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GDO - Gold One International

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Re: BMO BMA Gold

gdo is back on line this moring alot to bay limited salers the seling price is high lets se whete thay going looks good :)
 
Re: BMO - BMA Gold

Hey mods can we rename this thread GDO pls now that it has relisted?

Also, just wanted to get peoples thoughts on how this one should be panning out from an FA perspective.

Given their resource (15m oz!!) and MC (about A$330m at $0.50 a share) this is only pricing them at $22/oz. As a follower and holder of PRU this is simlar to their pricing (which is very low on a peer comparison basis) BUT GDO are about to start production later this year.

Surely on this basis a more realistic pricing would be closer to $50/oz?

Anyone?
 
Re: BMO - BMA Gold

The publicly available stats do look tasty relative to current SP doesn't it!

I'm inclined towards the positive long term outlook on gold prices so on that basis alone it looks like a decent medium-termer to me. The 'turning point' for me will be what happens to SP when production goes online which of course is a quarter or two away, so here's crossing my fingers for the short term.

ANd yes if any mods are reading, pls lets rename this thread to GDO to reflect the ASX name
 
Re: GDO - GDO Gold

So, just looking through the goldreview.pdf posted in another thread which I'm sure most people had a look at, at some point (Lonsec's July 2009 gold company report).. I noticed Gold One has a rather huge deposit and a pretty reasonable grade (around 3-5g/t) yet it's only priced at $20/oz of resource and $210 per oz of reserves. What gives? The report said they were running out of cash and looking at their share price it's gone from $6 to around $0.35 in the last 10 years. they must have run out of money or something?

Anyone got any opinions on this stock and where it might go from here given the already high gold price?
 
Re: GDO - GDO Gold

2 December 2009
Gold One declares Commercial and Continuous Production at Modder East and
Provides Production Guidance for 2009 and 2010
● Maiden operating profit for the Modder East project
● Commercial & Continuous production declared at Modder East Gold Mine
● Gold One provides production guidance for 2009 and 2010

This is goods news for this stock and may trigger a re-rating of the SP

2010 production 100-120 koz @ US$330/oz
2011 production 180 koz @ US$250/oz
 
Re: GDO - GDO Gold

boronia said:
2 December 2009
Gold One declares Commercial and Continuous Production at Modder East and
Provides Production Guidance for 2009 and 2010
● Maiden operating profit for the Modder East project
● Commercial & Continuous production declared at Modder East Gold Mine
● Gold One provides production guidance for 2009 and 2010

This is goods news for this stock and may trigger a re-rating of the SP

2010 production 100-120 koz @ US$330/oz
2011 production 180 koz @ US$250/oz
Click to expand...

Yes, Gold One is looking good, thanks to the original Directors of BMA who pulled off a miricale after BMA almost went down the gurgler.

IMHO there should be gradual movement up in 2010. Hang on for the ride.
 
Re: GDO - GDO Gold

Good movement last week as BakerSteel increased its significant shareholding.

If you use EV/resource oz as a metric for comparing gold mining Co's then this gold show deserves a serious re-rating. See recent investor presentations on the GDO website for details

I reckon the final triggger required for the re-rating may be outstanding convertible notes, update is below:

Implement debt facility in respect of any potential December 2010 put(s) of convertible notes by Bondholders
Shortlisted 4 banks to arrange a senior secured debt facility based on an extensive RFP process
Final, non-binding proposals were received from all four banks in February 2010
GDO recently selected two of these banks, to finalise and implement the facility on a syndicated basis
 
Re: GDO - GDO Gold

Found these guys a while back from Baker Steel's increase in ownership, Baker Steel are a very professional outfit and tend to only invest in well managed companies. GDO seems to fit the bill and I'm very happy with the current news release!

Wrote up an analysis on my blog (see signature for URL) of GDO, if you can't be assed reading it I don't blame you, it's quite long winded, but basically comes to the conclusion that GDO is undervalued at current prices and we should see some re rating from here.

:2twocents
 
Just read your article, well written and appreciate the work put in.
There appears to be some good value with GDO as you have highlighted, but the annual report looks a misery. They are in production, good grades etc, but can they build up their bank account?
 
I'm not sure how they actually got to this resource upgrade for the Megamine deposit:

The substantial increase in the Megamine resource base is the result of intensive desktop studies, which were completed over the past year. Together with the company’s geological advisers, Shango Solutions (Pty) Ltd, Gold One has collected, collated and verified a significant historical database inclusive of data from Gold Fields Limited, a previous owner of the largest portion of Megamine. This database comprises approximately 150,000 data points including, but not exclusively, 41,000 reef elevation co-ordinates, 97,000 underground reef samples and 125 exploration boreholes. This additional information has facilitated the creation of a regional 3D geological model as well as confident sedimentological and grade distribution models, all of which have underpinned the updated resource estimate.
Click to expand...
Did they actually do any more drilling, or just add in previous data not already included in any resource estimate? :confused:

I can't see how they are going to keep cash costs down when they are planning to go so deep. Will be interesting to see.

On the surface of it WAY undervalued if I have these figures right. Trading at $13.5 an ounce after the upgrade. :confused:

(haven't updated a few of these stocks recently)
 

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RE: Kennas, I'm pretty sure they are trading this low because of a few reasons, one is the "south african" effect I tend to go on about, that is companies listed on ASX but with operations overseas (particularly south africa) are heavily discounted, either due to real or percieved risks about the political situation and unfamiliarity with a different country.

Another is that last financial year they had a strike for quite a while (2-4 weeks? I don't remember exactly) that caused the economies of scale to be diminished and they only managed to produce enough gold for a few million in cashflow. These labor problems seem to be solved for now, but the market doesn't seem to realize this.

One other possible reason is the Black Economic Empowerment groups required to, by law, to own at least 26% of all South African mines by 2014, GDO managed to get a favorable valuation on it's East Modder mine (figures posted on blog, can't recall atm), and as of yet, GDO still currently holds 100% of East Modder, only by 2014 will BEE be required to buy into it.

So look back, last reporting time they were a company with labor problems, BEE breathing down their neck (with uncertainty of what price BEE will pay for their 26%) and production problems. However the recent news announcements show that GDO has overcome these problems, with a new employee agreement for the next three years, BEE with a reasonable valuation, and production targets met! If you wait until GDO is at a "reasonable price" (e.g. higher) to what you get, you'll have missed out on most of the gains.

Don't take this as advice to buy, take it as advice to go research into GDO, it's a very undervalued stock and today's news shows that management are capable of delivering the goods (also last week they announced that their financing for 65 million of bonds was approved, another positive for the company).

:2twocents
 
New announcment out today, GDO is to reverse takover White Water Resources and form a new company, Goliath Gold, which is to hold their "megamine" project. This imo is a good deal for GDO, reasons outlined in blog (if you want to read them :)) the share price is up 14% today, partly on this news, and partly from the continued rerating of GDO as a share, still quite underrated for what you get.

:2twocents
 
ParleVouFrancois said:
This imo is a good deal for GDO, reasons outlined in blog (if you want to read them :))
Click to expand...
Your opinion is shared by the companies involved it seems.

From Proactive Investors.

Neal Froneman, Gold One President and CEO, said, "The transaction maintains Gold One’s focus on developing its shallow low cost ounces as well as its strong operational cash flows, while unlocking value in Gold One’s deeper resources.”

“White Water Resources was chosen as a suitable vehicle as the company has, over the past few years, restructured itself into a focused resource company whose assets are contiguous to those of Gold One’s.”

Waron Man, White Water Resources CEO, said, “White Water Resources anticipates that the transaction will be beneficial to its shareholders, as it begins to consolidate a prospective gold province and provides them with access to a greater resource base as well as excellent management experience and expertise in exploration, development and mining.”

Gold One will crystallise ZAR 260-million (A$38.6-million) of value for Megamine, with Goliath Gold moving its focus to the development of Megamine.

Gold One’s strong cash flow status and focus on Modder East and Ventersburg will be preserved.

Gold One will enter into a management contract with Goliath Gold, such that both parties benefit from the synergy of shared costs, management and technical expertise.
 
Hey PVF didn't I see you on the RED thread LOL (Great minds think alike) Glad I held these guys, I was pretty close to dumping them at cost and buying more RED's. Just out of interest what's your target on GDO? I'm looking at 70c+

Maybe we could talk Beatle into casting his eye over the stock : )
 
Yes I believe you did see me there, still holding some RED, it's one of my biggest winners, and I wish I had bought more!

We'll have to rearrange the keys on his keyboard so when he logs on at 10AM to check RED it actually types GDO, otherwise I can't see him checking it out lolol :D.
 
Sold my CTO shares. :crap: I've had GDO on my watch list for some months. Along with all the other great stocks that I did not buy when I should have and CTO which I did buy when I shouldn't have. GDO is one of the few that haven't moved much along with the gold price. They seem undervalued. I'm tempted but I need to do my own research before purchasing any of this one.
 
Hi Sion, have a look at the investor section on their website for some broker research on these guys. In my mind the SP won't start to move until these guys start start regularly hitting quarterly quarterly production targets. While the upgrade in resources at megamine has been positive, I don't think this has been fully realised in the SP.
 
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