GWR - GWR Group

[gtsman_05]

Re: GWR - Golden West Resources

Portman is coming!!

The australian says Portman are making an application to FIRB

http://www.theaustralian.news.com.au/story/0,25197,23780188-5005200,00.html

 

[YOUNG_TRADER]

Re: GWR - Golden West Resources

With a mkt cap of $44m (145@30.5c) and $30m in cash

a 126Mt's@58%Fe JORCand upside target of 470Mts@58%Fe I think GWR is a no brainer takeover target

I think it is just a matter of time before Portman pull the trigger

When and how much is another question, will be interesting to see if GWR lasts at these levels for say another 6-12months

 

[Sean K]

Re: GWR - Golden West Resources

With a mkt cap of $44m (145@30.5c) and $30m in cash

a 126Mt's@58%Fe JORCand upside target of 470Mts@58%Fe I think GWR is a no brainer takeover target

I think it is just a matter of time before Portman pull the trigger

When and how much is another question, will be interesting to see if GWR lasts at these levels for say another 6-12months

Cripes, that's as crazy as BRM was a few months ago.

Would have to say that cash backing has put a floor inthem here around 25c.

 

[YOUNG_TRADER]

Re: GWR - Golden West Resources

About to attempt a break out at 40c?


Interesting looking chart, one of those ascending triangles ain't it Kenna? with higher lows but top resistance line at 40c???

Wonder if its sentiment or news driven

 

[Sean K]

Re: GWR - Golden West Resources

About to attempt a break out at 40c?


Interesting looking chart, one of those ascending triangles ain't it Kenna? with higher lows but top resistance line at 40c???

Wonder if its sentiment or news driven

Whole bunch of charts looking like this. All giant slippery dips. Just wonder how high the end of the slide goes?

Mostly overall market sentiment I think.

 

[YOUNG_TRADER]

Re: GWR - Golden West Resources

Having another crack at the 40c resistance line

I think this may have something to do with FAS's announcement



Shareholding in Golden West Resources
Fairstar Resources is the largest shareholder in Golden West Resources, holding approximately 18.3% of the ordinary
shares of GWR.
Fairstar has received a large number of approaches from various different parties, both domestically and internationally,
regarding the Company’s intentions for its holding in GWR. Similarly, Fairstar has also received numerous inquiries from
our shareholders in relation to our GWR shareholding.
Our shareholding in GWR represents a valuable, strategic capital investment for the Company. As previously stated, your
Board’s objective is to maximise the value of the holding in GWR for the benefit of Fairstar and our shareholders, and this
encompasses the Company’s desire to further explore and develop our own key iron, gold and uranium projects.
With this goal in mind the Company has undertaken an exhaustive review process of the opportunities in relation to its
GWR shareholding, and is now in the final stages of confirming its intention in respect of this matter and we hope to be
in a position to announce an outcome to the market in the near future.

 

[YOUNG_TRADER]

Re: GWR - Golden West Resources

Looks like the epic battle at 40c resistance still continues over at GWR, c'mon ya bum clear it!!!!!

Any charties wnaa suggest next stop if 40c properly cleared/confirmed?
I see maybe 80c/85c based on the chart being the high volume bounce off level in April 2008, though for all I know there's probably 10 different chartting patterns in their, inverted this, head and shoulders that, saucepan on the frypan with the tea kettle!

 

[YOUNG_TRADER]

Re: GWR - Golden West Resources

Looks to have finally broken out from 40c

Next stop 80c based on chart

Lots of activity this qtr

Iron ore JORC upgrade + scoping study

Gold JORC review and project assesment

Full company review etc etc

 

[Sean K]

Re: GWR - Golden West Resources

Had a great few weeks.

Not sure about 80c, LN. How do you get that?

Plus, new resistance since that past chart parked around 45, so not sure if it's broken yet.

Certainly a floor put in and it's in a great uptrend since mid March.

Lots of charts like this though...

Still looks cheap on the funnies.

 

[adobee]

Re: GWR - Golden West Resources

GWR seems to have had no real recover whilst the reast of the market has been strongly coming back online.. There is alot of potential here if there is a resource upgrade .. Moved into this today .. Fingers crossed there is not a cap raising tomorrow !

 

[lazyfish]

Re: GWR - Golden West Resources

GWR seems to have had no real recover whilst the reast of the market has been strongly coming back online.. There is alot of potential here if there is a resource upgrade .. Moved into this today .. Fingers crossed there is not a cap raising tomorrow !

I agree there's a lot of potential, but this is even beyond my investment horizon...

They seem to be burning cash like crazy (see last few quarterly). At this rate I think you are right about another cap raise. Good thing the last one was done at such a high price though. Management owns little stake which gave me no confidence. The port will be constructed as early as in 2014 (optimistic case, see the official port document). Trucking distance to the Esperance rail is about 300km (add another $30ish to transportation cost). Therefore IMHO shipping is not likely to happen before 2014.

So yeah, best case scenario is it gets taken over, but with 3 cornerstone shareholders I doubt that is going to happen?

 

[adobee]

Re: GWR - Golden West Resources

I agree there's a lot of potential, but this is even beyond my investment horizon...

They seem to be burning cash like crazy (see last few quarterly). At this rate I think you are right about another cap raise. Good thing the last one was done at such a high price though. Management owns little stake which gave me no confidence. The port will be constructed as early as in 2014 (optimistic case, see the official port document). Trucking distance to the Esperance rail is about 300km (add another $30ish to transportation cost). Therefore IMHO shipping is not likely to happen before 2014.

So yeah, best case scenario is it gets taken over, but with 3 cornerstone shareholders I doubt that is going to happen?

all true.. but I think with a resource upgrade the markets attention will be again focused and there will be some substanial movement.. There is little in the way of resource stocks which have remained at 08 lows..

 

[adobee]

Re: GWR - Golden West Resources

all true.. but I think with a resource upgrade the markets attention will be again focused and there will be some substanial movement.. There is little in the way of resource stocks which have remained at 08 lows..

RESOURCE UPGRADE -

Significant resource upgrade at the Wiluna West Hematite Project Indicated Mineral Resource Estimate category totalling 42 million tonnes (Mt) at 60% Fe (30% of the total resource) The total volume of the identified Mineral Resources has increased by 28% since the last Mineral Resource Estimate The total Mineral Resource Estimate is now 141 Mt at 59% Fe with deleterious elements within sales specifications

 

[Sean K]

Re: GWR - Golden West Resources

Now trading at 26c a ton for it's DSO.

The average on my list is $8.40 including the producers.

If only they could get it to market?

Where's the closest rail line?

 

[Sean K]

Re: GWR - Golden West Resources

Anyone have any idea how they could have spent $2.3m on administration last quarter? Must be some damn fine stationary they're handling over there in Wiluna.

Maybe it was the directors salaries that combined come to about $450k pa each.

Isn't this an explorer? Hooly dooly!!

Their rem should be in performance options not cash!

Hmmmmmm

 

[adobee]

Re: GWR - Golden West Resources

GWR has signed a foundation customer agreement with Yilgarn Infrastructure Limited to use rail infrastructure, berth and storage facilities, industrial facilities, ship loading and unloading and other infrastructure proposed to be financed and built by Yilgarn Infrastructure at the Port of Oakajee.

Yilgarn Infrastructure has also entered into a foundation customer and infrastructure agreement with Mid West Corporation Limited (now owned by Sinosteel).

Under the terms of the foundation customer agreement Yilgarn Infrastructure has undertaken to finance and build a railway connecting GWR's project at Wiluna West, via Weld Range junction, to the proposed port at Oakajee providing that all the required government approvals are given to the parties. GWR has taken a 20% interest in Yilgarn Infrastructure Limited. Yilgarn is the reserve proponent for construction of the port at Oakajee and GWR believes it retains rights to construct a railway network in the Midwest to transport ore from various mines to the coast. Yilgarn is backed by a consortium of powerful Chinese state-owned companies and has a line of credit with the Exim Bank of China. GWR believes that Yilgarn is the company with the greatest ability to construct a railway from Wiluna to the coast taking in Midwest's Weld Range deposits and linking up with a line from Gindalbie's Karara deposit. The railway will be open access and will encourage the development of additional mining operations in the Midwest.

 

[lazyfish]

Re: GWR - Golden West Resources

Anyone have any idea how they could have spent $2.3m on administration last quarter? Must be some damn fine stationary they're handling over there in Wiluna.

Maybe it was the directors salaries that combined come to about $450k pa each.

Isn't this an explorer? Hooly dooly!!

Their rem should be in performance options not cash!

Hmmmmmm

Precisely why I haven't gotten into this company...

The nearest rail at present is probably the one that Portman is using. Distance is about 300km or so. I think that kind of trucking distance is gonna erode most of the margin (if any left). The new port is the best bet but I am uncomfortable with the cash burning.

 

[adobee]

Re: GWR - Golden West Resources

Precisely why I haven't gotten into this company...

The nearest rail at present is probably the one that Portman is using. Distance is about 300km or so. I think that kind of trucking distance is gonna erode most of the margin (if any left). The new port is the best bet but I am uncomfortable with the cash burning.

Now trading at 26c a ton for it's DSO.
The average on my list is $8.40 including the producers.

Pretty attractive as a take over target.. cash burn wont inhibit this

 

[lazyfish]

Re: GWR - Golden West Resources

Now trading at 26c a ton for it's DSO.
The average on my list is $8.40 including the producers.

Pretty attractive as a take over target.. cash burn wont inhibit this

Yup I agree on the basis of EV/tons, GWR is possibly one of the cheapest. No argument about that whatsoever. The quality of ore is also very good, no question about that either.

As for a take over target, I have thought about it as well, more importantly the management seems to have thought about it too. Therefore all 3 significant holders (Fairstar, Hunan and Portman) are holding over 10%. Interestingly Hunan has just over 10% (10.06%) for a blocking stake. Would be kinda hard for anyone to take it over don't you think?

 

[Sean K]

Re: GWR - Golden West Resources

Just dropped through 35c support yesterday in the panic sell off. Will probably recover a little today, but now trading at 20c a ton for DSO. That is crazy stuff. Market is saying that this is too far from infrastructure to mine, or is not a takeover target. OR, it's off the radar!

Currently the cheapest on the list.

Good support down there by the looks, but market still skittish. Or, was that the short correction we needed before pushing on?