Brinkley Mining Share Discussion Threads

[gluefactory] 08/9/2010 17:07

Chris - its an "attempt" to get what they want for half price.

Any sniffer at Dragon must be interested in acquiring a 12.69% interest at a greater level than the 1.14p currently on the table.Basically Dragon shares can be bought on the ASX at 14cent but if you want a major stakeholding Brinkley are looking at selling them en bloc at 7cent!

Lets see where the Dragon price level is at when the report is published at month end

Love the bit where "the directors of Brinkley and Eurogold have reached agreement on the terms of an offer"!

[chrismez] 08/9/2010 17:04

And another thing !

The way that RNS is phrased "... pleased to announce..." - anybody would think they're doing us a favour.

I expected more from Gunzy but to no avail. Once again its the small PI's that get shafted.

[chrismez] 08/9/2010 16:49

Well there it is.

Another smash and grab by Eurogold and Gunzy.

Consistent - I'll give them that - always looking to buy BRM at a penny or thereabouts.

But if Linney is right with his calculations (see above) and an asset value of 2.3p per share - then this represents an attempt by Eurogold to buy BRM at half-price. For every pound they spend on BRM they walk away with two pounds in value.

I have to agree - this is not appealing - in fact its appalling. The words robbery and daylight come to mind.

[capt bligh] 08/9/2010 16:43

Certainly hope not

[gluefactory] 08/9/2010 16:04

Gluefactory aka Linney : 2.15 million here


I personally feel that with their own holding and that of RAB they have only half of the required shares locked away,and will be looking to lock away an additional 89 odd million themselves.My guess is that the take up will not be met

[capt bligh] 08/9/2010 15:59

We need 89 million shares odd to block this very low bid
I have 1mill

[linney3] 08/9/2010 14:42

About time Eurogold!!!!!!

However,the offer of Eurogold shares in lieu of Brinkley is not appealing.Values their offer at 1.14p.

Come on lads.Lets see what another predator can come up with - value is less than half the real asset value and Eurogold shares have a woeful spread

[samtom2] 08/9/2010 12:18

linney,

Well there were about 25 red vans all sitting outside the offices of CNT this morning when I arrived, but have to say I have just had a look and there are only five now. The rest have gone off somewhere.

Yes other peoples calculations seem to match yours of 2.3p on BRM So that is good, but it is a pity that it isn't reflected in the share price level.

[linney3] 08/9/2010 11:35

Onward and upward Samtom (should you not be looking out your window at Connaught Offices - a few PIs might like to have the same view as yourself with a few loaded 6 shooters!!)

I have done some crude calculations on BRM value vis a vis Dragon holding coupled with remaining cash:

BRM holding in DRA equates to 12.69%.DRA value is $99.54million which is $12.63million - BRM investment was $8.4million so we are showing a profit on investment of $4.23million.The pound value of our holding is £7.5million which when coupled with cash in the bank at 30th June 2010 of £867k(less £167k for costs for Q3 which is pessimistic) Total = £8.2million.

There are 356,336,248 shares in issue,giving us a share value of 2.3p today(This figure does not include any assets within BRM such as land banks etc)


For the record Eurogold participation in BRM was in 2 major tranches.The initial purchase of 103.5million shares was transacted in August 2009 at a share price of 1.85p.The second tranch of 39.5million was transacted in February at a price of 1.45p.(The total % of these 2 buys is 40.19%)There have been a few minor top ups at a penny and under bringing Euro holding up to 42%.and which Eurogold are now showing over 50% loss on investment value based on the bid price of BRM currently. Crude figures show Euros investment in BRM to be around the £2.55million level,which equates to a £894k profit ( 35% return) on their investment at todays "asset" value.However,as I have stressed numerous times before,I do not believe Euro are in BRM for a "punt",and the real value to Euro will come from their DRA holding(of which they also hold 4% privately)coming to fruition

Ok - end of rant!

[samtom2] 08/9/2010 11:09

linney3,

I assume you mean up with the ticking bomb.

A few nice buys on plus this morning. Should be ticking up soon.
08/09/2010 09:18:30 0.95 250,000 O 2,370.00
08/09/2010 08:09:12 0.95 35,000 O 331.80
08/09/2010 08:01:13 0.95 209,132 O 1,982.57

[linney3] 08/9/2010 10:06

13 - 13.5 spread,having hit 14cent on 5.42million volume. ASX dropped .79 percent

Roll on end of September when reports on mining longevity is published - nice to be sitting on a ticking bomb which has only one way to go

[samtom2] 08/9/2010 08:50

Yes another good day for Dragon. I guess for the time being BRM's strategy of putting everything into DRA is paying dividends at this moment in time. They are currently around £1.5M up on their investment in less than a year. Not a bad return.

[capt bligh] 08/9/2010 08:46

Dra up 12.5 % 13 cents bid

[chrismez] 07/9/2010 10:47

Linney - not sure I agree there - Gunzy to his credit in his last missive to the market said that he and Eurogold were looking for ways to enhance value for BRM's shareholders (which of course includes themselves).

We all took that at the time as meaning that Eurogold might be on the verge of making a reasonable offer for the remaining 60% Eurogold doesn't yet own.

Unfortunately that offer didn't materialize but at least Gunzy knows that if he gets BRM's share price to 2p he's gonna make a bundle on his investment in BRM - leaving aside his investment in DRA.

As for DRA - the key there is extending mine life and increasing resource estimates. If as Linney says they can do this in the Sept report then DRA can be viewed as a reasonable asset. If not then it wont just be DRA that tanks!

[linney3] 07/9/2010 10:25

Dragon have received further updates on their mining longevity with a full report due by end of September - so far all looking good. Additionally,Tanami due to pay Eurogold $5million by end of September together with interest. Perhaps they waiting on these funds coupled with what they have in the bank to launch a full bid for BRM - lets face it - they are hardly likely to want other shareholders to profit from the main reason they have invested in BRM!

[samtom2] 07/9/2010 09:46

Sometimes I wonder whether this is the strategy all along though. That BRM, Eurogold and Dragon have all clubbed together knowing the intention is Dragon to be approached by a larger predator, and then hey presto a nice little earner.
The main thing is they have a decent asset in DRA, and they have liquidity to cover ongoing costs for the medium term. However if they do decide to invest in a second venture, then they will undoubtedly require additional funds.

[chrismez] 06/9/2010 20:47

Samtom/Glue - not only is the share price cowed by the fact that BRM is viewed as an investment company these days (therefore undervalued and under-rated) the problem is compounded by the fact that this particular Investment turkey is seen by the market as having consciously decided to place all its eggs into one basket - cue further under-rating !

I shouldn't hold out any hope for BRM to sky rocket every time DRA goes up a couple of cents. That aint gonna happen.

And speaking frankly its beginning to seem as if a bid for DRA is the only way BRM's gonna realise a reasonable profit on its singular investment. After all multiple buys by Eurogold and Gunzy have done absolutely nothing for the share price in recent months.

In another company I was into recently - a miniature miner in Oz with one asset - a gold field in Tanzania - quite by chance and luck Barrick pitched up one day and said G'daye Mate - wanna sell your field?

Thank heavens for Barrick !

[gluefactory] 06/9/2010 19:00

Samtom - Thats the problem with BRM currently.They are seen as an investment company,although their only investment is Dragon!

My hope is thet there is an active potential buyer for Dragon and they will see the value in making a bid for BRMs considerable holding in DRA and hopefully DRA will have moved up to the high teens by then

[samtom2] 06/9/2010 14:05

Well there is a bit of difference between calculations from investors, but we can all agree on one thing that the share price level is way under current NAV. Here's looking to some good gains.

715K purchase gone through on plus by the way

[capt bligh] 06/9/2010 12:13

I have value at 2.1p taking the bid price for DRA including 800£ cash. and .15p for every cent move

[samtom2] 06/9/2010 11:41

Yes I noticed the double trade on plus first thing. I was being conservative with my calculations which is generally the best way. I am glad with anything over and above 1.99p.

I am surprised not more interest here bearing in mind the great rise in DRA over th last couple of days. 20% is fairly significant especially when you have £5M invested like BRM do.

[linney3] 06/9/2010 10:53

I think your calculation on asset value may be a little short - have you taken into account the cas BRM still has in the bank? If I remember correctly EUR initial buy was at 1.85p per share August 2009 and that was a little below BRMs then asset value which was purely cash


Note Plus have over a million traded albeit a roll over of 565k makes up the bulk of that - seems someone had to sell at .8 and buy back at .95

[samtom2] 06/9/2010 10:17

These are trading well below current NAV. I calculate their stock at 1.99p per share at current asset value. Good top up time.

[capt bligh] 06/9/2010 10:02

DRA could reverse into BRM 1 dra share for every 4 brm simples