Uruguay Mineral (SEE LSE:OMI) Share Discussion Threads

[sporazene2] 06/10/2009 16:39

Yes, I think that is the only thing that will kick start the SP!!

[corrientes] 06/10/2009 16:34

On second thoughts, maybe the tinpot company's directors will oust those at UGY. Shouldn't be that difficult.

[corrientes] 06/10/2009 16:33

What's with the use of the word 'COMBINATION' in the announcement.

Who'se taking over who ? LOL.

Idiots.

[skidaddle] 06/10/2009 16:28

Even the UGY management must have noticed the inactivity of the shareprice today.

As pointed out the press release is very vague and very non commital going forward.

Either the management come up with a compelling arguement as to why this is a good deal or as suggested by BlueLynx they should bin it. The shares would rocket within minutes of that happening.

[robson1974] 06/10/2009 16:22

no comment needed anyone can see what a pant wetting numpty you are

[sporazene2] 06/10/2009 16:22

MM, 91K, that is a turnover of how much exactly?

[sporazene2] 06/10/2009 16:21

robson, any comments on the volume today, strange dont you think?

[bluelynx] 06/10/2009 16:20

May be the management will have second thoughts and not proceed with the take over, after all the deal is not yet signed and sealed, so hopefully they will bin it!

[themoneymonster2] 06/10/2009 16:19

What about the 91,000 worth of trades on lse?

[sporazene2] 06/10/2009 16:18

MM, 75p is a long, long, way away and there is no guarantee they will ever get there. Even if they do get this conceptual resource into production I expect you are looking at at least 50% dilution, banks will take one look at the track record of these idoits and insist on a massive equity portion for any finance to build this thing, even after they have completed additional exploration to prove this one up which they have little money for. based on where they are, this is a huge undertaking

so to summarise gold up by $25 per ounce and no one (apart from you) is buying. Has the world gone mad?

[robson1974] 06/10/2009 16:14

sporazene2 - 6 Oct'09 - 16:04 - 2678 of 2682

and moneymonster2, for the record, I am long, I have a small position at 23p, like you I was attracted by the geared postion on POG margin, however my biggest worry was the incompetant management, time and again they have failed to deliver the goods and yet again this latest episode shows why the rating of this stock will always be low regardless of the calcualtions you can throw out there. As I have said earlier, give me 40p and I am out.

themoneymonster2 - 6 Oct'09 - 16:06 - 2679 of 2682

When they go to 75p I will give you 40p, is that ok? Can you wait?


LOL

[tmm takes sporazene to school]

[themoneymonster2] 06/10/2009 16:12

All looks good to me, £5 million for 2 million ounces of gold. UGY could generate a £50 million cash pile in the 5 years at Arenal deeps. That would be enough for a 200p share price : )

[sporazene2] 06/10/2009 16:10

and also moneymonster, read the extract below from the press release, hardly fills one with excitement(words like conceptual, preliminary assessment, insufficent exploration; look at the grades!!) and also clearly says that if they do get it into production there is a significant amount of capital required, over an above what will be thrown off by the UGY ops.


A development project at Pantanillo in the Maricunga Belt in Chile. As
reported by Fortune Valley in their press release dated October 5,

2009 historical geological work on the Pantanillo property by Anglo

American (1992-2005) and Kinross Gold (2005-2008) has defined a

potential mineral deposit estimated to be in the range of 82 to 125

million tonnes grading 0.83 to 0.73 g/t gold, using a 0.6 to 0.5 g/t

gold cut-off for the lower and higher tonnage estimates respectively,

which is equivalent to 2.18 to 2.95 million ounces of contained gold.

This preliminary assessment was made by Kinross Gold in 2007 and was

estimated based on a total of 8,398 meters of reverse circulation

drilling and diamond drilling. The potential quantity and grade of the

potential mineral deposit is conceptual in nature as there has been

insufficient exploration to define a mineral resource in accordance

with disclosure guidelines in National Instrument 43-101 Standards

of Disclosure for Mineral Projects and it is uncertain if further

exploration will result in the target being delineated as a mineral

resource.

[themoneymonster2] 06/10/2009 16:06

When they go to 75p I will give you 40p, is that ok? Can you wait?

[sporazene2] 06/10/2009 16:04

and moneymonster2, for the record, I am long, I have a small position at 23p, like you I was attracted by the geared postion on POG margin, however my biggest worry was the incompetant management, time and again they have failed to deliver the goods and yet again this latest episode shows why the rating of this stock will always be low regardless of the calcualtions you can throw out there. As I have said earlier, give me 40p and I am out.

[themoneymonster2] 06/10/2009 16:03

Investors are like lemons, they will buy when these turn blue one day. I would rather buy now and have been doing last few weeks.

There are lots of gold shares not up today, HMB and VGM to name two.

65 million shares in issue after completion of deal. At 34p that's a market cap of £22,750,000.

For £22,750,000 you get a company plus another company with 2 million plus ounces of gold, with £5 million cash, no debt, no hedging and gold over $1040 with massive operational gearing on the upside.

60,000 ounces at $1000 with costs at $700 = $300 profit x 60,000 = $18 million = £11 million = a p/e of 1.5 ex cash.

Name me a cheaper gold producer?

When next week comes and the directors do comment on the aquired company then the lemons will be paying 45p plus. I would rather buy now.

All the best

[navyan] 06/10/2009 15:55

exactly sporazene2, the volume is a give away here really. it is more obviously when GOLD is soaring today.

[thx1138] 06/10/2009 15:55

I'm amazed we're not back up trying to get above 40p today.

[skidaddle] 06/10/2009 15:55

Fact the gearing has been weakened by this over the short term.

Fact you can have plenty of 2.9 million ounce gold deposits. But if the grams to ton is low then what is the break even gold price?

UGY need to come up with an answer to that.

[sporazene2] 06/10/2009 15:51

MM, so tell me why no one is buying and the share price is unmoved when gold hits a historic high?

[skidaddle] 06/10/2009 15:49

I think the UGY management need to explain the economics of the deal because everyone seems to be scratching their heads on this one at the moment.

[themoneymonster2] 06/10/2009 15:49

sp

Are you shorting UGY?

100p is easily avhievable. 60,000 ounces at $1000 and costs at $700 per ounce = $18,000,000 profit = £11 million.

Market cap of £16.5 million with another company purchased with 2.9 million ounces of gold. Cash of around £5 million as paid in shares for new asset.

Gold is cracking $1040 currently, not $1000 so more profit for UGY.

NIL BRAINER

[sporazene2] 06/10/2009 15:45

well it seems the 65p/100p merchants are very quiet indeed on a day when gold puts on over $20/ounce and we are unmoved. Lets see what EK makes of it

[gbchak] 06/10/2009 15:40

let's wait for the results and agm next week before passing judgement..