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BMX - BeMax Resources

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Maybe the funds are swapping from Iluka to BeMaX.
There is a strong case in terms of future resources and profitability in my view.
 
I am reluctant to post about the recent "rise" in the BMX share price in case I put the kiss of death on it.....but.......it has been hopeful.

It has been particularly good to see the price close up instead of falling back down to 24c/25c - seems to be consolidating at higher prices (albeit only 2-3c higher).

What is the word on the ground down there Bobby or Baggy? Still progressing well?

Duckman
 
Sorry about the delay in responding Duckman been on hols. Everything is going well at Bemax except the sp unbelievable
 
Baggy said:
Sorry about the delay in responding Duckman been on hols. Everything is going well at Bemax except the sp unbelievable
Click to expand...

Hi Baggy

No worries at all. Although my tentative excitement about the share price seems to have been well placed. Back down to the 24-25c level.

I have moved past the "sentimental" stage with these shares. I might just sell them. It is so frustrating to see other shares flying up the charts and to see BMX languishing at prices below where they were in 2005.

Can someone please give me a reason as to why I should hang onto these shares. Why shouldn't I sell and move into say Oxiana or Aditya Birle.

From what I've read the rising Aussie dollar is bad for Bemax. Zircon prices are unlikely to go much higher. They are still a relatively low quantity producer. For what reasons will the share price rise??

We know they seem to be well managed, they have reached almost all milestones on time and budget, they have secured furutre contracts, they have large and good quality tenements. And yet the SP doesn't budget. Makes me wonder what the share price will do when things DON"T go their way!! In other words - is this as good as it gets?

Regards

Duckman
 
The company just raised US$175m (about A$200m) high yield bond paying 9.375% p.a. Net proceeds will be used to repay debt and capex. According to the AGM address in May 07, post 2009 production should deliver A$40-60m EBITDA, which almost doubles 2006 level.

My thought on why the share price never performed despite excellent operating performance is its poor ROE (of around 4%). The share price has been very depressed that the company resorted to an expensive high yield bond to finance its expansion, i.e. shareholders have to share EBITDA with bondholders. However, if the expansion goes according to plan, its ROE should increase significantly from the current level. Then again, shareholders always rank behind the debtholders. If they didn't deliver and defaulted on the bonds, shareholders will get nothing.
 
"Zircon prices are unlikely to go much higher"

So this is what you, the management at BMX and ILU thinks.

I think Zircon will trade 5 times higher within 5 years. Zirconium and Hafnium will be used in a lot of modern high-tech application.

I guess that the world will wake up within 2 years realizing that we are running out of Zirkon, which will start a commodity boom better than the Indium, Uranium, Lithium and fertilizer boom.

So my recommendation is hold on or at least keep an eye on this baby in the future.

Regards,
 

Duckman, though it is a quality company and long term growth and reserves are excellent and it might get taken over at these prices, the medium term outlook is only moderate.

As we are in a hot boom market, we might be better to get out and chase hotter stocks. So I am inclined to agree. It is the higher A$ that is hurting this company.
 
On the other hand, capitulation by tired long term bulls is often a sign of a bottoming of selling and the precurser to a rerating.

Maybe it would be better to wait for the annual report?
 
Hello Duckman,
I've had enough of Bemax sp I'm selling today and I will keep an eye on it. There is no bad news coming from the camp it must be the Aussie dollar.
Baggy
 
Hi All

Did everyone read the report that came out today?

Once again.....makes great reading.......plenty of increases in production, increases in earnings, decreases in debt...etc,etc. Damn thing.

Cheers

Duckman
 
In a volatile market BMX hardly moved
Results looked good, new debt was on good terms before the crunch.
They have not yet made a mistake, but everyone is chasing the fast buck.
I am still holding.
 
Morning All

I just had a look at Illuka's latest announcement out today and it makes very interesting reading from a Bemax perspective. It is worth having a read of. To summarise Illuka is definately eyeing off the Murray Basin as the future of revenue growth. Looking at both internal and external resources.

Considering what Bemax has mentioned there might be developments happening sooner rather than later - what do other people think?

Duckman
 

What has changed since I posted the above on June 1st, I still believe this company SHOULD be good but there doesn't seem to be enough support out there for it. I keep an eye on it but haven't enough faith to reenter. It is a takeover proposition in my opinion.
 

Very interesting.
Appears they may be looking for partnerships.
Iluka capital is 1355mil while BMX is only 207mil so a takeover is a possibility.

Knobby
 
Looks like BMX has dropped out of the ASX 300.

Surprise, surprise......oh well, the SP has done nothing but fall since joining them anyway!!

Duckman
 
bmx

Looks like BMX are going to have a good week for a change, if this value keeps up we may see 30cents again!
 
Good news today about the Murray basin.

Although it seems as everyone has forgotten about this stock
 
Wow - Bemax sales at 24.5c!!!!!!

My faithful old dog is still alive!!!!!! I thought he was dead. The smell must be coming from somewhere else in my portfolio ............... maybe Marengo.

Duckman
 
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