Bdi Mining Share Discussion Threads

[humbry1mol1] 25/10/2006 16:51

why the big sell off

[humbry1mol1] 25/10/2006 16:07

why such big sells today if this is such a great share, is there something going on with these that i don,t know about. i have held these know for some time, i am starting to wander why the price is being held back

[rambutan2] 25/10/2006 12:11

of course, once you were in the water the sharks would get you! perhaps you are a fast swimmer greg jenkins?

[unionhall] 25/10/2006 12:03

"Always look on the bright side of life..."

[greg jenkins] 25/10/2006 12:02

There was a recent heli crash in PNG. It was leaving one of the mines in the highlands and went down killing all on board. Id much prefer for a boat to go down than a chopper...

[rambutan2] 25/10/2006 11:53

yes, also an airstrip on the island and bits of road - leftovers from days when was a US airforce base.

[unionhall] 25/10/2006 11:50

Thanks - Greg - perhaps.

sold out of these months ago but still watching...

[greg jenkins] 25/10/2006 11:46

Unionhall, re post 352, I think what they may mean is that by being on an island and not in the highlands (like Porgera, Tolukuma, Mt Kare etc) there is no need for heli support ($$$$$!) and plant and equipment can be shipped in.

Good to see some of the new directors getting some shares - shows that they believe in the story.

[rambutan2] 25/10/2006 11:31

one of the board apparently - out with the old and in with the new sort of directors dealings...

[skyship] 25/10/2006 10:57

Today's 250,000 sale @ 19p was a Broker/Broker transaction. Hopefully the house broker mopping up cheap stock as that would certainly clear the way for a recovery. Anyone got a view on who the seller might be? Presumably a disenchanted or forced seller from the equity placing of 16m shares @ 28p back in March.

[unionhall] 24/10/2006 18:05

Thanks adam - the low % caught me off-guard.

[adam] 24/10/2006 17:40

Surprising question from you unionhall.
Resource /=/ Reserve.
Mine life is based on economic reserves only.
Reserves will expand, as will resources.
This was a scoping study to show economically viable and worth proceeding to the more expensive BFS. That is why I think it will be interesting to see who signs up. The presentations and noises form the company are that the area is highly prospective. If it is and the political environment is favourable then a major will sign on the dotted line at good terms. If it is more modest then the partner will be further down the food chain. That's my personal take on it.

[unionhall] 24/10/2006 16:02

Two questions .....

What does this mean ?

Excellent existing infrastructure for comparable projects in Papua New
Guinea

They are on an island with no infrastructure.


and....

Four to five year life indicates only 320k to 400k ounces.

Where is the 1m oz resource gone ?

[rambutan2] 24/10/2006 13:19

i don't think they will have a prob getting offers for a jv of some description - doesn't have to be another miner - the sticking point will be the terms of course. the chairman has a good reputation as a deal maker so it will be interesting to see what emerges.

[skyship] 24/10/2006 13:10

Greg - Target end 2006 is 25p; but thereafter, after the 200day MA has resisted then fallen - 30p in Qtr1/07 before moving on to challenge the ceiling @ 36p.

These movements will have to be news inspired; and, here I agree with Adam, it may be that a solid JV deal linked to an equity subscription will trigger the gains.

[adam] 24/10/2006 12:28

They will JV Woodlark. The project should expand though, and it will be interesting to see if it attracts the interest of the big players or not. They won't be interested if it is likely to be modest.

[greg jenkins] 24/10/2006 12:22

Skyship, does your estimate of 25p include expanded diamond production? The diamond assets alone should be worth around $50m. Include the gold with an in-ground value of $25/oz (maybe a bit conservative???) and I have a a share price target of at least 42p.

[skyship] 24/10/2006 09:05

At $550 gold, surely that = c.£10m pa pre-tax for minimum 5yrs for a capital expenditure estimate of £24m.

With the high likelihood of increased reserves and life extension it suggests that the current Mkt Cap (£16m @ 20p) is a tad too LOW....my estimate is for 25p by end 2006.

[rambutan2] 24/10/2006 08:23

last week the diamonds, this week the gold. with something a bit more solid on the table perhaps the mkt will be willing to pay a few pence for the currently free carried gold potential...

LONDON - 24 October 2006 - BDI Mining Corp. ("the Company") reports the
completion of an internal scoping study with the use of external consultants to
assess the viability of developing a gold mine at the Company's 100%-owned
Woodlark Island Gold Project in Papua New Guinea.

The study has demonstrated the feasibility of an 80,000 oz per year open pit
mining operation with an initial mine life of 4 to 5 years. Average cash costs
have been estimated at US$300/oz, with an average open pit grade of
approximately 3 grams per tonne. Inclusive of all contingencies, it is estimated that capital costs would be in the region of US$45 million.

Other positive features of the project include:

- Over 80% of contained gold is free milling

- Excellent existing infrastructure for comparable projects in PNG

- Favourable open pit strip ratios averaging 6:1

- Free-digging ore at Kulumadau to a depth of 90 metres


The Company is highly confident that the initial 5 year mine life will be
extended through further exploration of several identified, but as yet untested, drill targets over many areas within the Company's existing tenements on the island.

Based on the positive outcome of scoping study, the Company is currently
evaluating the commencement of a full feasibility study as the next stage in the continued development of the Woodlark Island Gold Project. Accordingly
management is in discussion with a number of parties regarding the funding of
the feasibility study and anticipates proceeding with the next phase of the
project by year end.

[doobydave] 22/10/2006 10:05

Here's a link to the (it's page 5), remembering that WHI are the house broker and therefore not independent. On the plus side, James Picton works for them and wrote the article. I think he was at the September Minesite bash where BDI presented.

While I'm at it, here's the 3c Chelsea Blue, which has made its way to the BDI homepage:

[wad collector] 21/10/2006 20:35

Just been tipped by WHIreland in their quarterly report -strong buy at 21.25p.

[ged5] 19/10/2006 23:11

Thanks skyship. Nice graph. Ok explanation.

[skyship] 19/10/2006 14:59

We've been locked into a severe downtrend throughout 2006; but now, for the first time since January, the share price seems to be holding at or above the 50day MA. If we can break through 20p then a recovery to 25p looks a sure bet...

[greg jenkins] 19/10/2006 12:44

Costs are down, production is up. Hopefully a sign of things to come from the main channel.

[arf dysg] 19/10/2006 11:14

Hello, wdurham, I thought I'd take a look since you mentioned BMG. Interesting.