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

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