Liquidator firm on R. River price

Press, Volume CXI, Issue 32779, 2 December 1971, Page 11

Liquidator firm on R. River price

(N.Z. P.A. -Reuter—Copyright) SYDNEY, December 1. The official liquidator of Mineral Securities Australia, Ltd, (Mr J. H. Jamison) said today that he was adamant that he would not accept less than 115 c a share for the 18,659,500 Robe River, Ltd, shares for which he is seeking a buyer.

The liquidator’s holding in Robe River represents a controlling interest in the company. Robe River has a 35 per cent participation in the joint venture which will conduct iron ore mining operations, and ancillary pelletising using the Robe River and Deepdale iron ore deposits in Western Australia. Several months ago Mr Jamison announced the sale of about four million Robe River shares at 115 c each to overseas interests. Mr Jamison recently returned from a visit to toe United States, Canada and Britain where he spoke to steel manufacturers and other potential buyers of Robe River shares. He found that buyers were holding off because the market price of Robe River shares in Australia was about 67c, and because of the iron ore reserves position. Mr Jamison said that if a buyer sought 18 Robe River shares in the market “the price would be above 115 c before he got his first million shares.”

Several stock broking firms in Sydney who have done some sums on the Robe River venture have privately suggested that a purchaser buying the shares at 115 c each could expect a return of 30 per cent. Mr Jamison noted that the joint venture partners had title to proven reserves of more than 300 m tons, enough for a 30-year operation. At toe maximum rate of extraction the operation would last 12 to 15 years. There have also been strong indications from Western Australian State Government Ministers that toe partners could expect to have additional reserves of ore granted them. Mr Jamison said he was hopeful the partners would be successful in obtaining more reserves within the next 12 months.

The present uncertainties in international currency markets were not a real problem, he said. “This particular problem is settling down, and I do not expect it to make any great difficulty to Robe River/’ Mr Jamison pointed out, though, that the currency uncertainties was a factor in the present low price of

Robe River shares on local stock markets.

The liquidator said he had paid all Minsec secured creditors and all interest charges had ceased to run. In some cases the rights of unsecured creditors to interest had yet to be determined.

Mr Jamison said it was in the interest of unsecured creditors, and possibly preference and ordinary shareholders of Minsec, that he “sit and wait for 115 c a share for Robe River, I can afford to, and I intend to sit and wait.” Mr Jamison also revealed that sundry investments held by Minsec had been sold, “some well above market price.” He expected the sale of Northern Territory pastoral properties owned by Minsec within the near future. Mr Jamison has returned more than ssom to secured creditors. He Jias completed the sale to the Hartogen group of the areas held by the Mineral Securities Group through Petroleum Securities, Ltd, Oil Investments, Ltd, Pexa Oil, NL, Amad Oil, NL. and their subsidiaries. This sale has been made as a result of negotiations after the closing of the tenders on October 8.