrel for the foreseeable future with a danger that it could spike considerably higher if we get either unrest in some of the oil exporting nations, or we see new violence in Iraq. There's plenty of oil in Iran and Iraq but, with their regimes not particularly stable, it will be difficult to get the investment that's required there.

"I am concerned that the current oil situation will have a knock-on effect on inflation levels. This means that the Bank of England and the Federal Reserve may have to take action; the former not to take rates down, as expected, and the latter to take rates higher than the market currently predicts. Because of Hurricane Katrina, US interest rate expectations have been, I feel unjustifiably, pulled back substantially. However, I think that these will correct upwards again.

"The levels of growth we have seen in personal debt are unsustainable and, as such, the UK economy is going through a tougher time."

However he said: "Although it's not a great background for the UK economy, this does not necessarily mean it's a bad time for UK stockmarkets.

"Profit warnings are rising, and this will continue as the impact of squeezes of raw material prices and a slower consumer takes the edge off some of the expectations for corporate profit growth, cashflows are generally very strong and balance sheets are in good order."

Luckraft sees opportunities for skilful stockpickers in the high levels of bid activity, as Europeans use low interest rates to fund acquisitions in the UK. "Providing we avoid the pitfalls, we'll reap some benefits from bid approaches," he said.

He is steering clear of consumer stocks because of the tough consumer environment although he is keen on Topps Tiles which, whilst experiencing tougher trading conditions, has gross margins of over 60 percent.

He also likes sausage skin maker Devro, which he expects to benefit from the "predicted increase in sausage consumption in China", Renova Energy, which turns grain into ethanol, and Cambrian Mining, which has stakes in coal groups Asia Energy and Western Canadian.

08.40 01/11/05 close

LONDON (AFX) - Cambrian Mining PLC announced maiden dividend of 1.5 pence following a sharp rise in full year profit, and said it expects a significant rise in profits in 2006 following the sale of part of its Asia Energy PLC stake. Further, its 41 pct stake in Western Canadian Coal is expected to provide a significant contribution to earnings in the current year. In the full year, the company recorded pretax profits of 4.452 mln stg from a loss of 89,000, mainly from the disposal of non-core assets while sales rose to 718,000 stg from 30,000 the year before. Chairman Charles de Chezelles said: "We anticipate that operating profit will grow this financial year as the Dillon mine reaches a full 12 months of production, as AGD brings its gold and antimony mine into production in the first quarter of 2006 and the US coal group moves rapidly to achieve its production targets."

Just a note on this share which I have also put on the AEN thread

CBM is trading at over a 20% discount to its listed investments as at last reports in early Nov

It has a royalty of $1/tonne from the AEN mine in Bangladesh if that gets started. Assuming the mine figures from aen are correct

570m tonnes
15m tonnes mined a year from 2007
And a discount rate of 10%

The royalty is worth to CBM well over the market cap of the company

Add on to this its unlisted assets and this looks not a bad little place to be

that is an uderstatement. add to that the cash they have realized from AEN while retaining the royalty arrangement it is very undervalued. i am in at this level and would look for 250p