Sino-Lingnan: Initiation of takeover bid for Canadian mining enterprises

Event: CICC October 26 released a holding subsidiary of Australia Pella Co., Ltd., an offer to buy the progress Bulletin of the Canadian Toronto Exchange listed company Global Star Mining Company, officially launched a full cash offer for All Stars. Analysis: 1, October 7 this year, the Sino-Lingnan holding subsidiary Pella and the global star Mining industry signed the agreement on offer acquisition intent, Pella, in cash terms, offers a total of $1.65 per share of common shares of the global star mining sector and the outstanding but not yet exercised options, totaling 111.5 million shares, valued at $184 million for the global star mining industry.　　At present, Pella has obtained loan support from the bank and officially launched a full cash offer for All Stars. 2. Global star is a mining and exploration company headquartered in Toronto, Canada.　　The main asset is the low cost copper-gold-silver-Cicero-Maimont copper-gold deposit in Dominica, as at the end of 2009, the total resources in the prospecting area of the global Star Bulletin amounted to about 640,000 tonnes of copper, 42.57 tonnes of gold, 443 tons of silver, 93,000 tons of nickel and 80,000 tons of lithium oxide 3, for the lead-zinc giant gold Lingnan, the acquisition of the global star Mining is a new attempt, because the main mineral resources of the star is mainly in the current business of gold in Lingnan copper-gold-silver, nickel ore and lithium mine.　　The acquisition of the global star mining, will be effective use of the holding subsidiary Pella is located in Australia's regional advantages, continue to expand the company's overseas business areas. 4, the company is expected 2010 1-September net profit of about 350 million-450 million yuan, the year-on-year growth of 66%-113%, the first three quarterly earnings per share in 0.22-0.28 yuan. Shaoguan smelter in the company because of sewage in the October 21 this year to implement a comprehensive production, the company's initial estimate, Shaoguan smelter every 1 months of production will directly reduce the net profit of 27 million yuan, each month affect the company EPS about 0.017 yuan, will affect the company's fourth quarter results. Because the smelting plant to restore the production time is uncertain, assuming that the total production of four quarters of the year, will affect the EPS about 0.05 yuan, the initial calculation, the company 2010-2012 dynamic PE, respectively, about 70 times times, 50 times times, 40 times times, a higher valuation. (Lee Chin)