Bdi Mining Share Discussion Threads

[kluk069] 28/12/2006 04:49

Bmg features highly on my prospects list but I find it hard justifying the recent
rises on buying activity (e.g. almost 6 ml going through on friday 4p below bid!)

Seems a direct contrast to the story at my other sound favourite srb - any wiser owls around here with a few rational opinions to help clarify bmg goings on?

[willydoctor] 22/12/2006 17:34

New to these - got in at 25 and 24.5 last week. I hear very positive things. I don't know if there will be a pullback with wet weather, but it would seem as if NAV is miles above current share price
Hopefully increasing profile in the UK might result in being noticed by brokers and nice comments in the press which is always a good thing!
Happy Christmas!

WD

[arf dysg] 22/12/2006 11:40

I take that to mean Happy Christmas and stuff.

Croeso.

This share price behaviour has the makings of a trend.

[unionhall] 22/12/2006 10:34

Nollag Shona is Athbhliain faoi shéan is faoi mhaise daoibh......

[ged5] 22/12/2006 10:31

Well I got this one completely wrong in 2006. BMG started the year off at 36 offer and is going to finish 25-30 bid probably. At least we were able to pick some up at 19p.

I expect a pull back in the new year as the wet season may hinder progress, especially if it's as bad as last year. Mind you we still have the sale of the Chelsea Blue to come.

I'm hoping 2007 will be an excellent year for BMG with progress being made at both Cempaka and Woodlark. The quality of diamonds seems to be very high in this region.

Have an excellent Christmas all. Let's hope it will be peaceful. See you in January.

[sitiain] 21/12/2006 10:10

in fact lets ay gold license worth 15 million that 4 times profit . not bad if it all comes togeather.

[sitiain] 21/12/2006 10:08

ok ive called them.
average carrat per bcm = .15
so best case
50,000 mult .15 mult 12 mult 100 = 9,000,000 dollars profit.
20 percent owned ny govnt so proit for bdi 7.2 million.
6 times profit.
not sure how this compares with south african producers.

[sitiain] 21/12/2006 09:22

dooby sorry , i am just trying to get my head around this.
you said they were getting between 8/20 carats per bcm.
well 50,000 bcm per month is 400,000 carats a month never mind 100,000 a year , their target.
so i guess the 8/20 carats were just very good results from one patch.
i will email the compamny see if i can clear this up.
just trying to get the numbers right before decided weather to top up even more.

[sitiain] 21/12/2006 08:06

thank you dooby was looking at their web page it was not clear.
very exciting figures.
how very very cheap this looks.

[doobydave] 21/12/2006 07:35

"The Company reports that 702.46 carats of gem quality diamonds have been recovered from initial Phase II mining and commissioning of the recently upgraded processing plant, whose expansion now allows an increased processing throughput rate of 50,000 bcm ("bench cubic metres") per month. Of the diamonds recovered during this commissioning, 19% of the stones weighed over 1 carat, including stones of 7.75 carats, 4.71 carats, 4.22 carats and 3.92 carats."

23 November



Come on Sitiain, you can look that up yourself!
DD

[sitiain] 21/12/2006 06:27

dooby david thank you.
are you sure its 50,000 bcm a month.
i thought that was a year ?
can you confirm please.

[humbry1mol1] 20/12/2006 17:59

i have held these now for 1yr 8mths, i have always had faith in them, i spent alot of time on research, the only reason i ever saw for the price falling as much as it did was because somebody or something was holding the price back i.e institutions. i believe the only way is up know and 2007 is profit yr, hence the reason i bought them on a 5yr basis, i think these will rise alot in 2007. merry christmas.

[ged5] 20/12/2006 16:57

Thanks DD,

Something to look at. They always reckoned costs would be reduced in phase 2.

rambutan2,

They always appear when the price is about to take a hike.

[rambutan2] 20/12/2006 16:26

fd671200, where did you pop up from?

in any case, knowledgeable posters are always welcome. but it sounds like you are really agreeing with me. the debt complicated things for no reason and no one now wants it there.

[doobydave] 20/12/2006 15:03

Sitiain,

Caveat: It's highly dangerous to extrapolate. But hey, it's Christmas, so just for fun...

The October RNS boasted that Danau Seran (Phase 1), operating costs had improved by 31%, down to US$163/carat. We have yet to see whether they can match this at Phase 2, and in the start up phase they certainly won't. However, you can 'do the math' as the Americans would say.

Same caveats as before, but I was interested to note that Danau Seran gravels bore anything between 8 and 20 carats per bcm over the previous 3 quarters (see October RNS). However, I strongly suspect that in the last reported quarter, they hit a sweet spot, hence the figure at the high end (and the lower costs).

At capacity, Cempaka Phase 2 should operate at 50,000 bcm per month. Again, we can all do our sums and hope that profit = 50,000 x 20 x 12 x $100...

Dream on! But then again, 30,000 x 8 x 12 x 50 doesn't shape up too badly either.

Must leave that brandy cream alone :)
DD

[sitiain] 20/12/2006 14:39

any body know what the profit would be if they are selling average carrots at 266 dollars each .?
100,000 a year .
i guess the gold field will be worth about 15 million dollars.
just trying to see where this thing should be valued.
thank you for anyones help in advance.

[fd671200] 20/12/2006 14:32

rambutan

you don't know what you're talking about. the cnv had no security, no interest, no expiry date and was entitled to receive less than 10% of cempaka cashflow. as close to equity as you can have with debt
my guess is that they need to eliminate that debt to facilitate future borrowing to finance capital expansion at cempaka phase 2

[arf dysg] 19/12/2006 10:36

Quote from RNS item
The cancellation of the above loan in exchange for 2.90 million Common Shares at
29 pence per share represents an approximate 35% discount to the value of the
loan using an exchange rate of #1.00 / US$1.90.
UNQUOTE

That's where I get "35%" from. I'm not sure about the other point, that the company is a subsidiary of BMG. Anyway, if the lender was happy with the shares instead of the loan, that's good news.

[zaitoon] 19/12/2006 09:34

it was a loan to a subsidiary not from a subsidiary.
Loan was USD 2.5 million. Equivalent to GBP 1.29 million.
Repaid in the form of 2.9 million shares at 29p. This is GBP 841K.
841k is approx 65% of GBP 1.29 million therefore discount of 35%.

Reasons for lender accepting this as repayment are many. Could be because lender views shares as more valuable than 29p.

The lender i think is already a big shareholder in BDI. Might be wrong on this.

[sitiain] 19/12/2006 06:09

arf , sorry can you explain that in more detail.
the statement says the loan was from a subsidary of the actual company itself.?
and where do you get a 35 percent discount.sorry if i am being thick, new to this one .thank you for your time in advance.

[arf dysg] 18/12/2006 17:01

Excellent... shares instead of debt at a 35% discount. The person who held the loan must believe that they're getting a good deal, hence we can expect a share price rise. Ergo, good news is on the way eventually.

[ged5] 13/12/2006 22:14

kluk069,

You're obviously interested in the admission of BMG to AIM although I cannot see where you're going with your line of questioning.

Anyway it seems to me that you're not familiar with all the RNS announcements, so here is a link to them:-



Best of luck with your research.

[kluk069] 13/12/2006 01:00

Input much appreciated, Mattybuoy.

Interest certainly seems to be picking up here at the moment but in several cases, srb for instance, genuinely appealing propositions do remain overlooked.
Impression given is that the economic situation will have to look pretty grim before such counter attractive stocks really get the attention they deserve!