Australian (ASX) Stock Market Forum

BDG - Bendigo Mining

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I might be wrong here but I read in their announcements a whiel abck that 600, 000 ounce/year is what they hope to achieve in 6 years time. But for the next 5 years, it would be just less than 200, 000 oz/yr on average. They are hoping to achieve $200 oz cost but I would say it would be about 450 oz cost for the next 5 years. (project update 28/06/2006) Gold being about $600 at the moment. $150 profit per oz, we would get roughly $30 million on average for the next 5 years. This gives it about a P/E of 20 since the market cap is about 600 million. I guess this isnt too bad but it wont be another 6 years until Bendigo starts to run at full capacity and we wont really know what might happen in 6 years time.

Over the next few years, Gold prices might tumble, reducing its profits substantially.

CHENNY
 
ace42 said:
Cazaly have since had legal advice to the effect that what the minister did was not at one with the WA mining act. They have been given the right toa judicial review and if they succeed the shares will go back through the roof.
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Evening Ace,
I used to be in the Comsec chatroom and all the talk was about CAZ and about how good Shovelanna was. It was ramped/pumped day and night until Bowler made his remarkable announcement.

I'm not sure about taking on the big boys in a court as they have bucket loads of cash they can throw at appeals, etc. It could be tied up for years, but for all investors/speculators sakes, I hope not.

I have a couple of speccies already and don't wish to take on another at this stage. I wish you luck with it.
 
ace42 said:
I am a novice - what the hell are "cfd's"

ace
Click to expand...

CFD's are Contracts for Difference. They are a derivitive that can be traded like options. They are highly leveraged, meaning that you can control a large amount of shares with a relatively small amount of money. There is plenty of info on CFD's on the net.

CFD's offer an experienced trader a way to control allot shares with less funds. But since you could get a call for those funds, if the stock goes against your predictiions, you really must be able to risk most of the funds anyway.

You need to have a very good understanding of share trading first, backed up with a very sound risk management system before trying this.

I have been tempted to get into CFD's myself but have deemed myself not ready yet. Etrade and other sites will want a minimum account bal. of 10k before allowing you to start trading CFD's.

All that said, CFD's offer an experienced trader exposure to large trades using smaller sums of capital, potential increasing gains.....and potentially...losses.

Hope this helps.
 
chennyleeeee said:
I might be wrong here but I read in their announcements a whiel abck that 600, 000 ounce/year is what they hope to achieve in 6 years time. But for the next 5 years, it would be just less than 200, 000 oz/yr on average. They are hoping to achieve $200 oz cost but I would say it would be about 450 oz cost for the next 5 years. (project update 28/06/2006) Gold being about $600 at the moment. $150 profit per oz, we would get roughly $30 million on average for the next 5 years. This gives it about a P/E of 20 since the market cap is about 600 million. I guess this isnt too bad but it wont be another 6 years until Bendigo starts to run at full capacity and we wont really know what might happen in 6 years time.

Over the next few years, Gold prices might tumble, reducing its profits substantially.

CHENNY
Click to expand...

I think you right Chenny. The big upside I see is in a takeover bid while over goldies can use script.
 
BDG is looking peeeerrfeeeect at the moment for a T/A trade on Monday at open with volume confirmation.

Not actually sure on BDG'S fundamentals though just purely a chart trade!

Anyone else agree?
 
It does look like the early stages of a breakout but i would like to see more volume and another long candle breaking out of the upper B.Band before i jumped in.
The gold price has been slowly trending up the last week, and could be contributing to some price gains in the producers. If i were to look for a gold share i think i would go for LHG, but we need to see a strong rally in the gold price.

:2twocents
 
CanOz said:
It does look like the early stages of a breakout but i would like to see more volume and another long candle breaking out of the upper B.Band before i jumped in.
The gold price has been slowly trending up the last week, and could be contributing to some price gains in the producers. If i were to look for a gold share i think i would go for LHG, but we need to see a strong rally in the gold price.

:2twocents
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Dont like LHG at all.

BDG has had a long retrace and I am assuming that its breakout should be strong. On the charts it is a perfect trade for Monday as long as it breaks with volume. I don't actually know much about BDG, just stating that a chart trade dosen't get much better
 
Yep. Strong finish. I have followed this stock for a long time now and when it bolts; it bolts and it looks like it is getting ready to do so. ;)
 
BDG coming into buy territory for me. Gold taking a hit offering a buying opp imo. Should find a little support at these levels with downside risk limited now. Should be very good support at $1.15/1.25. Looks to have been sacrificed for some reason. Perhaps the meteoric rise early in the year has just been reversed for the short term. At around $1.35 is hitting what might be a long term trend line too.
 

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