Avocet Mining Share Discussion Threads

[budevenwiser] 08/7/2005 16:32

hmm dont know if they are saving the best till last
j h told me penjom resource upgrade and maybe north lanut with the results ,
kali sua sinta in the next 2 weeks , so that only leaves mon and tues before results for the one hole from kali.
hope so anyway
right i'm off to florida tomorrow for 2 weeks , no comp or laptop so will miss results and drilling updates good luck to us all

[jmobrien] 08/7/2005 16:25

Yes, Sir Alan Greenspan et al have created a climate of moral hazard where everyone falsely believes the PTB can protect them from financial reality. There's an interesting link from the GATA website that spells out very clearly the precarious state of the USD and hence the world financial system



Even more interesting is the following US Government website link that gives the official 2004 Financial Report of the US.

www.fms.treas.gov/fr/04frusg/04frusg.pdf

Essentially this is the Annual Report of USA Corporation - straight from the horse's mouth. Note that the auditors have refused to sign off the accounts and state on page 36 '.... it seems clear that the nation's current fiscal path is unsustainable and that tough choices by the President and Congress will be necessary in order to address the nation's large and growing fiscal imbalance'

Yes, the budget deficit was actually $11.1 trillion last year. Gillespie predict either a US default or more probably hyperinflation with an eventaul return to a gold standard. Seems like a good case for physical gold and AVM.

[hectorp] 08/7/2005 08:21

Gold has not risen as a result of the London Bombing.
Bad as it was the general markets are rallying today. New York even had the bad grace to rise yesterday.
THe bombing was expected, but now it has occurred, the markets can put that behind it, fear of the unknown has now been put behind us too.
PLus the death toll which terrible of course for those affected, , is nothing compared to Madrid or 9/11.
It was not a biological weapon, and it didnt kill thousands.
NO effect on gold markets IMO.
SO AVM is rising on its own good merits as per the recent resource news.

[simon54] 07/7/2005 21:01

Is this a 'safety of gold' reaction? I don't mind, for whatever reason!

[hectorp] 07/7/2005 20:54

it is, strongbow ( Robin L?)
its ruddy brilliant. Best performer of mine.

[strongbow] 07/7/2005 18:29

How extraordinary to be up on a day like today.

[chipperfrd] 06/7/2005 19:53

So Hector we can blame you for the slide :)

You had better tip us off next time!

[hectorp] 06/7/2005 18:27

Jolly good. Only 118p? thats not much more than my last selling price, but never mind, its better than 78.
Will we rally from here? well at least there is quite a bit of interest.

[taylor20] 06/7/2005 13:42

Seymour Pierce Ups Avocet Target >AVM.LN

Wednesday, July 06, 2005 6:10:07 AM ET
Dow Jones Newswires



0948 GMT [Dow Jones] Seymour Pierce lifts Avocet Mining's (AVM.LN) target price to 118p from 108p. Move follows development of process routes which negate the problems associated with carbon at the Penjom gold mine, and the company's suggestion it may be able to upgrade the overall reserves contained within the existing mine plan. Maintains buy rating. Trades +5.4% at 78p

[wolstencroft] 06/7/2005 12:56

kojak: Thanks for your recent posts - encouraged me to top up (yesterday, thankfully!).

I think that we should remember that AVM are a fairly honest company - they may well be resporting the best intercepts but I think its clear there is a lot of life in Penjom yet. Still one of my biggest holdings.

[mr ashley james] 06/7/2005 10:22

LONDON (AFX) - Avocet Mining PLC said drilling at its Penjom gold mine in
Malaysia has indicated that there is potential to significantly expand the
project.
"It is worth noting that the company has increased Penjom's resources by
367,100 ounces and its reserves by 245,300 ounces since the commencement of the
first comprehensive exploration programme two years ago and thereby replaced
production during that period," the company said.
"This equates to a 54 pct increase in resources and a 58 pct increase in the
life-of-mine production schedule since March 31 2003, when there was 423,650
ounces still to be mined."
"It also highlights the large portion of resource increases converted to
reserves for future gold production."
bam



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[pecker1] 06/7/2005 10:17

Great update: kicks into touch the institutional reservations about Penjom's limited life-of-mine, suggests that ore from Buffalo Reef could be shipped for processing at Penjom (avoiding capex on separate processing plant)and points out exploration possibles in rest of Malaysia - did anyone else see a piece about another goldminer that's justed listed/started up there as I can't find the reference? Then we have the drilling results from Kali Sua Sinta to look forward to.

What we need now is for gold to turn up and this stock could really motor.

[hectorp] 06/7/2005 10:09

Taken the plunge. But only half what I'd like. If it drifts at all, I can always add later.

[brad1] 06/7/2005 09:51

Great ews and just befor year end results. Big rise last year at a similar time - not long to wait methinks before we some some upward movement in these again.

[hectorp] 06/7/2005 09:31

Very intersting, its a pity the Market doesn't appreciate the sector at the moment. However, I am not here to dis the company. I suppose 100M depth is not very great... and once down there with one ramp or whatever, they will get these bonanza grades.
Any comment on my 'missing average grade' statement ?
H.

[kojak78] 06/7/2005 09:09

"SO A LOT OF DIGGING OUT TO GET THERE."

I guess the naysayers will never get it. Penjom is a future underground mine and 100m is not very deep at all. Even 400m is not deep at all. Perhaps you just need 3g/t grades and 3000m depth like Agnico.. or 400m open pits like Iamgold..

Take a look at Agnico's Goldex, much deeper, way lower grades.

The resource update means that Penjom will be feasible for underground mining and depths mean that capital costs will be very low for an undergound mine.

I bought the bulk of my shares at 13.5 pence thinking that they were worth something in the 70s to 80s. That was when Penjom was the only producing mine with 107000 oz production and resources of 500000 oz or so. We had 80 mio shares outstanding and 12m in debt. Translates into 30 mio valuation and considered fair price of 115 mio.
Now that we have the prospects of 350000 oz production, ca. 3 mio oz reserves with Taror and the possibility of another 60000 oz production and 500000 oz reserves with Chore, 2.3 times the margin for each oz produced compared to 2002 and 107.3 mio shares fully diluted Avocet should cost 3.27x the former price based on fundamentals and 2.3 times based on a higher gold price. Debt is eliminated, too.
Makes 225 mio valuation and fair price of 865 mio. But still trading at 147 mio.

Compared to the 13.5p purchase price in 2002 the share price *declined* to 8.8p taking into account the same valuation levels.. that's how good management was in improving fundamental value. They have improves value faster than the share price could climb.
13.5p in 2002 means 119p in 2005. That's my breakeven point. 459p is the current fair price..

[hectorp] 06/7/2005 09:05

'*%$$$!! off! '

[shirishg] 06/7/2005 08:56

Post removed by ADVFN

[hectorp] 06/7/2005 08:54

They are impressive grades I agree. I would like to see more on the 'average' grades ie maybe at cutoff 4 gt? Is ther something not being reported? we are getting the 'best news' not the rest?
and ther is a big sell now. Is this the persistent seller?
I'm interested in returning to the stock which I've not held since 104p. Bought loads more OXS which is in the doldrums.

[captain swing] 06/7/2005 08:29

What about Table 2 "intersections within the current design pit " -- plenty of high grade near the surface there.

I don't quite understand some of the figures extracted i.e.

"Table 2 summarises the better drilling intercepts, above 20 gram metres, within
the current pit design. These results continue the trend of the last two years
where additional drilling has shown higher grades than modeled. These include 9m
at 37.8 g/t Au, 7m at 32.4 g/t Au, 9m at 18.1 g/t Au and 11m at 12.8 g/t Au
(reported using a top cut of 100 g/t Au)."

This is the 32.4 g/t but its under the last column which seems to be a cutoff value, the actual grade would be the 46.3... its not clear from the table header. Anyway that is in the top 7 metres of the hole:

Hole From To Length Grade Grade
ID (m) (m) (m) (g/t Au (g/t Au
cut) cut)
KEP355 0.0 7.0 7.0 46.3 32.4