Gvm Metals Share Discussion Threads

[gardenboy] 27/3/2007 20:26

extract from Minesite article on GCM,



......The second development was to participate in a placing by GVM Metals that gave it an 18 per cent stake in the AIM and ASX listed South African coal company for a cost of £2.4million. GVM has completed the purchase of a small nickel magnesium alloys manufacturing and distribution business that is mature but is very cash generative at this stage of the commodity cycle. It provides what Simon Farrell, managing director of GVM, calls "walking around money" of about R30 -40million a year. But the real interest in GVM is its four undeveloped coal properties in South Africa: Mooiplats and Holfontein, Limpopo and Kelso Mining.

Despite the best efforts of a disparate group of academics, diplomats, politicians and a variety of anti-business lobby groups known collectively as "environmentalists" economic progress is still best made by employing energy to raise living standards. And coal is one of the cheapest sources of energy. South Africa is now an economy growing rapidly after decades of stagnation and that is reflected in its rising energy consumption. Eskom, the energy parastatal, is now struggling to cope with demand growing at 6 per cent a year and is running plants at 90 per cent capacity instead of the designed 75 per cent utilisation rate.

It has re-commissioned power stations that have been mothballed for years and has a programme to build one new power station every two years. That will add six million tonnes a year of demand to an annual coal burn that is currently 112 million tonnes and rising. GVM is a company supremely well placed to supply that additional demand after its rapid acquisition process. In the space of six months or so the team at GVM has put together an impressive package of coal properties, two of which could be in production by the middle of next year. Drilling now under way is expected to define a massive resource base of two billion tonnes of coal from these four properties. The exact nature and structure of the asset base that GVM has assembled deserves an article in its own right, and that will be coming shortly.

[crimeprotection1] 22/3/2007 20:25

Good 100k trade there at the close!

[ramnik007] 22/3/2007 08:41

Must admit did not know anything about this company until I heard the live presentation last week. Sounded bullish enough for me to look into further.

Also, a feasibility study is due for completion, after which money will be required. Was wondering if analysts / directors have indicated the ball park figures involved.

Also, what is the going price per tonne for both thermal and metallurgical coal ? Would appreciate if anyone can provide link to any web sites where coal price graphs are available.

[seagreen] 21/3/2007 14:17

added a few at 38p after a bit of profit taking....hoping to see the quid in due course......Carry on men.

[gardenboy] 19/3/2007 18:15

informative article on SA coal situation from Mining Weekly,




With debates on energy supply constantly heating up, South Africa's predominant energy source cannot be ignored. Contributing to more than 80% of power generation in the country, coal production and mining is a hot topic................

[hattori_hanzo] 19/3/2007 16:02

ppowerscourt - 16 Mar'07 - 11:15 - 89 of 92
andylaws - 16 Mar'07 - 11:44 - 90 of 92


Yes, all fair points. Thanks for your replies.

I think it'll be long time before coal becomes obsolete, if ever. Although, it is more on the wain in western industrial societies than other areas of the world.
Obviously nuclear power is enjoying a resurgence, particularly in the west and there will, to some degree, be a developing trend to replace fossil fuels with nuclear power with the likes of China & India playing catch up, as well as using alternative energy sources.
Nevertheless, as andy says, coal will be around as a source of energy "for decades yet in one form or another".

[seagreen] 19/3/2007 15:46

pp..buying opportunity in the next few days me thinks

[ppowerscourt] 19/3/2007 09:34

four buys no sell so far. down one. Is this what they call a "tree shake"?

[ppowerscourt] 16/3/2007 11:15

H_H:

I can't imagine China and/or India ever relinquishing the use of coal for their current, and accelerated trajectory of industrial growth. BTW. is coal's star really on the wane? This evidence is very important, IMO, because our personal fortune is also surfing on this wave. Pray tell.

GCM, formerly Asia Energy, is enjoying a revival recently.

[hattori_hanzo] 16/3/2007 09:32

pp - Thanks for the info, it's true that coal's star is on the wain, but I'd suggest it'll be many years before coal becomes obsolete (if at all) and the GVM inferred deposit looks huge.

What do others think about the future of coal and the value of GVM's coal deposit ?

[hattori_hanzo] 16/3/2007 09:30

gardenboy - Many thanks for the reply. Most informative.

ps: Kicking myself now for not buying TMC at the quid mark. I was tempted on several occasions as it nurdled around that level.

[ppowerscourt] 16/3/2007 09:13

I sounded cautiously earlier re coal's future being possibly diminished by the drive to go nuclear and possibly coal's usage being restricted by lawful measures in various countries due to the massive CO2 and Sulfur Dioxide emissions. Here's an answer as published by StockInterview.com yesterday:

"Yesterday, the Massachusetts Institute of Technology (MIT) released an interdisciplinary faculty group study examining coal's role in a world where carbon dioxide emissions would be constrained. Co-chairs John Deutch and Ernest Moniz issued the 2003 MIT study, "The Future of Nuclear Power," which focused on CO2 emissions-free electricity generated from nuclear energy. Deutch, a former director of the Central Intelligence Agency, wrote, "If we don't have carbon capture and sequestration, coal has a very bleak future."

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Note this prediction was dated 2003. ???

[crimeprotection1] 16/3/2007 00:25

Up again to 0.97$, could we see the magic $1.00??

[gardenboy] 15/3/2007 19:31

40th Minesite Mining Forum - GVM Metals Video presentation with Simon Farrell is now available at Minesite

[gardenboy] 15/3/2007 18:38

Hattori,

GVM - We could just possibly have a ten bagger from here - but what's your time scale ? This might develop to that status over the next 5 years or more - who knows? AEN never built the coal mine but it didn't stop the share price going from 80 -900 in a year or so. GVM could have as much coal as four Phulbari mines and this is in S. Africa not Bangladesh.

LOR - I'd be much more in love with this share if I had got in earlier ! John Meyer of Numis kept mentioning it but I was always distracted elsewhere. I have not researched enough to say how cheap LOR is now but to be producing Ni concentrate now with much greater production in the future, I'm not selling.

ENK - It's not difficult to place a 300p + target over 4 years on this stock provided they can achieve full scale production and with the acid plant running by then. However shareholders are currently being held for ransom by the Turkish Forestry Dept. If that was to change soon, then ENK would be my top tip.

In the Nickel sector I also own ALD and some TMC, both nicely in profit now.

hope that helps,

gb

[hattori_hanzo] 15/3/2007 12:10

I changed my mind on results day, decided I hadn't missed GVM at all, because it was still very cheap, so I started buying & I added yesterday.


gardenboy - Here's a question for you, as we both hold ENK & GVM.

If you had to pick one investment to put your money in, would it be ENK or GVM ?

I wondered what you thought of relative value v assets, risks and likely future profits, etc.

Also, is there any company you hold that you actually prefer to ENK & GVM ?

I'd appreciate your thoughts as I'm not an expert in this area, but we own or have owned several of the same stocks. Like IFL & WTI.

I also very much like the look of LOR, which I know you own.

[seagreen] 15/3/2007 11:45

by george I do believe gardenbooy has got it.............8-)

I was originally told £2 but everyone would say I was ramping so I halved it..
8-)

[gardenboy] 15/3/2007 00:13

GVM two year target,

– Define 2 billion tonnes of coal in JORC resource category
– Bring Holfontein(1.2 mtpa) & Mooiplaats(4.5 mtpa) into production
– Complete BFS on the first Limpopo mine

[ppowerscourt] 14/3/2007 16:54

gardenboy

message for you on the ifl thread.

[gardenboy] 14/3/2007 16:46

Fredling,

cheers,

lucky closing my sb on IFL at 80 - still hold the shares though - might be topping up too.

regards gb

[fredling] 14/3/2007 16:42

Gardenboy

Look at the interim results they mention 450 million tonnes as a pre-condition.

This is looking interesting

Fredling.


PS Thanks for your posts on the IFL board- I made a handsome profit and may go back in!

[gardenboy] 14/3/2007 16:21

extract form minesite feature,

The Company announced in February 2007 that it has agreed to buy Kelso Mining whose principal asset is the right to acquire 70% of Coal of Africa (CoAL), for up to £10 million. CoAL is a South African company that owns the Mooiplaats coal project and surrounding New Order prospecting rights. The CoAL properties are currently being evaluated by a competent person so as to bring the current 450 million tonnes resource into JORC and SAMREC compliant categories which will be completed by April 2007.


450 million tonnes !! - surely a misprint ? - that's one heck of a lot of coal - I think Asia Energy's Phulbari project was about 500m tonnes.