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Real-Time news about Bullabulling (London Stock Exchange): 0 recent articles
|corrientes: Great shame. Bad timing ?
Don't want to imagine what the BGL share price might have been when gold recovers, which it always does. Funding would be no problem. Expecting Norton price to do the same is wishful thinking.|
|temujiin: Bit old but I like the last paragraph.
Norton Gold Fields Ups Its Offer For Bullabulling, Moderately
17 Jun 2014
On Monday, Norton Gold Fields conditionally upped its offer to purchase fellow Australian miner Bullabulling Gold from A7 cents per share to A8 cents per share after facing resistance from Bullabulling's management team.
In response to the original offer, the Bullabulling team recommended that shareholders reject the deal, arguing that the price did not reflect the value of the flagship Bullabulling project in Western Australia.
The Bullabulling project is located to the south west of the gold mining town of Kalgoorlie, Western Australia. The 131 square kilometre project is well served by roads, power and water, and has no issues over native title claims. More to the point, it has a JORC-compliant resource of 114 million tonnes of material running at a grade of 1.02 grams per tonne gold for a total of 3.753 million ounces of gold.
Bullabulling intends to develop its first mine based around that resource, producing at a rate of 200,000 ounces of gold per year though. It's possible though that the geology could likely support a larger operation if exploration continues to define new ounces within the highly prospective Bullabulling and Gibraltar trends.
If the company remains independent, Bullabulling expects to achieve first production in 2015.
But it might not be that simple. Backed by Chinese money, Norton has been circling the wagons for some time now. Its previous offer has now been conditionally increased to A$0.08 per share on the proviso that it receives sufficient shares to increase its stake in Bullabulling to at least 30 per cent by the 30th of June 2014.
At present, Norton holds a stake of approximately 16 per cent in Bullabulling.
If the 30 per cent requirement is not achieved, the Norton offer will remain at the A$0.07 level as previously announced. What's more, Norton has stated that this conditional update represents its final offer and that a higher price will not be tendered.
Bullabulling's team is unmoved by that argument. Using the conclusions of an independent expert who valued Bullabulling's shares at between A$0.111 and A$0.161, with a preferred value of A$0.146 to support their position, they have reaffirmed their stance that the Norton Gold Fields' offer remains "inadequate and opportunistic".
Consequently, Bullabulling's management have recommended that shareholders reject the offer and remain true to the vision of developing the mine in-house.
Bullabulling's share price gained more than eight per cent on Monday to A$0.077 on the ASX. That's still below the increased bid price, meaning that the market at this stage still has doubts as to whether it will go through.
Put another way, as one influential commentator pointed out in a newsletter earlier this week, it means that Bullabulling's shareholders have not capitulated in spite of poor market conditions and the company's prevailing low share price. Whether that means the period of capitulation in the wider market is now over remains to be seen.|
|rich pickings: Ok - say they get 30%, and they control the decision making...but BGL still exists.
Will they bring the mine into production? - I think so, as they have the financial backing + the parent company needs to maintain it's annual production.
So, the share price should go higher than 8c. So why sell out now?
But if they have 30% - why stop there? Why not get 50%+. But to do so, they need to offer more than 8c. So why sell out now?
And if they don't get much further than 17%, will they dump the shares? I don't think so - so the only hit to the share price is from the 15% placement...but this means BGL can get nearer to the DFS & announce the maiden reserve...which means the share price recovers...
Is this too simplistic a view?|
|rich pickings: I just bought at 3.89p. The offer of $0.07AUD (at current rate 1.7127 to gbp) = 0.0409, so I see little downside to buying.
The way I see it is this...I would be grateful for your views in case I am being stupid:
If they reach 50% - Norton can initiate the acquisition/buy-back of the shares it does not control through their board representation.
This is likely if the current offer price is this low.
Any shares bought now below current GBP exchange rate price is still a profit.
If they reach 90% - Norton will compulsory purchase at offer price. So any shares bought below current GBP exchange rate price = profit
But to get to 90% they will require a much,much higher offer.
(Reward - high)
The latest notification is: Norton have 15.9% of shares (incl associates 2.5% already held. the latest extension of the offer is to 16/6 unless extended further:
Will Norton carry on?
Nearer they get to 50% - yes
Will they up the offer price?
Depends how near to 50%, POG, Other bidders...
If they pull-out, will they dump their shares?
unlikely as they will take a loss & show it to be a failure (therefore price somewhat supported.
And,even if they did, if we get to Maiden reserve, DFS etc the share price has potential to be much higher as per independent valuation report.
therefore downside risk medium term is low.
BGL will have to issue shares very soon (15% placement)to get nearer to DFS, maiden reserve etc. At end Q1 they had $3m, with expected outflow of $2.2m in Q2. Today they announced $0.117m shares issued for working capital, so likely in next few weeks-1 month they will place up to 52m shares This will cause dilution & normally a share price fall.
But as long as Norton are still offering 0.07c, any shares we can buy at a lower price than currently 0.041p = profit & guaranteed if Norton go up to 90% ownership, or likely if they get to 50% and exercise option to acquire/buy-back.|
|corrientes: We should count our lucky stars that BGL is not a producer yet, and can afford to see off the opportunist predator. In fact had gold not declined so much, one might say that the BGL share price would be better but still not high enough as to prevent Norton taking the lion's share of future profits. I go with the old adage which says that the stock market is a device to transfer money to the patient from the impatient.|
|sweepie2: Bullish address from Chairman. well worth repeating
27 MAY 2014 ASX Code: BAB, AIM Code: BGL
CHAIRMAN'S ADDRESS - ANNUAL GENERAL MEETING
Detailed below is a copy of the Chairman's address to be given by Peter Mansell at the Company's Annual general Meeting today.
The external environment has been extraordinarily difficult in the year under review -and subsequently - especially for junior explorers and those developing projects in the gold sector. The dramatic fall in the gold price on 15 April last year, unfortunately coinciding with the company's rights issue, preceded a period of gold price volatility that reduced investor confidence in the sector to all-time lows.
But, despite the external conditions, the Company has had a positive year and significant progress has been made in enhancing the value of the Company's assets and, as a result, shareholder value as well. The Board appreciates that the markets have not yet recognised that increased value by an uplift in the Company's share price. There is, however, a limit to what any Company can do when facing such strong headwinds in the form of reduced investor confidence. So, in these circumstances, we have focussed on what we can do internally to increase value, so that, when markets change - as they will - the share price is, hopefully, fully reflective of the value we have created. That is what Bullabulling Gold is doing.
Our Executive team is to be congratulated on some significant milestones, namely:
· Increasing mineral resources to 114 million tonnes containing 3.75 million ounces of gold, with average resource grade also increasing
· Extending mine life to 13 years
· Increasing forecast mine production 94.7 million tonnes and contained gold to 2.56 million ounces
· Reducing forecast C1 costs to US$843/oz, with all-in cash costs reduced to US$930/oz
· Identifying potential to reduce production costs further and increase gold recovery through enhanced processing techniques
You are all aware that, late on the 17th of April, the Thursday night before the Easter break, Norton Gold Fields, a company controlled by Zijin Mining Group, China's largest gold miner, made a takeover bid for all existing shares in the Company. No notice was given by Norton prior to the actual lodgement of the bid. To date, Norton has not initiated any communication with Bullabulling.
As we have said before, Norton clearly recognises the real value of Bullabulling's assets and its bid is opportunistic. Under its current offer, Norton is not prepared to pay fair value for them. Norton has carefully chosen a time when the external markets, lacking confidence in the sector, do not attribute fair value to assets in the hands of gold juniors. This is an attempt by Norton to extract the uplift in value that is rightfully yours.
It was on this basis that your Board recommended that you reject the offer by taking no action. That recommendation remains.
Norton's principal reason for suggesting that Bullabulling shareholders accept its bid is that the Company does not have the financial ability to develop a mine. The Company has never shied away from the fact that there will be challenges in relation to funding the development of the Bullabulling Gold Project. But this does not justify selling the Company for well below its true worth to an opportunistic buyer at the cost of our existing shareholders, who have borne the cost and the risk of the development of the project to date.
Bullabulling's strategy is to raise funds periodically, when they are needed, in the least dilutionary manner to shareholders. The Company proposes, in the short term, to raise the funds required to complete the planned infill drilling programme.
The Board is confident that, after the infill drilling programme has been completed, the majority of the current resource will be converted to a substantial maiden Mining Reserve. This will also enable us to disclose publicly to shareholders a DCF valuation of the Bullabulling project, which we expect to demonstrate a much higher value than the simple multiple per-ounce of gold resources as used in the Independent Expert's Report in Bullabulling's Target's Statement. At that point, the Company will be better placed to fund the completion of the Definitive Feasibility Study on terms that reflect the true value of the Company, and minimise shareholder dilution. If the Detailed Feasibility Study confirms that we have a viable long life mining operation - and your Board is confident that it will - then the Board considers that the Company will have a range of funding alternatives available to it (from a range of funding sources). And, in that event, you, our shareholders - and not Norton - will be the beneficiaries of the increased value.
It is on this basis that the board's recommendation remains - reject the Norton offer by taking no action.
As you may also be aware, Norton Gold Fields made an application to the Takeovers Panel regarding certain aspects of the bid. As the proceedings are ongoing I am not able to comment further, however we are confident that the matter will be resolved shortly, at which time we will update shareholders further.
I would like to thank Brett and his team for the work that they have done over the last year, despite the distractions and in trying circumstances. We, as a Board, are well aware of the efforts that have been made to move, step by step, to the development of a large long-life mine for your benefit and we thank them on your behalf.
I would also like to thank my fellow non-executive Director, Ronnie Beevor, for his support and contribution. It too has been all that I could have asked for.|
|tibszol2: Interesting reading all the varying opinions as to what might or might not happen to Bullabulling. PoG will determine the fate of BGL. Those of us who believe POG will rise in the medium to long term, will not sell out, those who believe POG will decline will sell out and take a profit/loss. I believe POG will, for economic and geopolitical reasons, slowly rise over the next two to three years. Then and only then will shareholders realise the true value of BGL, a value far in excess of todays nonsense values being quoted. As I have previously said, " do the maths"! What might BGL shares be worth at a gold price of $1500 or more?. I hope and urge all shareholders to sit tight,reject any and all offers from opportunistic bidders, see this project through to completion and production and reap the true value of BGL. For comparison purposes, I suggest a look at Aureus Mining, a miner with a similar resource to BGL but they are in Liberia, look at their share price and the funding they were able to raise, first pour scheduled for early `15. Now tell me what BGL should be worth!|
|londonfinancial: It seems many are expecting a huge move in the BGL share price next week .|
|temujiin: Seems they are aware of our concerns and I had a long reply from Peter Mansell. I've made my point and see nothing else to gain by bagering him futher at this time. Full reply:
In response to your email, there are a few points that I would make.
The BAB board is genuinely sorry about your unhappiness and the state of BAB and its share price. Rest assured that we are equally concerned about the share price.
The BAB Board and Management is certainly focussed on "getting the mine economical". We agree that this, more than anything else, will provide the potential for long term and enduring value to BAB shareholders.
While the BAB Board sees the marketing of BAB as an important function, it is but one of many functions for Management (and, in the BAB Board's view, a subsidiary function to enhancing the underlying BAB business) and the majority of the Executive time must, in the Board's view, be spent on holistically creating real enduring value for shareholders by improvements to BAB's business. Marketing the company must, in the BAB Board's view, be kept in proportion.
In your email you seem to suggest that I, as Non-Executive Chair, have executive functions in relation to marketing BAB. There are a few things that I should say about the BAB Board's view in that regard:
1. We are (and will continue to be) a Non-Executive Board. While, at appropriate times, we will represent BAB to the best of our ability, it will always be in support of the Executive. (We did that as recently as in December in London). It is principally the responsibility of the Executives to represent BAB and we are happy with what Brett has done in that respect. He plans to be back in the UK within a week or so to do just that.
2. As I have said above, the BAB share price is a significant concern to us. We encourage the Executive team and BAB's consultants to represent BAB in the best possible way and the Board monitors their performances closely. The BAB Board and Executive will not market BAB, where it means regurgitating the same information as is already out in the public domain in the hope of a short term "fix". That is not a good "spend" of anyone's time or shareholder money and it will not occur. All material information that should be in the public arena has always been put out in a proper way and in the prescribed time.
3. We believe that real value growth or destruction (as opposed to share price movements, often through circumstances that we can't control) only arises from the way companies are managed. You seem to agree with that as a concept in saying that the Executive must "get the mine economical". If companies are well managed, then real long term value is created and, in time, the share price reacts accordingly. On the contrary, if companies are badly managed, the reverse is true. As I say above, we accept that market interface is a part (but not the whole) of good management. The Board will continue to devote its time to the creation of long term sustainable value at the expense of short term share price "fixes".
With respect, your superficial (and offensive I might add) statements that I "can't give BGL the time"; am not "up to the job"; am "singularly failing in my job" for the "very good money" I am paid, I would just restate that they are just that - superficial assessments someone who does not know (and does not care to find out) the facts and I'm happy to leave it at that.
Finally, the matter of Board composition and Director location is for all shareholders (and not just a noisy few) to decide and I have no doubt that, in due course they will do just that..
|grum3still: but it is not extrapolating out in BGL share price.|
Bullabulling share price data is direct from the London Stock Exchange