Better carry on here Cynic....not in yet but very interesting....how's that bridge across to China getting on ?

"Aricom plc announces that it is making changes to the operational plan for the Kuranakh project in response to current market conditions.

Operations at Kuranakh involve mining, crushing and screening in order to generate a pre-concentrate. During 2008, Aricom has been selling the pre-concentrate at prices which have generated a positive contribution. The Olekma beneficiation plant, once commissioned, will upgrade and divide this pre-concentrate into iron ore (titanomagnetite) and ilmenite concentrates.

Given the current market conditions, the Board believes that the value of the project, as a whole, is best served by suspending sales of pre-concentrate to await commissioning of the Olekma plant in mid-2009 and, in the meantime, scaling back mining activities in order to minimise operating costs. Aricom expects that the capital expenditure required to finalise the Kuranakh project will be c.US$30m.

Commenting on this announcement, Jay Hambro, Chief Executive, said:
'Realising initial income from Kuranakh has been a considerable advantage and it is unfortunate that the market no longer supports the economic value in sales of pre-concentrate. Despite this short term setback, we are confident that the Kuranakh project will be a profitable contributor to the Aricom portfolio when the Olekma plant is commissioned in 2009 to realise sales of the higher margin iron ore and ilmenite concentrates even in this depressed market for all commodities.' "

What are the prospects now for Aricom?
All the bad news must surely be there!

don't expect a recovery any time soon i'm afraid

Is the problem twofold?

1)The Russian "political" issue, - that puts such operations into uncertanty

2)The CommodityMarket issue, - that no-one wants raw materials - there being plenty availably from the usual sources.

It matters very little what their business model is, quality of materials etc...for a combination of these two issues could render the value to zero - and I suspect the Market has got it about right in the circumstances. I don't hold this.

Also , their ability to gain the necessary funding has to be a major concern.One for the back burner?

very heavy volume today, feels like news is coming!!!

Statement re Possible Offer

"Aricom plc ('Aricom' or the 'Company') notes the recent share price movement and confirms that it is in preliminary discussions with Peter Hambro Mining Plc ('Peter Hambro') which may or may not lead to an all share offer being made for the Company at a substantial premium to the current share price.

There is no certainty that any offer will be forthcoming. A further announcement will be made in due course as appropriate."

The Pak Man or Shark game has started.....one of many to come these next 2 years....not in as yet and finding it difficult to put a valuation on this !.

Whatever price Peter Hambro offer they will be getting Aricom on the cheap. Admittedly raw material prices are down and Aricom need investment but they are a top class operation with an excellent asset that will be priceless when raw material prices rise again which they will do at some point in the future.

and who owned ORE previously? ..... well, POG of course! ... almost like the saying about a whore, "You got it; you sell; you still got it!"

Kenmare (KMR main market as well) rising also in sympathy ? could be the start of a big takeover year !.

that news came a bit quicker than expected.

just need the chinese to counter-offer now then its off to HRCO.

news of a bid and the SP drops?? admittedly a father son deal but won't get go ahead unless good for companies concerned

The other point to consider is that it doesn't look likely that it will be an all cash offer. "The consideration for any such offer would comprise shares in Peter Hambro Mining." Although the assets of POG would increase if the offer goes ahead, would shareholders in POG see this as dilution?

i recollect that it is likely to be a shares only offer

Is this a bail out for ORE shareholders? If so it can't be a good move for POG shareholders, incest springs to mind.

POG almost certainly made mega-bucks when spinning off ORE and will almost certainly now be buying back cheaper ...... prob good solution all round

This can be put in an Isa.....those that were in low down must have done well....but there is a problem withh staying in if that is the case (being in an Isa) with this stock that I can foresee : POG is not main market which means they will take ORE possibly out of the main stream !, now, I don't know all the rules to Isa's (does anybody?), but the inland revenue might insist on the funds coming out of an Isa in this case....those in this situation might not be able to reinvest the same amount within the Isa wrappage !.

rumours on afn saying 18p is the done price and news this week..

seems a bit cheap for me.

Far too cheap if true.