Bdi Mining Share Discussion Threads

[rambutan2] 10/3/2006 00:13

doobydave, it doesnt look as though you're going to get your 27p.

[ged5] 09/3/2006 14:25

Sounds encouraging, thanks.

Fair increase in the number of shares traded today. Hope it's a good sign and that the tick up is a sign of things to come.

[rambutan2] 09/3/2006 00:40

courtesy of go dink on iii...
06/03/06: Well, last week WWW held two tenders in Antwerp, one for Letseng Diamond mine and the other for Cempaka in Indonesia.

It was only the +10 caraters or specials that were offered for tender in the Letseng as the -10 carats are going to be rolled into next month's sale. For Cempaka the run of mine was offered.

The quality of Letseng rough is remarkable and in particular the high proportion of the best colour 'D' makes the production unique, especially when coupled with its size distribution with its proportion of +10 carats. Nearly all the stones are what are termed makeable, in other words broken stones or not octahedron.

Still, when the grade (carats per ton) of a mine is as low as it is for Letseng at around 0.02 carats; the production has to be remarkable to make it pay.

Cempaka could not be more different. The very attractive alluvial production has a very high proportion of sawable goods where the production is more commercial in colour, in other words it has a higher proportion of the medium colours.

By Charles Windham, on polishedprices.com

[ged5] 07/3/2006 13:03

Yes, I thought about waiting but although the quoted offer has come down the actual bid and offer have improved since yesterday. Here's hoping.

[doobydave] 07/3/2006 12:40

Next support 27p. I'm waiting before adding...

[ged5] 07/3/2006 12:37

hiddendepths, many thanks for your comments but please don't take my research or figures as a basis for your investment.

I was also beginning to feel uneasy last week that's why I phoned the company. They were very quick to return calls and were pleased to talk about the projects. I feel a little better for doing that and have tried to report accurately.

I thought we might have bottomed out today. We look a bit oversold so I added a few this morning. I hope everything goes to plan then we'll start to see this rising again.

[hiddendepths] 06/3/2006 21:25

Very useful, Ged. I'm glad someone knows what's what. I've been in for a while, have got quite a few but have been getting a little uneasy of late.

I reckon I'll hang in there...

[andy] 06/3/2006 14:36

Ged5,

Interesting reply, many thanks.

[ged5] 06/3/2006 14:29

Andy,

In some ways I'm quite pleased to see that someone with your knowledge cannot understand why the price is falling.

There will be 2 pieces of news out soon. The first one will be about the February sales which might not inspire us too much if at all. The la Nino (as opposed to el Nino) has brought about exceptionally bad weather in Indonesia and may have hindered the mining operations. That's just my educated guess.

However I think there will be more enthusiasm about the gold assay results from Woodlark which are expected to be very good and should be with us within the next 2 weeks.

When talking about the projects there is nothing but excitement since there is "gold everywhere you go" at Woodlark and the geologists working there are "flat out geniuses.

Also this new licence(Martapura) is on par with Cempaka which I've already stated as being worth 70-100p before tax. So with just these 2 we're looking at 140-200 when in full production. The enthusiasm just increases a few knotches when Bobaris is spoken about but I don't think anybody has put a value to it except to say it is the source of both Cempaka and Martapura.

Of course all these need funding and there are discussions going on with William de Broe about how to proceed. I hasten to add that there is no shortage of interest either in the projects or funding from outside the company.

At the moment I think it's just a matter of keeping the finger over the buy button. Best of luck whatever you decide.

[andy] 04/3/2006 09:47

Ged5,

I don't hold, but BMG are on my closely watched list, and I too cannot understand why the price is falling so.

They are a producer, with increasing assets, rather than a frontier exploration outfit with nothing but hope and blue sky.

I would welcome any informed comment.

[ged5] 04/3/2006 09:34

It's always worrying when you see the share price going down especially when you think it should be going up. I'm the novice, others are experts so I must be missing something.

High cashburn?
Poor sales because of the rainy season in Indonesia?
Uncertainty of direction?
Need for more funding?

But who is selling?

Looking at the volume - not very many.

So who is holding?

From the research update in November, 50% of shares are held by institutions and the last Holding Announcement was a purchase by RCM and Allianz Global Investors. So the experts are holding. Also 10% by management and insiders. So the experts see the value.

So should I be worried?

Well short term there will be uncertainty but medium to long term it looks like things just get better with 4 outstanding projects so far. Gold is everywhere at Woodlark and the 3 diamond projects all look as if they will bring in plenty.
Having done plenty of research perhaps I should just follow the experts, keep my investment, sleep easy and let patience rule the day. Have a good weekend.

[bageo] 02/3/2006 19:03

The spread being quoted is very wide compared with trades 30.175 was a buy when quoted 29.5-31 so there seems to be stock around.

[ged5] 02/3/2006 17:09

LOL

It does read a bit like that.

On Woodlark and Bobaris they are very excited and I would say they know more than they can admit yet publicly.

Apparently Martapura is an image of Cempaka both of which they know are excellent projects. So yes you're correct about no real risk.

On maximising value - that's what is being discussed.

[unionhall] 02/3/2006 16:44

And you're the shrink ?....

Thanks for that Ged5.

Since BDI is a producer downside is very limited and I'm happy to let it trundle along until the resource in Woodlark is increased, hopefully Bobaris source is found, and they figure out how to maximise the value.

In the meantime no real risk.

[ged5] 02/3/2006 16:38

They say it's good to talk and believe me it is.

This company is willing to talk to it's shareholders they return calls and answer e-mails promptly.

The message is simple - don't read too much into the Minesite article no decisions have been made. There is so much going on here and we will get news shortly. If you are unsure of your investment get in touch with the office 0207 621 0200.

[unionhall] 02/3/2006 13:34

Probably indicates we have some psychological flaw in our genetic make-up drawing us to problem companies.

[simon54] 02/3/2006 13:04

This is a bizarre 'second time around' experience after MANA! ;-)

[unionhall] 02/3/2006 12:00

Whether or not we think analysts who cannot add two valuations together are plonkers is not the issue. The issue is how will the value of BMG be optimised. I favour splitting the company with all shareholders holding the same % in each new company as we currently hold.

Then fund-raise as required for each company, the Diamond co. and the Gold co.

[dean moriarty] 02/3/2006 11:35

Ged5 thought i'd butt in here to stop any more consecutive posts. the second one was surreal but it made me happy. i would like to see the share price recover to where i came in at 36p before splits are considered.

[ged5] 02/3/2006 10:07

I know this sort of thing could never happen.

Hi Mr. Will, Mr Tree here. I've got plenty of good news to put out.

Really, what is it?

Well we've got yet another sale coming up and we expect a good price per carat yet again. We've also identified another site which will give us plenty more diamonds. I've also got a good update about our source of diamonds as well.

Is that it?

No we have great news about our gold site as well. Maybe we have more gold that we've stated so far and possible other metals as well.

Look Mr Tree we'll put some statements out for you. Sounds great. Leave everything to us.

Mr Little Will, get some work done on that diamond and gold company. Put some figures together. If they're as good as these people are saying we'll get a note out to all our clients telling them to buy. In the meantime try to hide all the news. The new diamond area can be hidden at the bottom of a part update about the gold. Prepare some good updates once we're prepared and we and our clients all have plenty at a knock down price. The lack of news will make investors apathetic, some will sell. That'll give the MMs the opportunity to drop prices. We'll make a killing here.

And back to reality - the price drops yet again. Back to where we were before the diamond sales and all the upgrades. Un-bloody-believable.

[ged5] 02/3/2006 08:49

Using very conservative figures I earlier worked out an expected target figure of 50-70 pence for BMG based on production at Cempaka alone. The diamond mining alone now includes 3 projects. Cempaka, Bobaris and now Martapura. What price could be expected in any sell off for just this side of the business. I would be unhappy with anything less than £1.00.

Then there's the gold. How much? As was stated in the article:

"According to Mr Forrest, Mr Spencer "has his foot on the throat of something world class". Fair enough: there are detailed drill results from Woodlark due out soon and Mr Spencer, as it says clearly on the company's press releases, is a Competent Person as defined by Australia's JORC code."

I have previously heard that funding will be needed for exploration at Woodlark so that came as no surprise. The decision may come shortly whether to go for funding or have a part sell off. However I'm not so sure as to whether others will now be looking at this share price and realise they could snap it up for a fraction of its true value.

Whenever the experts get round to actually doing some sums they will realise what a bargain they could have.

Personally I will be disappointed if we still don't have a company soon because I believe 2 years down the line we should all be sitting on massive profits.

WAKE UP OUT THERE!!

[bageo] 02/3/2006 08:39

The minesite article does make sense - Mano and BDI are similar in the way they have looked at splitting diamonds and gold. I like both but can see how separate companies might obtain a different rating.

It is sensible to at least consider this considering the lack of price progress with all the good news.

[rambutan2] 02/3/2006 01:48

dave, we've switched to the new thread ala post 440.

[doobydave] 02/3/2006 01:15

Very interesting tonight. To make a change, not just a rehash of known facts, but speculation that BDI could be on the verge of being broken up into two companies C/O WdeB, one diamonds and the other gold. This is given credence by comments attributed to BDI's CFO Chuck Forrest - "it's not working".

Minesite also speculates that a fundraising might be in the offing as Forrest concedes that cashflow from Cempaka is not enough to fund Woodlark. This the first time I have heard this admission.

I still think BDI is on a daft valuation. Woodlark alone is worth $18m (call it £10m) on a conservative valuation but is completely discounted by the market.
DD

[wayoutwest] 02/3/2006 00:43

that whole minesite article was bumpf. how silly. and as for borthwick's comment - u said it ram and integer