Here is a copy of the latest Administrations report. What do you make of it?
http://stocknessmonster.com/news-item?S=MON&E=ASX&N=436687
http://stocknessmonster.com/news-item?S=MON&E=ASX&N=436687
MON - Monarch Gold Mining
- Thread starter Lucky_Country
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- mon monarch gold mining
Do you think Kiernan may try and buy it and relist?
This was his baby - he may try and reinvent himself
Interesting to see this old chestnut rear its head again
MK might have been able to make a first of things had MON been able to hold out for the $/oz prices we are seeing 2day (were they forward hedged?...
), some mutterings around that he wants to regain control of the company, but who really knows? Yes this is just one of his babies in the intensive care ward, last time checked out IRL that one was almost on life support.jman
A private individual with extensive mining contracting knowledge has engineered a deal to purchase the Minjar assets as a complete concern. This individual is known to me, and knows value when he sees it, and has the equipment and knowledge to run Minjar at a profit. He has gone into this with some partners, and beaten MK to any deal with the liquidators.
MK is trying score any of these gold assets up for grabs, at rock bottom prices (knowing full well that gold and gold mining companies will shine this year). MK thought he could offer bugger-all for most of MON's better assets, and score them, to his benefit. It hasn't happened, and won't happen.
The liquidators have done a deal to sell Minjar at a very good price (more than the proposed sale price last year) - but it comes at a cost - payment over an extended period.
The buyer of Minjar is no fool, knowing that the liquidators are seeking the maximum return to MON shareholders and creditors - so the buyer offered a good price, with the extended payment proviso. He knows he can cover the payments from future production - at a gold price that is running at nearly double what it was a year ago - and turn him a tidy profit with his low overheads (read - no West Perth office and BMW's or Mercs). The liquidators are happy - they can report a better sale price than expected - and they are in the job for longer.
MON is dead in the water - shareholders and creditors will get a minimal return - but better than nothing, I guess - and this is a timely warning to share investors not to place your money into companies that are led by people who have little or no interest in making sure that you get it back, with benefits.
The CEO and upper management are the ones who get the benefits - 1st class travel, luxury offices, expense accounts, prestige brand cars, etc etc, ad infinitum. They can nearly always bank on another media roadshow to suck more money in from new shareholders when the biscuit tin gets low.
MON was a typical, top-heavy, debt-laden operation - with a couple of good mines that couldn't support the overheads, and couldn't support the rest of the clapped-out mines owned by MON.
Be very aware, that many of these old mines have had the guts ripped out of them in the 80's and 90's, and if a company comes out and trumpets it's going to make zillions reviving old mines - start running.
Old mines are high overhead, low profit margin operations - often with less reserves than stated - and often come with costly hangovers from previous operations/poor management.
If the company can't produce good figures and action, showing new exploration and solid drilling results, and good cashflow - you might as well go and blow your dough on the pokies at Burswood. It will just have the same result, but much quicker, and with less worry.
I have no doubt the liquidators will be back soon with more reports of MON asset sales - but a lot of MON's assets won't bring much - because they aren't worth much. Minjar was one of the few assets that could have put MON on its feet, in another day, and another time, and with different management - but it's effectively amongst the "also-rans", from here on in - and if it's ever revived, it will only be the company shell that is revived.
MK is trying score any of these gold assets up for grabs, at rock bottom prices (knowing full well that gold and gold mining companies will shine this year). MK thought he could offer bugger-all for most of MON's better assets, and score them, to his benefit. It hasn't happened, and won't happen.
The liquidators have done a deal to sell Minjar at a very good price (more than the proposed sale price last year) - but it comes at a cost - payment over an extended period.
The buyer of Minjar is no fool, knowing that the liquidators are seeking the maximum return to MON shareholders and creditors - so the buyer offered a good price, with the extended payment proviso. He knows he can cover the payments from future production - at a gold price that is running at nearly double what it was a year ago - and turn him a tidy profit with his low overheads (read - no West Perth office and BMW's or Mercs). The liquidators are happy - they can report a better sale price than expected - and they are in the job for longer.
MON is dead in the water - shareholders and creditors will get a minimal return - but better than nothing, I guess - and this is a timely warning to share investors not to place your money into companies that are led by people who have little or no interest in making sure that you get it back, with benefits.
The CEO and upper management are the ones who get the benefits - 1st class travel, luxury offices, expense accounts, prestige brand cars, etc etc, ad infinitum. They can nearly always bank on another media roadshow to suck more money in from new shareholders when the biscuit tin gets low.
MON was a typical, top-heavy, debt-laden operation - with a couple of good mines that couldn't support the overheads, and couldn't support the rest of the clapped-out mines owned by MON.
Be very aware, that many of these old mines have had the guts ripped out of them in the 80's and 90's, and if a company comes out and trumpets it's going to make zillions reviving old mines - start running.
Old mines are high overhead, low profit margin operations - often with less reserves than stated - and often come with costly hangovers from previous operations/poor management.
If the company can't produce good figures and action, showing new exploration and solid drilling results, and good cashflow - you might as well go and blow your dough on the pokies at Burswood. It will just have the same result, but much quicker, and with less worry.
I have no doubt the liquidators will be back soon with more reports of MON asset sales - but a lot of MON's assets won't bring much - because they aren't worth much. Minjar was one of the few assets that could have put MON on its feet, in another day, and another time, and with different management - but it's effectively amongst the "also-rans", from here on in - and if it's ever revived, it will only be the company shell that is revived.
M.K. didn't get his cheap gold show - but at least he stands to - maybe - get some of Territory Resources lost $$'s back, out of the MON wreckage ..... W.A. Business News report ......
Monarch's Minjar set to be sold for $13m
13-March-09 by Rebecca Lawson
Perth businessman Robert Nash, through his company Golden Stallion Resources, is set to buy the Minjar gold asset from collapsed company Monarch Gold Mining for some $13 million.
A spokesperson for Monarch administrators, Pitcher Partners, said a share sale agreement has been executed with both parties currently working through the conditions attached to the deal.
Final approval of the sale agreement rests with creditors with a meeting scheduled for Monday.
The spokesperson would not confirm the exact sale amount but said it was more or less around the $13 million mark.
She added that confidentiality clauses prevented her from revealing the nature of the share sale agreement.
Monarch, which went into administration in July last year, had signed a heads of agreement to sell Minjar to Aard Metals and Energy for $11 million however that deal fell through.
Additionally, the spokesperson said the administrators have received several indicative offers for the sale of other Monarch's assets and or the restructure and recapitalisation of the company.
She said Pitcher Partners have shortlisted a number of parties that will now conduct further detailed due diligence and visit the sites. The due diligence period is set to end on March 27.
Monarch's Minjar set to be sold for $13m
13-March-09 by Rebecca Lawson
Perth businessman Robert Nash, through his company Golden Stallion Resources, is set to buy the Minjar gold asset from collapsed company Monarch Gold Mining for some $13 million.
A spokesperson for Monarch administrators, Pitcher Partners, said a share sale agreement has been executed with both parties currently working through the conditions attached to the deal.
Final approval of the sale agreement rests with creditors with a meeting scheduled for Monday.
The spokesperson would not confirm the exact sale amount but said it was more or less around the $13 million mark.
She added that confidentiality clauses prevented her from revealing the nature of the share sale agreement.
Monarch, which went into administration in July last year, had signed a heads of agreement to sell Minjar to Aard Metals and Energy for $11 million however that deal fell through.
Additionally, the spokesperson said the administrators have received several indicative offers for the sale of other Monarch's assets and or the restructure and recapitalisation of the company.
She said Pitcher Partners have shortlisted a number of parties that will now conduct further detailed due diligence and visit the sites. The due diligence period is set to end on March 27.
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Interesting to see this old chestnut rear its head again
MK might have been able to make a first of things had MON been able to hold out for the $/oz prices we are seeing 2day (were they forward hedged?...
jman
Hey Jman, amazing isn't it to consider where alot of these failed goldies would be in the current AUD gold price environment, MON VRE CRS to name a few
