BDG - Bendigo Mining

spitrader1 · 10 January 2007

Jrowl said:
The share price will not go below 30 cents. I read the financial review paper today and they said bdg was undervalued. They said according to their assets (cash & equipment & infrasture) they should be close to .40cents a share and that has none of ground gold reserves/inferred added in. I believe this share is going to be worth 50-60 cents soon and then springboard much higher when the new managment report exploration success of 2 million reserves and quickly begin production. They said if they have good exporation success, they will quickly ramp those reserves into production. I'm going to wait afew days to see what happens, but I might double up while it's at a depressed price below market value for even their basic assets and hopefully regain my loses.

that is one of the best all time qoutes "i read the financial review today and they said BDG was undervlaued"-that is quite literally, GOLD. Jrowl i think you need to think about things
1."double up"-the market is not a casino
2."hopefully regain my losses"-hope is not a strategy
3."depressed price"-who says its depressed, just because its gone south? the old chestnut of "because its come back, surely it cant go any lower??

the tears, OMG the tears...

stevo · 10 January 2007

"The share price will not go below 30 cents. "

Put the house on it! As they say in Casino Royale "All in".

(Nothing in this post should be taken as anything but bad advice)

kransky · 10 January 2007

there is no denying the fact that if the current assets less liabilities divided by the total number of shares fully diluted may infact be above the current SP..

BUT

if the management are a bunch of half witts without much of a clue and by many accounts it seems this is the case here then the fact the SP is lower than the basic cash + on ground asset valuation suggests the SP may be taking into account the extra risks involved in holding this companies shares. not to mention opportunity cost.. money in BGD that isnt doing anything cos management suck is money that isnt in another stock making money or even sitting safely in the bank making 6%..

SevenFX · 10 January 2007

stevo said:
"The share price will not go below 30 cents. "

Put the house on it! As they say in Casino Royale "All in".

(Nothing in this post should be taken as anything but bad advice)

What type of house is it...oh heck whats the address anyway, I bring my crane round in the morning...

EDIT: Hope you liked the movie, as I did as with all bond movies.

Jrowl · 10 January 2007

There is alot of pressure on Rod Hanson to perform and I think that pressure will be a positive infulence on him and for the company. They shed their work force from 260 to 100 and with all the trouble they had with workers in the past, this has allowed them to seperate the wheat from the chaff.

BDG was a large inefficent company with lots of cost overruns, they are now alot leaner and meaner imho.

bvbfan · 10 January 2007

doctorj said:
I'm going to side with Chicken on the story behind this one. The problem never was the amount of gold they had, it was the hedging that made it uneconomic to get out. If memory serves, they believed to be deeper extentions to the reserves already mined but they didn't feel it commercial under their current arrangements to get out.

If Soggy hadn't hedged the volume of gold they did or closed out the hedge when they had the opportunity for a couple of hundred g they would most likely still be in operation today.

Sorry to butt in here but SGW had problems with both, they had hedged over 100% of reserves and when they couldn't produce to deliver into the hedges they hit the wall. They even tried to buy the reserves through PacMin acquistion which is probably one of the worst corporate moves in the country.

As to this arguement about hedges and reserves, its a bit like the chicken and the egg, (sorry for the pun).

At least there are no hedge counterparties to force these guys into bankruptcy. But will shareholders keep supporting these capital raisings in the future. Getting close to last chances with many holders I would think

barney · 10 January 2007

SevenFX said:
Hi Barney,

This companies charts say it all, and ann confirm it.

I feel buying more of a bad thing wouldn't make it a good thing, esp if gamble goes into another trading halt (more negative things have been happening with this company) and then gaps down further, not triggering the stop loss.

Why not use that money into so many other shares today trending up, and positive anns..... and possibly blue skies.

I mean it wouldn't matter where you made the money to offset your losses in bdg, except in another stock where chart and anns were knownly bad.

EDIT: In 2 years from now the company could be run down further...????

On the other hand, there could be a small bounce today, esp because this could be seen as a double botton from feb 93, just b4 the share soared to all time highs. (pointed out by good friend)

Anyway Good Luck Guys.
SevenFX

Howdy Tek, You are probably right re above ......... and I agree the "tight" stop loss could get "bypassed" (I've been caught badly by that one b4) , but, I guess I'm just looking to the future with some optimism (which may be misguided as well) .... It may go to the wall, but I just think it wouldn't have dragged on this long if they didn't have a reasonable potential for "some" success ..... If this is not the case, then the instos who paid 80 cents/share will no doubt be filing a law suit in the near future. Bad management true, but it would be a total misrepresentation by the management if there is not something of substance in the ground, and I am doubtful this is the case ........... My opinion is still that time will see BDG in a better position, but it is still a short term punt; but most shares are .........

Any way I got lucky for a change, cause I was nearly ready to buy in again but the trading halt actually saved me .......... pleasant change ... All the best, Barney.

Jrowl · 10 January 2007

For some reason the part of the resource which they began producing they chose to begin mining the historicly poor section of mineralisation, which in hindsight was a bad decision. That part of the reef produced a low grade ore grade in the past, and it did so again today. What they are now doing is drilling the historicly high productive areas which to reason will produce high grade ore. There is gold there, in 3 months they produced 10,000 ounces of gold, it was just a low grade section and not profitable, but remember that could all change depending on where the spot price of gold goes, if it goes up, then that mine will become profitable and a grade of 4g per ton will become economical and should be reasonably basic to start that section up again. If gold doesn't go up I'm quite sure the company will find new reserves and can being mining again very quickly if they have early drilling success so I really think this stock represents good value, 30 cents is the floor as that is what all of their assets are worth, and on the upside is blue sky potential. What people percive now in BDG as high risk is in fact low risk to the downside and high hopes of blue sky potential, the market right now is not seeing that.

Compol · 11 January 2007

My broker is telling me to sell BDG (take the big loss and move on). I just can't get it out of my head that a director of OXR is also a director of BDG! What the hell has he been doing?? I say it again, his other job is to direct OXR, one of the most credible and dynamic miners in the business!! The 80c thing was criminal. BDG have a whole lot of my 80c in their Bendigo Bank account (earning interest as I write this) and I believe they obtained it by deception. Anyway, why wouldn't any 'gold predator' take BDG tomorrow and get a cool $66 million in cash for starters + P & E and other 'assets'. Oh and what was Bryan Davis (Newcrest director) doing during his stint as BDG's Chairman?? There's something funny going on here? Anyone that believes BDG had/has idiots running it should think again; however, it begs the question, what's going on?

SevenFX · 11 January 2007

Is this the begining of the run back up...or is it bit of a intraday suckers rally...???

EDIT: Looks good hey, so who's bought In...????

constable · 11 January 2007

SevenFX said:
Is this the begining of the run back up...or is it bit of a intraday suckers rally...???

EDIT: Looks good hey, so who's bought In...????

in @ 36 out @ 36 got on this a bit late too (busy ready bloody tea thread) lot of resistance at this level but good volume coming in.

SevenFX · 11 January 2007

constable said:
in @ 36 out @ 36 got on this a bit late too (busy ready bloody tea thread) lot of resistance at this level but good volume coming in.

Are you kidding someone posted a tea thread here...????

Strong support/resistance at .36c-.365c and now it's broken as I type looking good for higher run.IMO

Strong retrace from 50% (.35c) pushin it perhaps it intraday higher...

Volume & b/s ratios look good...but morning hype could see all that change....

EDIT: 200% on fib ratios would be 39.5c, hence possible change in intraday trend.... Just IMO

SevenFX

constable · 11 January 2007

ok imagine me kicking my head now , something about patience you said. (Nice one constable ).
Anyrate i had a good move on inl and i didn't want bdg to wreck my party.
But gee wiz 1.5 cents rise slipped thru my fingers.

Jrowl · 11 January 2007

.39, nice. up 20% today.

Dr Doom · 11 January 2007

Re the placement at 80c. Put it this way, if it hadn't happened we would be talking about BDG in a long trading halt while they restructure their finances, if at all. If you still hold from 80c then you just have to be patient, the show's not over yet. Probably more attractive now at 38c with new focus on the mines direction than ever before. I'm sitting on a sizable loss & resigned to waiting possibly 12-18 months before it proves itself. Again in the absence of more very bad news, the sp should go higher

fma007 · 11 January 2007

Wow.. 33% up today.. whats going on? I bought at 78c so i'm not exactly happy .. but.. at least its heading in the right direction for once

Snakey · 11 January 2007

fma007 said:
Wow.. 33% up today.. whats going on? I bought at 78c so i'm not exactly happy .. but.. at least its heading in the right direction for once

not for long...ideal time to cut losses imo currently .41

constable · 11 January 2007

Snakey said:
partys over come on nothing to see hear please disperse

thank god for that , this was killing me !

SevenFX · 11 January 2007

I gonna have to eat my posts now.....400%+ on fib ratios

12c in under a hour ...very nice....

Dr Doom · 11 January 2007

Typical, daytraders playing games. Ramping up then dumping. Should close about 38c?

BDG - Bendigo Mining

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