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Re: GDM - Goldstream Mining

Hi prawn, Nice to see GDM finally making a move eh? Strange I thought at first, a trading halt for an offspins resourse upgrade. :confused: The intraday movement yesterday looks like the cat got out of the bag before the ann so they put the halt in place to prevent the price going up too much before the ann which would be a clear sign of leakage and not a good look for the company. Anyone else have thoughts on this?
 
Re: GDM - Goldstream Mining

Yes, the news was available from the tsx well before the halt on the ASX...allowed savvy buyers to get in a secure a slice. Fairly shoddy work by management. Though then again, was a halt required?
 
Re: GDM - Goldstream Mining

STRAT said:
Hi prawn, Nice to see GDM finally making a move eh? Strange I thought at first, a trading halt for an offspins resourse upgrade. :confused: The intraday movement yesterday looks like the cat got out of the bag before the ann so they put the halt in place to prevent the price going up too much before the ann which would be a clear sign of leakage and not a good look for the company. Anyone else have thoughts on this?
Click to expand...

GDM spun off it's nickel prospects into CNI. CNI went up a hundred and something percent on those drilling results, so it would seem obvious to the people that follow both stocks closely that GDM would rise as well.

;)
 
Re: GDM - Goldstream Mining

with thanks to Danube @ HC

CNI has total 29,338,416 full diluted shares

GDM owns 14,283,000 CVI shares; Plus

30% of CNI project free carrying interests

With simple valuation method, say the benefit of no cash contribution till completion of BFS will offset the cash in hand by CNI, 30% of Tanszina project is worth:
29mx30%/70%=12.4m CNI share equ.

Totally GDM has equ. interests in CNI as: 12.4+14.3=26.7m shares.

Its value is: $85m

CNI up $1.99, If GDM tracking the movement, it will be up $53m in market capital.

Fully diluted number of GDM shares is:158.2m

So if tracking CNI, GDM should be up 53/158.2=33.5c.

Which is 52+33.5=85.5c

The market has discount the CNI's value by more than 50%. Maybe people didn't take into account the 30% free carrying interests in Tanzania/Mozambique Project.

At 65c, GDM has negative EV even apply 20% discount on the value of the equity in CNI and UNX, which means core iron ore copper and gold pronect plus the JV with Lonmin, and Royalities in B4M are liabilities!

What a dirty cheap stock!

DYOR>>>>>
 
Re: GDM - Goldstream Mining

I have made adjustments in red, due to the price rise of CNI.

prawn_86 said:
ok guys here is my analysis, i like this one a lot.

GDM – Goldstream Mining​

http://www.goldstreammining.com.au/

Summary
GDM’s business strategy is to create shareholder value through a diversified portfolio. The Company maintains maximum exposure for shareholders through their multi commodity portfolio approach, coupled with geographical diversity. In 2007, GDM shareholders will be exposed to AU$19 million in exploration through joint ventures and companies in which GDM is the major shareholder, with only AU$1.5 million of that expenditure being sourced from their own funds.

The GDM board is working seeking to maximize shareholder value through a mixture of core projects, where it may take the project through to development, and spin-offs & joint ventures, where the board feels it is important to bring in specialist expertise or extended funding or where keeping the assets in GDM would not maximize shareholder value.
The core focus is to broaden the Company’s core project portfolio primarily in copper, nickel, Platinum Group Elements (PGE) and iron ore with the objective of developing cashflow and company making assets.
GDM’s modus operandi is “Delivering value through diversity, discipline and development”.



Structure

160mill shares @ 50c = $80mill market cap.
@ 60c = $96mill
@ 65c = $104mill

$7.5mill cash at bank

Holds 39.5% of Uranex = 32mill UNX shares = $35.5 mill (@ $1.10)

Holds 51% of Continental Nickel (TSX : CNI) = 13.7mill shares = $51mill (@ AU$3.70)

Therefore total of $94mill in investments and cash

Projects

Cairn Hill
“The Company has identified magnetite - copper - gold mineralisation
which preliminary metallurgy indicates can produce a niche product that does not require pelletisation. Goldstream has done significant feasibility work is currently pursuing opportunities to commercialise the project.”

Supposed to be in the midst of a feasibility study which was due June, but I cant find an announcement about it.

In Situ (Undiluted)
Initial Pit
Indicated 10.0mt 51.9% magnetite 0.40%Cu 0.12g/tAu

40000tonnes copper = $360mill
12000 grams gold = $8.4mill
5Mt Iron ore = (not sure how to value this) conservatively $300mill???

Total Insitu = $670mill

They are planning to have first shipment before mid year 08, so will be up and running relatively quickly.

They say the high quality is good as it doent need to be pelletised (??), but I don’t know much about iron.

They are planning a 10yr mine life at 1.4Mtpa.

Currently trying to find a cornerstone/off take in order to fund the mine


Mt. Woods
Near prominent hill. Doesn’t seem to be too advanced but one project is going for Palladium, platinum and gold, with results so far of:
22m @ 0.95g/t Pt+Pd+Au

Other Mt. Wood project is looking for IOCG copper/gpld, similar to what Oxiana has hit and is developing in that area. Not very good results so far with average grades of only about .4% cu.

Lets say very conservatively that the Mt. Wood project should add another $10mill onto the market cap even if just for potential or sale.


Management

Two of the directors have AZC connections. One has been on the board previously the other is still a non-exec director. I know of them and that they seem to be true to their word and don’t overstate things unlike some other mining co’s.

Cons

Seem to have found support at 50c, and there is a big stack at 53 and 54c, not sure if they are real or not, but if it can clear these it looks set for a good run.
I think it will need a good announcement to get it back on the radar, but hopefully they will be forthcoming.

Conclusion

So heres the totals:

$94mill cash and shares
$70mill (10% of in situ) for Cairn Hill
$10mill for Mt wood

Total = $174mill

= $1.08 cents per share is what I would say its worth fundamentally.

I think that figure is relatively conservative especially as they are planning to be shipping iron within a year. It also doesnt take into account further exploration upgrades, which seem quite likely ezpecially at Cairn Hill.

They don’t seem to have recovered from the correction and I think 50c presents a great buying opportunity for a mid – long term hold. A few announcements should be coming up with the extended cairn hill drilling plus CNI’s drilling could hit something. Also could expect a corporate announcement with regards to funding, or the feasibility study before dec I would think.

Enjoy!
:D
Click to expand...

Note that my valuation now falls in line with the Patersons valuation of $1.09 cps. But their valuation is not taking into account the higher price of CNI either.

Either way, there is still a lot of upside here imo
 
Re: GDM - Goldstream Mining

Nearly $400 000 worth of director buying today.

Could it be that the chinese cornerstone deal is nearly done and dusted?

I need more capital to spread across all the stocks i like :banghead::banghead:
 
Re: IXR - IMX Resources

GDM have changed their name to Investment, Mining & Exploration Resources (IMX) listed under that code as of today.

And to cap off the change in name they have released the results from the canadian co which they own 53% of, Continental Nickel.

New Discovery at Zone J: 2.59% Ni and 0.41% Cu over 17.95 meters
New Discovery at Zone L: 2.40% Ni and 0.50% Cu over 15.25 meters including 4.66% Ni and 0.91% Cu over 4.35 meters
Click to expand...

Not a bad way to start off :)

Hoping that a name change brings a change in fortune for these guys, although i dont currently hold.
 
Re: IXR - IMX Resources

GOne into a halt until monday.

Hopefully the announcement of a cornerstone deal, for their Carin Hill project, with the chinese which they were trying to finalise before years end
 
Re: IXR - IMX Resources

prawn_86 said:
GOne into a halt until monday.

Hopefully the announcement of a cornerstone deal, for their Carin Hill project, with the chinese which they were trying to finalise before years end
Click to expand...
The ann we have all been waiting for finally comes and the whole market seems to be on holiday:banghead:
 
Re: IXR - IMX Resources

I was very happy with the announcement Strat.

100% of their product taken in a contract and the company they are selling to has purchased a 10% stake at a 15% premium to the current price.

As I have said before, it was only a matter of time before the market recognised this one and it is now trading close to my first valuation target. If CNI price stays high, IXR is worth around $1.

Check previous posts for detailed calcs.

Good to see some South Aus projects being recognised :)
 
Re: IXR - IMX Resources

The deal appears to be a very good outcome, particularly with credit so tight, it really pays to have the development money in the bank at the moment. Well done prawn_86 and other holders.
 
Re: IXR - IMX Resources

Hi All, this thread has gone cold, (as has IXR share price). Whats consensus on the annoucement confirming the offtake agreement, profit vs CAPEX costs? Seems some who brought in after are dumping again, then there is a LOT of dumping going with this stock, as it can't be day traders scapling points, too little percentage movement. Be interesting to see how TOP 20 shareholding has changed.

I can't make up my mind whether to buy more or to sell, have held, and really thought Cairn Hill ann would see this thing alight, however it seems market is disappointed.

Thoughts? Mr D holds (for now)
 
Re: IXR - IMX Resources

Admitedly the Cairn Hill project has high costs/low margin, but with the anticipated increase in iron ore prices, we should see this percentage improve.

Also, IXR management have stated that about half of the Carin Hill revenue will come from the Cu and Au so it seems they have known from the start the IO would be a low margin product.

The placement at 85c is a very good thing as Doogie said, and its good to see cornerstone partners willing to cough up above market.

Im not too sure what the CNI price is at the moment, but i still maintain my $1 fundamental target, which is in previous posts. Its just a matter of time for market recognition imo...
 
Re: IXR - IMX Resources

MrDevine said:
Hi All, this thread has gone cold, (as has IXR share price). Whats consensus on the annoucement confirming the offtake agreement, profit vs CAPEX costs? Seems some who brought in after are dumping again, then there is a LOT of dumping going with this stock, as it can't be day traders scapling points, too little percentage movement. Be interesting to see how TOP 20 shareholding has changed.

I can't make up my mind whether to buy more or to sell, have held, and really thought Cairn Hill ann would see this thing alight, however it seems market is disappointed.

Thoughts? Mr D holds (for now)
Click to expand...
Hi Mr D, I sold out last week. With Cairn Hill coming through under expectation. The current market conditions and the fact that GDM is unloved I decided cash in hand and at the ready was a better option. Let most of my other mid term holds go as well leaving only a few longs and a few I consider/hope are due to be re-rated short term .

I have assumed you are the same Mr D as on ShareTrader
 
Re: IXR - IMX Resources

Yup, and on HC too.

Why is the market placing so little or ZERO value on Cairn Hill? I'll hang it out, buy more if it goes mid fifty.

Mr D.
 
Re: IXR - IMX Resources

To all those who hung on waiting for IMX to reach their potential, what's the feeling around camp? With the shipping licence granted for Cairn Hill plus the discovery in Tanzania, and the OZL JV, maybe growing share price movement will be sustainable. I'm wondering whether now is a good time to get back in?
Thoughts anyone?
 
Re: IXR - IMX Resources

First loading of Iron Ore to be this week aparently?

what are peoples thoughts on this stock?
 
Re: IXR - IMX Resources

Is this stock being undervalued?
I think this stock has been getting less attention than what its worth.
any thoughts?
 
Re: IXR - IMX Resources

well and truly undervalued. When you consider Western Plains jumped to over a $ today without having reached the same milestones...then you have to be in this one.
Another couple to put on your watch list: PXR and CXM

Remember to DYOR.
 
Re: IXR - IMX Resources

There is an article in the Australian newspaper regarding Woomerea and the Defence Dept that should create some interest for IXM. Assuming readers do their homework!
 
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