BMX - BeMax Resources

RichKid · 3 February 2005

Hi folks,

I've been following BMX BeMax Resources (little kid preparing to go into big league of mineral producers) and have noticed a HUGE explosion in volume today (3Feb05, not shown on charts). I cannot understand it. Lots of people are buying in at support shown in chart (13/13.5c), currently at 13.5c. This is an all time high volume spike at 25m+ so far today, anyone know why?

Has been ranging recently so my strategy is for a short term play, but if it rises on strength I'll hold on for the rerating. The longterm downtrend has been broken and the price has jumped up and consolidated (see bottom chart), significant increase in volume over the last year or so suggest there's lots of support and that this one is preparing for takeoff.

Buy Depth at 13c is very solid but the price isn't moving up. Suggests a tipsheet has picked this one and has recommended buying at 13c- just my guess.

RichKid · 4 February 2005

Re: BMX BeMax Resources

Here's the explanation, I should have guessed! So liquidity will increase, price already at 14.5c, depth and volume are reasonable and looking solid again.

4 February 2005
The Announcements Officer, ASX

Dear Sir

Sons of Gwalia Limited (Administrators Appointed)
The Company wishes to announce that Sons of Gwalia Limited (Administrators
Appointed) has sold 24,459,000 shares in Bemax in an on-market transaction.

Sons of Gwalia Limited (Administrators Appointed) continues to hold 28,160,090 shares in Bemax which are subject to a compulsory ASX restriction until May 2005 and a further restriction in respect to ASX on-market sales until May 2006 (being in accordance with the terms of the Merger Agreement under which the shares were acquired in May 2004).

Mofra · 5 February 2005

Re: BMX BeMax Resources

Richkid,

I've been following for a couple of months (haven't bought as yet) and the SGW mess was certainly hanging over the market, however now with capital assured to bring project to fruition, construction starting and a clear timetable for development of the project the market may well re-rate the stock, personally prefer to wait a little before jumping in since they are really more than 12 months away from profitablity.

Cheers,

Mofra

RichKid · 7 February 2005

Re: BMX BeMax Resources

Hi Mofra,

I bought in because I thought it was too low and that it should be around the mid to late teens till the project development risk dissipates over the next few months. BMX jumped up to 16c today, I think that release of SGW shares has given this one a good jolt as it has increased liquidity. More SGW holdings will be released much later on but that'll help as well. Volume certainly has picked up. This one may sit abit higher than 13c for the next few months. 17c seems like a level to note in the short term. Probably more of a ranging stock atm, I hope the SGW share release explains the movement (and the bounce off support at 13c- lots of buy depth there) otherwise it may be something else.

Mofra · 12 February 2005

Re: BMX BeMax Resources

Richkid,

May be a little hesitation with regards to the remaining shares from the SGW hangover as well, seems quite a few may be waiting for further news about the outstanding shares before jumping on board (I'm one of them, although still have a small bid in at 13.5c). If a large chunk of the unsold shares were to be picked up in an off-market transfer by an insto (even a boutique fund) I'd be prepared to pay a couple of ticks higher.

Cheers

Mofra

RichKid · 12 February 2005

Re: BMX BeMax Resources

Mofra said:
Richkid,

May be a little hesitation with regards to the remaining shares from the SGW hangover as well, seems quite a few may be waiting for further news about the outstanding shares before jumping on board (I'm one of them, although still have a small bid in at 13.5c). If a large chunk of the unsold shares were to be picked up in an off-market transfer by an insto (even a boutique fund) I'd be prepared to pay a couple of ticks higher.

Cheers

Mofra

Good point there Mofra, obviously attractive to instos, I didn't think of that, I suppose the ASX would have to ok any off market deal.

Still solid support and volumes are good, BMX has done a lot of work recently and are completing some studies, maybe the sp is waiting on that news- might be another explanation for ranging. Eitherway the chart looks very supportive at these levels, although I'd hate to see what any bad news would do to the nearby support!!

RichKid · 17 March 2005

Re: BMX BeMax Resources

BMX ran to 16.5c today before settling at 16, still good depth but at lower levels. I've noticed that at the lower prices (13.5 to 14c) despite the overwhelming buy depth the sellers seem to be coming down to the bid price, suggesting weak hands waiting to get out. As soon as those bears are eaten up we should see some stability and a more predictable market depth pattern.

I expect the price to settle lower as the trend suggests a few spikes along the way, but we'll have to see. I won't be surprised if this ranges but at higher levels instead of sitting at 13.5c, might need a few weeks though.

RichKid · 17 June 2005

Re: BMX BeMax Resources

An updated chart, pretty much the same comfortable story. I haven't traded this as effectively as I could have, still holding when I could have been in and out twice. Live and learn. I'm anticipating a big wakeup call to the market in a few months, especially as things get choppy generally. This is one company that has kept its costs tight and has good relations with the locals and its contractors. Management have an unblemished record from what I have heard so far. A matter of patience now.

RichKid · 20 June 2005

Re: BMX BeMax Resources

Finally some action again in BMX, has broken through that near term consolidation zone of the last few weeks. Needs to find support above 18c for this to drive on through the channel resistance. I'll try to see if there is a fundamental explanation for the price move, maybe tip sheet buying but the volume was very high. Now at 17c with good depth for at least a small move higher tommorrow.

RichKid · 21 June 2005

Re: BMX BeMax Resources

The explanation for the volume is today's annct. On budget and full steam ahead is the summary, Gingko project is doing fine and the new discoveries have been incorporated into the budget with no problems. Well there you go, TA predicts FA news again. No sign of this going higher quickly though, steady as she goes.

RichKid · 14 July 2005

Re: BMX BeMax Resources

A minor breakout today, see the last bar, a recent option conversion has increased the number of shares on issue so it helps with liquidity but no immediate dilution due to the small number of options and the terms of conversion imo (see the annct).

So, it's broken through that resistance line on volume, most at the trades at the end of the day. I expect it'll hover around 18.5c tomorrow as the huge sell volume gets absorbed. Spread is 18c(680k)/19c(1.2m).

Note the higher and higher consolidation levels ('ledges'??) as it approaches the top of its medium term range again- I expect the next test or the second test of higher resistance to be the powrful one that takes it soaring toward 30c as the risk profile diminishes fast come year end. Most people will be looking to get set in the stock in anticipation- this is what the recent weeks have shown imo.

With costs below budget and great relationships with the locals and contractors I prefer this type of management to that of most other junior resources co's.

RichKid · 15 July 2005

Re: BMX BeMax Resources

RichKid said:
So, it's broken through that resistance line on volume, most at the trades at the end of the day. I expect it'll hover around 18.5c tomorrow as the huge sell volume gets absorbed. Spread is 18c(680k)/19c(1.2m).

Might be turning out to be a bigger breakout than I expected, no new highs but some eager buyers and patient sellers. High of 19.5c today and currently the bulk of the trades are at 19c. Volume looks like it'll be higher than yesterday. Historical price movement has been erratic so hard to pick an important level yet but I'd guess support at 20c will be a minimum for this to keep going now (rather than in a few months time).

RichKid · 21 July 2005

Re: BMX BeMax Resources

BMX has surprised me on the upside again, I expect some consolidation soon. Buy depth is good but not extraordinary imo. This is not a tip, this has risen sharply and collapsed even faster before and could do it again.

RichKid · 27 July 2005

Re: BMX BeMax Resources

BMX appears to be consolidating again as before, another 'step' like pattern before the next leg up?? or is this it for now?? Found this recent article, these journos come up with some quirky titles:

BeMaX Stock Goes to the Max
Ian Howarth
21 July 2005 Australian Financial Review

Shares in mineral sands producer and explorer BeMaX Resources NL soared to a record 21 ¢ yesterday after the group's main shareholder lifted its stake to 32.7 per cent.

Saudi Arabia-based Cristal Australia exercised 50 million options at 13.5 ¢ each, providing BeMaX with an additional $6.75 million in cash.

Exercising the options lifted Cristal's stake from 28.74 per cent to 32.7 per cent, although Cristal is exempt from making a takeover offer.

Cristal held a previous exemption from the Australian Securities and Investments Commission that allowed it to lift its stake to 47 per cent of BeMaX, but its stake in the company has been diluted through subsequent equity issues.

Yesterday BeMaX managing director Tony Shirfan said BeMaX's record share price could not be explained solely by the exercise of the options by Cristal.

"I cannot explain it. Perhaps people are seeing value in BeMaX there is certainly good value there," Mr Shirfan said.

The Cristal options were due to expire on September 19 but the company decided to exercise them early, "before they all went on holidays no one stays in Saudi Arabia in August and September".

BeMaX is developing the Ginkgo mineral sands deposit in the NSW part of the Murray Basin, about 120 kilometres north of Mildura, as part of its Pooncarie project.

The $176 million project involves a mine and a mineral separation plant at Broken Hill.

Mr Shirfan said development of the project remained on schedule and within budget.

A mining lease was granted in March after the completion of all permits, including native title agreements and environmental and planning clearances.

"The total budget for the Pooncarie project is $176.4 million, which includes an $8 million contingency," the company reported last month.

"At this advanced stage of development, with all key contracts either executed or in the final stages of documentation and many executed on a lump-sum basis, it is not anticipated that this budget will need to be revised."

The Ginkgo deposit was discovered in late 1998 and has since been extensively drilled out.

It is one of the larger single, coarse-grained, rutile- and zircon-rich deposits in the Murray Basin.

Production from the mine will begin in December and from the mineral separation plant in March.

doctorj · 27 July 2005

Re: BMX BeMax Resources

I'm shocked that this stock has been so well spotted and continues to perform so strongly, but RK seems to be the only one that's cottoned on.

RichKid · 28 July 2005

Re: BMX BeMax Resources

doctorj said:
I'm shocked that this stock has been so well spotted and continues to perform so strongly, but RK seems to be the only one that's cottoned on.

Hi Doc,
I heard from a mate sometime ago that it was tipped by fat prophets but not sure if they still recommend it. I'm also guessing from some past observations via buy depth that there were other tipsheets in on it too (that was around 13/14c, see my earlier posts). The fact that these BMX guys aren't trying to sell you the moon means that the average punter may not be enticed. The chart pattern is what really made me pick this and then I realised the risks were disappearing rapidly as management met milestone after milestone. Not in blue sky yet, with less than six months to production I'll be happy for some consolidation soon as there is still the normal pre-production risk.

RichKid · 30 July 2005

Re: BMX BeMax Resources

Just an update, some big sales at the end of the week, looks like profit taking but steady depth balancing out just above 20c. This looks like the next consolidation phase in the step like pattern but it's hard to confirm til it's played out next week. Let's see where the real support is. My guess is 20c and then a break further up beyond 23c. Not a tip, so don't buy on my view. Just an exercise for me at the moment to see how the pattern may unfold, could easily be a collapse as before.

hedgehog · 4 August 2005

Re: BMX BeMax Resources

I am new to the share market game and know very little. I have been told to invest in bemax shares. I have had a look and found that they have risen quite a bit and am wondering what you experienced traders think have I missed the boat?

RichKid · 5 August 2005

Re: BMX BeMax Resources

hedgehog said:
I am new to the share market game and know very little. I have been told to invest in bemax shares. I have had a look and found that they have risen quite a bit and am wondering what you experienced traders think have I missed the boat?

Hedgehog,

Welcome to the Aussie Stock Forums!

Firstly, please read the forum code of conduct (link at bottom of page) and the posting guidelines (thread at top of each forum). You should really have searched (tool at top of this page) or browsed for existing threads on the topic before starting a new one. So I have merged your thread with the existing BMX, thread as you can see.

You will notice from this thread that I have been following BMX (I hold), however, it is not a recommendation to buy, hold, sell or do anything in relation to your situation. This thread merely contains my reflections in relation to the stock and some general discussion. I am not qualified to give advice.

Knobby22 · 6 August 2005

Re: BMX BeMax Resources

To try to be a bit more helpful hedgehog, yes you have missed the bottom but the stock is rising. I am sitting on very good gains as I presume Richkid is however neither of us has sold, this suggests that we expect further gains to occur. Buying now is more a risk but it is better to buy a stock that is rising than try to pick the bottom in many cases.

Whether this stock is going to reach 80c which is my hoped for figure depends on whether the new mine being built operates to spec and prices hold up.

I suggest you do a search on the net, read the annual report, chairman's statements and try to understand the mineral sands industry. It is not that easy to understand but doing this will allow you to quantify the risk and enable you to make a somewhat informed decision. As you are a learner, I would not invest too much and use it as a learning experience.

BMX - BeMax Resources

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