China Goldmines Share Discussion Threads

[oneeyedjack01] 18/9/2009 09:23

Cant even get a trade for a buy of £500. Stock must be both extremely limited.

L2 is 2v1

[bushtuckaman] 18/9/2009 08:58

fordtin, looks like you were spot on re that S American miner. Cheers ;-)

[oneeyedjack01] 18/9/2009 08:57

L2 is 2v1 looks like it might uptick again soon.

[giant steps] 18/9/2009 08:46

fordtin, have to laugh at folk ignoring 13p but loving 18.5p !

[nilip] 18/9/2009 08:29

Share price starting to look very perky all of a sudden ?





Chart looks like we're coming off the bottom for a recovery bounce ...


I've just gone long :-)

[fordtin] 15/9/2009 15:27

Hi weemonkey,

just re-read my last post. Sorry about that, it does seem a bit cranky.

I'm hoping that APF will assist CGM with their investment strategy. There are so many cash starved juniors which are grossly undervalued and could move forward very quickly with a fairly modest cash injection.

I think APF could give CGM some very good leads to get the portfolio started.

[weemonkey] 15/9/2009 15:04

sorry fordtin

maybe my post sounded confrontational

was not supposed to

and you excellent research more than answers my questions

Am impressed by APF buying as well.

those guys know what they are doing and with a 7% holding maybe they will have the muscle to force a return of cash to shareholders .

otherwise we could become another SVE (yikes)

[fordtin] 15/9/2009 08:13

Morning weemonkey


"have we a definitive answer as to how much money will be left in CGM at the end of this disposal?? and I mean definitive."

You obviously don't trust my research which I posted last week. That's perfectly understandable, but why not do your own research instead of asking on a public BB?
How do you know whether any other anonymous strangers have researched the issue more thoroughly?
All of the information used in my cash estimate is taken from the company circular or the latest accounts. DYOR, I would be very interested to see your conclusion if you would be kind enough to post it. TIA

[muffinhead] 14/9/2009 22:40

This is a coincidence


Tianshan goldfields announced a similar disposal 1 week before CGM. Anglo Pacific PLC has a large holding 37mill shares according to the header on the ADVFN BB run by Piedro on APF

Maybe the plan by Cosmos is to go for a Hong Kong listing of the Chinese assets


Greater minds than mine are hatching something and APF is continuing to buy. Either it sees an undervalued cash shell or an investment potential going foreward.

[ned] 14/9/2009 17:42

With APF taking a 7% stake perhaps they are the boys who are going to help CGM out of China. Perhaps some sort of joint venture if they rate the management?

[ned] 14/9/2009 17:42

I have bought some more solely because of APF's interest anyway!

(Had to say this to hide the double post)

[giant steps] 09/9/2009 10:56

Prices bid 12.5p offer 13p, 2 v 1 (was 1 v 2)

Next offer 14.5p - turning ?

[elban] 08/9/2009 23:55

It certainly looks like the two big orders were both buys. But this begs the question of where did the MMs get the stock from? In my view, the likely solution is if the MMs are working out a much larger sell order.

At some price, this becomes cheap - but I am not sure at what level that applies. If Fordtin's cash analysis is correct (and they had all the cash available now) then a 50% discount would put them about in line with OVG and GGG - implying a share price of around 16.

Since CGM are below this then either they are better value, or the warranty is regarded as requiring a larger discount, or OVG and GGG have a premium for having directors that are more trustworthy.

I dumped my 200,000 shares by 10am on the day of the disposal rns - not sure what price would be required to tempt me back in. A little more clarity and explanation from the management would certainly help.

[empirestate] 08/9/2009 22:39

looks interesting, but the share price is not finding any support. will keep an eye on these as they may bounce at some point

[muffinhead] 08/9/2009 15:43

lookie who's just bought 700k

don't tell me this is a swing low and shorts covering for the lift off

been through this with lonrho, 5 to 2p and then up to 10p after management idiocy

EGM is going to be entertaining, thats for sure....what a laugh but just maybe management was in 2 minds and all is forgivin when the deal is called off after a shareholder vote

i'll just shut up, been too full of bull

[fordtin] 08/9/2009 15:39

hi chestnuts,

it's been obvious for quite some time that the mine was not progressing well.
The project has been burning it's way through a huge cash pile and still needs more. Exchanging it for a pile of cash releases the company to seek investments at a time where much better projects, in considerably safer political areas, are being sold for peanuts.

There are so many good mining prospects starved of cash, that CGM should be able to negotiate a substantial stake in some of them for a modest cash injection. Once the cash flow problem is cleared those companies could multi-bag within a very short time frame.

For example look at ASX:WME & ASX:BKY. Polo Resources got an amazingly cheap deal including a pile of warrants and have already sold down part of their holdings for a decent profit whilst still retaining the potential upside from the warrants.

[chestnuts] 08/9/2009 15:19

Fordtin
The trouble with your logic about investing their £10.4 m in minings company, is thet they had a bloody good company going, and this time next yr they would have produced 100,000ozs of gold , they had already done most of the hard work, and with gold over $1000 and could climb higher who in their right mind is going to sell a good mining company.

Yes the share price is down to 13p and most likely go down to 9p before long but what do we have then a shell company paying them selves high wages with no idea how to run a mining company, so whats your logic in that.

[fordtin] 08/9/2009 13:14

thanks GS - just checked the 'including $10m' line. post 2941 now amended

[fordtin] 08/9/2009 13:05

Gs, not quite following you re 151%.

The way I've been looking at it is :-

share price of 13p + (55.24% of 13p) = 20.18p

[uggly buggly] 08/9/2009 13:00

Uggs lost cash on this nugget before..may dip toe in again

[giant steps] 08/9/2009 10:18

fordtin, your logic is very clear and there is nothing to argue on this matter ;-)


...apart from the % required to equal cash (re-check figure vs total = 151%)

[fordtin] 08/9/2009 10:13

Hi GS,

I've updated my sheet to include the information given in the shareholder's circular. Not quite as attractive as the one based on historic accounts but still looks worthy of a punt.

I've no idea where this will find a bottom, so I've picked up a few at current prices and intend to pyramid buy if the price keeps falling. Every penny which drops off the price just makes it more investable imo.

I know some people are rightly dissapointed by the disposal of the mine, but I think this is an incredibly good time to have £10 million * to invest in under valued mining companies. I personally feel more optimistic about the future of CGM than I have for a very long time.

* plus another £6m in 12 months time



N.B. inventories have not been updated since 30/06/09. It may be safer to assume that inventories have been run down to zero.