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GBM - GBM Gold

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Re: GBM - Greater Bendigo Gold Mines

yep, 2.1m+1.07m+10m=13.17m in total.
I found their projective PE is 3.15 which is far way under average 18.
ANZ says GBM projective NPBT is 6m in GBM annoucement. By using their current Market Cap 18.9m(21c*90).
This share is getting more interesting...
 
Re: GBM - Greater Bendigo Gold Mines

Good luck to holders!

After nasty experiences with Bendigo Mining and Perseverance I find it very difficult to get enthusiastic about Victorian goldminers.

:mad:
 
Re: GBM - Greater Bendigo Gold Mines

News link: http://www.theaustralian.news.com.au/story/0,25197,23375886-643,00.html

Why gold had to hit $US1000
Robin Bromby | March 15, 2008
IT was no big surprise when it happened. It's doubtful that anyone, anywhere, popped a cork when, briefly in New York on Thursday night, gold went through the $US1000 an ounce mark.

We were expecting it. The only issue was when it would happen -- this week or next.

Now that the $US1000/oz level is done and dusted, gold bulls will already be recalibrating their expectations. Any day now there will be talk of $US1200 gold. Then $US1500. And, again, when (not if, they'll argue) those levels are reached, it will have been anticipated and talked about so much that, like this week, it will all seem faintly anticlimactic.

There'll be more joy among the miners, especially if they are not hedged.

Greater Bendigo Gold Mines is as tinny as they come.

First, it is coming to production this month. Second, it decided not to hedge that production so it -- and its shareholders -- will be getting full exposure to the spot price for the planned 20,000oz output a year.

And while the credit well is fast freezing over for sectors such as property, the stellar run by gold made it possible for Greater Bendigo to pull off a trifecta this week. ANZ loaned it $2.1 million, investors opened their wallets for a $1.07 million placement and British managed fund Pacific Capital Investment Management put up $10 million for convertible notes.

Not bad for a company whose shares have been struggling to stay above 20c and which has a market capitalisation of $19.5 million.

"I love gold," chairman Ian Smith said yesterday. And he believes he will keep on doing so. "We are not about to see an outbreak of world peace and financial stability".

Barrick Gold chief executive Greg Wilkins said in a New York television interview that he expected gold to climb a good deal further. And he ventured that the metal might find a lucrative industrial use -- replacing platinum (now more than $US2000 an ounce) in the manufacture of catalytic converters that reduce car exhaust emissions.

Why would you expect gold to stay at these levels or go much higher? Let us count the ways.
 
Re: GBM - Greater Bendigo Gold Mines

The only problem i see with this stock is that it needs to perform. We still have no idea how much the reserves are, this is as speculative as it gets.

The projects are said to be alluvial gold deposits.. but there is no JORC.. correct me if I am wrong though. I do hold this stock ...
 
Re: GBM - Greater Bendigo Gold Mines

Sorry to harp on about this but good to see that GBM apparently havn't hedged any of their ( prospective) production.
From memory, Perseverance was required to hedge as a condition of a loan, didn't produce enough and had to buy at market to satisfy the forward sale. Result : couldn't persevere!

Disc: Unhappy exPSV shareholder.

:(
 
Re: GBM - Greater Bendigo Gold Mines

Following losses in Bendigo, I studied this area extensively, especially over the last couple of months as GBM caught the eye. I am sure that there are enough critical differences between GBM and Bendigo to continue/increase support of GBM. (I haven’t studied Perserverance).

My thinking is a follows. I would be grateful for any feedback.

While success in Central Victoria appears to be trickier than other places, the returns should be greater. Particularly so with a company Cap’d at $ 20 mill.

According to www.Goldnerds.com.au, (and confirmed by other research), the reason is that the gold in Central Vic is “nuggety” (in rich patches) and in narrow veins. Therefore it is not easy to get a JORC standard resource assessment. Rather a successful company will do bulk sampling and mine it commercially in conservative quantities. This seems to be what GBM have done.

In most other areas, including WA, the gold is evenly spread. To get an accurate JORC statement of resource the WA miners drill down at regular intervals until they stop getting a consistent and economically viable assay result, and having done so in all directions, do the assays to determine grams per tonne, and it’s maths to calculate volume of earth times the grade. Apparently that's the resource to a JORC standard. I've seen web-photos of 15 drill rigs extended in a straight line across a "being-proven" WA goldfield.

Bendigo Mining, apparently with South African experienced management who had no experience in Central Vic, did not understand this. They used the computer modelling methods that worked in WA but that don't apply in Central Victoria. Basically, the multiplication of gold-rich patches by the total area of the field, (rather than the rich patches multiplied by the extent of the narrow veins), resulting in a hugely inflated resource. The second reason they got it wrong (and the reason they probably won't fully recover) is that, based on the inflated resource, they installed mining and processing plant for wide vein. As the gold is in narrow vein, their end grades were diluted below the economic production level. The third reason is that they over rode the views of their local staff, most of whom shot through to work for other miners in the area.

Apparently a cost prohibitive number of infill drill holes is needed to get a proper JORC resource in Central Victoria. So the way is to get in cheaply and mine conservatively at a profit, and then, for the future, do the conservative maths based on actual mining.

It seems that GBM know what they are doing. They have:

1. Enough cash (recently).
2. Know the gold is there (Assays, bulk sampling results and rich history - see the web site).
3. Able to process it profitably (the tenements, mine, access and plant exist and we'll know their cost when they turn their plant on).
4. Good people (assumed - not checked by me at this stage) and management with local knowledge.

At a Market Cap (commencing production) of $20 million, with production ready to start, the risk of GBM appears to not be comparable with Bendigo, who had a (pre-production) Cap over $ 1 billion (if I recall correctly).
 
Re: GBM - Greater Bendigo Gold Mines

Hi Firdy,
Interesting article thanks.
I like to have a look at the back grounds of the directors and managers
before taking a punt with a venture such as this.

John Cahill is a managing director/Geologist with 14 years experiance on Gold projects in the Bendigo area -key man to the venture.
Holding 600,000 shares in the company

Ian Smith Chairman/Investment Banker major share holder with
34,500,000 shares by my calculations.

Gavin Hoare Director-Investor Business manager
11,576,747 shares purchased at 20 cents
 
Re: GBM - Greater Bendigo Gold Mines

Hi spectrumchaser.

You would have noted also that Ian Wilson is, or was, a director of NZ listed companies Pure NZ ( Now Lombard Group), Life Pharmacy and SmartPay Ltd, none of which have been a conspicuous success, to date.

:rolleyes:
 
Re: GBM - Greater Bendigo Gold Mines

GBM's chairman forecasted annual pdn of 20,000 ounces. At current market cap of $18.9 mil, the ratio of Mkt cap to projected pdn is $945 per ounce. If earnings are rising, this going to reward it. I'm going to buy it

:):)
 
Re: GBM - Greater Bendigo Gold Mines

oldblue said:
Hi spectrumchaser.

You would have noted also that Ian Wilson is, or was, a director of NZ listed companies Pure NZ ( Now Lombard Group), Life Pharmacy and SmartPay Ltd, none of which have been a conspicuous success, to date.

:rolleyes:
Click to expand...

One Director doesn't make a Summer, or probably much difference. Wouldn't you think gold mines are valued on the resource, and production and profit?
Mr Smith was quoted on the recent announcements in regard to finance - which is his area.
But previous announcements have quoted Mr John CahillI, the Geologist Managing Director. He is a local and obviously one of the key men.
 
Re: GBM - Greater Bendigo Gold Mines

I don't know about "a Summer".
I was merely pointing out, in response to a post which stressed the importance of the people involved with a company, that the Chairman, a fairly important position and, I think, the largest individual shareholder, has had a less than stellar career as a company director.

:)
 
Re: GBM - Greater Bendigo Gold Mines

If you have a read of the website you will see that GBM has built up a good team to run & operate the mine which indicates to me this small company has come a long way over the last year from an Explorer/developer to actual PRODUCER which alot of small companies would love to achieve!

Granted they have announced a JORC and possible future reservies of the Maxwell mine but they are probably being as prudent in their approach as possible to avoid the same mistake as BDG.

If they came out with this info alot more people would be jumping on board and the SP would be 30c +

Im in for the long haul as Maxwell isnt the only good asset they have on the books.

Using the methodoly of Goldnerds GBM is rapidly climbing up the rankings !

:)
 
Re: GBM - Greater Bendigo Gold Mines

Here is what I have found out.
Lombard used to be Pure New Zealand. It became Lombard as a back door listing.
Pure NZ had been a general investment company, that owned GBM. It sold GBM to the current operators.
Since that sale, some two years ago, there is no relationship between GBM and Lombard.
 
Re: GBM - Greater Bendigo Gold Mines

Yes, I read that recently ( word for word!) on another forum.
Ian Wilson Smith was the common factor but he ceased being a director of Lombard a year or so ago.
 
Re: GBM - Greater Bendigo Gold Mines

The big question now of course is, when do they start production? first at the end of Feb then at the end of March, now nothing. An email to the company, as usual, went unanswered. Anybody got something better?
 
Re: GBM - Greater Bendigo Gold Mines

It appears Smith, Hoare, Marriot and D Cahill are all intertwined.

Who is this Roger Phaflert of PMI and MRT "fame" who has been entrusted to build their processing plant? How did he get involved?

Only information I can find is that he has a couple of patents out on "breakthru" directional drilling technology and has built up a couple of small family business scale beach sand plants - nothing about processing plant construction.

Nothing I can find gives any indication as to his ability to meet targets...hence the delay in production and low on-hand cash position.
 
Re: GBM - Greater Bendigo Gold Mines

Just read their new annoucement: resource statement and potential target
153,962 ounces from 1,547,950tones resources from Inglewood and ISG.
500,000 ounces resource potential target on.
$A460/oz Production Cost gives 6.8mil profit at end of 30/06/09.
 
Re: GBM - Greater Bendigo Gold Mines

to be honest Jordanlee, there is nothing new there from the announcement 01/02/08

- I wanna know what their doing with all that borrowed money? are they producing? if so how much now? they were meant to start in march but we havent heard boooo

not happy jan
 
Re: GBM - Greater Bendigo Gold Mines

Hey Urgalzmine,

Would you agree that a Resource statement is a leap in certainty on from the drill results that were in their quarterly report of 1/2/08? I'll be trying to get in early, and snap a few shares at 19 cents.

Thanks to the ANZ and Opus Prime for giving us the chance to get more Gold shares at discount prices eh?

Having read your comment I looked again at the quarterly report. Plenty of photos of stuff going on, and this pretty much confirmed by a mate of mine who lives local.

I'll buy now at 19 cents per share, ($31 per ounce of in-ground resource (by market)), and sell when it hits $ 60 per ounce (0.40 cents per share).
 

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