BDG - Bendigo Mining

[deftfear]

Hi Feng,
I'd be very surprised if this report was not the truth. BDG holders (like me) will be feeling some pain when this ann is released I imagine. However, I am also looking to an opportunity to take advantage of any overreation in the market. The sp could be absolutely smashed if there is some bad results, and what are they going to be? That they only have 5 m oz instead of 11? Hmmm, I am looking at cashing in on any knee jerk reaction here. I am a holder of BDG (buy at around $0.80) but see this as an opportunity. The entire logistic network and worforce is set up and operating. Are they going to just halt it? Or, will administrators come in and close it down? I am going to watch this very closely and also the ann to see what might lay ahead. There are opperating mines around Australia with far less than 5 m oz and opperating efficiently......we'll see.
At the same time, everyone needs to evaluate the situ and make their own call. There are some great trading opportunities out there and our cash in BDG might be best spent elsewhere...
All the best.

Be wary of doing this Kennas, I tried this when it made the bad announcement about reserves when the SP was around $1.30, bought at $1.01 and eventually sold out at around $0.82 as it looked like it would keep on going down and down. If traded better a quick 10% could have been made. This stock really needs to bottom out and put out some good news for a change to get it going in the right direction.

I was also thinking the same way as you, they were only decreasing the reserves by about 30% I think, but they have so much more as indicated resources, so who cares if their reserves are going down a bit....but I got that hugely wrong, it just kept going in the other direction.

 

[Sean K]

Be wary of doing this Kennas, I tried this when it made the bad announcement about reserves when the SP was around $1.30, bought at $1.01 and eventually sold out at around $0.82 as it looked like it would keep on going down and down. If traded better a quick 10% could have been made. This stock really needs to bottom out and put out some good news for a change to get it going in the right direction.

I was also thinking the same way as you, they were only decreasing the reserves by about 30% I think, but they have so much more as indicated resources, so who cares if their reserves are going down a bit....but I got that hugely wrong, it just kept going in the other direction.

Thanks deftfear, I agree this is potentially a bad move. Might be best to cut losses for a while and reevaluate. Or, just never look at it again.....Will see what the ann says first I suppose...

 

[Feng]

Hi, Kennas,
Be careful!
Hope some bargain hunters come in when it happens.
all the best!

 

[petee]

I am not a happy camper, not at all!. This is the first real monkey Ive been holding for 06/07, ahhh.....the pain .

dont worry freeballing..all of us a sitting on a loss...mine is 3K to date on BDG...what is everyones position on BDG

 

[Compol]

7K so far; spare a thought for some individuals who'll be 100 times that!

 

[petee]

7K so far; spare a thought for some individuals who'll be 100 times that!

yea i know ..sad really..heard of a guy already down 160K..lets hope some better news but really not confident

 

[Feng]

here is two more articles mentioned BDG

http://www.bloomberg.com/apps/news?pid=20601081&sid=aJudtdpuUaSI&refer=australia

Australian stocks:

Bendigo Mining Ltd. (BDG AU) lost 1.5 cents, or 2 percent, to 73.5 cents. The company is expected to cut its production figures and may reveal further delays to its mine development program this week, the Australian Financial Review said, without citing anyone.

http://www.news.com.au/couriermail/story/0,23739,21017512-3122,00.html

GOLD miner Bendigo Mining is expected to announce cost overruns and lower than expected production levels in its December quarterly report, early next week.
The struggling miner's chairman, Peter McCarthy, and managing director, Doug Buerger, are also believed to be planning to step down when the company comes out of a trading halt, on Tuesday at the latest.

This double blow could badly damage the company's efforts to revitalise Victoria's gold fields.

The company's decision to go into a trading halt yesterday happened after the stock lost almost 6 per cent in three days of trading to close on Thursday at 73.5 ¢ – a two-year low.

¢In 2006 Bendigo was the worst performing stock on the benchmark S&P/ASX 200 Index.

cheers!

 

[Feng]

waiting for bad news

http://abc.net.au/news/items/200701/1823237.htm?centralvic

Bendigo Mining quarterly report due
Monday, 8 January 2007. 15:15 (AEDT)Monday, 8 January 2007. 14:15 (ACST)Monday, 8 January 2007. 14:15 (AEST)Monday, 8 January 2007. 15:15 (ACDT)Monday, 8 January 2007. 13:15 (AWDT)

Embattled gold mining company Bendigo Mining is expected to release its December quarterly report today.

Bendigo Mining shares were at a two-year low when trading was suspended on Friday, after a lower-than-expected gold production forecast.

Bendigo Mining's managing director, Doug Buerger, says the company's December quarterly report will be released later today, and until then he has no comment.

There is speculation Mr Buerger and the chairman, Peter McCarthy, are planning to step down.

Trading in the shares is expected to resume tomorrow morning.

 

[Gundini]

The Ann is on their website now guys, not good, but could be worse, let you be the judge, alot of reading, good luck.

Cheers

www.bendigomining.com.au

 

[The Mint Man]

Yeh, seen it at about 7pm.... just happened to notice it on ASX.
cheers

 

[Sean K]

Perhaps we should have a poll on how much BDG will be smashed tomorrow. I reckon about 50%. I was considering that there could be a knee jerk sell off very early and a chance to buy and then catch the recovery. Maybe not......

I wonder if this new strategy was briefed to the institutions who participated in the spp at $0.80? I can feel a class action comming on. There will be some analysts getting their ar!ses kicked here.

So, do they still have 11 m oz au inferred?

 

[Jrowl]

BDG

Kennas, I think they do sorta???

 

[Gundini]

Perhaps we should have a poll on how much BDG will be smashed tomorrow. I reckon about 50%. I was considering that their could be a knee jerk sell off very early and a chance to buy and then catch the recovery. Maybe not......


So, do they still have 11 m oz au inferred?

Well I am not sure, but market cap of $364m, right off between $90m and $210m, does that equate to market cap of $274 best case, or $154 worst case, I'm not sure? Would that mean 25% wiped off (.18 cents), or 42% (.30 cents). Somewhere in between I would think, but not sure how these writedowns work with tax and all....

 

[Jrowl]

Just saw an article about bdg on yahoonews.

Full article:
http://au.biz.yahoo.com/070108/30/11kxn.html

Shares in Bendigo have been in a trading halt since Friday, but its stock plummeted in October after it slashed its reserves estimate by a third.

Its Victorian-based New Bendigo Project was thought to have reserves of 191,000 ounces of gold and while that figure will fall, the inferred resources of 11 million ounces in unchanged.

Mr Hanson said the group will consider renting out some of its mining equipment in the short-term, but that it will reduce the size of its workforce from 260 to 100.

The group currently has $66 million in cash, after a $50 million share placement in November, and expects its capital requirements to be about $35 million a year.

Mr McCarthy said the latest developments meant there was some risk of the company becoming a takeover target.

"We are at risk if we don't get the exploration valued in the share price appropriately," he said.

I'm not sure what way it could go tomorrow, still down probably but with people worried about a takeover....that generally should add value to the share price. They say they still have their 11mil inferred resource so thats good for starters. Renting out their equipment (good prices being paid today) Pity though to see the gold crushing plant sitting idle.

 

[Freeballinginawetsuit]

Hmmm, well BDG were worth more prior to production anyway. If they can prove they have reserves and mineable, lol, I thought they had already done that prior to failed production , who know's.

Geez this has been a whole shambles, talk about a backwards step. BDG weren't a specky and seemed quite good fundamentally. Explorer to Miner and back to explorer defining reserves again, absolutely pisspoor management!.

In the end I am just going to hold my shares, Im down 35k they will either go up and I will hold for CGT or I will cut the loss at the appropriate time and offset it against my trading profits.

 

[blueroo]

Yeah, same here Free. Down $6k but will probably hang on. Broke my rule and canceled my Stop Loss last Wednesday.

 

[YOUNG_TRADER]

Woof Woof!

As my friends the Bah Ha Men would say,

"Who let the dogs out?"

 

[barney]

As my friends the Bah Ha Men would say,

"Who let the dogs out?"

Be nice YT, Some people are suffering!!

(I got stopped out a few weeks back so no longer hold ....)

As Kennas pointed out in an earlier post .... there may be a severe knee jerk reaction on this, and it may well present a longer term opportunity .........

Good luck to those still in ........ that feeling of impending uncertainty is unpleasant, but things can always be worse ..............

 

[Feng]

Here is two more articles mentioning BDG:

http://www.bloomberg.com/apps/news?pid=20601081&sid=aJudtdpuUaSI&refer=australia

Australian stocks:

Bendigo Mining Ltd. (BDG AU) lost 1.5 cents, or 2 percent, to 73.5 cents. The company is expected to cut its production figures and may reveal further delays to its mine development program this week, the Australian Financial Review said, without citing anyone.

http://www.news.com.au/couriermail/story/0,23739,21017512-3122,00.html

GOLD miner Bendigo Mining is expected to announce cost overruns and lower than expected production levels in its December quarterly report, early next week.
The struggling miner's chairman, Peter McCarthy, and managing director, Doug Buerger, are also believed to be planning to step down when the company comes out of a trading halt, on Tuesday at the latest.

This double blow could badly damage the company's efforts to revitalise Victoria's gold fields.

The company's decision to go into a trading halt yesterday happened after the stock lost almost 6 per cent in three days of trading to close on Thursday at 73.5 ¢ – a two-year low.

In 2006 Bendigo was the worst performing stock on the benchmark S&P/ASX 200 Index.

 

[Feng]

The Ann is on their website now guys, not good, but could be worse, let you be the judge, alot of reading, good luck.

Cheers

www.bendigomining.com.au

sorry! it is mistake!