Bdi Mining Share Discussion Threads

[rambutan2] 30/8/2006 23:34

yes, see part 2 tomorrow 10.30pm pm bbc4. still plays great - class doesn't age so they say.

and diamonds don't lose their value.

i visited berlin a few week's ago, and was reminded of all that cold war stuff. how times change...

any clues as to the reasons for your daily ex appearance?

[ged5] 30/8/2006 23:10

Was that the one with Alec/x Guinness? Seem to remember it as a great series.


Yes we will all win here but it might take a little bit of time.

[rambutan2] 30/8/2006 23:00

i'm just watching an old repeat on bbc4 - tinker, tailor, soldier, spy. that cold war stuff was kid's play compared to the riddles of the stock mkt!

however, the saintly smiley will win out in the end.

[rambutan2] 30/8/2006 22:42

the saintly ged,

patience is the name of the game.

or so say the likes of mr buffett.

i'm holding until i see hard evidence that i should sell.

and so far, i've not seen it.

[adam] 22/8/2006 13:42

i presume they are going to jv it. they have already concluded not to spin it off. if it is big ('tip of iceberg') then a major might be interested in taking to (e.g) BFS for 60% and that would be a good outcome for us as it would not require dilution and drilling is expensive.

[unionhall] 22/8/2006 12:17

On hols dopey - no comment...

[doobydave] 21/8/2006 13:36

Interesting. Upgrade at lower end of expectations.

While I'm bullish over Cempaka - the main reason I invested by some distance - I wouldn't yet be investing on the basis of Woodlark alone (unless seriously underrated I suppose).

Management are clearly bullish and think they're onto a big one. My view is, it'll need to be big (i.e. 5m oz looking realistic) to justify development, as despite the epithermal nature of the deposit, the overall grade (1.75g/t) is low. Likewise, a 0.5g/t cut-off is an unusually low place to set the bar. This does not promise a strong IRR. On the plus side, if developed, it's a shallow open pit operation, 85% of the gold is recoverable by gravity alone (excellent) and recent vein intersections have been much better.

* edit - veins are unlikely to contain base metal tonnage of any interest, presumably the reason why no assays have been published.

It's a huge pity that I can't be at the Minesite presentation as there are a couple of dozen questions I would like to ask management. I note the company has made no mention of commissioning a feasibility study on the basis of work to date.

IMO, a lot more drilling is necessary to work this up to feasibility. That's going to require money. I wonder if instead they are looking to JV it, particularly since they have made their first specific mention of Placer Dome and Misima Island. So, is that a hint?

With Phase 2 Cempaka development underway, I'm finding it very difficult to estimate how much cash is left in the kitty. Interims are due at the end of September but I'm sure the cash question will be the first asked at Minesite.

Anyone else care to comment? Rambutan? Onions?

Regards,
DD

[linhur] 21/8/2006 10:04

Woodlark increased to 1m oz.Looks like a funding plan is now required.



Still learning on this one as i thought it was good value at 30p.

regards
Linhur

[wassapper] 20/8/2006 10:35

Management will be presenting at the next Minesite forum on 12 Sep

[ged5] 16/8/2006 10:21

I thought it was a bit harsh marking this down yesterday on the news. I didn't notice any trades yesterday so it must have been on the announcement.

At least they managed the promised 4000 carats in a month. 45800 carats on 12/7/06 , 50000 carats on 15/8/06. Just shows they can do it when they don't have unusually heavy rain.

Also there was progress on the development of Phase II.

I still think the market was expecting news from Woodlark. A 2m oz resource isn't to be sneezed at. Doesn't that equate to $1billion- $2billion of gold in the ground depending on the price of gold?

I wouldn't be too surprised if we heard shortly about the significant increase in the gold resource.

[rambutan2] 15/8/2006 16:36

the chairman referred to cempaka as a "widget factory" because the daily/weekly production was so reliable and consistent. no feast and famine factory as is more often the case with diamond mines.

he also said that even the tiny stones (not even included in the carats figs i think?) were finding a mkt with the likes of de beers being a buyer.

remember, earlier in the year it was exceptionally wet, so perhaps slowed opps a little. (i seem to recall?)

[unionhall] 15/8/2006 12:05

Yes indeed - a dilemma....

[doobydave] 15/8/2006 12:03

Hi Unionhall.

Bottom of p8 of pdf of AR - "At the date of this report, cumulative production from the Cempaka mine now totals 30,818 carats of gem diamonds" - sl. different message to p4. That was 17 May, hence confusion.

Perhaps depends on accounting periods and company Q1 didn't finish 31 March?
DD

[unionhall] 15/8/2006 11:55

End Q1 DD, 4,000+ carats per month since then...

Mind you per Q2 report 9,551 carats produced in Q2.

[doobydave] 15/8/2006 11:47

Right Rambutan - timing wasn't too shabby, eh?

It's the implied production rate that most interests me. The Annual Report is ambiguous, but 30,818 carats were produced from project inception in March 2005 to either

a) the end of Q1 this year or
b) the date of the Annual Report (17 May).

In other words, the Danau Seran channel has given up 19-20,000 carats in somewhere between 3 and 4.5 months - 4,000 carats per month at the lower estimate, 6,000 carats per month at the higher end.

Either way, that's ahead of the 3,000 carats per month stated in the May AR. That's pretty good. At $299 per carat, BDI should be grossing £600K per month at the moment. Maybe they've just hit a sweet spot lately, so I'm studiously avoiding annualising these figures.

We can play with the figures to be more conservative, but it's looking reasonably encouraging.
DD

[rambutan2] 15/8/2006 09:43

synchronicity or what!

LONDON (AFX) - BDI Mining Corp said that its Cempaka alluvial diamond mine
in Indonesia had reached production levels of 50,000 carats of gem diamonds.
Mining operations began in March 2005 and the company is about to enter the
initial stages of its phase II expansion, which will see it mining Cempaka's
main channel, where resources of over 1.3 carats have been found.
The company said phase II mining is expected to target an eventual
production rate of 100,000 carats per year.

[rambutan2] 15/8/2006 01:27

well at least if one goes pear shaped, we've still got the other!

of course, diamonds are rarer and for bdi to have gone from explorer to producer was a major achievement. now, having been producing for a year, they reckon they've bedded in all aspects of the opp and feel confident of its future. so, time to move onto stage II.

the gold is promising, but as dooby points out, it's pretty remote and on a fairly infrustructure free island. so plenty of cost to come. that said, it had enough going for it to convince even the sceptics that it was worth hanging onto, but with the proviso that it couldn't continue to rely on the diamond opp for its funding. however, there seemed to be confidence that a decent game plan had been hatched.

[ged5] 15/8/2006 00:20

And yet thanks again!

There was I thinking the gold was the big one. Well if there's a choice of 2 you can be sure I'll pick the wrong'un. Very interesting!

I would have thought the others were too busy finding gold and diamonds to come and speak to a few shareholders. ;)

[rambutan2] 15/8/2006 00:05

they weren't there.

which perhaps said it all.

but those that were there were v confident on the diamond front.

[ged5] 14/8/2006 23:54

thanks again r2.

By the "Woodlark crowd" do you mean Lee Spencer and other geologists?

Were you impressed after seeing the "whites of their eyes"?

[rambutan2] 14/8/2006 23:45

hi ged,

the agm.

[ged5] 14/8/2006 23:22

Thanks r2. Was that at the AGM or later? The last I heard was that 1.5M was the crucial figure needed to get the "Big boys" on board.

[rambutan2] 14/8/2006 23:11

dooby,

i think? the "new" management are of the opinion that enough money has been spent on drilling up oz. 1m is enough. now the woodlark crowd have got to make something out of it.