Van Dieman Mines Share Discussion Threads

[katylied] 01/12/2007 11:59

That may have already been posted, but if so, I missed it...

"conveyors... will not be delivered until late March..."

[daz] 30/11/2007 16:14

I'm very plesantly surprised by this as well, was resigning myself to a long and patient wait.

[katylied] 30/11/2007 14:59

Reckon so... Strangely, this is turning out to
be my best investment of the last 6 month...

[papalpower] 30/11/2007 12:42

Sort of in "breakout" mode now........

[maddox] 29/11/2007 20:11

I hear today that the Cornish tin mine South Crofty is opening up for production again. If it is profitable to mine the prospects for VDM must be rosey.

Regards, Maddox

[papalpower] 23/11/2007 05:41

Van Dieman Mines– Initiation of coverage with a buy recommendation at 14p, 12-month target price of 43p........................

[katylied] 22/11/2007 10:02

Well... that could change, in the (possibly still unlikely)
event that they actually produce some. This is now one of
those 'show me the money(tin)' cases..

[jonwig] 21/11/2007 18:48

SteG - there have been a few similarly bullish notes recently - none has had much impact.
Nor does the price of tin, apparently!

[stegrego] 21/11/2007 18:20

Thats feked me getting in here cheap then now...

Army of pillocks will arrive from tomorrow

[chrissey] 21/11/2007 18:13

Just an extract of GE&CR recommendation.

Interesting timing?

Van Dieman Mines is a fully funded AIM listed mining company owning alluvial tin and sapphire development operations in North East Tasmania, Australia. The past six months have been hectic with, after protracted delays, formal permission to develop mining operations at the flagship Scotia site granted in June while in October the company completed the raising of £5 .5 million of fresh equity and £6.6 million of debt. This will allow it to bring Scotia on-stream within months and mean that throughout 2008 and onwards Van Diemen will be cashflow positive as it seeks to ramp up output from Scotia and from subsequent mines on its acreage.

The breakthrough at Scotia follows nearly two years of protracted negotiations with the relevant authorities over the permitting process, marked by severe bureaucratic delays. However, the company has used this period to fine-tune mine operations parameters and to put in place marketing agreements for tin, sapphire and spinel products. As a result, Van Dieman Mines is in a strong position, not only to rapidly become a producer of tin and sapphire in a mineral-rich and prolific area with low political and mining risk but already has in place an offtake agreement with the giant Thai tin smelter Thaisarco covering its entire tin output while the sale of its cut sapphires to the wholesale markets is set to be undertaken via a joint venture with an American precious stones marketing company. The company therefore enters the most exciting time of its history as it seeks to accelerate its growth strategy of becoming a profitable, cash generative, value added tin and sapphire producer.

The company has an attractive collection of mining leases, exploration and retention licences, totalling 17 tenements covering an area of 44.62 hectares. The favourable market dynamics for tin and sapphire provide an added incentive to the company's management to ramp-up production of the Scotia mine site as Soon as possible. The permitting of the Scotia Mine sets a precedent for the establishment of additional tin and sapphire mines in the region.  On its own the Scotia mine is expected to produce approximately 9,700 tonnes of tin and 21 million carats of rough, gem quality sapphires. A second mine operation (Endurance) at Central Ringarooma is currently waiting approval, with the potential to double group production when it comes on stream, possibly as soon as the third quarter of 2008. A third mine operation, the Great Northern Plains, could come on-stream by 2010, with the potential to double the group's annual output once again.

With an attractive, concentrated portfolio of two advanced onshore alluvial projects (Scotia and Ringarooma), an onshore development project (Great Northern Plains), an offshore project (Offshore Ringarooma Bay) and a collection of  exploration and retention licences, Van Dieman Mines is in a strong position to exploit the huge upside potential of the historically prolific tin-producing region of North-East Tasmania. The company's exploration portfolio offers significant potential for more mining operations coming on stream, whilst Van Dieman Mines' 50/50 joint venture (V Columbia) with Columbia Gem House, a cutting and marketing company, gives exposure to the downstream market as Van Diemen will realise 50% of the net revenues from cut sapphires sold.

With an estimated £5 million net cash position following the October placing our base case valuation for Van Dieman Mines is £42.24 million or 27p per company share. The main issue for the company realising additional value from its portfolio is receiving permitting for a second mine operation. If the company is successful on that front without significant delays, then our 12 month target price for Van Dieman Mines is £68.4 million or 43p per share. At 14p, we initiate our coverage of Van Diemen Mines with a buy recommendation and a 12-month target price of 43p.

[ramnik007] 20/11/2007 22:30

China's Yunnan Tin Company Group, the world's biggest tin producer, "limits production to underpin world prices" the company chairman said this week. He also added "we need to secure supplies of raw materials and we also want to control output. If we increase output, world prices will fall". Also said he expected world tin prices to be around current multi-year highs next year.

If the above was the case then Van Dieman will do very well next year. Fingers crossed for timely start of the mine though!

[choppa] 19/11/2007 22:19

Mention in the evening standard business section.

[katylied] 19/11/2007 08:56

It is open-cast, how hard can it be? The delay at present
is presummably with the processing plant? Commissioning
of that, should surely be worth an RNS? Hmmmm...

[daz] 18/11/2007 22:08

Tin now over $17,000, now if VDM can just get that mine open on time...

[maddox] 16/11/2007 16:06

IB66,

Your're correct to point out the sloppy English. I just wish they would sort out these RNS' and make them perfectly simple and transparent. That is,

'[company] has reported on [date] it has bought/sold [xxx] shares at a price of [xxxp]. This takes their current holding to [xxx] shares moving above/below the [x]% reporting threshold, based on total shares in issue of [xxxxx].'

Regards, Maddox

[jonwig] 16/11/2007 11:23

Thanks, BB - hadn't got round to finding out who they were. good news, indeed!

IB66 ... "is interested in" means "holds an interest (ie. stake) in".

[vanbrussel] 16/11/2007 11:04

So, this is the trader mentioned in the latest broker report
Means a fasttrack of all Tin-concessions. Beware of the Tasmanian-(paper)-tigers!

[ib66] 16/11/2007 10:56

"is" interested or alresdy "has" an interest? Because, it seems a bit odd to notify everybody of their intentions...

[cestnous] 16/11/2007 10:52

Stratego
I know from experience how difficult and unpredictable it is to deal with regional and local goverment and I do not put these delys down to poor management. I was in a long time ago (too early) and averaged down at 10p.
I have (obviously ) every expectation of this performing well in the nearish future.

[jonwig] 16/11/2007 10:41

This is a new stake.
Surprisingly, the last Holdings RNS was in January 2006!

Van Dieman Mines Plc (the 'Company') was notified on 13 November 2007 that
Galena Special Situations Master Fund Limited is interested in 12,420,000
ordinary shares in the Company representing 8.05% of the voting rights in the
Company.

[maddox] 15/11/2007 18:05

Stegrego,

You need to do your own research and buy before sentiment changes. The currently very high Tin price gives a good margin for error and it appears that what there is left to do to get into production now rests within their own sphere of influence. So I'm looking forward to some positive newsflow to drive the share price forwards in the not too distant future.

Regards Maddox

[stegrego] 13/11/2007 22:10

I quite like the look of this share, everything seems in place - easy to mine, good prices for product, very near to production, finance in place for future etc.


However, the past history looks like a complete bloody shambles and i have to doubt whether the management can even manage to operate what is essentially a 'get a big digger, dig out some rock, dump it in a bit truck' type of operation.

Otherwise, id be straight in here, but then i guess so would many others....

[katylied] 12/11/2007 13:52

Well... that may be a reasonable conclusion (albeit with hindsight), but the original estimates (prospectus?) were presumably supplied by external 'expert' consultants, who may have been duped by the fact that 'tin mining' was hardly 'new' to Tasmania (just not recent). Then again, wouldn't be the first time a 'rose-tinted' view prevailled at an IPO. Maybe not all the 'right questions' were asked, or maybe the goal-posts moved.

Interesting, that having anticipated the Scotia 'go ahead' back in Q2 2007, it looks like it will still have taken another 9 months plus, to actually get the operation up and running. One might wonder if the management (by mid-2007), had somewhat lost the plot. Some large share-holders seem to have thought so...