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Real-Time news about Ballarat Gold (London Stock Exchange): 0 recent articles
|laserdisc: extract from australian newspaper 14/10/06 on asx i think its more a merger though than a takeout anyhow 30cents sounds extremely generous in view of the managements record of late
BALLARAT'S chances of being revived as a major goldfield have received a boost, with project owner Ballarat Goldfields (BGF) placed in a trading halt pending the outcome of "merger" talks with an unnamed suitor.
Favoured speculation among brokers was that the world's biggest gold producer, Barrick, could be about to make a 30¢-a-share takeover bid, valuing the company at $360 million.
Other tips for potential suitors included St Barbara and South Africa's Gold Fields.
Fellow Victorian gold producer Perseverance was ruled out because it has its hands full with its takeover of Stawell goldminer Leviathan. CSM was also ruled out because of its focus on expanding its nickel business.
The takeover talks follow the collapse of BGF's share price after its revelation in early August that it needed to raise $100 million to develop a bigger and better redevelopment of the old goldfield, one based on bypassing old workings altogether.
RFC Corporate has been working on raising the required $100 million.|
|estobar: Rather bullish article... doesn't seem to have helped the share price much though.
Gold mine hails unexpected find
Friday, 5 May 2006
BALLARAT Goldfields says it has unearthed its biggest gold deposit in years with the discovery of a large fault system dubbed Blue Whale.
Over the past two years, Ballarat Goldfields says it has noticed that some of the deeper fault zones - or breaks in the rock - contain higher amounts of gold than the more heavily mined shallow faults found in the 1850s.
Recent deep drilling at the southern end of the Ballarat East field led to the discovery of the Blue Whale fault system, which Ballarat Goldfields believes could be twice as rich as the historical mine.
The Blue Whale fault has raised expectations because it lies next to the famous Eureka Lead, which reputedly had one of the highest gold concentrations in the world.
The depth of the current mine plan is 800 metres but the new Blue Whale fault is believed to plummet more than 1500 metres below the surface.
Ballarat Goldfields geology manager Steve Olsen said the company was reviewing its mine plan to take advantage of the unexpected find.
Mr Olsen said the newly discovered gold had a grading of between 17 and 20 grams of gold to the tonne, compared to the historical average of eight grams.
He said the company aimed to produce up to 200,000 ounces of gold per annum by 2008.
|arja: Yes, thanks for posting article laserdisc. Nice to see a slight pickup in BGF price in OZ closing at 46 cents . Hopefully the medium term trend still intact !|
|laserdisc: GOOD NEWS MAIL ON SUNDAY PAGE 3 OF THE FINANCIAL MAIL SECTION GIVES 1/4 PAGE SPREAD TO RUSH IS ON AGAIN FOR GOLD MINING INDUSTRY richard laufman aging director gives a few quotes some exposure good for the share price|
|12vic: .... and also worth a read , an article valuing gold companies in relation to potential increases in gold price - BGF is listed in the table with potential share price movement forecasts at $600 and $750 gold - very interesting !
|12vic: I think there's too many people out there just looking to make a quick buck , everyone has got so caught up in day trading that sound medium to long term investments are often overlooked . You have a good point about number of posts and share price - so perhaps it's not a bad thing that we haven't attracted the regular collection of rampers and shorters , at least it provides price stability .
My gut feeling , certainly since the last fund raising announcement is that BGF is a bit of a no brainer . Should things go well with the initial mining / production phase i.e the next 6-8 months , there shouldn't be any need to fund raise for a long time . Production revenue has potential to start building up very smoothly , meanwhile immediate exploration development costs for other projects are already funded - certainly for the next couple of years .
Merry Christmas Scarab !|
|fat scarab: I'm surprised at the lack of interest to be honest - quality management, lots of potential upside and consistent share price performance.
In a way it's probably a good thing as there seems to be an inverse relationship between the number of posts and the share price of any given stock on ADVFN!|
|12vic: I know what you mean G_B , things don't always seem to go quite the way one would expect them to . I think the key thing to remember here , is that the share price conversions are based on two factors share volume and exchange rate fluctuation . I've followed these shares since March and one pattern that is obvious is that it does not take great trading volume in the UK to push the price up or down . If it makes you feel any better on the Australian bulletin boards I have seen posters pointing out that the share price is often weighted in favour of UK shareholders .
Have you had a chance to read through the BGF website - some of the other projects have great potential !|
|12vic: The share price always tends to follow the ASX price regardles of trades . However when there is a flourish of trades over here the share price appears to respond much quicker and will move on relatively low trades . The share price will also move on no trades when the are market currency adjustments - a strong Aus $ works in our favour .
I've written before about being surprised at the lack of interest in this share in the UK . I put it down to a few factors , beyond rns releases there appears to be a total lack of marketing over here hence not many people know about the share + the spread on the shares does not tend to interest day traders . Most people involved in it have stumbled across an Rns rather than been pointed at it by others .
In a way I see these as positives rather than negatives . Firstly the share price is moving off the back of genuine company progression and not being fuelled by pump and dump marketing so common in junior minor / explorers .
The quarterly updates provided by the company make it pretty clear how things are developing and the Australian press are very favourable as well . Secondly the lack of day traders cuts out a lot of the ramping / deramping , that both spikes and can kill a share . At the moment I'm sitting on about 20 - 25 % profit from fairly steady readable share movement , If this keeps up for another couple of months and I'm sitting on 35 - 45 % profit before production commences , then lets have everybody jump on the bandwagon and early holders will be in a much better position to ride or trade with increased movement .
If people continue to buy this as a hold rather than a quick trade this position will just get better . There is great potential here .|
|12vic: Taken from the RTM site
The Second-Best Time to Buy Mining Stocks
By Albert J. Matter
April 11, 2005
The absolute best time to buy a mining stock is just prior to the drilling of the 'discovery' drill hole which makes the nightly news and sends the penny stock soaring to extraordinary highs! (see Fig 1, Item 1-3, Discovery hole) This is a difficult task as statistics show that over 600 properties have to be drilled for each ore body that is discovered and subsequently made into a mine. It can be a daunting and expensive proposition trying to cover your bets by speculating in all the penny dreadfuls.
The experience we have enjoyed over the past 30 years suggests there is a second best time to buy mining equities. That is when a qualified management team is preparing to convert/construct a single 'ore body' mining company into a producing mine. A purchase of mining stocks during this development/construction period has produced significant gains with a favorable risk/reward ratio.
Mines are Not Discovered, They are Made!
Ore bodies are usually "discovered" during an "up-cycle" in metal prices as the mining industry and the speculative publics enthusiastically spend money on exploratory drilling. One or two discoveries are made and the enthusiasm spills over into all the penny exploration companies. It can take two to four years to fully "prove" a discovery while the short-term "up-cycles" in metals prices are often as brief as one to three years. Thus discoveries are often brought into production, made into mines, in the following (or possibly later) up-cycle in metals prices.
The difference between the real discoveries and the promotional clones is not always signaled by their price action in the stock market. They both go up during the general enthusiasm for the shares of any companies nearby the
'discovery' (Fig 1, Item 2, Anticipatory/discovery rise) and down when metal prices recede (Fig 1, Item 4, Confirmation/disinterest slide).
Model of Classic Mining Company Share Price Cycle
Companies with bona fide discoveries (those that will ultimately be 'made' into mines) identify themselves by continuing to spend money on their property when metal prices are cyclically weak, (Fig 1, Item 6, Development
/construction period) and when funds are not as readily available from a now less-enthusiastic public, but rather largely from management and longer-term investors.
Buying discoveries can be fun and profitable, and is largely speculation. Buying qualified 'mine making' is investing that can yield significant returns with a favorable risk/reward ratio.
Investing in a 'single' ore body mining stock when it is being readied to go into production (Fig 1, Item 6) provides some of the lowest risk/highest reward mining industry investment opportunities. And results are even better if this period of pre-production/construction coincides with the trough in a market cycle for the stocks of the particular metal.
Low metal prices and disinterest from the speculator community (who often drive the prices of stocks to excess during the discovery period) combine to produce a very depressed price for a mining stock during the confirmation/disinterest slide (Fig 1, Item 4). This is precisely when a good ore body, financed by knowledgeable long-term investors and operated by qualified management, can be bought in anticipation of substantial gains during the pre-production and production period, compounded when metal prices recover from cyclical weakness.
The Big Payoff
There is significant capital gain potential as the market begins to anticipate and discount the production of metal and the consequent earnings (Figure 1, Items 6 through 8). The maximum appreciation is recorded if the mine is being readied for production during a period of metal prices weakness and begins pouring metal and generating earnings as prices are trending up again.
In thirty years of identifying ten such companies, all but one have equaled or exceeded their discovery highs by more than 100%! The price rises from their confirmation/disinterest lows to their production/cash flow highs have produced 300-1000% gains.
One of the best times to invest in a mining stock is during the construction pre-production period when a qualified 'single' ore body mining management team is going about the work of 'making mines'.
This article was originally published in The Oxford Club Communique. The Oxford Club, founded in 1984, has become one of the largest financial organization of its kind with over 65,000 members in over 110 countries.|
Ballarat Gold share price data is direct from the London Stock Exchange