Van Dieman Mines Share Discussion Threads

[varies] 19/5/2008 22:05

Well done, arc en ciel !
This stock is now an outright gamble and I admire your sporting spirit.
I am in at about 13p and feeling rather foolish but punting in the market would be very dull if one backed nothing but winners. If mining ever does get under way, then these shares will be hard to buy.

[arc en ciel] 19/5/2008 13:41

JMB100:

Correction: VDM's new management's credibility as yet unproven (but making the right noises).

I have given them a tiny vote of confidence with a 10k buy at 7.2p to add to my historically higher-priced collection. It was put down as a sell by ADVFN, as is their wont.

[jm barrie100] 18/5/2008 11:26

Tin at an all time high.

VDM management credibilty at an all time low.

What will be interesting will the news in the near future on working capital requirements. Given zero income, I guess that a small placing will be taking place sometime soon.

[cestnous] 18/5/2008 11:19

Thank fugg that this is my smallest holding.

[stegrego] 17/5/2008 23:04

LONDON (Thomson Financial) - Shares in Van Dieman Mines Plc. dropped after
it said it cannot rule out a "modest" shortfall in its working capital
requirements as it announced further delays in the commissioning and the ramp-up
to full production at its Scotia project.
The AIM-listed mining company, which owns tin-sapphire projects in Tasmania,
said it is reviewing a range of options to source additional working capital and
is in advanced discussions with several banks and financial institutions.
Commissioning of the Scotia project has been postponed to July from the
initial commissioning target of Dec. 2007, with the ramp-up to full production
expected by end-2008. Scotia is expected to produce 700 tonnes of tin and 1.5
million carats of mine rough, gem quality sapphire per year at full production.
A review of the project was initiated by the board and follows the company's
decision last month to remove founder Neil Kinnane as a director and the
resignation in February of chief executive and managing director Clive Trist.
"Your board has acted decisively in recent months to deal with previous
operational and management deficiencies in the company," said non-executive
chairman Mike Etheridge.
At 9:52 a.m., its shares had slumped 2.125 pence, or 20 percent, to 8.625
pence.
These recent developments are worse than we had previously anticipated,"
said Fox-Davies Capital. "Full production is now not expected until the end of
this year and shortcomings have now been revealed with the mining method, the
concentrating facility and the reserve model."
The group is reviewing previously published JORC reserves and resources
estimates as the current figures rely mainly on drilling data that is 70 to 100
years old.
"The basis upon which the previous management team determined the JORC
reserves and resources was not consistent with current best practice," it said.
Van Dieman will carry out about 5,000 metres of drilling to validate the
previously determined reserves. The proposed drilling programme will initially
focus on the Scotia Project resource and will take about 4 to 6 months and A$0.5
million to complete.
"Unfortunately, Van Dieman has lurched from issue to issue over the last six
months," said Brock Salier, an analyst at Ambrian Capital.
"Support of any fundraising will clearly be a difficult pill to swallow for
investors that originally came in several years ago. That said, new management
have clearly demonstrated a more rigorous approach than previous management, and
we still believe the asset is impressive - and not just for the sapphire any
more given tin prices," he added.
Ron Goodman, previously a non-executive at the group, was appointed
executive director of operations in April and led the review into Scotia and the
Endurance project. The review will result in a Revised Mine Development Plan
that will lead to significant changes to aspects of mining and processing at
both projects.
Van Dieman said the Endurance project is on track with production expected
to start early in 2009, subject to permitting approval and changes to the mine
plan.
The main findings of the operational review were the proposed mining methods
and significant components of the original process plant design for Scotia --
and also planned for Endurance -- were inappropriate.
The company anticipates overall capital costs may be reduced by an estimated
A$4 million to A$6 million at both projects on the basis of expected disposal
proceeds and termination of surplus equipment on order. It also envisages as-yet
unquantifiable operating cost savings from simpler mining and processing plant
across the Scotia and Endurance projects and the potential to increase plant
throughput after full commissioning.
"The board is now satisfied that we have the people in place to deliver the
Revised Plan, and can move confidently to commissioning the Scotia Project
within the next few months," said Etheridge.
"Subject to the results of the proposed drilling programme, the board
currently considers that the Scotia and Endurance projects will be technically
and economically robust, given the expected reductions in both capital and
operating costs that the Revised Mine Development Plan envisages," he added.
The board expects to be in a position to provide more detailed guidance on
the costs and benefits from the Revised Mining Development Plan and Scotia
project commissioning within two months. It also said it will report as soon as
possible on the forecast financial status of the company and the additional
working capital requirements.

[ramnik007] 17/5/2008 22:16

If the new mgt team are half as better then the previous then there is plenty of potential value to be unlocked. I guess more patience will be required, as was required with CDN, where milestones kept getting missed, were short of cash, mgt criticised and coal price bullish over that time frame.

If the new mgt have now cleared deck with all the bad news out, in my view, the shares have potential to race to 20p once production commences and 30p when 2nd mine starts.

[varies] 17/5/2008 15:34

Stegrego
Thanks

[varies] 16/5/2008 18:20

With hindsight I can see that I should have taken a 25% loss at about 10p !
Apart from the "modest shortfall" in working capital requirements today's update strikes me as reasonably encouraging but I am a very trusting sort of chap.
It is difficult to see much hope for the shares until the capital is raised but, if this can be done (as the directors hope) without issuing more shares, then we could see a smart recovery. The shares could then be as hard to buy as they are now (presumably) hard to sell.
I have not yet checked how many were traded today but don't suppose the number exceeds 500,000. Most punters here will surely be in just for a flutter.
Still a fair punt, I believe, on a 6 month view.
We shall see.

[pachandl] 16/5/2008 09:28

At present we cannot rule out the possibility of a secured loan because production is not that far off. A bit miffed that the rns was worded that way - generally small caps come out with a statement publicizing a rights issue rather than just 'considering' it - I wonder whether it was intended to put some pressure on a potential JV partner?

[stegrego] 16/5/2008 08:55

I think that a price of about 5-6p would be a decent entry point from a risk / reward point of view.

If they need a placing it will no doubt be at around that mark.

[wassapper] 16/5/2008 08:41

Glad I sold months ago - I met Triste at a Proactive seminar, and he had no clue. This report by Goodman is all very well, but he was a non-exec before his executive appoiuntment. Why did he not say anything before?

Funding issue now hangs over them. However, IF (IF IF IF!!!) they get this right in the next few months and have cashflow, this could be a good buy.

A sorry story nevertheless.

[m5artin] 16/5/2008 08:30

More delays and expenses but now it looks like there is finally someone at the helm who knows what they are doing and shareholders should be getting a clearer picture of the situation.

[ramnik007] 13/5/2008 21:09

If the old mgt knew what they were doing, this stock would be 50p plus with Tin at $25,000 / tonne

[cestnous] 06/5/2008 09:09

2099.......?

[papalpower] 06/5/2008 08:50

2009...... ?

[cestnous] 06/5/2008 08:25

Their incompetence is announced in the title of this thread.
Tin at a hell of a high.
Now well into May and as usual - silence.

[jm barrie100] 06/5/2008 07:48

From 15 April 2008, RNS announcement:

"The [VDM] Board expects to set these out in an update to shareholders at
the end of April that will include comments on the mine plan and funding for the Scotia and Endurance Projects, the commissioning and ramp up of production at the Scotia Mine."

No information as yet, so credibility of management takes another hit.

[jm barrie100] 24/4/2008 09:49

The key issues for VDM are:

- credibility of management, currently close to zero.
- cash, mention was made in the recent RNS of funding, which is usually short-hand for requiring some more in the near future.

Don't get blindslided by the price of tin.

Yes, there is an outer, VDM may be taken out at some stage, but until they actually start producing tin, and sapphires, it is a company with directors who have continually promised to deliver but have yet to do so.

[katylied] 24/4/2008 09:00

You have to be joking...

[m5artin] 24/4/2008 08:46

A thought. The price of tin continues to rise. Maybe it is better to keep it in the ground for a while longer.

[katylied] 24/4/2008 08:39

Remember, this mine is open-cast. It doesn't require major engineering to get the ore out, just an (industrial sized) bucket&shovel. The scale of the delays so far, are quite baffling (it is ~year now, since they first knew they had a green-flag for production). This current (moving) target for Scotia production looks likely to now coincide, with the licensing of the Endurance mine (unless that has also mysteriously slipped). That in itself, should be worth something on the share-price...

[pachandl] 23/4/2008 13:01

We need ore to be mined in the next 2 months before PI's just give up the ghost and sell in droves.