BDG - Bendigo Mining

[Kauri]

Yes I did not like how this stock went down, I held shares at $1 and then bought more SPP at .80 but I really like how this stock has been performing after the bigbang. I lost faith the first day it went down but I hanged on tight .....

Now why am I not surprised...

BDG would keep rising and sediment would turn positive.

Now I understand... if the sediment is positive just imagine what main ore is like..

 

[spitrader1]

Now why am I not surprised...



Now I understand... if the sediment is positive just imagine what main ore is like..

FMLMFHO

 

[Dr Doom]

I think the proof here will be the shareholder notices over the next few weeks. I think the ASX disclosure rules allow more time for companies to disclose holdings so it appears like an opportunistic venture by SBM to profit in the churning and the quick ann further propelling the sp. Again, no ann so far as hard data eg production or discoveries yet, (and I don't expect any soon) so BDG at the mercy of professional manipulators I assume. It might be an even more interesting week next week
I'm not complaining as I hold both.

 

[chicken]

Reading the Age today....SBM are talking of a friendly takeover...if not their 10% share assures them of a seat at the table...Ed said he will be talking with management next week as to see what the SBM team can do for the company to get it on track in exploration...ED knows the Victorian Goldfields and which ever way it goes the 34.5c they paid for their holdings is less than the plant and assets are worth...which ever way it goes looks like SBM had pulled it of again...this deal will be worth a lot of millions for SBM...If they takeit over...plant will be worth a lot to SBM as they have use for it...if not their %% they get for their holdings will be great...easy money for SBM...good move by SBM

 

[Dr Doom]

nearly chicken, but not actually........

Mr Eshuys would not be drawn on St Barbara's next move. Market speculation was that initial focus would be the potential for a "friendly" merger. Failing that, St Barbara, a $420 million company, could make an all-out assault on the $250 million Bendigo.

 

[Sean K]

Reading the Age today....SBM are talking of a friendly takeover...if not their 10% share assures them of a seat at the table...Ed said he will be talking with management next week as to see what the SBM team can do for the company to get it on track in exploration...ED knows the Victorian Goldfields and which ever way it goes the 34.5c they paid for their holdings is less than the plant and assets are worth...which ever way it goes looks like SBM had pulled it of again...this deal will be worth a lot of millions for SBM...If they takeit over...plant will be worth a lot to SBM as they have use for it...if not their %% they get for their holdings will be great...easy money for SBM...good move by SBM

Chicken, you have posted elsewhere that you only invest in companys that are producers, or you are 100% certain have the resources they claim, and will go into production. Why are you so certain BDG is a good investment for SBM when they have got it so horribly wrong?

 

[Kauri]

Chicken, you have posted elsewhere that you only invest in companys that are producers, or you are 100% certain have the resources they claim, and will go into production. Why are you so certain BDG is a good investment for SBM when they have got it so horribly wrong?

I'm waiting to see what Mr Tim Treadgold has to say..

 

[chicken]

Chicken, you have posted elsewhere that you only invest in companys that are producers, or you are 100% certain have the resources they claim, and will go into production. Why are you so certain BDG is a good investment for SBM when they have got it so horribly wrong?

IT is simple....the assets of BDG are higher than 34.5cents right...if SBM takes them over the plant if not used in Bendingo can be used in WA...the availability of plant..there is a 20months wait..if Eds team finds the GOLD..SP goes north from here..if any one has the knowlege..its Eds team..If some one else wants them..eg Newcrest...SBM still will come out with a healthy profit...cant lose situation...

 

[Sean K]

IT is simple....the assets of BDG are higher than 34.5cents right...if SBM takes them over the plant if not used in Bendingo can be used in WA...the availability of plant..there is a 20months wait..if Eds team finds the GOLD..SP goes north from here..if any one has the knowlege..its Eds team..If some one else wants them..eg Newcrest...SBM still will come out with a healthy profit...cant lose situation...

Personally, I think it was a good trading decision by SBM in the short term. They moved damn fast and must have been watching it closely for some time. The stock was clearly oversold due to the inevitable knee jerk reaction of the market. It usually over and undershoots but will usually come back to some equilibrium. It's very hard to put a value on BDG now due to the uncertainty over the reserves and that's what this new approach is set out to do. I'm not too sure how easy it is to move a mill from Bendigo to WA though Chicken....I have thought for some time that BDG would be taken over, but by who and when is just the question now IMO. SBMs strategic stake puts them in the drivers seat somewhat.

(not holding)

 

[Jrowl]

They own 10%, what can they do with 10%?

 

[Freeballinginawetsuit]

A significant holding and an experienced goldie>SBM, could sway other substantial holders to vote in the same direction as SBM.
A decent holding also puts them in the drivers seat as a predator or to fend off the others from picking at the BDG scraps.

BDG still has a resource to prove, SBM got in their quick and it would seem highly unlikely others would be taking the same size holding once a position has already been taken by another goldie.

Lets face it, it wouldn't be a wise decision to hold more than '10 percent odd' of BDG until they get an act and define a mineable area. Recent production and BDG's SP, show their on eggshells ATM.

SBM probably don't want them to waste all that cash in the bank, they will be watching that closely. BDG spent 100 mill over the last decade to define and ensure market confidence in reserves, what a waste! as that concern is exactly why they are in this predicament.

 

[Kauri]

If another company wants to T/O BDG the compulsory aquisition level of all outstanding shares is 90%. So SBM's 10% stake will most likely discourage/block any T/O attempt. As they were already looking at several operations as possible aquisitions I imagine BDG was one of them, so they most likely already have a good dossier on the company. This stake gives them time to reassess BDG in light of the latest developments, possibly also time for the S/P to settle, before making a move.
I'm sure they are not interested in the plant alone as a relocation to the West, although it is relatively easy to break it down and relocate it. It's the reserves they are after.
However if they did break down the plant that is a job I would like to be on, the amount of free gold left in the circut is amazing!!!! irate:

 

[The Mint Man]

Just noticed this in the news section of comsec:

Date: 15/1/2007
Author: Tracy Lee
Source: The Australian Financial Review --- Page: 12
Bendigo Mining's recent move to downgrade its status to explorer has prompted rumours of a potential class action from investors. In the week ended 12 January 2007, the company announced the termination of production at its Kangaroo Flat underground mine in Victoria, due to lower-than-anticipated ore grades. The news prompted a 60 per cent fall in Bendigo Mining shares on 9 January and wiped more than $A200 million from the value of shareholders' investment in the company. Some legal firms have reportedly made preliminary inquiries about the feasibility of a class action.

cheers

 

[Sean K]

Not surprising. The instos will be chasing this fur sure.....

 

[Agentm]

I have been out of the gold for a few years, but following the history of bendigo and st barbara for the past year and 6 months respectively, interesting days.. i like the style of the SBM team, and i dont think anyone enters into a position like they have for no reason, there is definite and well planned steps occuring, SBM have moved location and have obvious motives in their actions.

I dont hold any of the stocks, i had considered BDG but couldnt believe in their management, and obviously i was right about that now.. but i have a different opinion on SBM and am seriously considering following them as they have a impressive and shrewd team in place and are meaning to do positive things for their company and more importantly, their own reputations!! egos run big in mining!

 

[The Mint Man]

Was reading in 'The Australian' that Ed from SBM has not agreed with BDG's stratergy for the last 2 years and still dosnt now. He says that they should be more aggressive with their drillings and that they should be more like 50m apart compared to what they are doing now (from memory 120m, correct if wrong please).
However the fact that he (Ed) has been watching them for 2 years is really interesting IMO.

Cheers

PS: if anyone finds a copy of the article I speak of please post it. It was in todays 'The Australian'.

 

[toc_bat]

dont wanna b a stick in the mud, in fact know very little about BDG and Ed, but i reckon anyone with a reputation like Ed (his rep precedes him here) would be watching just about every competitor or friend or enemy in the business, part of his job description really

 

[Coach Carter]

The Australian

St Barbara says Bendigo should be holier
Andrew Trounson
January 16, 2007

St Barbara chief executive Ed Eshuys says struggling gold miner and possible takeover target Bendigo Mining needs aggressive, closer hole drilling if it is to prove up reserves for resurrecting its Bendigo project.
Last week St Barbara snared a 10 per cent stake in Bendigo Mining, taking advantage of a share price collapse because of the shock decision to suspend mining at Bendigo and go back to the exploration drawing board.
The move positions Mr Eshuys to press for a merger while acting also as a blocking stake to any other would-be acquirer.

Mr Eshuys said yesterday he had been casting his eyes over the Bendigo project for two years but had never agreed with the company's previous development strategy, which was now in tatters after initially targeted ore yielded disappointing grades and tonnages.

Mr Eshuys said new boss Rod Hanson remained on the wrong track with planned drilling of the highly variable ore too widely spaced at 200m a hole.

"That won't give you the detail that is required," Mr Eshuys said, suggesting a more aggressive spacing of 50m would be needed.

But Mr Hanson rejected criticism of the new exploration drive. He said it was a well-tested strategy to start with wide space drilling and then zero in on positive results with closer drill holes drilled 120m and then 40m apart.

"We need to start wider spaced and then home in on where the best results are," he said.

Mr Eshuys conceded he was not in a position to direct the strategy at Bendigo, but he would seek discussions with the company "at the appropriate time".

Mr Eshuys would not comment on whether St Barbara was planning a takeover bid but said its stake had given it options.

"Basically we have the option of sitting where we are, or making a bid, or selling," he said.

But while Mr Eshuys does not agree with Bendigo's exploration plan, he is in line with Bendigo in being upbeat. "There is potential for a long-life, low-cost, operation to be developed there." He said the fields had produced 22 million ounces historically, 17 million of which was from hard rock, and that mining was stopped by rising water levels, not by the ore running out.

Bendigo shares fell back 2.5c to 48c. St Barbara shares rose 3c to 54c.

 

[The Mint Man]

Thanks for that. Nice first post!

 

[SevenFX]

Looks like some people don't like how this stock has been going up.

Is there someone missing in this thread today...????