Emma I think 2011 will be Sylvanias year of love. I was reading...

Emma I think 2011 will be Sylvanias year of love. I was reading the link posted by maan (thanks) and on advfn. Read on advfn about the samancor deal below. Record production and news of production due end of Jan '11. Unloved is a good a thing if in before the loving starts. Production on track now unless we get negative news but unlikely I think. So January is the mark and the first quarter. Dont forget Everest North and jubilee should add some spice.

Copy & Paste all below.

http://www.advfn.com/cmn/fbb/thread.php3?id=13824057&from=3830

kooba - 1 Oct'10 - 10:19 - 3835 of 4112

decent article on ownership consolidation
http://www.miningweekly.com/article/sylvania-plans-to-take-full-ownership-of-sa-dumps-2010-09-29

FJP73 - 1 Oct'10 - 18:18 - 3836 of 4112

A Very Good Evening Chaps/Esses,

Kooba, a very interesting article and thank you. Not because of its echolalia to the RNS but for a key statement that needs breaking down. The deal brings a host of advantages that could not be explained in direct monetary terms, such as consolidation of the SDOs operations, a closer working relationship with Samancor and the potential to explore other opportunities with Samancor.

Andy, good questions:

How much did Samancor Pay? I don?t think we?ll ever get to find out, but SLV have also paid SamancorCr in shares, so does it matter in the scheme of things?

Why did they buy to shift straight on to us? My personal opinion is SLV needed cleaning up and I?ve discussed it below, but in short, expansion and clean business.

Did they buy on our behalf as we couldn't because of BEE? They bought the BEE to amend the Service Contracts between SLV and SamancorCr, so that in essence SLV are now a contractor for SamancorCr and only have to comply with SamancorCr?s BEE compliancy. Under BEE regulations only another BEE compliant company could have bought the BEE, thus SamancorCr

Is this part of a master plan for Samancor to take us over? I believe so and for the reasons listed below but in short, SLV now is a good mechanism to acquire listed companies via SLV share certs whilst having a private owner

When will the new board members be joining us and will it be additions or replacements? My personal view, and sadly, is that a number of the BOD will depart with the addition of more expansion focussed, producing minded group coming on board, with a few familiar faces to enable confidence to be retained with the existing shareholders.

Et Al ("and all" in Latin lol):

Well, I do not believe it is hard if you delineate all the reforms that have taken place to work out what the entire transaction is implying.

a) Please look at the presentation to see what's happening in terms of production and where SLV is on that "journey!" I have included the link to all the presentations as it's important to back track through them and see what's changed: http://www.sylvaniaresources.com/im/presentations.php

b) SamancorCr have reduced their tonnage in the interim which impacts on the long term story of SLV, however there's plenty of development and production to be getting on with.

c) What do SamancorCr do? http://www.samancorcr.com/content.asp?subID=2

d) Who owns them? http://www.samancorcr.com/content.asp?subID=26

e) How much cash does IMR-IMS Group have? Well there's a good question, but I have this feeling SLV have just found a sugar daddy, that may want a marriage after a few dates.

f) Right, so IMS/R have a ?little cash?, know SA very well and want to get develop.

e) So SamancorCr are working with a company (SLV) that is in the final stages of a underpinning itself as a developing producer and becoming a small player, a new dawn so to speak. I think SamancorCr have realised this potential value.

f) "According to the press," SLV has had a number of suitors and I can only conclude that the suitors didn't like the company structure, the BEE and the deals with SamancorCr. Could the service agreements have been limiting in their very nature? Are they still? Yes I believe so, but likewise adding more value than they take away.

g) SLV has now struck a deal which will by-pass the non-commited production and start making "a full basket premium" for itself, something I suspect SamancorCr still want their cut; so why not get in to bed with SLV? After all, SLV isn't the kind of lady that has been round the block :-).

h) My personal opinion is SLV is now kitted out nicely and this is an early stage to SamancorCr's development, which I believe is part of the bigger picture.

Now if I was speculating on the way forward, I envisage SamancorCr taking SLV private because it fits nicely within their model, but will they first utilise it to acquire other PGM companies (via share certs first) and then take private? Well that's a question only a psychic will answer and I'm not one, but it looks likely. Long-term, I see SamancorCr being main listing FTSE or JSE (Johannesburg Stock Exchange) or both and IMS being able to relinquish some of their cash in SamancorCr by IPO'ing. I must not forget they are in it to make cash as well. (Initial Public Offering, sorry I always try and break things down to make it easier)

So SamancorCr will have a nice % of a PGM producer to go with their Chrome. There's a certain amount of Irony here, and something for which is clearly obvious. Think who owns Ruukki (Largest Shareholder)? Think what company did they previously own? SamancorCr! Now don't you think it's odd that two Chrome players, yes I'm going to use that phrase, as Ruukki have unsurprisingly bought Chromex, both wanted SLV. Although one is now in the camp with SLV instead of being out in the big wide world.

What is it that SLV "HAS" that would make two Chrome producers want a piece of the action? I believe a nice model that fits in with their format. Likewise a well-positioned operation that is a good model to build from, with the JV with JLP (Jubilee Platinum's Conroast), the Lannex ramp up, Everest North, albeit awaiting confirmation, the JORC increases, and the reduction in costs per ounce as ramp up continues. This, in my view, will present a value that most brokers have clearly missed. Well I say most, but not some as I suspect we'll find out in due course.

You (SLV) have got well-positioned assets, a board of directors, that I believe will be wanting to expand SLV massively and progress with low risk, low cost acquisitions. This even includes certain companies on the Bushveld that have been marketing themselves for a good period of time and being considered an ugly sister. Predominantly due to the lack of asset development or investment in their licenses to derisk the projects / make the more marketable.

So over the longer-term, SLV could potentially be the third largest PGM producer in the world. Wait, I hear you say, NKWE Platinum (NKP) should do that via Xstrata. Well there might be a close run thing there then, I didn't say assets, I said producer, for which Xstrata may or may not take the options (although as I am a shareholder in NKP I firmly believe they will). Big statement there by me and I have thought about it.

Now lets go all the way back to a) regarding presentations, if everything goes to plan the near term news flow should be very fruitful. So for the future, which has SLV got an office in Australia? I appreciate their model has been a listing on the ASX, and this gives Australian Investors peace of mind. They're an odd bunch those Ozzie's (with due respect), they will buy on the ASX but if it's another market they don't want to know, please see the Ruukki calamity as an example when that was going through. Although some say the deal fell through because SLV/Ruukki couldn't tie up BRR (Braemore Resources aka ConRoast). I perhaps now believe that BRR would have been a done deal and it was Ruukki's largest shareholder that scuppered that the entire process by making the SLV shareholders have a higher risk with the overseas listing which in turn made people think twice. Anyway, back to the future. I don't envisage an ASX listing for much longer, or any listing, but I do feel the ASX aspectwill disappear sooner, which also saves a few quid.

I will enjoy seeing things move forward, certainly some very exciting times and with a set of books and news that change the entire foundations of a company. However, don?t forget risk, there is plenty in what I?ve written, such as, "Will they look after the original shareholders in the expansion?" I believe so, but it?s still a risk. "Will they offer a decent price or shaft SLV?ers like MTL Metals Explore?" I don?t think so based on my ?guesstimate? for what they?ve paid to get this far, although remember there's no friends in "big business!" "Could there be a dip in PGM demand?" Well that?s certainly a possibility. What about the potential devaluation of the Yuan, who will that impact upon a ZAR (South African Rand)/GBP (UK Pound) and U$D (US Dollar)? Well I don?t know to the latter, but all the same some bloody good potential.

All the very best to SLV and the SLV'ers, certainly a very exciting week! Then again I am sad. Fraser" End of Copy