China Goldmines Share Discussion Threads

[fordtin] 25/1/2010 11:22

Still seems like a bargain if they manage to retain the full $10m, but I'm a little concerned by the cash burn.

I can't find where it came from at the moment, but I have a note on my sreadsheet which quotes cash as at 31st October 2009 of $21.8m.

This quote from the accounts released in November confirms the amount but not the date :
"Following the closing of the disposal we retain funds of USD$24.7m (including the USD $2.9m held in trust) "

After recovering only $2.2m from the $2.9m, it should have left them with $24m.
If they've ony got $23m left, it means cash burn has been $1m over the last 3 months. What have they spent $1m dollars on?




edit -

found it :
"Cash position as at 31 October 2009 USD$21.8m plus USD$2.9m held in trust until 31 December 2009"

[giant steps] 25/1/2010 09:45

need to discount $10m until period expires,
so "unrestricted" cash value now is probably 16p

need to wait nine months to be sure in adding extra 13p ($10m)

[stuart14] 25/1/2010 09:20

29p per share in cash. Like buying £1 coins for 50p! (well nearly!!)

[cliley454] 25/1/2010 08:58

Epect a steay climb from here as the value in CGM comes to folks attention.

Off topic, take a look at APA. I've posted some interesting research on the BB this morning.

[haydock] 25/1/2010 08:38

The right kind of RNS for the market, with the value per share up front & the note about cash return at the end.

Tasty!!!!

[sheeneqa] 25/1/2010 08:27

The chairman an astute individual, canny scot. MRS/THG.

[crt131] 25/1/2010 08:00

Showing 18.25p opening

[giant steps] 25/1/2010 07:38

RNS 25 Jan 2010



Extract

"
Commenting today Mr Robert Adair, Chairman, said: "We have now successfully
secured cash proceeds of USD 25.7m from the disposal of WES. This has removed a
substantial area of uncertainty for the Company and, as a result, the Company
now has net assets of approximately USD 23m (approximately 29p per share),
practically all in cash with minimal liabilities other than those associated
with the Sale and Purchase Agreement described above.
"

[haydock] 21/1/2010 09:34

This one seems to have had a few buys & the mm's are trying to push it up of late.
Is the stock in such short supply or are they trying hard to light the fire?
Charts seem to be quite interestingly bullish, watching the cloud.

[giant steps] 19/1/2010 10:57

haydock, AP will continue to acquire while weak hands depart imo
- will be no surprise to learn AP assist in the acquisition process.

In the meantime waiting for more AP holding announcements (guess)

[haydock] 19/1/2010 10:52

No RNS to confirm any further additions, they will be waiting for the next move as we all are.

[giant steps] 19/1/2010 10:37

I wonder if Anglo Pacific are continuing to add; they seem supportive
and appear to be in for as many as they can get - and why not given the
fundamentals.

Observe trade just published 250K @ 13.625p, bid improves to 13.5p

[zangdook] 27/12/2009 06:21

I was invested here but sold out, mainly to free up cash, when the bad news struck. I wonder if I should get back in.

Did anyone here attend the AGM? Does anyone have any comment on the withdrawal of the proposed investing policy and non-reappointment of two directors? Does this suggest a return of cash is more likely? It sounds to me as though people may have been buying in with the intention to force a return of cash unless a better idea comes along pdq.

I made a loss here and wouldn't mind getting some of it back.

[ianbrewster] 19/12/2009 13:03

I too bought a few last week on the back of APF upping their stake.

Adair is the Melrose man - listed with about 45 other directorships on the AGM RNS.

Lets see what projects he can bring to the table for us.

[agcooper] 19/12/2009 11:22

We need new people, new ideas, new project, new name, new shareholders, new everything! I'd also prefer new shares being issued & new money coming in, rather than money going out, but this can only happen when CGM buys into an exciting project somewhere in the world. There must be a vast amount of good projects out there somewhere that need finance to push them forward. My interest is mainly in small oil companies & I'd prefer an investment in an oil related project rather than a small mining company. The appointment of Robert Adair seems like the end of the old CGM and the start something new and exciting. For me it is nice to get in at the beginning & I will probably buy some more shares as I'd like to be holding about 150,000.

[fordtin] 19/12/2009 10:40

Morning Haydock

I think a wind up of CGM would be a slow and complicated process due to the $10m guarantee they gave to the purchasors of their gold mine.

As I've previously mentioned on the other CGM thread, I hope APF take an active role and offer CGM advice on potential investments where APF have already carried out due diligence.

[haydock] 19/12/2009 09:12

I am also new & in agreement, I do not like cash returned, don't mind a good divi though.
I came in on the back of my main company APF.
They have incresed & will be in the background.
Looks like the Melrose man, has had a bit of a past, but then serial exec!!!

[agcooper] 18/12/2009 22:59

I can understand why so many shareholders wanted to get out of this company, with the share price at an all time low point. I must be one of the few who has been buying recently- @ 11.75p, 12p, 12.8, & 13p. (112,500 shares in total). I think 2010 will be a very exciting year for the company, whether they buy into a new project, or return their cash back to the shareholders. Cannot see much downside to the share price with so much cash in the bank very soon. Personally I see a lot more upside & excitement with investment in a new resources project, whether in oil or mining. Is the Robert Adair the same one as at the oil company Melrose Resources? Returning cash to shareholders must surely only be a last resort if no good project can be found by September 2010. I have also bought into Leyshon (LRL) within last few months, it's in the same position as CGM with cash in the bank from selling a project in China.

[giant steps] 18/12/2009 14:51

Perhaps we are going to have our money-back, 19p and upto 31p if no claims.

Might be worth watching volumes to see if this is the case.

[fordtin] 18/12/2009 14:02

Considering the huge number of companies which he is already involved in, I assume he will not be spending much time working for CGM. Can we assume that his remuneration will be minimal to reflect this?

[giant steps] 18/12/2009 13:47

AGM 18th Dec 2009



Extract
"
Mr Adair commented: "I am aware that a significant proportion of the shareholders wish the Company to come forward with a credible business acquisition or to return funds to shareholders. I look forward to working with my Board colleagues to deliver a strategy aligned to shareholders' needs
"

[giant steps] 15/12/2009 07:38

Clive Departs and investing policy changes - guess Anglo Pacific have plans

Imagine we have a new mining project, will it be announced in 2009 ?

RNS 15th December 2009



"
In light of the changes to the composition of the Board the Company has decided to withdraw Resolution 8, seeking approval of the Company's investing policy, from the AGM to be held on Friday 18 December. The new Board will address a revised investing policy as a matter of priority.
"

[navyan] 13/12/2009 00:19

Giant Steps - 6 Dec'09 - 08:30 - 52 of 55

is that your amazing "Hit & Miss" trend lines there Giant Steps? they are such beauties, they are. keep them coming, dont delete them ;)

[giant steps] 10/12/2009 14:24

No surprise to see Anglo Pacific continue to add

From 4,210,000 to 4,710,000 (now 9.72% )


RNS 10th December 2009