GCR - Golden Cross Resources

[YOUNG_TRADER]

yeah lots of accumulation I see a nice fat capper at 3.5c who I would bet is accumulating at 3c-3.4c, watch what happens once they're done


Also was an interesting read of the Notice of Meeting

Key parts

"If the members approve the motion to issue a further 97,560,976 shares, then HQ and its associates would hold 222,560,976 shares, or 24.53% of the issued shares of the Company"


The Chinese are getting a block/controlling stake and a good base to launch a takeover from by going to 25%


Also Grant Thornton who imo have no clue about mining stocks or resources values the company at 2.8c-2.9c x that figure by 2-4 and you might get a fair value for CopperHill alone let alone the silver, the UCG the Phosphate the Uranium

 

[swm79]

yeah lots of accumulation I see a nice fat capper at 3.5c who I would bet is accumulating at 3c-3.4c, watch what happens once they're done


Also was an interesting read of the Notice of Meeting

Key parts

"If the members approve the motion to issue a further 97,560,976 shares, then HQ and its associates would hold 222,560,976 shares, or 24.53% of the issued shares of the Company"


The Chinese are getting a block/controlling stake and a good base to launch a takeover from by going to 25%


Also Grant Thornton who imo have no clue about mining stocks or resources values the company at 2.8c-2.9c x that figure by 2-4 and you might get a fair value for CopperHill alone let alone the silver, the UCG the Phosphate the Uranium

true about GT - dont think they really have much idea.

However, the valuations dont take the UCG projects into account at all; given that it is a "potential future project".... so add that to your x 2-4 and you might get 4-8................ i WISH!

 

[YOUNG_TRADER]

I have no doubt Grant Thornton have no clue when it comes to mining companies and resources, they are mostly a bunch of overpaid accountants who do auditing and even then they're hardly any good at that

But still if they using ultra conservative valuations came in at a figure of 2.8c-2.9c to me 3c looks safe buying

and yeah thats with zero value for UCG, for me this is a buy and wait for the re-rating type play as I did with MAT LKO BUY

and IMO given what LBY and LOD have done post UCG I believe a strong re-rating will come

 

[swm79]

here's hoping the testing goes well at the 3 tenements they have and that they get the go ahead for the other 4... but all of that is a long way off yet you'd think.

 

[Gekko]

YT looks like you were spot on with the accumlating and capping he just pulled!!! 4.5c/5c target. Copper and Gold the most attractive commodities out there

 

[YOUNG_TRADER]

definitely agree, testing and other activities will take a long time, many months

But my point is the market is completely unaware the GCR has moved into the UCG space and as such 0 value is being given for these projects


Once an announcement is made even with a heading about UCG the market will wake up to the potential

I would suspect that they will be reviewing the historical data on the leases to see if there are any Coal estimates

Lets face it that whole area is Coal :

 

[Gekko]

An update on their newly picked up UCG assets would give a real boost wouldn't it YT. I'd be interested in an updated NPV of Copper Hill given the Copper move this year. It isn't the highest grading resource, but it has bulk and size on its side.

 

[YOUNG_TRADER]

well well well Mr Capper ie the 2M sell at 3.5c pulls and then some large buy orders appear this morning

now all we need is that UCG update and its off to the races!

 

[enigmatic]

Looks like this one has had a lot more attention since i was last on and gave it a mention.. This will likely get some support at 3.4c for some time until we get some news on there UCG assets, unless copperhill is the one that is pushing this and there is something we dont know.

 

[YOUNG_TRADER]

Anyone else seeing these monster buys?

This is the 2nd 2.5M buy I have seen today

Someone really wants some!

 

[bandicoot76]

nice call on the GCR breakout YT, i originally bought into GCR 3yrs ago @ .11 and have been accumulating more in smallish parcels everytime they dipped, then really loaded up when they bottomed @ .01 in nov. i did this solely on the copper hill potential so the coal, uranium etc tenements are icing on the cake! liked your analysis on them mate... i was wondering if you'd ever cast your eye over another favourite of mine, alkane? (ALK) i think that they will rival LYC in the rare earths game soon and i reckon the market has overlooked them... would be interested to see your opinion mate. cheers.

 

[Gekko]

Took an entry today at 3.2 and 3.1cents. Most of resource/materials sector portfolio is weighted towards Copper and Gold. Ive noticed accumulation at around 3-3.5cents, and once 3.5cents is cleared, a move to 4.5cents is likely.

Now the capper has pulled it looks like my earlier targets look ever the likely. Pleased to have bought in at 3.1 and 3.2. Nice accumulation bandicoot76 on the back of Copper Hill. Its size caught my eye too.

 

[LeeTV]

Been doing some research on this one and took a punt and got a small parcel today @ 3.1c today while the sp was down. Good volumes of late and looks to be good support at 3c. Most of the speccys I have bought in to have been doing well(BUY, MMR, GBA, UNI, CPT, BMY, CAZ) and this looks to be no acception. Good luck to all holders!

 

[springhill]

Yep jumped into this one today on the back of the largely unknown UGC potential. Now i think about it around 75-80% of my portfolio is UGC
Thanks to YT for bringing this one to my attention

 

[BESBS Player]

Might be worth having a look at GCR if you are in to more speculative high risk/potentially high reward mining stocks.

Today's report on the ASX:

Major Drilling Programs Planned for GCR’s Australian Projects.

With ongoing support indicated by HQ Mining and the former loan funds now available for exploration, the following drilling programs will commence in the December 2009 Quarter and extend into the March 2010 Quarter.

Planned Drilling:
Copper Hill Exploration 14 holes 4,000 m
Burra 7 holes 1,500 m
Cargo 12 holes 3,200 m
Rast 66 AC holes 3,300 m
South Australia 5 holes 3,000 m (subject to tenement grant)
Mulga Tank 100 RAB holes 5,000 m

Importantly, no now debt, has some cash and drilling going to occur late December qtr or early 2010.

At 2.6c, this one should offer plenty of SP leverege once drilling commences.

Holding GCR at 2.6c ave

 

[enigmatic]

Copper Hill is looking more and more promising, anyone have any comments about the announcement.

At 800U$ -- 360Million Cash flow wont be to bad for a 21million market cap company..

 

[prawn_86]

Copper Hill is looking more and more promising, anyone have any comments about the announcement.

At 800U$ -- 360Million Cash flow wont be to bad for a 21million market cap company..

I only looked at the ann quickly but how do they propose to to raise the circa $300m needed for development?

 

[jonojpsg]

Here's some questions for you finance experts:

1. If the DCF for Copper Hill is $360m over 20 years, does that mean the project will earn on average $18m a year over that time in todays dollars?

2. Is this the free cash flow after costs, eg does this represent a "net profit" from the project to the company?

3. If they have taken the capital cost out prior to calculating DCF, would they have assumed that the $420m cap cost was borrowed then repaid wiith interest over the 20 years or part thereof?

Just wondering if someone could clarify these for me
Thanks

 

[Miner]

Here's some questions for you finance experts:

1. If the DCF for Copper Hill is $360m over 20 years, does that mean the project will earn on average $18m a year over that time in todays dollars?

2. Is this the free cash flow after costs, eg does this represent a "net profit" from the project to the company?

3. If they have taken the capital cost out prior to calculating DCF, would they have assumed that the $420m cap cost was borrowed then repaid wiith interest over the 20 years or part thereof?

Just wondering if someone could clarify these for me
Thanks

I am hoping some genuine researchers and not the rampers would come forward to assist in the above queries.

I am holding

 

[enigmatic]

Here's some questions for you finance experts:

1. If the DCF for Copper Hill is $360m over 20 years, does that mean the project will earn on average $18m a year over that time in todays dollars?

2. Is this the free cash flow after costs, eg does this represent a "net profit" from the project to the company?

3. If they have taken the capital cost out prior to calculating DCF, would they have assumed that the $420m cap cost was borrowed then repaid wiith interest over the 20 years or part thereof?

Just wondering if someone could clarify these for me
Thanks

Little late replay haven't looked at GCR for some time
The Copper hill project has 1.1million oz of gold and 335,000tonnes of copper only looking at the gold and assuming a discounted price of $US800 for gold that ends up being 880-420=460million which seems to indicate an additional 100million on top of the $360million suggested. So i would have to assume that it is definitely an indicated profit.

With a Mine life of 19years this equates to about 18.4million a year profit. with the current market cap at 19million if in production GCR would have a PE of about 1.

There are however a few hurdles, which mainly come from raising the 420million capex there are obviously several methods. although it is likely that one will involve dilution.

GCR have many other prospects which may provide means of capital. I believe HQ Mining Resources will likely provide some funding.

DYOR