South China Resources Share Discussion Threads

[simon54] 03/6/2007 21:04

Who will ever know the true history here? Why did they drill the South West zone when we were given to understand they'd be drilling the historic area? At the time, whilst I was amazed to have been misled, I figured they must have such confidence in the main resource that they were keen to extend it... d'oh. Why did they seemingly give up on the historic area after only a couple of holes reported? Hmm, well, I guess they had more drilling data than has yet been released to the market. Whatever happened to Copper Ridge? What, for that matter, happened to SCZ 58 (109 metres of moly, don't you know), the assays of which have never been reported on?

Who knows what's going on now, but use a long spoon, I'd say.

[wolstencroft] 03/6/2007 18:10

mark_jm: nonesense I'm afraid. For about a year or even a little more the company was structured as a danfeng-part and a new-ventures part. They can have progressed new ventures with minimal impact from Danfeng. Indeed, with Danfeng not going ahead they cannot rely on expertise from there to assist in new venture appraisal.

There is indeed more to the news release that meets the eye, I fear, but its not good. It is that AC through inability, poor management, back luck or whatever, carried on with it for so long. For a year it was one delay after another but AC always maintained where was nothing insidious just normal exploration problems (lack of drill rigs, replacement of contractors, losing one of the hired drill rigs, lack of assays delays in assaying, more delays, even more delays, refusal to release assays because of mo loss problems, no in fact there is no mo loss but still no assays etc)

[nobull] 03/6/2007 12:14

mark_jm I don't know any better than you do, but I do know that writing off £6m (if that is what they have spent on Danfeng) is not something I would want to do especially if it a) blots your track record b) puts power in the hands of future financiers to dictate terms on whether your existing shareholders retain any stake in the other projects. The absence of assay results that were due back from the labs before the publication of the prospectus suggests the whole flotation was rushed for some reason (that was the time to raise finance on good terms?). A £6m write-off is a disaster for a company of this size, but in the long term, if they do get funding for Zhunuo on reasonable terms, it may be a drop in the ocean.

As for my own holding here, well I think I've crossed the line from rational investor to looney gambler. So if it comes right, no credit due, and if goes wrong I deserve all the misfortune that is coming to me. After all I've now allowed the "bookmaker" not only to change the amount I am betting each time an adverse RNS comes out, but I've allowed him to change what I am betting on. No disciplined professional investor behaves like that? Regards.
P.S. There once was a company called Chamberlane Phipps and the Proprietor even had a stake over 50% in it, and still it went bust. It manufactured shoes (in the UK? at the low priced end of the market?). Presumably it suffered from ferocious competition from cheap far eastern suppliers? Director stakes are no guarantee of anything?

[tippingpoint] 02/6/2007 19:07

Grasmere Resources plc....

Trying to prove up a resource of water and grass might be a bit tricky

[wolstencroft] 02/6/2007 18:55

well my guess is that there's more copper left in the lake district than at Danfeng - I wonder when someone will try and reopen one of the old mines. Maybe the next venture for SCR - JV earn-in with some Caldbeck farmers

[wolstencroft] 02/6/2007 14:39

copper miner my guess, morning shift

[andy] 02/6/2007 11:17

tony,

A farmer per chance?

[tonystringy] 02/6/2007 01:12

FinkBig?

LOL!

I think he left the shorting party a bit early......not seen him post here for a while.

Apologies for the mis-spelling........Zhunuo.

I haven't totally given up on the management here......if I had then I wouldn't be interested at all. Management is everything! They have disappointed me somewhat but I can't blame them for everything. At the same time though, I don't exactly hold them in high esteem either!

I doubt I'll ever buy back into SCR but I can't rule it out entirely.

No, not a teacher. I've often been told by freinds and family that I'd be very good in that profession but never felt inclined to join. I do enjoy teaching kids and love their enthusiasm to learn and their joy for life but I dont like the way schools are run these days........and didn't much even back when I was in school! -Don't get me started on that one!

What made you leave.........can't see that being an easy decision to make.

I start work very early.........outdoors, in the Lake District and The Vale of Eden. That being the case, we have a morning break, as breakfast doesn't last till lunchtime........if that makes sense.

Be lucky and have a nice weekend too! -I shall thanks!

[simon54] 02/6/2007 00:15

Tony -you mentioned 'morning break' in a previous post, and I wondered if you are a teacher. I was a teacher before starting to do this full time (I don't mean just losing money on SCR full time, of course ;-)).

It's all pretty frustrating, really, since Zhunuo really does seem to be a first class prospect, if only.... So, yes, certainly worth keeping on the watch list.

Darn, whatever we might really think of the management, it's been a damned good thread. If only we'd listened to FinkBig, eh? ;-) Have a good weekend all :-)

[tonystringy] 01/6/2007 23:59

'I've reduced my remaining holding somewhat - risk management, you know! ;-)'


If you did that today simon............well done!

I could have banked an extra............£50, if I'd waited a day to sell!

lol

Zhuno eh?

Mmmmmmm......tasty!

-Zhuno is the only reason I'm keeping SCR on my watchlist. Too high risk for me to take a punt at this point but at the same time, just too much potential there to ignore.

Wishing all holders the best of luck and all shorters a painful lesson.

I'll be mostly lurking for now........would hate to miss any more great recipes!

;-)

[simon54] 01/6/2007 21:10

strow - yes, it may be true that SCR is in a better operational position going forward without Danfeng - I think I hinted at that view some while ago. The problem is the effect it's had upon the mcap, and the implications for dilution. The last two days recovery have been very relieving. Perhaps that may continue, I don't know, but I suspect it will take some value-adding news to do anything substantial.

I'm interested in your view that GGG is lower risk. Personally I think they're both high risk, but of different kinds. SCR's is funding and completion risk. Zhunuo appears to be a potentially significant discovery, so it seems to me that geological risk is relatively low. GGG obviously face the risk of not finding a potentially commercial deposit, of not making a discovery at all. Also, incidentally, they do not have a Business Licence on Nimu, so I guess there ought to be some consideration of completion risk there as well!

I'm pretty sure that Zhunuo will be developed and mined, if the details we know are truly representative. I'm not sure in what form that may happen, though, and whether SCR shareholders will benefit from it.

I've reduced my remaining holding somewhat - risk management, you know! ;-)

[strow] 01/6/2007 17:43

I have also hedged very strongly with ggg,which is clearly a lower risk play now-my theory is that if ggg dont hit anything big then there is always the chance that scr will,and at least we have some of the unknowns taken out of zhunuo,which as yet we dont at nimu-the grade at zhunuo for open pit is apparently one of the highest in the region,and as people have kept on telling me re the economics of anything,it is the grade that counts
At least scr clearly do have big ambitions as is shown by their willingness to shelve anything marginal,although i am wondering whether the mining licence may have got refused,or wranglings began as to who exactly owned what-i guess we will never know for sure

[nobull] 01/6/2007 17:16

Strow, thanks for that. Yes, I haven't sold any either (yet), and with so many other good things to put the money into, it is very tempting. Yes there was the recent case of Torex with their misleading RNS's, and I am sure that that is a punishable offence (ditto misleading prospectuses?). However, I see if everyone had to speak as carefully as lawyers construct those RNS's (and prospectuses?) that it would make conversation difficult (so not a punishable offence if all the risk caveats are omitted in other situations). I'll settle for 80% my fault for being taken in too easily? I don't know what other companies' success rates are in exploration, so have an open mind about whether we should have hit an economic mine first time off. It sure would have meant we don't have to grovel for funds at a decent price. Fingers crossed about the future here.

[the law] 01/6/2007 16:59

Strow

the 500k at 3.5p is interesting and I believe that one was a buy !

I haven`t sold any either but my galloping GGG`s are helping with the pain.

[nobull] 01/6/2007 16:27

Hi Strow, do you mean the 650k Single protected transaction? I haven't a clue what it means, or whether it was a buy or sell.

[the law] 01/6/2007 16:20

I believe the 650k was a sell - with the recent buying volume it would not have been difficult to work it through.

The mm buy at 3.5p put more of a smile on my face !

[strow] 01/6/2007 16:10

trade 10-sell or another buy ?

[nobull] 01/6/2007 16:07

Parttime trader, I have been familiar with HMB for ages (since the Telegraph tipped them at about 8p) and I've been receiving accounts by email from the company for a very long time, and I even saw Wol's post when the SeymourPierce broker note came out the other day. I want SCR to do well. I am sure HMB will re-rate shortly and achieve its 45p price target. Good luck with it.

[partimetrader] 01/6/2007 15:55

Hambledon Mining
Plc listed on the AIM of the London Stock Exchange in early June 2004.

The Company are a gold mining and exploration company which is developing the
Sekisovskoye gold deposit and owns the Ognevka processing plant in East
Kazakhstan.

[nobull] 01/6/2007 11:03

Now we know the reason for the massive increase in the authorised share capital that was the subject of some questioning at the AGM. Or is this making mischief using hindsight? I wonder.

[davethechef] 31/5/2007 17:13

SCR's "in comming weeks" phrases usually end up in reality 'in so many months'
So we're back to speculating all round, and by now the regulars here have grown beards and have takin' to 'pipe & slippers' re speculation theories!

[simon54] 31/5/2007 17:01

A good question, DTC - I don't know. It's a bit difficult to imagine what their geologists are up to at the moment. I would have thought the Snowden report on Zhunuo would be available by now, but there seems to be no suggestion that the company will make any comment on it. I translate this phrase from the RNS:

The Company will update the market on its current activities and any other
future investments as and when they are contractually finalised.

as meaning they don't intend to say anything about anything until they have a contract signed somewhere.

I guess that if, from the inside, Z looks likely to be a goer then there's no reason for JA to leave, given that it could be a major project. I'm not aware of him having any direct concerns regarding the share price or the effects of necessary funding.