Well, no ann yet and trading halt ends at 10 am tomorrow Fri Oct 19. Maybe the ann will come during the day. Her's hoping it will be positive, apart from just a cap raising.
MDX - Mindax Limited
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Well, no ann yet and trading halt ends at 10 am tomorrow Fri Oct 19. Maybe the ann will come during the day. Her's hoping it will be positive, apart from just a cap raising.
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And here is the answer is case anyone is interested...thanks to N_terra over on HC
eb,
Looks like Fe content rather than Fe2O3 content
Fe = 56 molecular wt, Oxygen = 16
Fe2O3 = 2x56+3x16= 160
Fe percentage of Fe2O3 = (2x56)/160 = 70%
Fe2O3 = 67.3%
Fe content= 70% of 67.3% = 47%
cheers
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Another trading halt? why?
Release then damn announcement? LOL
Why would MDX be holding back the Cap raising? Waiting for further Iron results? Perhaps to even out the effects of both?
Too many questions....
I wonder what MDX has up there sleeves... nothing???
Release then damn announcement? LOL
Why would MDX be holding back the Cap raising? Waiting for further Iron results? Perhaps to even out the effects of both?
Too many questions....
I wonder what MDX has up there sleeves... nothing???
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I think you will find it has got quite a lot...including AU$1mn in the bank...a 10 hole drilling program underway right now.... upto 17KMs of Fe....a U project with Heathgate.... and gold.
So...a little bit more than "nothing" then
All for an $8mn mkt cap.
EB
So...a little bit more than "nothing" then
All for an $8mn mkt cap.
EB
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I mean regarding the pending ann, which may just be a cap raising.
Granted MDX has some great assets, but what does the short term future hold for MDX? I find it strange MDX would put the co in a trading halt for just cap raising, and now, as of this morning, trading is suspended. Any thought on this situation?
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perhaps they saw the market is not doing much today and they would wait until it looks good for an announcement and re-open..
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No idea why.... let's see what happens... I am happy to hold so whether they are suspended or not doesnt make any real difference short term...unless you bought T+3
EB
EB
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seems to be quite a clever cap raising...
First 3.8mn new shares at 13c raises $494k - negligible dilution there.
Then the what looks like a bit of a bargain to me.
For every 5 shares you hold you will have the right to buy 2 shares at 10c.... each share you buy under this issue will have a free attaching option 20c maturity June 2008.
In other words the higher the SP goes the more the 2 for 5 issue is worth to you and thus the more valuable both the new issue and the option is.
Simillar to the CVI equation at the moment.
And even after all this there will only be:
60,228,467 shares including the placement
24,091,386 if fully issued under the 2 for 5 offer at 10c
Total shares thus : 84,319,853
Options: 26,214,224
Free attaching options under 2 for 5 - 24,091,386
Total options after the issue : 50,303,610
Thus MDX will have about $4mn to develop the U, Au and Fe projects. Plus next June when the oppies mature will have 50,305,610 X .20 = $10,061,122.
With the Fe sampling results due any moment now if you want to get hold of some of those 10c shares with free attaching options its just a case of what price you get in at when trading resumes on Monday.
This gets my vote - it seems to be a well thought out cap raising.
Especially as us shareholders are getting our new shares at 10c...while the "sophisticated investors" are paying 13c.
EB
First 3.8mn new shares at 13c raises $494k - negligible dilution there.
Then the what looks like a bit of a bargain to me.
For every 5 shares you hold you will have the right to buy 2 shares at 10c.... each share you buy under this issue will have a free attaching option 20c maturity June 2008.
In other words the higher the SP goes the more the 2 for 5 issue is worth to you and thus the more valuable both the new issue and the option is.
Simillar to the CVI equation at the moment.
And even after all this there will only be:
60,228,467 shares including the placement
24,091,386 if fully issued under the 2 for 5 offer at 10c
Total shares thus : 84,319,853
Options: 26,214,224
Free attaching options under 2 for 5 - 24,091,386
Total options after the issue : 50,303,610
Thus MDX will have about $4mn to develop the U, Au and Fe projects. Plus next June when the oppies mature will have 50,305,610 X .20 = $10,061,122.
With the Fe sampling results due any moment now if you want to get hold of some of those 10c shares with free attaching options its just a case of what price you get in at when trading resumes on Monday.
This gets my vote - it seems to be a well thought out cap raising.
Especially as us shareholders are getting our new shares at 10c...while the "sophisticated investors" are paying 13c.
EB
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Oops....the free attaching options are 1 for every 2 rights subscribed not 1 for 1 as I mistakenly suggested in my last post.
Just the options totoals have changed....
Here are the corrected figures:
seems to be quite a clever cap raising...
First 3.8mn new shares at 13c raises $494k - negligible dilution there.
Then the what looks like a bit of a bargain to me.
For every 5 shares you hold you will have the right to buy 2 shares at 10c.... each share you buy under this issue will have a free attaching option 20c maturity June 2008.
In other words the higher the SP goes the more the 2 for 5 issue is worth to you and thus the more valuable both the new issue and the option is.
Simillar to the CVI equation at the moment.
And even after all this there will only be:
60,228,467 shares including the placement
24,091,386 if fully issued under the 2 for 5 offer at 10c
Total shares thus : 84,319,853
Options: 26,214,224
Free attaching options under 2 for 5 - 12,045,693
Total options after the issue : 38,259,917
Thus MDX will have about $4mn to develop the U, Au and Fe projects. Plus next June when the oppies mature will have 38,259,917 X .20 = $7,651,983
With the Fe sampling results due any moment now if you want to get hold of some of those 10c shares with free attaching options its just a case of what price you get in at when trading resumes on Monday.
This gets my vote - it seems to be a well thought out cap raising.
Especially as us shareholders are getting our new shares at 10c...while the "sophisticated investors" are paying 13c.
EB
Just the options totoals have changed....
Here are the corrected figures:
seems to be quite a clever cap raising...
First 3.8mn new shares at 13c raises $494k - negligible dilution there.
Then the what looks like a bit of a bargain to me.
For every 5 shares you hold you will have the right to buy 2 shares at 10c.... each share you buy under this issue will have a free attaching option 20c maturity June 2008.
In other words the higher the SP goes the more the 2 for 5 issue is worth to you and thus the more valuable both the new issue and the option is.
Simillar to the CVI equation at the moment.
And even after all this there will only be:
60,228,467 shares including the placement
24,091,386 if fully issued under the 2 for 5 offer at 10c
Total shares thus : 84,319,853
Options: 26,214,224
Free attaching options under 2 for 5 - 12,045,693
Total options after the issue : 38,259,917
Thus MDX will have about $4mn to develop the U, Au and Fe projects. Plus next June when the oppies mature will have 38,259,917 X .20 = $7,651,983
With the Fe sampling results due any moment now if you want to get hold of some of those 10c shares with free attaching options its just a case of what price you get in at when trading resumes on Monday.
This gets my vote - it seems to be a well thought out cap raising.
Especially as us shareholders are getting our new shares at 10c...while the "sophisticated investors" are paying 13c.
EB
after having a closer look into MDX I decided to grab a few today.
for two main reasons
1. the Mt Forrest Iron Ore Sampling Results are due any day could be a large market mover.
2. I wanted access to the upcoming rights issue, with the ex-rights date set at the 1st of November.
what could be really interesting is the results from the Mt Forrest iron ore sampling program with a strike of 17km, with a width in some areas of up to 2km and thickness of up to 200m whether its largely hematite or magnitite it is going to be one huge iron ore deposit.
with grades of around 55%FE already uncovered there is the possibility of discovering some high grade DSO ore on such a large strike area, and if they do remember what happened to IRM.
for two main reasons
1. the Mt Forrest Iron Ore Sampling Results are due any day could be a large market mover.
2. I wanted access to the upcoming rights issue, with the ex-rights date set at the 1st of November.
what could be really interesting is the results from the Mt Forrest iron ore sampling program with a strike of 17km, with a width in some areas of up to 2km and thickness of up to 200m whether its largely hematite or magnitite it is going to be one huge iron ore deposit.
with grades of around 55%FE already uncovered there is the possibility of discovering some high grade DSO ore on such a large strike area, and if they do remember what happened to IRM.
Agreed, however unless I'm misreading it, the "sophisticated investors" have the same access as us retail investors to the entitlement - as per the ann "The abovementioned Placement will be eligible to participate in the entitlements issue".
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Some strong buying towards the end of the day, possibly some results have leaked? Depth has been strong on the buy side since the recent ann but is looking much stronger, all of sudden that is, this tells me somethings up, but what? . I hold 
. I hold not suprising the forward movement in MDX today, with the giant Mt Forrest iron ore prospect results due any day now, and also less than 2 weeks to get into MDX before the record date for the capital raising, where its a 2 for 5 share placement at 10c and also a free attaching option.
MDX is one to get into early because as the record date approaches more people will try and get in for the free options and cheap shares.
Not to mention the exciting iron ore exploration at Mt Forrest.
MDX is one to get into early because as the record date approaches more people will try and get in for the free options and cheap shares.
Not to mention the exciting iron ore exploration at Mt Forrest.
"Giant Mt Forrest iron ore prospect results due any day now"... 'Giant'? lol
How about, "nice undervalued prospects for a very low caped iron ore explorer"
MDX are not FMG. Settle down Mick2006. Down boy! Down!
Another well undervalued YT pick notwithstanding (is that 1 word?)
How about, "nice undervalued prospects for a very low caped iron ore explorer"
MDX are not FMG. Settle down Mick2006. Down boy! Down!
Another well undervalued YT pick notwithstanding (is that 1 word?)
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Hey Mick, I assume all holders will be sent correspondance in relation to the share offer at 10 cents, also, to my understanding, for every 2 shares purchased at 10 cents, there will be 1 option given. Am I right?
And when you say 2 for 5 share placement, for every 5 shares held you will have the option to buy 2 shares at 10 cents?
Also, are these exchange traded options that are on offer?
Hey Pat, use 100,000 MDX shares as an example, under the rights issue you could buy 40,000 MDX shares at 10c (nice discount to current SP), and you would also receive 20,000 free attaching options.
Expect the SP to head north as we get closer to the rights issue ex. date of the 5th of November, as traders scramble to get in for their cheap shares and free options.
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MDXOA offers about 4 times leverage at the moment. Unless you are planning to convert (currently out of the money) you are probably better off treating MDX and MDXOA as two different companies.
Some people may sell their MDXOA to buy heads which will raise extra cash for MDX and also at the same time reduce the number of MDXOA in issue.
Yet we havent seen a lot of selling in MDXOA since the cap raising Ann... indeed if you look at depth there is hardly any for sale at all.
I hold both heads and oppies - the prospective capital gain possibilities multiplied by a leverage factor of 4 for holding oppies makes them just as attractive as the heads with 2 for 5 issue and free oppies.
MDXOA is an even thinner market than MDX - either way the heads are going up in value and the oppies can only follow. This will become blindingly obvious once the heads go above the 20c strike price.
For every 1 share you buy at the moment you can buy 4 options for the same money.
I therefore would not think holding options is a mistake when compared to the heads. Different reasons apply and what you loose on not buying the rights shares for 10c you will gain on the leverage. Having said that I own both.
Now just looking at the maths... lets keep it simple say you own 100k MDXOA.
So 100,000 X 0.04 = $4,000
You decide to sell these to buy MDX shares and take advantage of the upcoming cap raising. So with the proceeds you buy MDX at 16
You now have 25,000 shares at 16c
Yoy take up your rights and buy 10,000 rights shares under the 2 for 5 at 10c offer and have an extra 10,000 shares that have cost you $1000 and an extra 5,000 options that have cost you nothing.
Net result is
25,000 original shares
10,000 new shares that cost $1,000
5,000 free options
So now your net cost for 35,000 shares and 5,000 free options is $5,000.
Just for an example lets say we have a share price of 30c in the near future then.
Your profit situation would look like this.
25,000 shares @ 16c - now 30c - profit 14c or : $3,500
10,000 shares at 10c - now 30c - profit 20c or : $2,000
5000 free options trading at 15c - profit 15c or : $750
Total profit at 30c taking up full rights thus : $5,750
For an investment of $5,000
Or 115%
_____________
Keeping the options and forgoing the rights issue as you only hold oppies would give you the following.
100,000 MDXOA bought at 4c cost : $4,000
Share price 30c so options mkt price 15c.
100,000 MDXOA now worth $15,000 for a profit of :$11,000
for an investment of $4,000
Or 375%
_________
So selling the options to buy shares and then paying another $1,000 for take up the rights would, with the SP at 30c give you a profit of $5,750 - your original $5,000 now being worth $10,750.
Just holding the options (no need to pay for the rights) would give you a holding worth $15,000 and a profit of $11,000.
Finally all the above calculations do not take brokerage into account.
I have simply guessed the oppies would be at 15c with the heads at 30c... MDXOA has a premium at the moment and there are not that many around.
So please see that holding options is not a problem - after all if it were would people really be buying them today?
Indeed I love leverage - a well leveraged option bought at the right moment will always outstrip the gains available on the heads.
If you only bought oppies.. well done .... I wish I had only bought oppies instead I have both. The way it looks at the moment I would have preferred to just hold oppies to give me a far bigger gain on the upside.
Be happy
EB
Some people may sell their MDXOA to buy heads which will raise extra cash for MDX and also at the same time reduce the number of MDXOA in issue.
Yet we havent seen a lot of selling in MDXOA since the cap raising Ann... indeed if you look at depth there is hardly any for sale at all.
I hold both heads and oppies - the prospective capital gain possibilities multiplied by a leverage factor of 4 for holding oppies makes them just as attractive as the heads with 2 for 5 issue and free oppies.
MDXOA is an even thinner market than MDX - either way the heads are going up in value and the oppies can only follow. This will become blindingly obvious once the heads go above the 20c strike price.
For every 1 share you buy at the moment you can buy 4 options for the same money.
I therefore would not think holding options is a mistake when compared to the heads. Different reasons apply and what you loose on not buying the rights shares for 10c you will gain on the leverage. Having said that I own both.
Now just looking at the maths... lets keep it simple say you own 100k MDXOA.
So 100,000 X 0.04 = $4,000
You decide to sell these to buy MDX shares and take advantage of the upcoming cap raising. So with the proceeds you buy MDX at 16
You now have 25,000 shares at 16c
Yoy take up your rights and buy 10,000 rights shares under the 2 for 5 at 10c offer and have an extra 10,000 shares that have cost you $1000 and an extra 5,000 options that have cost you nothing.
Net result is
25,000 original shares
10,000 new shares that cost $1,000
5,000 free options
So now your net cost for 35,000 shares and 5,000 free options is $5,000.
Just for an example lets say we have a share price of 30c in the near future then.
Your profit situation would look like this.
25,000 shares @ 16c - now 30c - profit 14c or : $3,500
10,000 shares at 10c - now 30c - profit 20c or : $2,000
5000 free options trading at 15c - profit 15c or : $750
Total profit at 30c taking up full rights thus : $5,750
For an investment of $5,000
Or 115%
_____________
Keeping the options and forgoing the rights issue as you only hold oppies would give you the following.
100,000 MDXOA bought at 4c cost : $4,000
Share price 30c so options mkt price 15c.
100,000 MDXOA now worth $15,000 for a profit of :$11,000
for an investment of $4,000
Or 375%
_________
So selling the options to buy shares and then paying another $1,000 for take up the rights would, with the SP at 30c give you a profit of $5,750 - your original $5,000 now being worth $10,750.
Just holding the options (no need to pay for the rights) would give you a holding worth $15,000 and a profit of $11,000.
Finally all the above calculations do not take brokerage into account.
I have simply guessed the oppies would be at 15c with the heads at 30c... MDXOA has a premium at the moment and there are not that many around.
So please see that holding options is not a problem - after all if it were would people really be buying them today?
Indeed I love leverage - a well leveraged option bought at the right moment will always outstrip the gains available on the heads.
If you only bought oppies.. well done .... I wish I had only bought oppies instead I have both. The way it looks at the moment I would have preferred to just hold oppies to give me a far bigger gain on the upside.
Be happy
EB
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Interesting Post....
However the shares still seem very popular this morning.. Perhaps some forth coming news to get them back up at this level after the cap raising announcement..
However the shares still seem very popular this morning.. Perhaps some forth coming news to get them back up at this level after the cap raising announcement..
