MDX - Mindax Limited
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Hard to tell what the general trend is (if there even is one). Looking at the recent chart, sellers are completely dominating buyers, and day traders are simply ruling this one. Hard to see where even the buyers are collecting the stock to sell!
Out of the last 21 days, I can see only been 3 days that have actually closed higher than the open
My guess only, but I think many smaller holders may be spooked, and selling down in panic. For long term holders, hopefully the traders will bugger off.
Out of the last 21 days, I can see only been 3 days that have actually closed higher than the open
My guess only, but I think many smaller holders may be spooked, and selling down in panic. For long term holders, hopefully the traders will bugger off.
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Talk about grinding to a stop. Nothing has happened on this baby for a week now. The volume is so low it's scary. Yikes....this is my worst nightmare, holding a stock where there is no volume. OH well...these things happen.
Hard to tell what the general trend is (if there even is one). Looking at the recent chart, sellers are completely dominating buyers, and day traders are simply ruling this one. Hard to see where even the buyers are collecting the stock to sell!
Out of the last 21 days, I can see only been 3 days that have actually closed higher than the open
My guess only, but I think many smaller holders may be spooked, and selling down in panic. For long term holders, hopefully the traders will bugger off.
prawn_86
Mod: Call me Dendrobranchiata
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JJ
Can you please provide some form of evidence as to why you think they are undervalued.
Thanks
Can you please provide some form of evidence as to why you think they are undervalued.
Thanks
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Dosnt seem to be much interest following the gold announcement ... I thought this would set it off.. maybe every one is busy looking at the 1billion tonnes FMG has..
bit of a shame really ...
bit of a shame really ...
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Dosnt seem to be much interest following the gold announcement ... I thought this would set it off.. maybe every one is busy looking at the 1billion tonnes FMG has..
bit of a shame really ...
Give it time. If there is quality assets in their tenements, and the early announcements suggest that the potential for economic grades of Fe and Au are there (ie they have not been ruled out), then the market will price this share accordingly. There seems to be a lot of anxiety with the specs at the moment as traders dip in to lock in a 30 to 50% gain in a month. The buying at a few speccies covered on this forum, RAU, KAL and MHL, bear testament to that. Now they may well produce the goods - KAL grades are great - but that is not the point. So if the initial grades are not 60% plus hematite or 5 to 10g/tonne Au, the sell off is brutal. Not a justifiable position at all if you are an investor albeit one with an appetite for risk.
2 to 3 g/t Au is economic provided it is low cost to mine (ie open pittable), is a consistent grade and is in sufficient quantity. This will not be known until further drilling is complete leading to a mining study. This is still some time away. Also remember the targeted Fe drilling results are only just starting. Fe targets were at length and initial surface sampled provided good grades. Lets see if the grades are found at length and depth. That will send this north. If not, then the price will falter.
So in the long run, today's announcement is merely an indicator that there could be economic deposits on their tenements. Drilling will provide results.
Keep the faith. No reason to sell yet unless you are a disappointed trader looking to do a 'KAL', 'IRM', 'RAU' or a myriad other speccies who have had their day in the sun. Investing is a longer term game based on informed decisions. In the short term there will be pain as Joe Trader cuts his losses and moves on to the next potential bolter only to sell this one down when the magical (and rare in my experience) grades are not produced all at once. 'What no silver platter...sell, sell, sell.'
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Good points Bushman...but $12.6mn market cap....bit on the low side isn't it atm....
This is a post I put on HC today.
______
Today's gold ANN was interesting to say the least. MDX already has a JORC of 36,000 ounces AU and the latest ANN was the result of drilling to check out the surrounding area for any continuation of the gold bearing seams. Although the grades were good they were reasonably deep and not vey thick - typically 1m - 6m. Do bear in mind however the latest drilling was not to increase the JORC but to gather further data on where the gold bearing faults were headed and see what was down there. Once this is applied to the existing data it will be extremely useful for MDX moving forward as they seek to further develop the gold tennements.
On the separate subject of the Fe I would refer to you page 9 of the quarterly report issued in July.
The following is a direct copy and paste
"Initial results suggest low impurities. Coincidental
drill intercepts in holes that previously tested the Paradise Bore gold
mineralisation indicate individual ironstone thicknesses to 55m"
Could that give us a clue as to the thickness of the Fe tennements. Taking 55m as a rough average it is possible to work out a very rough estimate for the amount of Fe bearing structure there. Although as TigerTen quite rightly pointed out it is too early to calculate this with any degree of sense until some drilling is carried out and we know whether it is magnetite or hematite or both ...and if both in what ratios.
Still taking 2.6km X 55mwidth X 55m depth (if that 55m is correct) and then applying this to the other 3 targets can give us a clue as to what quantities of Fe are actually there. Again as already stated without knowing the SG or structures within the tennement, I would shy away from putting my name to a calculation at this stage.
Safe to say though that there is a lot of Iron there at what appear to be some very good grades and at least some of it...if not most of it is hematite.
So now the big question... what is MDX worth now we know a bit more about the gold and Fe projects.
First the gold 36,000 ounces taking gold at AU$850 per ounce for a simple calculation makes the gold worth AU$30,600,000 but it is still in the ground and is a bit small in the general scheme of things. So is a value of 10% of the market price a reasonable worth for this JORC resource....I think so.
So let's value the gold at $3mn for now....remember it comes with loads of historic data and shows substantial potential for an increase in that JORC moving forward.
Taking the number of shares in issue as 84mn post rights MDX will have around AU$3.2mn in cash on the balance sheet.
The Uranium project with Quasar/Heathgate is still moving forward but is not possible to value. Although Quasar and MDX continue with their work and there is always the potential for some news here at any time.
So that gives us the following backing the MDX share price.
Cash AU$3.55mn - AU$350k cash burn from the last quarterly gives us AU$3.2mn cash on the balance sheet.
Valuing the gold project at 10% of JORC and taking no account of future developments gives us another AU$3mn
So that is AU$6.2mn of backing which equals 7.4c per share.
That means the Fe tennemennts and the U project with Quasar are only valued at today's close at 7.6c.
Just to recap the Fe tennements are described as follows:
· Target Fe1 lies on the uppermost iron unit of the syncline, an equivalent position to the Mt Richardson hematite mineralisation to the south and is 2600m long with surface widths of 40 to 70m.
· Target Fe2 is also on the uppermost iron unit, centred 3.7km north of Target Fe1 and extends over 1250m in length with similar widths to those at Target Fe1.
· Target Fe3 is on the lower western contact and extends over 1600m with widths of around 100m.
· Target Fe4 is internal to the ironstone package and is 600m long and 45-60m wide.
I hope all this makes some sense and goes some way to showing how undervalued MDX is once all the various projects are considered as backing for the share price.
Moving forward to June next year - as long as the heads are over 20c then there are 38mn options to be converted which will produce another AU$7.6mn for MDX and still leave them with only 122mn shares after conversion.
So they have some great projects, cashflow is assured and the Fe and Gold projects are moving rapidly past the simple exploration level and are becoming development projects with huge upside.
Now at 15c is all that really worth only an AU$12.6mn mkt cap??? ... when half that AU$12.6mn is covered by either cash or a gold JORC.
MDX is seriusly undervalued when all the above is taken into consideration imo....anyone got any comments
EB
This is a post I put on HC today.
______
Today's gold ANN was interesting to say the least. MDX already has a JORC of 36,000 ounces AU and the latest ANN was the result of drilling to check out the surrounding area for any continuation of the gold bearing seams. Although the grades were good they were reasonably deep and not vey thick - typically 1m - 6m. Do bear in mind however the latest drilling was not to increase the JORC but to gather further data on where the gold bearing faults were headed and see what was down there. Once this is applied to the existing data it will be extremely useful for MDX moving forward as they seek to further develop the gold tennements.
On the separate subject of the Fe I would refer to you page 9 of the quarterly report issued in July.
The following is a direct copy and paste
"Initial results suggest low impurities. Coincidental
drill intercepts in holes that previously tested the Paradise Bore gold
mineralisation indicate individual ironstone thicknesses to 55m"
Could that give us a clue as to the thickness of the Fe tennements. Taking 55m as a rough average it is possible to work out a very rough estimate for the amount of Fe bearing structure there. Although as TigerTen quite rightly pointed out it is too early to calculate this with any degree of sense until some drilling is carried out and we know whether it is magnetite or hematite or both ...and if both in what ratios.
Still taking 2.6km X 55mwidth X 55m depth (if that 55m is correct) and then applying this to the other 3 targets can give us a clue as to what quantities of Fe are actually there. Again as already stated without knowing the SG or structures within the tennement, I would shy away from putting my name to a calculation at this stage.
Safe to say though that there is a lot of Iron there at what appear to be some very good grades and at least some of it...if not most of it is hematite.
So now the big question... what is MDX worth now we know a bit more about the gold and Fe projects.
First the gold 36,000 ounces taking gold at AU$850 per ounce for a simple calculation makes the gold worth AU$30,600,000 but it is still in the ground and is a bit small in the general scheme of things. So is a value of 10% of the market price a reasonable worth for this JORC resource....I think so.
So let's value the gold at $3mn for now....remember it comes with loads of historic data and shows substantial potential for an increase in that JORC moving forward.
Taking the number of shares in issue as 84mn post rights MDX will have around AU$3.2mn in cash on the balance sheet.
The Uranium project with Quasar/Heathgate is still moving forward but is not possible to value. Although Quasar and MDX continue with their work and there is always the potential for some news here at any time.
So that gives us the following backing the MDX share price.
Cash AU$3.55mn - AU$350k cash burn from the last quarterly gives us AU$3.2mn cash on the balance sheet.
Valuing the gold project at 10% of JORC and taking no account of future developments gives us another AU$3mn
So that is AU$6.2mn of backing which equals 7.4c per share.
That means the Fe tennemennts and the U project with Quasar are only valued at today's close at 7.6c.
Just to recap the Fe tennements are described as follows:
· Target Fe1 lies on the uppermost iron unit of the syncline, an equivalent position to the Mt Richardson hematite mineralisation to the south and is 2600m long with surface widths of 40 to 70m.
· Target Fe2 is also on the uppermost iron unit, centred 3.7km north of Target Fe1 and extends over 1250m in length with similar widths to those at Target Fe1.
· Target Fe3 is on the lower western contact and extends over 1600m with widths of around 100m.
· Target Fe4 is internal to the ironstone package and is 600m long and 45-60m wide.
I hope all this makes some sense and goes some way to showing how undervalued MDX is once all the various projects are considered as backing for the share price.
Moving forward to June next year - as long as the heads are over 20c then there are 38mn options to be converted which will produce another AU$7.6mn for MDX and still leave them with only 122mn shares after conversion.
So they have some great projects, cashflow is assured and the Fe and Gold projects are moving rapidly past the simple exploration level and are becoming development projects with huge upside.
Now at 15c is all that really worth only an AU$12.6mn mkt cap??? ... when half that AU$12.6mn is covered by either cash or a gold JORC.
MDX is seriusly undervalued when all the above is taken into consideration imo....anyone got any comments
EB
Bushman has some good points.. Instant profits are not on every stock, and sometimes the rewards may take what seems a long time. Even then, no guarantee MDX will go anywhere at all.
I think it's a little premature to put any value to the assets at this point, as it's very much too early to say after what is only chip samples, and some not-outstanding gold results. After drilling and maybe some JORC assessments that would be more appropriate.
Mindax may wish to do something though with the SP languishing. There is a real possibility that those that wish to take up the entitlement falls well short - and they don't receive the cash they are banking on. Even at 13c I have to consider where taking them up at 10c is worth it. Bad timing on their behalf
, or maybe just unlucky with stockmarket down last couple of weeks.
I think it's a little premature to put any value to the assets at this point, as it's very much too early to say after what is only chip samples, and some not-outstanding gold results. After drilling and maybe some JORC assessments that would be more appropriate.
Mindax may wish to do something though with the SP languishing. There is a real possibility that those that wish to take up the entitlement falls well short - and they don't receive the cash they are banking on. Even at 13c I have to consider where taking them up at 10c is worth it. Bad timing on their behalf
, or maybe just unlucky with stockmarket down last couple of weeks.
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gfresh....you say that people will not take up the rights and MDX will thus have a cash shortfall.... my understanding was that the whole thing was underwritten.
EB
EB
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Gfresh,
You map doesn't seem to be correct. I'm not sure if that massive tenement in Orange (furthest west) belongs to MDX.
Also, the areas in grey and green belong to JMS, and not GE resources+the other which I can't read. To the south JMS also own the massive block which you can just see the top off. This extends all the way to Mt Ida.
Where did you get this info from? It could be an old applications map?
You map doesn't seem to be correct. I'm not sure if that massive tenement in Orange (furthest west) belongs to MDX.
Also, the areas in grey and green belong to JMS, and not GE resources+the other which I can't read. To the south JMS also own the massive block which you can just see the top off. This extends all the way to Mt Ida.
Where did you get this info from? It could be an old applications map?
Tenement Map comes from TENGRAPH database system, WA Dept of Industry and Resources, which I think is always kept up to date. G.E. resources (E29/588) may be a holding company or similar by JMS, not entirely sure.
The one in the black (E29/581) is actually listed as 'Askins', however on another forum somebody pointed me towards Red Rock Resources (listed on http://www.rrrplc.com/english/3.htm#. If you look at the 3rd graphic from the bottom on the right, looks like the tenement.
Jupiter had a joint agreement with Red Rock for Mt Ida, and Mt Hope (E29/560), which Jupiter wholy purchased in May this year under an agreement. I don't believe this is on the map, and is further south.
Anyhow, I am emailing MDX with my chart to confirm whether it's correct or not as we speak
The one in the black (E29/581) is actually listed as 'Askins', however on another forum somebody pointed me towards Red Rock Resources (listed on http://www.rrrplc.com/english/3.htm#. If you look at the 3rd graphic from the bottom on the right, looks like the tenement.
Jupiter had a joint agreement with Red Rock for Mt Ida, and Mt Hope (E29/560), which Jupiter wholy purchased in May this year under an agreement. I don't believe this is on the map, and is further south.
Anyhow, I am emailing MDX with my chart to confirm whether it's correct or not as we speak
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gfresh....once again well done mate on putting your photo shop literacy to good use.
In my experience Greg Bromley always replies to shareholders promptly.
So do post his reply with regard to your map and overlays.
You may recall that last year Wayne McCrae was so impressed with t4p's graphics work that he gave him a job......
So at least there is a precedent for company directors utlizing the skills of shareholders.
The MDX thread over on HC has had a lot of views this weekend so your work has at least been noticed.
It would be nice to see that map and overlay in an official ASX ANN though.
keep up the good work.
EB
In my experience Greg Bromley always replies to shareholders promptly.
So do post his reply with regard to your map and overlays.
You may recall that last year Wayne McCrae was so impressed with t4p's graphics work that he gave him a job......
So at least there is a precedent for company directors utlizing the skills of shareholders.
The MDX thread over on HC has had a lot of views this weekend so your work has at least been noticed.
It would be nice to see that map and overlay in an official ASX ANN though.
keep up the good work.
EB
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Gold results should be out this week, so lets hope that it coincides with some postive sentiment from the US.
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gold results were out last week pommiegranite.....I don't think there any more due...
As to buying MDX at 10c - 11c ....I hope not - at 13c it is hopelessly undervalued. At 10c the mkt cap would be about $6mn or $8.4mn (with $3.2mn on the balance sheet) post the end of November when the rights have to paid.
I am still mystified as to why it is below 20c... I have even sold a few other positions so I have cash free to hoover up more MDX and MDXO at these levels.
EB
As to buying MDX at 10c - 11c ....I hope not - at 13c it is hopelessly undervalued. At 10c the mkt cap would be about $6mn or $8.4mn (with $3.2mn on the balance sheet) post the end of November when the rights have to paid.
I am still mystified as to why it is below 20c... I have even sold a few other positions so I have cash free to hoover up more MDX and MDXO at these levels.
EB
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Guys MDX has released an amazing an today
"significant areas of magnetite mineralisation associated
with the outcropping iron formation has been highlighted by
the aeromagnetic data particularly around the fold closure.
The magnetic anomalies extend over 17km and range
across 250m on the east limb to 2,000m on the west
limb."
"significant areas of magnetite mineralisation associated
with the outcropping iron formation has been highlighted by
the aeromagnetic data particularly around the fold closure.
The magnetic anomalies extend over 17km and range
across 250m on the east limb to 2,000m on the west
limb."
