Australian (ASX) Stock Market Forum

GMM - General Mining Corporation

Jump to new
UPDATE ON OYUT TOLGOI COPPER PROJECT IN NORTHWEST MONGOLIA


On 9 July 2012 General Mining Corporation Ltd (GMM) announced that, through its wholly owned Mongolian subsidiary, Golden Cross LLC, it had secured a joint venture on the Oyut Tolgoi (not to be confused with Oyu Tolgoi in the south of Mongolia) Copper Project, which project adjoins licences GMM presently holds.
As previously advised, Golden Cross LLC can earn a 60% interest in the Oyut Tolgoi licence of 587 hectares by meeting certain expenditure obligations before February 2013 in respect of the tenement, including production of a resource estimation report.
In order to avoid any speculation as to the extent of the expenditure obligation and any consequent need to raise further funds, the Company advises that the expenditure obligation to earn that 60% interest is US$300,000.
The Company is in negotiation with third parties with regard to potential involvement with this project.
In addition, GMM is in the process of finalising its plans with regard to the work to be undertaken in order to be able to earn the 60% interest in the Oyut Tolgoi Licence.
GMM expects to be able to make an announcement shortly with regard to the exploration activities that it will undertake on the project and on GMM’s other wholly-owned exploration projects in Mongolia over the next six months.
We look forward to informing the market as these exciting developments occur.

GMM has had a really nice little spike in the chart over the last week or so. Well done them.
 

Attachments

  • gmm_ax23jan12_to_28jul12.png
    gmm_ax23jan12_to_28jul12.png
    12.4 KB · Views: 2
skc said:
Or a 50% loss by some.

And considering they had about $8k in the bank from the last 4C, smells terribly like a pump and raise.
Click to expand...

Some "pump and raise" strategies seem to work. :)

GMM pm 13-10-15.gif

And as it's still some kind of JV, the previous owner looks also set to benefit.

GXY pm 13-10-15.gif

I hold a full position GXY, so I decided against buying GMM as well. Same exposure.
 
pixel said:
Some "pump and raise" strategies seem to work. :)

View attachment 64641

And as it's still some kind of JV, the previous owner looks also set to benefit.

View attachment 64642

I hold a full position GXY, so I decided against buying GMM as well. Same exposure.
Click to expand...

You know the company's been bankrupt right? Since 2013 at least. Didn't actually go into admin but that's because it managed to find more... mmm... more sophisticated investors just in time.
 
GMM just raised total of some $5.2M in new equity recently.

Though this new cash may appear to be for the purpose of its new JV with Galaxy on Mt Cattlin, that with agreement to sell the rare ore to Mitsi.. at least $700K of the new cash will go towards paying off its current debt, and around $1 to $1.5M towards its normal costs of just staying alive (see fig 1).

To make proper investment decision, as oppose to speculation, on GMM's future will require indepth and up to date understanding of GMM's assets, namely Mt Cattlin and the ore it's about to start getting there with Galaxy in March 2016. Without such on the ground knowledge it's all just hope and prayers buying this company.

As an arm-chair warrior analysing GMM's operations since IPO from a distant, with no knowledge of probabilities of the lithium or other potential jackpot GMM could be onto... in my humble opinion, the investor ought to stay away, and for those who bought at 5cents, maybe tripling your money in a month isn't so bad.

----

VALUATION

At 7th Nov2015
Total SHARES OUTSTANDING: 329,945,355 basic; 332,195,355 diluted (details under Capital Structure notes on DangInvestor, or GMM's 2015 AR). The share outstanding at 7Nov2015 has changed from the 165.5M shares quoted on Commsec at June2015.


At $0.16 per share on 6th November 2015, that`s $53M market price. Note this is $10M or some 25% higher than shown on MorningStar (Commsec) research.


What does $53 million buy in GMM
Maybe $4million in cash paid for by yourself or the older shareholders that might be left after a year's operation... would be much less if GMM need to hire new people and share costs to ramp up the new mine etc.

Beside the new cash and the interests it earn, GMM has no asset to speak of.

GMM has been broke since 2013, and would have been wound up if no new shareholders were found. It has no patent that could be worth something; no property and the plant and equipment has been written down to nothing. Maybe some $600K from costs of exploration its previous management thought could be worth something.

So $53M for potential of what comes out of Mt Cattlin... So the investor must have indebt knowledge as to that likelihood or else best to avoid such risks and unknown.

Figure 1:

GMM LD1.jpg

--------------

History of Losses

GMM has no revenue. Its only income are simply the interests received from the cash at bank - cash that were raised from shareholders and "sophisticated" investors.

So no need to discus financial performance for GMM will all be about the future.. and if the future is anything like the past, there will be greater dilution from more share printing.

Note that it could not borrow money from the bank - some debt might be good as it show someone outside management and investors have some faith in its ability to repay. Here there is no faith.

As seen below in Fig2., the 6 years since IPO have resulted in no profit, no revenue beside interests, stacking up the losses. The only thing that has grown has been shareholders more willing to take a punt and hand over their cash.

Once the pool of complicated investor runs out, the music will stop.

Figure 2

GMM LD2.jpg
 
Gringotts Bank said:
Thanks.

My Noscript was blocking the whole page.
Click to expand...

Thanks Pixel.

GB,
There's some java there for the slider and fancy stuff at the HowWeWork page, but it's harmless otherwise. Trust me :eek:

Thanks again for the opportunity.
It might not be what your investing approach is; it's quite involved but may prove useful once used as intended: study one business at a time... so one down and maybe 200 more to go for ASX.
 
luutzu said:
Thanks Pixel.

GB,
There's some java there for the slider and fancy stuff at the HowWeWork page, but it's harmless otherwise. Trust me :eek:

Thanks again for the opportunity.
It might not be what your investing approach is; it's quite involved but may prove useful once used as intended: study one business at a time... so one down and maybe 200 more to go for ASX.
Click to expand...

I look forward to some of the FA guys here using it and presenting their findings. (FA is a bit beyond me, but I like to see what others do).

Luutz, my login details didn't work. But I have a reasonable idea of what's on offer from seeing what you did on this thread for GMM, thanks.

PS. Grammar and language syntax on the website makes it a bit difficult to absorb. You'd attract a lot more interest if that was fixed.
 
Gringotts Bank said:
I look forward to some of the FA guys here using it and presenting their findings. (FA is a bit beyond me, but I like to see what others do).

Luutz, my login details didn't work. But I have a reasonable idea of what's on offer from seeing what you did on this thread for GMM, thanks.

PS. Grammar and language syntax on the website makes it a bit difficult to absorb. You'd attract a lot more interest if that was fixed.
Click to expand...

Thanks GB.
Yea, I have little idea of what Grammar is... It's just whatever sounds OK :D Will get my wife to proof read and maybe some graphic guy to simplify it. Just people tend not to want to work for free and free is all they'll get at the moment.

Your credentials works, pw is case sensitive. But yea, there will be other modules in the future that will be useful - like portfolio management/book-keeping and others.

Thanks again.
 
Trading Halt pending a capital raising.
Looking at the chart, I can't say I'm all that surprised.

GMM 11-12-15.png

I've traded the upswing, but am no longer holding.
 
Canaccord managed a $7M+ cap raising @18c; in a contemporaneous Research Report, they give GMM a target of 40c, GXY one of 20c.

IMHO, both are still at a speccie stage, but the charts suggest the Market warms to the story and we could see a breakout very soon. (I hold and trade GXY)

GMM pm 17-12-15.png
 
pixel said:
Canaccord managed a $7M+ cap raising @18c; in a contemporaneous Research Report, they give GMM a target of 40c, GXY one of 20c.

IMHO, both are still at a speccie stage, but the charts suggest the Market warms to the story and we could see a breakout very soon. (I hold and trade GXY)

View attachment 65335
Click to expand...

I thought it was a gonner when they went offline while raising the new $7M.

Amazing how these guys could convince people to keep forking up money. Other bigger, much more established companies see their shares going down or unmoved when they win new contracts.

Maybe won't be so amazing if I'm a geologist and went there for a looksy.
 
luutzu said:
I thought it was a gonner when they went offline while raising the new $7M.

Amazing how these guys could convince people to keep forking up money. Other bigger, much more established companies see their shares going down or unmoved when they win new contracts.

Maybe won't be so amazing if I'm a geologist and went there for a looksy.
Click to expand...

I'm neither a Geologist nor a Metallurgist; but when I drove past the minesite on my way to Esperance, I couldn't help but notice the well-kept infrastructure in the region. Maybe the re-opening of Mt Cattlin isn't all that difficult and they can keep their promises? I wish them well - and maintain a position in both G's :)

GMM am 29-12-15.png
 
On September 2nd, 2016, General Mining Corporation Limited (GMM) was removed from the ASX's official list following compulsory acquisition by Galaxy Resources Limited, in accordance with Listing Rule 17.14.
 
Top