Bdi Mining Share Discussion Threads

[davidblack] 21/7/2005 18:39

Any idea now when the diamond sales should be okayed?

[rambutan2] 29/6/2005 12:09

from the finals...
At December 31, 2004, the Company did not have the regulatory permission to
export diamonds from Indonesia, but management expects to obtain these rights in 2005.

re 30/06/05 disclosure...
A sign of the future in France is the launch , just a month ago, of the Tectonic Fund managed by Guy Philippe Bertin. He specialises in junior resource funds and was previously an analyst with Jeffries. The fund is backed by some leading French institutions and its portfolio is divided between energy (34 per cent), where 75 per cent is in oil and the balance in coal producers, gold (36 per cent), base and other precious metals (16 per cent), and diamonds and gemstones (14 per cent). This is an interesting split with gold and diamonds to the fore. As to countries, South American operations get 22 per cent, North America 25 per cent equal with Russia and Kazakhstan, Africa 17 per cent , Europe 8 per cent and Asia and Australia 10 per cent. Again the play-off between North America and the FSU will interest those of a political bent.

Where Tectonic leads others will surely follow, always provided it is a success. There is certainly every chance of this given the way the prices of gold and diamonds are performing and the strong recovery towards earlier peaks by base metals. French fund managers realise that London has a strong mining sector once again with around 100 junior companies listed on AIM in addition to the multinationals with full listings. Guy Philippe Bertin has kept an eye on the performance of Philip Richards at the RAB Capital hedge funds, but is sticking to traditional fund management techniques, maintaining constant contact with directors of the companies in which he invests.

[rambutan2] 29/6/2005 12:07

hmmm.
back down to mid 20s again.
they still waiting for an export licence for the diamonds.

[rambutan2] 20/6/2005 14:57

fair enough gold update.
but share price refuses to get back up to 30p placing price.
would have thought that any overhang would have gone by now.
any ideas?

[rambutan2] 25/5/2005 11:09

were featured at hargreave hale diamond juniors talk on mon...

BDI Mining is listed on AIM (market capitalisation approximately £22.4 million, ticker symbol BMG). The company has cash of £5 million with £0.5 million in diamond inventory, which came as part of the acquisition transaction. BDI bought an 80% interest in the Cempaka deposit, on Kalimantan in Indonesia, when Rio Tinto, having acquired Ashton, stripped out operations too small for its corporate profile, of which Cempaka was one. The government organisation PT Antam holds the remaining 20%. Cempaka started production this year and at present has a projected ten-year mine life. Resources at present would support production of 660,000 carats over the mine's life. But the resource is still under investigation and Lee Spencer, the CEO, suggested that, given the width of the valley that the deposit underlies (1.5km), this could rise to two million carats in total.

The stones are high value, with the first production parcel of 3,285 carats valued in Antwerp last month at $285/carat and the first Antwerp tender is scheduled for June. The deposit also has a history of producing large stones; the largest in the bulk sample was 22.55 carats and the largest ever produced in the area was 167 carats. The company estimates that statistically, it should be able to produce 15?20 carat stones regularly and perhaps one big stone a year. The screen size allows for a maximum of 80 carats. Commissioning of the mine started last Autumn and ramp-up to full production ran a little over schedule as a result of the length of the wet season and unsatisfactory performance from the sub-contractor – who has now been replaced and the development is moving smoothly. The company is planning to sell 28,000 carats in 2005.

Recovery capacity currently stands at 5,000 carats per month, but there is the potential to double this; any such expansion can be funded purely from cash flow.

Phase two of the corporate mission is to earn a 70% interest in the Bobaris bloc, which is 45km to the northwest of Cempaka and believed to be the source of the Cempaka diamonds, probably in lamproites. Drilling targets have yet to be defined. BDI is also looking to develop its 100%-owned Woodlark gold deposit on Papua New Guinea. There is an historic resource of 375,000 ounces, grading 1.7 grammes per tonne, open along strike and at depth. There is also the potential for a copper porphyry, which BDI will consider joint venturing with a major.

[davidblack] 18/5/2005 18:07

Very nice write up.



PAT LAY'S SMALL CAPS
Smaller companies spotlight
12 May 2005
EACH week, former Fleet Street City Editor Patrick Lay keeps This is Money readers up-to-date with a neglected, but exciting sector of the stock market - smaller companies.




I FELT some of the excitement a twitcher might feel when spotting a rare species of bird in his own back garden this week when I met Paul Loudon and John Forrest, chairman and finance director of BDI Mining Corp.




BDI is a very rare species indeed, a junior mining company that is actually producing and has a positive cash flow. Next month, its first parcel of gem quality stones from its diamond operations in Indonesia goes up for auction in Antwerp.


The parcel of 2,504 carats has been independently valued by WWW International of Antwerp and London as being worth around $275 (£150) a carat, and plans are well advanced to achieve a 2005 average rate of more than 4,000 carats a month from existing property. The company is also looking to extend its acreage.




While such success might be sufficient for some operators, Mr Loudon sees this as only the beginning. BDI is hunting for gold on Woodlark Island, Papua New Guinea, where a previous owner identified 374,916 ounces of gold. Subsequent drilling suggests there is a potential to contain more than a million ounces of gold.




The story is sufficiently credible to have attracted Barclays Capital to come on board and assist with the funding of the project through to a bankable feasibility study, and to continue with the finalised mine construction and production financing.




The company came to Aim in September 2004 with a placing of shares at 14p a share, since when it has raised a further £5.4m at 19p a share and at 30p a share through private and institutional placings, getting on board such big hitters as RAB Capital, Tectonic Fund, Ocean Resources Capital, and Fidelity.




Analyst Robert Wallace at SQC Research estimates turnover this year will be £3.9m with pre-tax losses of £112,000, but he predicts turnover soaring to £10.7m next year with pre-tax profits of £5,470,000 and climbing to £17.2m and £11.2m pre-tax respectively in 2007.




He sets an end 2005 target price of 70p on the shares, and there some who feel £1 a share is possible within 12 months.

[rambutan2] 17/5/2005 13:15

i wondered who it was...

Draganfly Investments Limited (the 'Company')

Substantial Investment

16 May 2005


The Company announces that today it purchased in the market 1.6 million ordinary
shares in the capital of BDI Mining plc at an average price of 25.925p per
share.

[rambutan2] 15/5/2005 14:18

many thanks david.

[davidblack] 15/5/2005 11:33

Nothing on the copper, they are talking to big players on that.

But the production seems to be in full swing. More importantly is the emphasis. There is going to be a significant push to speed up the diamonds by accellerating the initial dredging and drill in the main channel, the $1m a month of cashflow from the diamonds will pay for that and some. I would expect them to start thinking about a second production facility shortly for the main channel.

Ore for the next wet season is being stockpiled to ensure production is continuous.

On the gold they will have four sets of drills working with the aim of getting this up to 2million plus ounces in a year and then feasablity.

They looked very confident and with the £5m in the till masters of their own destiny.

There was a stock over hang but that would appear to be now resolved.

[rambutan2] 14/5/2005 18:29

where did you see it?
anything extra revealed ie production figs or on the copper?

[davidblack] 14/5/2005 18:17

Yes, nice bounce too so hopefully the sellers is out of the way.

Really excellent presentation last Tuesday, so I think we will now see them pushing north from here.

[rambutan2] 14/5/2005 17:42

these look a worthwhile buy at a nice discount to the over-alloted recent placing at 30p.

[rambutan2] 29/4/2005 16:11

great.
but not a good day to have to annouce it.

so, now we have diamonds, gold and copper.
not a bad hand to play with.

[davidblack] 29/4/2005 15:57

Yep, they don't come any bigger.

[rambutan2] 29/4/2005 15:45

perhaps this served as an in inbuilt warrant!

lacking mining knowledge, is a porphyry copper deposit something that's likely to be big?

[davidblack] 29/4/2005 15:40

PORPHYRY COPPER TARGET ON WOODLARK ISLAND

LONDON - 29 April 2005 - BDI Mining Corp. (AIM-BMG) is pleased to advise that
analysis of aeromagnetic survey and historical exploration data over the
Company's Woodlark Island property in Papua New Guinea has revealed that
potential exists for a buried porphyry copper deposit in addition to open-pit
bulk mineable gold deposits.

[davidblack] 27/4/2005 19:15

Yes Canadian companies like BMG generally have to give at least half a warrant.

[rambutan2] 27/4/2005 13:47

no warrants!
i think that's telling us something good.

[davidblack] 27/4/2005 12:21

Nice announcement on the placing.

[tprobinson] 26/4/2005 17:44

Hi all, bought shares yesterday and near 10% fall today - talk about bad timing!!
Still looks a promising compamy and will looking hold for about a year.
Hopefully we will have some announcements/news soon...

[davidblack] 19/4/2005 15:50

Cracking assets, diamonds already in production from last month giving circa £400,000 per month of free cashflow and a fully funded gold deposit that is being driled out to do a bankable feasibilty study to Canadian standard 43-101.

I think they have 2m ounces at present of gold but that should rise once the full drilling is completed. Diamonds should grow too.

[ofex punter] 19/4/2005 15:29

Similar. They seem to have corrected more than the rest of resources sector, so why?

[davidblack] 19/4/2005 15:01

Something up? Now 33p ask up 11%!

[abadi] 15/4/2005 08:19

OK - That explains it - thanks