PPA - Moving Up Today Following Recent Update

Monday, Dec 13 2010 by
2

Pan Pacific Aggregates (LON:PPA) is moving up following the RNS released Thursday, Looking good. IMHO

9 December 2010

Pan Pacific Aggregates plc ("PPA" or the "Company")

Trading Update

Pan Pacific Aggregates plc (AIM:PPA), a quarry operator in British Columbia, today announces a trading update.
Sales at the Quadling Quarry ("Quadling") in the last quarter have held up well and are ahead of management expectations. Despite adverse weather conditions in the area, Quadling's close proximity to Highway 1 continues to provide a competitive advantage with recent sales figures approaching levels seen in the summer months. The increase in Quadling's average sales price, which was established during the summer, has been sustained and sales of the higher specification materials have increased.
PPA has begun drilling into a higher quality core rock rather than the previous weathered stone at Quadling. This has resulted in down hole drilling for rock blasting which is more efficient and cost-effective than pioneering drilling. The Company has also established employee performance targets at Quadling. As a consequence of these two changes, Quadling's production costs have decreased; drilling and blasting costs have been reduced and the Company is producing a higher quality stone for crushing. This has resulted in improved gross margins and higher cash generation from the quarry.
The Company has advanced its negotiations to acquire the operating rights at the Shaw sand and gravel pit in Mission, British Columbia, and an extraction and operating agreement is currently with PPA for consideration. During the bidding process, PPA was selected as the preferred bidder ahead of six other operators, with the Company's overall package providing the highest net present value and a more attractive offer in overall terms.
The Board expects to finalise the terms of the agreement in favour of PPA in the first quarter of 2011. Following signature of an acceptable agreement, the Company anticipates operations to commence at Shaw Pit in the second quarter of 2011.
The Company continues to pursue its strategy in and around the Fraser Valley, British Columbia by developing a robust local position, both organically and through acquisition.


Filed Under: Mining, Growth, RNS,

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6 Posts on this Thread show/hide all

flyingswan 14th Dec '10 1 of 6

A re-rating coming 4 ping's up in quick succession, showing quite a bit of momentum now. IMHO

Anyone else think we are seeing the first signs of a Cup and Handle Formation starting, with the cup lip at about 4p? Look at the long term chart and I feel the wall of the Cup may be starting to take off IMHO.

The drop was hard and fast, so the recovery may well follow the same pattern, but in the other direction. DYOR

Check out PPA's resent News Letter:
http://panagg.com/newsletter-5-06-october-2010

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flyingswan 4th Jan '11 2 of 6

It is interesting to hear the rumour that the PPA may be about to do a Rare Earth Geological Study to check the content of its quarry working. Here is an article on Rare Earth and the recent increase in value, which is encourage all quarry / mine working to do an assessment:

Tech’s Mineral Infrastructure – Time to Emulate China’s Rare Earth Policies:

http://blogs.forbes.com/markpmills/2011/01/01/techs-mineral-infrastructure-time-to-emulate-chinas-rare-earth-policies/?boxes=Homepagechannels

A century ago cars were manufactured using essentially five materials: wood, rubber, steel, glass, and brass. Today a car is built from 39 different nonfuel minerals. For a hybrid, that mineral mélange includes some particularly critical elements, especially dysprosium.

Dysprosium is important and irreplaceable. It doesn’t come from the planet Pandora, like the “unobtanium” in the movie Avatar. But for some overly excitable analysts it might as well. Chinese mines provide 95+ percent of the world supply. Dysprosium is one of a tightly related family of 16 other similar and similarly oddly named “rare earth” elements. Thirty years ago America was the world’s primary supplier of rare earths (and many other non-fuel minerals). We chose, by action and inaction, to abandon this and other similar aspects of our industrial infrastructure. China chose to expand theirs. So now we worry...

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flyingswan 14th Jan '11 3 of 6

From LSE BB:

This may explain the reason for yesterdays and today's price rise:

Well as the meeting was on 10th January, and the agenda does have the Shaw Pit down for discussion....

http://www.mission.ca/wp-content/uploads/rca110110-ocr-linked.pdf

(very bottom of Page 32)

"11. Industrial R07-022 10100 Shaw Street Approx. 43 acres
District of Mission (Shaw Pit)"

"Rezone the Shaw Pit to allow the District of Mission to extract and process gravel from the property."

"Bylaw adopted October 6, 2008. Council has directed staff to negotiate and enter into an agreement with Pan Pacific Aggregates Ltd. to extract gravel from Shaw Pit over a 10 year period."

I suspect those in attendance know more of the outcome than we do.

Which may explain why from the 11th the SP has started to rise.

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flyingswan 15th Jan '11 4 of 6

Looking at Pan Pacific Aggregates (LON:PPA) chart from back in October 2009 (1.2p) or March 2010 (0.9p, the share price appears to be forming the Cup, of a Cup and Handle formation, see this post for details about C&H:

cuphandle.gif

From what I can see from the chart, there is little resistance up to .9p or even 1.2p sort term, then we may get a consolidation handle form, before the next leg up. IMHO

Remember this share once traded at 40p. DYOR

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flyingswan 15th Jan '11 5 of 6

I noticed the Pan Pacific Aggregates (LON:PPA) Chart has formed a Golden Cross a couple of days ago:

A Golden Cross is when the 50 day moving average moves through the 200 day moving average while both are in an up-trend.

This appears to have occurred on Thursday 13th January 2011 and may be one of the technical reasons why the share Volumes have increased, so dramatically.

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slartybartfast 15th Jan '11 6 of 6
3

FS
Isn't it being somewhat presumptive to consider that it 'appears to be forming the Cup, of a Cup and Handle formation' when it is only at stage 2 of 5 of the example you show?
TA in itself is supposed to be predictive and has more doubters than followers but to start trying to predict the prediction surely even stretches the belief of exponents of TA.

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