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

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.