Finders Resources Share Discussion Threads

[coffeelito] 21/6/2010 16:12

oh dear, that looks to be on a par with Gordon Brown's sale of UK gold reserves - at a ridiculously low price.

Why the hell did they sell at that price ?! Surely, it makes them either look desperate or incompetent.

[jonny flame] 21/6/2010 16:04

In regards the investment in GR - please read the Quarterly Report for the Period Ended March 31st 2010 which was released on the 29-Apr-2010;



Corporate

· The Company changed its financial year-end from 30 June to 31 December to align the balance dates of companies in the group.

· A$826,000 cash was realised from the sale of the Company's entire share holding in Geopacific Resources.

Investments

Finders Resources disposed of its holding (5,900,000 fully paid ordinary shares) in Geopacific Resources Ltd. (GPR), for a price of 14c per share.

Proceeds of A$826,000 will be used for working capital purposes.

[coffeelito] 21/6/2010 14:14

Dr. Russell Fountain seems to be the key link between GR (chairman)and FND (non-executive chairman).

In a presentation this month, GR talked about the potential to find "an elephant" (massive gold deposit I presume) in Fiji, where it is operating.

So let's hope they've found that elephant and that the value of FND's shareholding in GR might increase so that it could alone account for a bigger chunk of FND's current market cap.

GR's pre-suspension market cap is c. £60m, based on c. 145,000,000 shares in issue and a share price of A$0.70.

[chipperfrd] 21/6/2010 13:41

Yes, cheers coffeelito, I have allowed nothing for the GR holdings in my numbers.

[someuwin] 21/6/2010 13:33

Cheers coffee - sounds interesting.

[coffeelito] 21/6/2010 13:30

FND owns 5.9m shares in a company called Geopacific Resources. GR's shares have had a good run so far this year, rising from Aus. $0.30 to $0.70. They have been suspended today, hopefully in anticipation of a good news announcement by Wednesday. At current prices, FND's stake in GR is worth £2.4m, which is about 10% of FND's total market cap of £22.4m (based on 136m shares in issue and at current price of c. 16 pence or Aus. 28 cents.)

So maybe a small nugget of good news in these becalmed times ?

[coffeelito] 21/6/2010 12:29

"Copper for July delivery jumped 10 cents, or 3.6%, to $2.99 a pound in electronic trading. Palladium and platinum, metals also used for industrial purposes, also rallied.

"Commodity prices should respond positively to a stronger renminbi, as China is a large net importer of many commodities," said Morgan Stanley analysts Gregory Peters and Jason Draho in a note Monday.

A stronger yuan "should be positive for overall risk appetite, signaling the health of both the domestic Chinese and global economies, which is constructive for commodities," they added."

[coffeelito] 20/6/2010 10:56

Thanks Chip.

[chipperfrd] 20/6/2010 01:44

coffeelito,

I don't think it is possible to "have all the facts" at this stage for FND. If we did, and the market was efficient, then by definition, there would be no upside potential. But I emphasise with your feelings. There is little support for the stock on both exchanges even though FND is already a small producer and has completed it's DFS for the Wetar project.

But we do have 'facts' regarding the size and grade of the copper reserve & resource. We have the hard conclusions from the DFS and we have the solid production achieved from the pilot plant which is the enabler for the whole project.

However, we do not yet know how and when (or if) the funding for phases 1&2 will be achieved. How much will be as debt and how much new equity will be required and at what price will this be secured. This uncertainty and the current weakening in the copper price are both bearish factors which are currently taking their toll.

From my point of view, I have been in this situation many times before and I am currently in similar situations with other stocks as well. I go to a great deal of time and trouble to research and model lots of projects and then build positions in those which look to have (in my opinion) the highest probability of success and upside potential. But alongside all the 'facts' are also many unknowns which require the application of assumptions which may often fall outside the control of the company itself. Clearly, the future price of their product and the risk appetite of banks and the equity market are examples of such factors which have bearing on FND right now and which make the forecasting of future earnings somewhat difficult.

However, all that being said, I still hold the view that the project has a high probability of coming good for FND and that shareholders will eventually benefit from significant earnings upside. So I am dug-in on a 3-5 year view and I am not particularly phased by current weakness in the share price. To be honest, I have rarely found that the majority of my buying has been at the lowest possible price and I have often had to endure long delays and major changes in market sentiment before real progress and an enduring up-trend has finally become established. There are no guarantees of course. Sometimes things just don't work out. But until there is some meaningful change to the story for FND I see no rational reason to change my view on their prospects.
Chip

[coffeelito] 19/6/2010 12:56

Thank you JF, I appreciate that. I have been in contact by email and occasional phone call to FND finance director and he does sound good, altho' also frustrated by the share price

I have made the same mistake with this Aim share as with other small caps, which is to imagine the share price will behave more rationally than it has.

My occasional exasperation is because I sometimes wonder if a prolonged downward move may in fact be "rational" since I don't have all the facts.

Cheers.
CL

[jonny flame] 18/6/2010 18:45

Hi coffeelito - I don't have you on filter any more as you have been posting more reasonable and sensible posts of late. I hope you continue to do so!

Don't get bogged down with the day to day or week to week trading here, look at the longer term picture. The fundamentals are good, the value will be recognised in time, but as you are aware already you will have to be patient here. If you can't then perhaps sell and move onto a more liquid, news driven stock. DYOR etc.

Have a nice weekend,
JF

[coffeelito] 18/6/2010 16:45

Nothing is "obvious" in this game.

The only thing that is "obvious" is that we small holders don't ever know enough about what's really going on.

But since you have me on filter you won't read this comment or be bothered by it.

[jonny flame] 18/6/2010 13:13

SS spot on, obvious really.

[soulsauce] 18/6/2010 11:44

Bored holders & the short sighted.

[coffeelito] 18/6/2010 11:39

... and down it goes again. Don't suppose anyone can shed any light on why the share price is going the "wrong" way ? Price of copper has been climbing recently, stock markets have been rallying ...

[coffeelito] 14/6/2010 12:16

Ho-hum .. stuck down here .. apparently 2 more analysts went to visit the Wetar site recently so maybe their reports will help kick-start this wretched share price

[jonny flame] 08/6/2010 09:20

Yeah I know this is about DME, however it's worth reading the section "Copper - Fundamentals to drive prices to new record highs by 2011' on pages 31-33.

[someuwin] 27/5/2010 11:43

Been adding a few recently.

[soulsauce] 27/5/2010 08:16

Nice statement, all looks on track.

[hectorp] 27/5/2010 07:57

from todays AGM report:

Outstanding matters required to commence construction, include: the final
mining and import permits, development finance for the project, and detailed
engineering. These are all at an advanced stage and the company is poised for
rapid growth in the months ahead.

[soulsauce] 26/5/2010 13:49

Ok cheers, bleedin' ADVFN.

[coffeelito] 26/5/2010 13:49

soul, there are 205.8m shares in issue, so the market cap, even at c. 17p (current buying price) is still c. £35m.

ADVFN's figure is wrong. I have double-checked with FND directly.

[soulsauce] 26/5/2010 13:40

Just bought a few more myself at 16p to average down a bit. Think illiquidity has added to the woes of the market but below £20m mkt cap and a working copper mine I am happy to store some more away in the ISA.

[coffeelito] 26/5/2010 13:33

That's even better JF. Am just curious to know if that revenue makes FND already profitable.