Bdi Mining Share Discussion Threads

[rambutan2] 16/12/2005 11:48

been a steady seller around for last few weeks. good that mms have helf fairly steady. current spread looks pretty good value imho.

[ged5] 12/12/2005 17:35

vassily, that doesn't often happen, thanks.

17 announcements since the beginning of August and most of them good. I still like this company and think it will eventually become recognised for its massive potential.

Announcement number 18 is due this week. Let's hope they obtained good prices for these gems.

[vassily] 09/12/2005 11:41

Ged5:
I think your right. The share price just does not reflect the news. Perhaps the junior miners are going to get a bit more exposure soon, after two years in the doldrums. The gold price should get people interested.
V

[ged5] 05/12/2005 08:36

Formulate a strategy, do your research, buy on anticipated newsflow and have a bit of luck.

Seems we're lacking in the last part with this share.

Again great news and no reaction to the share price Was it really all in the price?
Would have thought this should have settled above 40p some time ago. Oh well just have to wait.

[ericeb206] 01/12/2005 10:21

This announcement is 3 weeks ahead of a schedule based on 2 months and so we can expect the next announcement in early Jan unless there is an Xmas hangover.

[ged5] 01/12/2005 10:04

Still think they're just below their target as Adam worked out before. They were targeting in excess of 4000 in the period to Dec 2005. I suppose the next parcel will determine if they are on track.

Yes, good to see the bigger stones again. Hope you're right about the average price.

[unionhall] 01/12/2005 09:49

The interims (Sept 27th)said they hoped to reach the stage 1 rate of 4,000 carats a month "in this period" so they have a month to go on that timeframe.

Also good to see 3 large stones appearing again proving the first parcel was not a fluke or stage-managed.

Should hopefully see $/carat well above 300 - perhaps 350.

[ged5] 01/12/2005 09:38

Thanks for your comments. I agree about the key news and more importantly news from Woodlark is also due this month.

[adam] 01/12/2005 09:25

The key news surely though is that there is increased probability that near the source? i.e. that can carry on with alluvials at nice profit, meanwhile look for an elephant and develop woodlark. Will be interesting to see what the brokers make of it.

[ericeb206] 01/12/2005 09:14

They are going on to monthly production now so the amounts are bound to be less to start with.

[adam] 01/12/2005 08:59

3) 01/12/2005 - 4534, 3 > 10 Cts
2) 18/10/2005 - 5729 + 769 < DTC 7
1) 10/08/2005 - 6523, 3 > 10 Cts

Between 2nd and 3rd (43 days), so 4534 / 43 * 30 = 3163 which is a bit light, but I guess normal to get variations month to month?

[ged5] 01/12/2005 08:36

From today's announcement

BDI Mining Corp. ('the Company') reports that it has
shipped to Antwerp 4,534.30 carats of gem diamonds from its Cempaka Mine in
Indonesia, for sale by tender.

From the research note on the website.

BDI has recently completed the installation of a
third pan, and we expect production levels to increase
accordingly. We expect the rate of diamond production
to settle at a rate of 4,000 carats per month.

Seems we're a little short on carats at the moment. Some way to go before we reach our potential. It'll be interesting to see what the proceeds will be in 11 days.

[adam] 01/12/2005 08:11

Phew, no wonder there was insider buying on this!

[rambutan2] 01/12/2005 03:01

nice move up yesterday.

[davidblack] 16/11/2005 17:48

Looks like the boys had to pay down their credit cards and needed money for a pint! A bit scruffy to be honest but in the end harmless.

DIRECTOR'S DEALINGS

LONDON - 16 November 2005 - Lee K. Spencer and Raymond D. Perkes, both directors
of BDI Mining Corp. (the "Company"), advised the Company on 15th November, that
each have sold 200,000 fully paid common shares in the Company as follows:

Lee K. Spencer
Sold 25,000 common shares at 35p per share on 9 November 2005
Sold 75,000 common shares at 33p per share on 10 November 2005
Sold 25,000 common shares at 33p per share on 11 November 2005
Sold 75,000 common shares at 33.5p per share on 14 November 2005

Raymond D. Perkes
Sold 25,000 common shares at 35p per share on 9 November 2005
Sold 75,000 common shares at 33p per share on 10 November 2005
Sold 25,000 common shares at 33p per share on 11 November 2005
Sold 75,000 common shares at 33.5p per share on 14 November 2005

These sales were conducted by the Company's AIM Broker pursuant to Orderly
Market arrangements, with the proceeds to be applied to Director loans used to
exercise Directors' options.

Mr Spencer retains an interest of 2,554,004 fully paid common shares
representing 3.13% of the issued share capital of the Company, 200,000 options
with an exercise price of CAD$0.38, and 600,000 options with an exercise price
of CAD$0.58. Mr Perkes retains an interest of 1,635,453 fully paid common shares
representing 2.00% of the issued share capital of the Company, 200,000 options
with an exercise price of CAD$0.38 and 600,000 options with an exercise price of
CAD$0.58.

[davidblack] 16/11/2005 08:57

Adam there is no "Blue sky" in the price of Woodlark, they are only valuing the JORC audited resource and that valuation is very low.

As for region what is the issue, the place is peaceful and not subject to aggresive red tape.

[adam] 14/11/2005 16:31

I don't agree the valuation for Woodlark is modest. At least on current knowns.
I think fair to give some blue sky value but given the region you could also apply a discount factor. Upside seems to me that production cash flows from diamonds will fund further discoveries and expansions thereof, either Woodlark, the diamond source, or elswhere and thus non-dilutive to shareholders. I see where there's a tip there's a tap...

[scotty1] 14/11/2005 15:35

From uk analyst Sunday 13/11/05


Buy BDI Mining at 34p

Says Luke Heron, the new editor of WatsHot.com

After a considerable amount of persuasion from a certain broker friend that I probably trust far too much, I am finding myself offering an opinion on a natural resource stock. Don't run for the hills just yet, hear me out. BDI Mining (BMG) has been on my radar for quite some time, though due to its quite obvious debilitating disease (resource stock) I have steered clear of it like a rash.


However, the company has recently completed its second commercial sale of diamonds, which in conjunction with a few other bits and pieces going on in the background, is starting to make me reconsider my harsh stance on this mining and exploration concern. Production at BDI has been bedded down and I imagine that by early next year, this will be a company seeing regular sales coming in around $1 million a month. Meanwhile, "stage 2" of its expansion strategy should take total production to around 8,000 carats per month.
The reason why interest in this company is going to increase is simply because it is motoring ahead on all fronts and as of now, remains largely ignored. This is a diamonds exploration business that actually has diamonds to speak of, what's more it has diamonds to sell. A resource statement for BDI's gold exploration project on Woodlark Island is expected before year-end, which I would hope will increase interest even further. The deposit here is complex but there are numerous occurrences of high-grade gold and it is set to be mined by open-pit methods. The bottom line is that BDI is a company that has successfully progressed from a junior explorer to a cash-generating company with developing gold assets and diamond expansion in the pipeline. On the basis that cash generation from diamond production is worth no less than 30 million pounds plus another 8.5 million pounds for Woodlark, there is little doubt that this stock is significantly undervalued. At 34p, this company is capitalised at just 28 million pounds.
Two announcements over the past few weeks illustrate perfectly, just how impressive the transformation at BDI has been. It's the way all resource companies would like to proceed, with initial exploration ambitions growing into cash generating producers. Diamond production at the Cempaka mine in particular has been firmly established and it has now got to the stage where I think it is safe to assume regular diamond sales from this point forward. Mining operations are in fine fettle and running smoothly. BDI has recently completed the installation of a third pan, and I imagine that production levels will increase accordingly with this ramp up in facilities. Going forward, diamond production is likely to settle at around the rate of 4,000 carats per month.

So what say I of the valuation I hear you cry in eager anticipation of my vast insight and knowledge into the resource world. Valuing this company on a NPV of the diamond cash-flow, using the company's forecast of diamond recovery and values and a cost of $20 / m3, discounted at 10% results in a value of 34.7 million pounds. I thank broker Hichens & Harrison for their calculations on this, which have also assumed a 3 million pound annual overhead, increased by 25% after 2 years, and a 30% tax rate - a calculation that even to my anti-resource eye looks attractive. Elsewhere, assuming 600,000 oz high-grade gold on Woodlark at a value of $25/oz, a valuation of 8.5 million pounds is suggested. On that basis, perhaps it is a little clearer as to why these shares are such cracking value. If that's not enough, there are expansion plans in the pipeline which should facilitate the company's next step up the resource ladder. The vast majority of resource companies can only dream of achieving BDI's kind of success. The company is in a very strong position, which coupled with its industry contacts and knowledge should allow it to attract further high value prospects into the fold. At 34p, "buy".

Key Data:

EPIC: BMG
Market: AIM
Share price: 33 - 35p

[davidblack] 12/11/2005 09:12

The HH broker note has the gold valued at:

"Assuming 600,000 oz high-grade gold, on Woodlark valued at US$25/oz, this gives a value of £8.5m."

This looks very modest. BDI has free milling Gold ore which probably should be worth $50 an ounce on a trade sale and they are targeting 2 million oz, so the value of £8.5m might be more like £56m in two years time. Factor in £34.7m for the diamonds.

If the upgraded reserve estimates they mentioned at Minesite due this quarter push the audited resource to over 1m oz, then this broker note is very cautious at just $35 an oz it would be worth £20m plus the diamonds.

The brokers conclusions are: "We expect the shares to trade higher in line with
their elevated status and have a target value of at least
£0.53 per share. Strong Buy."

[mogseye] 11/11/2005 09:07

I agree Simon, a breath of fresh air, long overdue.

[simonbroughton] 10/11/2005 19:04

Davidblack, the guy who said sell BUR at £3 and £4 has moved on and they now have two much younger guys there . The difference is noticeable. One of them tipped LNR last month, a good call which I have profited from so far.

[ged5] 10/11/2005 16:23

New on the website

"The company has just completed its second commercial sale of diamonds. Production has been bedded down and we expect regular sales at a level US$1m per month from early next year. Stage 2 expansion to 8,000 carats per month is to be started early next year. A resource statement for BDI's gold exploration project on Woodlark Island is expected before year-end. The deposit is complex but there are numerous occurrences of high-grade gold and it will be mined by open-pit methods. Overall, BDI has progressed from a junior explorer to a cash-generating company with developing gold assets and diamond expansion in the pipeline. We value the cash generation from the diamond production at £34.7m plus £8.5m for Woodlark and consequently we believe that BDI should be bought up to 53p."

[davidblack] 10/11/2005 12:56

Yes they were the same bright people who said sell Burren Energy at £3 and £4! Its now £8.

Still lets get rid of as many loose holders as possible. The harder the self off here the better.

The next sale is due in December so there is plenty of time to sell between now and then for the weak holderr. November is a poor month for diamond shipments as its too late for Chrismas and therefore prices are lower and most companies give it a miss.

Double helping in late December, or is that Chrismas?

DB

[mogseye] 10/11/2005 12:17

Just had a positive write-up on Wotshot.com.

[unionhall] 09/11/2005 08:22

BDI on multi million ounce hunt


Ben Sharples


Tuesday, November 08, 2005
BDI Mining Corp has recorded significant drill hits at its Woodlark Island gold project in Papua New Guinea in its bid to prove up a multi million ounce resource.

Drilling of the Kulumadau deposit included 8m at 4.01 grams per tonne of gold from 10m, 3m at 11.55gpt from 155m (including 1m at 31.65gpt), and3m at 17.26gpt from 66m (including 1m at 42.6gpt).

BDI president and chief executive Lee Spencer told MiningNews.net the short term goal for Woodlark was to reach a million ounces in resources, but the long term goal was to assess the real potential of the project.

"There are over 30 old gold mines and prospects within a 60 square kilometre area which makes Woodlark intensely mineralised," Spencer said.

"The challenge for us is to look beneath the thin limestone cover which masks the bulk of the mineralised volcanics. We have had initial success using geophysics...and have just completed a major program with anomalies being generated. Drilling is currently around the clock seven days a week with three drill rigs."

The Woodlark project has a JORC-compliant resource of 380,000 ounces, with an update expected before the end of the year.

"The style of mineralisation on Woodlark lends itself to bulk mining in open pits, such as was undertaken on Misima Island by Placer Dome, located 150km to the south of us," Spencer said. "Placer mined over 5 million ounces over a 10 year period from several open pits."

Spencer said he would like to see the company initiate a feasibility study when resources were passing 1Moz and heading towards 2Moz.

"I have a personal target of seeing a feasibility study initiated at the end of 2006."

As for operating in PNG, Spencer said the Woodlark project offered a number of advantages to BDI.

"The project is on an island with a low population density and relatively subdued topography with an existing network. The local population are used to mining...in fact Woodlark was one of the first gazetted goldfields in PNG," Spencer said.

"For the land of the unexpected, we have been travelling very satisfactorily."