China Goldmines Share Discussion Threads

[fordtin] 25/11/2009 14:20

GS -

have you looked at LRL? I haven't had time to look into it, but I understand that they also departed from China with a discount to cash

[giant steps] 25/11/2009 14:12

fordtin, i have checked the top table re 12.5p calcs, ok - thanks

If the market prices this according to timetable then share price could rise
by 3.6p first week January, and additional 18p up for grabs late 2010.

Let's hope we run with some decent investments.

Edit : easy to remember total 24.7 !

[fordtin] 25/11/2009 13:49

GS - can you check these numbers for me. TIA

(Bid 12.5p)



(offer 12.75p)

[stuart14] 25/11/2009 12:43

I wouldn't invest a penny in another Chinese Co again. Their culture is so different to ours. Would recommend reasing Mr China. Really good book and would put anyone off Chinese Investments!

[weegeordie] 25/11/2009 10:54

It would be interesting to know what sort of size they are looking at (not that we will though!) also whether they do take a pay cut or just use it as a gravy train for a few years.

[giant steps] 25/11/2009 10:48

weegeordie, the advantage of "mature property" is early cashflow, plenty of
companies need access to a chunk of money, LINQ and Anglo Pacific will have
plenty of useful ideas.

[weegeordie] 25/11/2009 10:42

the problem with that strategy as I see it is how much would a more mature property cost?

[giant steps] 25/11/2009 10:40

pauladrew, we have to hope they find a bargain to make us multiples
- not greedy but just want investment value restored to 50p

[pauladrew] 25/11/2009 10:35

Another important feature GS

' The Company will aim to invest in the more mature exploration properties, with
preference towards projects that are advancing into the development /
commissioning phase;'

[pauladrew] 25/11/2009 10:32

GS - good for you. Cannot make it any clearer.

[giant steps] 25/11/2009 10:21

Investment Strategy The Company will employ a broad geographic focus for its business with an emphasis on established mining regions within Australasia, South America and Africa, with China being specifically excluded as an investment region.

[timanglin] 25/11/2009 09:57

MmeDestael, I agree with you, having gained and lost money on CGM, I am a little bitter about the way the chinese took over the asset and if there is a newspaper journalist reading this thread then this is the basis of a story. I felt that the management and owners(myself, in a very small way, included) were honourable in the sense that large amounts of the shareholders money was invested in safety for the employees in stark contrast to recent horror stories about chinese mine safety in the papers. In my opinion what happened here and GGG potentially affects all AIM stocks trading in China, although I am not scaremongering and realise that gold does funny things to people!!!(women included). Any journalists out there?

[mmedestael] 25/11/2009 09:37

I do not hold in this company but I am interested in the apparent parallels with GGG in which I do hold.
GGG had a number of very exciting mining projects in China but instead of these coming to fruition they were eventually made a non-negotiable offer by their Chinese 'partner' and effectively taken over by the Chinese state authorities !
This has left them with a few £mill. in cash and the likelihood that they will now be absorbed into another company (located a long way from China I would imagine).
Many are bitter at the oscillating sweet & sour nature that has characterised the company's relationship with the Chinese and that, in the end, turned very sour and dashed all their dreams. This, despite having all the contacts, local knowledge, reputation, etc etc.that the company boasted was in their favour.
How many other companies has this happened to I wonder?

[giant steps] 25/11/2009 08:55

CRT, worth watching to see if directors add at this level now close period over

That would be a worthy signal imo.

[giant steps] 25/11/2009 08:32

CRT, broadly yes but $10m warranty expires in 10 months for true value imo.

Edit : so can buy shares at 13.5p worth a potential 31p, very nice

Edit #2 :
"
Cash position as at 31 October 2009 USD$21.8m plus USD$2.9m held in trust until 31 December 2009 and will be released in January 2010 on condition that the purchaser is satisfied that all contingent debts and obligations are resolved in Westralian Resources and Hunan Westralian Mining Co., Ltd.
"

[crt131] 25/11/2009 08:20

$24.7m equals cash in hand at end october of 31p a share. Am I correct in saying that?

CRT

[giant steps] 25/11/2009 07:21

Extract

"
... a new investment strategy for the Company has been determined for
your Company, with your Board laying down the following guiding principles:


* The Company will employ a broad geographic focus for its business with an
emphasis on established mining regions within Australasia, South America and
Africa, with China being specifically excluded as an investment region. Other
regions / countries will be reviewed on a case by case basis;

* Within these regions, the Company will target projects that demonstrate a sound
investment case that meets or exceeds the Company's investment criteria. Our
investment criterion remains flexible across a range of commodity types,
including but not limited to bulk commodities (iron and coal, but not oil and
gas), base metals (primarily copper, nickel, lead, and zinc) as well as precious
metals (particularly gold and platinum);

* The Company will aim to invest in the more mature exploration properties, with
preference towards projects that are advancing into the development /
commissioning phase;

* The Company, subject to a compelling investment case, remains open to consider
the acquisition of producing assets (or even ones that are in care and
maintenance). The Company will also not rule out joint venture opportunities
within its investment matrix, provided the potential for shareholder value
uplift is evident;

* The size of the investment that the Company would consider will vary depending
on the Company's ability to fund the acquisition from its ability to source both
debt and equity funding. All investments that are made must demonstrate the
ability to at least meet or exceed the Company's internal investment hurdle
rates of return;

* The Company will source investment opportunities from internal sources,
consultants and advisors, banks and brokers and will evaluate opportunities
internally and with the use of appropriate skilled and experienced consultants
and advisors; and

* The Company believes it currently has the relevant skills to undertake and / or
manage an operation or development project and can access or source the
appropriate senior management to undertake the relevant positions for an
operating mining asset.

"

[giant steps] 25/11/2009 07:18

RNS 25th Nov 2009 - final results ending June 2009



Extract
"
Following the closing of the disposal we retain funds of USD$24.7m (including
the USD $2.9m held in trust) and are well placed to add significant shareholder
value through investments in other companies and/or projects. We are
identifying a number of project opportunities which we will appraise against the
objective of delivering value to shareholders.
"

[giant steps] 22/11/2009 10:49

O/T

Ovoca Gold, another good example of discounted cash.


Reminder from chairman's statement, June 2009

Extract
"
I would like to take this opportunity to address shareholders directly. I know it has been a frustrating experience as the share price has been depressed for so long. As a large shareholder of the company I am particularly aware of this issue. However, sometimes the market is irrational and this seems to be the case now, as we trade at a fraction of the cash and securities value the company has. However, we are not alone; there are multiple junior mining companies that are currently trading below their cash level. This may not be particularly reassuring, but it does let you know that the share price phenomenon of Ovoca is far from unique. What is the answer to this issue? What is the road to higher share price valuation? I think it is clear. Utilizing our cash position wisely, and deploying our human capital on our existing projects in the Kola Peninsula as well as making opportunistic, value accretive acquisitions will serve to raise the value of Ovoca. It is here where I must make a point; short-term promotion, without substance, will only lead to disappointment. In fact, I would argue that much of the world's current economic malaise is due to promotion in the absence of tangible value. Please note, lack of promotion does not mean passivity. It simply means acting like the serious company that we are. I look forward to 2009 as a year of change and new beginning. Crisis is also opportunity, and Ovoca like never before is prepared to seize opportunity and create value.
"

[giant steps] 11/11/2009 22:32

China Goldmines compares with several aim listed companies that have struggled
to navigate and survive the Chinese way. It's a huge disappointment not to benefit
from the prospects of what appeared to be low-cost and lowly-valued gold project,
but that is consigned to history. It's a new ball game and needs to be measured
on that basis imo.

[chestnuts] 11/11/2009 21:36

Evening all

Gs
I was very bullish on CGM a gold mine with absoulutly fantastic potentials, and what happened they sold out just as the gold price started to take off, who in the right mind would sell a gold mine as gold just starts taking off, i would not and will not invest in a company with this board of directors on board and advise any one else who is thinking about investing, they have no idea what is going on, they not only missed the boat they also sank it.

[crt131] 11/11/2009 08:44

Hmmm all sounds good.

If thats the case why is it at 14p (edit - sub 14p)?