Van Dieman Mines Share Discussion Threads

[m5artin] 20/6/2008 13:07

I'm interested to know, how can someone buy 100k at 7.6p when all I can get from my broker is 10k at 7.9p?

[chipperfrd] 20/6/2008 10:49

As an aside, there are plans afoot to re-open 2 Cornish tin mines (by Australian companies if memory serves) with a 3-year lead time to production.

If one wants to take a view on the profitability of tin mines going forward then attempting to run mines under UK labour costs (and taxes) must surely indicate that margins look extremely healthy.

Also worth noting that GIP is running up to finance on it's Egyptian Tantalum project - but the predicted by-product tin revenues now look to exceed the Ta sales!

Tin mining certainly looks a good place to be at the moment so VDM need to get these projects up and running asap. There just seems to be a complete lack of belief in the market that they will pull it off.

For myself, the risk/reward at the current share price looks too good to miss!
Chip

[m5artin] 20/6/2008 10:27

Thanks for that post Arc, I found the news quite reassuring. I've bought a few shares while they are still cheap.

[maddox] 20/6/2008 09:37

Yep, and it actually sounds like this new crew know what they are doing - I wonder if they will beat VDM into production?

Good post Arc,

Regards, Maddox

[arc en ciel] 19/6/2008 23:42

MIneweb put out a story today on a Queensland tin miner hopping into the fray in Tasmania. Yes, as you'll see, it included a useful comment or two on VDM:

"TIN QUEST
Kangaroo Metals hops into Tasmanian tin
The quaintly named Kangaroo Metals has expanded its focus from base and precious metals projects in north Queensland to mining tin in Tasmania.

Author: Ross Louthean
Posted: Tuesday , 17 Jun 2008

PERTH -

Kangaroo Metals Ltd (ASX: KML), has completed due diligence and will progress to acquire a 100% stake in a series of tin projects in north east Tasmania including the Riverside alluvial mine. The other projects are South Mount Cameron, Main Creek and Moorina.

Kangaroo Metals' managing director Brett Teale said due diligence focused on 18 hectares of the 64 ha of mining leases that are immediately available for mining.

Bulk sampling results across the 18 ha tested showed an average grade of 449 grams/m3 and in the JORC compliant resources the indicated resource was 240 tonnes of SnO2 over 10.6 ha.

Additional test mining confirmed the average grade through processing an additional 1,000 m3 panel, with over 2t of saleable concentrate already extracted in the due diligence process.

Operations at Riverside continue with a full mine plan and efficiencies being introduced to increase production rates.

"Kangaroo's ground in Tasmania is historically rich in tin, and further work -- to bring the existing exploration data to JORC compliance -- should see us with operations placed in the north east for a significant time to come, said Teale.

"Significant investment in the region by Van Dieman Mining, which is reopening the Endurance and Scotia mines to the direct north of our ground, and Macquarie Harbour which is advancing land immediately east of our ground, shows the prospectivity and confidence in the region." (Van Dieman Chairman, Mike Etheredge, told Mineweb in London last week that the company is moving ahead with the Scotia mine after switching its mining method from dry mining to wet mining which should substantially improve project economics. Start-up is anticipated in a couple of months with full production by the year-end.)

Kangaroo's north Queensland properties are in the Herberton tin field, and Croydon, Kidston and Mungana areas which are gold and copper mining regions".

I'm marginally ahead on my little 7.2p purchase (see post 728) but still a long way to go to catch up with historical buying levels. However the arrival of another experienced tin miner in the district, who has apparently done due diligence, is another shot in the arm for VDM's new management.

With the tin price looking good for at least another two years and a headstart onto the market for VDM despite the delays, this looks an increasingly promising recovery prospect. The tin margins are going to be very high as soon as production commences.

The sapphires, to be mined alongside the tin at a very small additional cost, allied to VDM's prior work in creating the relevant sapphire marketing operations, will be a substantial extra bonus.

[m5artin] 19/6/2008 16:20

PP, if only VDM would mine and sell some tin, then we would be in the money!

[pachandl] 19/6/2008 13:01

RNS Number : 0827X
Van Dieman Mines plc
19 June 2008



NOTIFICATION OF INTEREST IN TOTAL VOTING RIGHTS




A form TR-1 containing the following information has been received by the Company.




TR-1 notification of major interests in shares




1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:




Van Dieman Mines plc




2. Reason for the notification




An acquisition or disposal of voting rights




3. Full name of person(s) subject to the notification obligation:




Galena Special Situations Master Fund Limited




4. Full name of shareholder(s) (if different from 3):




Goldman Sachs Nominees Limited




5.Date of the transaction (and date on which the threshold

is crossed or reached if different):




11th January 2008 and 30th April 2008




6. Date on which issuer notified:




17th June 2008




7. Threshold(s) that is/are crossed or reached:




10% - 11th January 2008

11% - 30th April 2008




8. Notified details:




A: Voting rights attached to shares

Class/type of shares

if possible using the ISIN CODE
Situation previous to the Triggering transaction
Resulting situation after the triggering transaction

Number of Shares
Number of Voting Rights
Number of shares
Number of voting rights
% of voting rights

Direct
Direct
Indirect
Direct
Indirect

Ordinary Shares

GB00B03HFG82






15,390,000
9.98%
18,455,000
18,455,000
0
11.97%
0.00%














B: Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument
Expiration date
Exercise/ Conversion Period/ Date
Number of voting rights that may be acquired if the instrument is exercised/ converted.
% of voting rights

N/A
N/A
N/A
N/A
N/A





Total (A+B)

Number of voting rights
% of voting rights

18,455,000
11.97%





9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:




The shares are held by Goldman Sachs Nominees Limited as custodian for Galena Special Situations Fund Limited




Proxy Voting:

10. Name of the Proxy holder:




N/A




11. Number of voting rights proxy holder will cease to hold:




N/A




12. Date on which proxy holder cease to hold voting rights:

N/A




13. Additional information:




N/A

[ihavenoclue] 10/6/2008 17:45

Well on days that a lot of shares have dropped i suppose i should be happy this rose a little LOL

[resourcetrader] 10/6/2008 15:40

Pretty quiet trading day.

[resourcetrader] 10/6/2008 11:23

It was an interesting move on L2 today with two MMs actually moving onto the higher bid. Potentially looks like they may be after some stock prior to the news that the Express hinted at.

[ihavenoclue] 10/6/2008 10:08

Seems strange that they took the complicated route over the simple one .. good to see it is being rectified but i feel the market slammed it as it was a pretty sizeable delay to a very advanced project.

Oh and thanks for the copy and paste, Chipper

[resourcetrader] 10/6/2008 09:36

2 v 1 now and limiting the amount of stock people can buy.

[chipperfrd] 10/6/2008 09:05

It is only a flash-note:

Event
Following the recent announcement of a Revised Mine Development Plan (see our
note of 16th May), the share price of Van Dieman Mines has experienced a sharp
drop from 10.75p to its current level of 6p.

Comment
Despite the undoubtedly bad news, we believe that the recent sell-off is overdone and the current share price now represents an undervaluation of the company by the market. We believe that the previous management did their best to make an essentially simple mining and processing operation overly complicated. However, it looks as though the new Board of Directors has made the necessary personnel changes and are implementing a much more realistic development plan.

Valuation
The recent developments resulted in an increase in the operational and financing
risks surrounding the Scotia/Endurance projects. For this reason we reduced our
target price to 12p, representing a 60% reduction of our per-share NPV(10%)
valuation. We will gradually reduce this discount as the financing, reserve
modelling, metallurgy and commissioning issues are resolved satisfactorily.
We expect that, once all of the technical issues are resolved, significant capital and operating expenditure savings will result in a more attractive base-case NPV valuation. However, we are not in a position to incorporate any reduced capex/opex estimates into our cash flow model until they are known with
confidence and adequate arrangements for working-capital are secured by the
company.

Recommendation
Due to the recent market action we are maintaining our £0.12 target price and rerating of our recommendation to BUY. We believe our current risk-weighting adequately reflects the uncertainties surrounding the project. Therefore, we believe that the current share price represents an excellent opportunity for the risk-aware investor to gain exposure to a project that should deliver good returns in the medium-term.

[ihavenoclue] 10/6/2008 09:01

any chance of copying and pasting the brokers report as, for some reason, my PC no longer opens pdf's ?

[resourcetrader] 09/6/2008 23:01

Papal any chance of adding the latest Broker report into the header

[resourcetrader] 09/6/2008 16:04

Well the single trade today actually moved the offer a touch higher. One market maker now selling stock so bring on the anticipated update.

[resourcetrader] 09/6/2008 11:55

Next offer at 8p

[resourcetrader] 09/6/2008 09:19

Level 2 is very strong at 5 v 1 with the next MMs sitting up at 8p.

[resourcetrader] 08/6/2008 23:32

Well makes an interesting read Stegro and thank you. This coupled with the rumour in the Express does make things look interesting. I don't think it will take to much to move this tomorrow.

[stegrego] 07/6/2008 15:53

Too much risk for me here but here is a report:

[cestnous] 07/6/2008 15:08

Geological time is irrelevant. Who did the resource studies? Were they examined by an appropriate authority? Did anyone tell any porkies about drilling results or metallurgy in order to increase land value? Who did the metallurgy and was it accurate?

I doubt it, as now they have had to change the mining method because of the 'nature of the ore', after years of work, and are selling off the vehicle fleet as it is not needed (see Minesite article), I am not surprised by their reluctance to rely on whatever information was given or obtained by previous management.

I bought a very small holding early on, intending to build on it if things went well. They didn't. I would be tempted to average down, but only if the present management produce some actual, positive results, and prove that they are any better thn the bunch of incompetants who ran the company in earlier days. As an ex-geologist, I still quite like the resources base, be it an unusual mix, but as Minesite always emphasises, it is the management that count. I should have taken notice of an early IC article which had them down as a sell as they queried why such a small outfit from the Antipodes would try to raise money on Aim. Perhaps it was because the current management would have received little support in a country where they were better known.

Note. None of the info given to minesite aboute their failures appeared in an RNS,
and I for one would have been much more impressed if it had. I would very much like to see a more honest and transparent disclosure policy (as well as some tin, at current prices.)

[maddox] 06/6/2008 16:06

I'm not sure I understand the deficiency in seventy year-old data - that's nothing in geological time - wouldn't a statistical adjustment suffice?

Regards, Maddox

[resourcetrader] 06/6/2008 14:36

Interesting breakdown from another board


I have been doing some rough calculations here : I've come up with a valuation of £21 million for the company with £5.5 in the bank (some debt that will be paid off) and a turnover per year of £7.5 million in tin (Scotia)...production about to start, the Endurance mine coming into production later this year...2 other possible mines...a huge jorc resource at (Scotia)....and jorc updates coming for the other mines....Coming back to the debt...at a guess they will probably pay that off within 5 years if they carry on producing tin (700 tons) per year at $20000 a ton. If the price of tin remains above $20000 a ton : this company should be quids in (as so to speak)...and I have not put a calculation on the sapphires.....I reckon that if you took away the debt...you are looking at another possible Griffin Mining here !