MON - Monarch Gold Mining

[Who Dares Wins]

Googly, you ought to be careful mate. You have already had some of your posts on this MON thread removed a couple of days ago for saying things that can't be supported.

I'd like to know what your agenda is?

I mean, the directors are buying shares and the company has cash, but yet you're downing the company.

Are you looking to top up at a discount price or something?

 

[explod]

So what? I have lost a packet on many occasions, just part of investing. That is why you choose carefully and diversify. If you punt on a few specs you will get burnt.

 

[Boyou]

A least Monarch's trading halt insulated it from todays sell off.
Found this just a moment ago..hope it is true.I was thinking Mr Kiernen had taken his eye off the ball with MON...instead I see he has been a busy fella.

Mt Magnet sold to Monarch?

Thursday, November 08, 2007

MONARCH Gold has reportedly acquired the Mt Magnet operations in Western Australia from South African-based Harmony Gold for some $65 million.

Michael Kiernan

According to a report in the Australian Financial Review, several bidders contested for the Mt Magnet operations which has a resource of 2.7 million ounces of gold and a 2.7 million-tonne per annum plant.

The Michael Kiernan-chaired Monarch, which is in a trading halt pending the release of an announcement, intends to become a 500,000-ounce per annum gold producer by 2009.

Monarch claims it has the "largest Australian-controlled ground position in the Kalgoorlie region," with an estimated resource base of 2.3Moz of contained gold.

The company is exploring at the Davyhurst project near Kalgoorlie and recently acquired Riverina project, Mount Ida, Minjar and Bellevue.

Monarch is set to list on the Toronto Stock Exchange in the first quarter of 2008, after listing on the Dubai Exchange earlier this year.

Harmony Gold, the world's fifth biggest gold producer, has operations in South Africa, Australia and Papua New Guinea.

Its Australian operations also include the South Kal tenements, which lie between Kalgoorlie and Kambalda in WA.

MiningNews.net was unable to obtain comment from Monarch prior to publication.

Prior to the trading halt, Monarch was trading at 26c.

Click here to read the rest of today's news stories.

Chers Ya'll

 

[2BAD4U]

This announcement seems to have gone unnoticed. I've just jumped onto these guys. They look like some serious mines they have bought and with the gold price ???? Here's hoping

 

[2BAD4U]

http://www.monarchgold.com.au/documents/573.pdf

Here's the announcement. $65 Million settlement with $20 mil in shares to Harmony as part of the $65M.


Quote from Harmony:
"Harmony views Monarch as being the best-placed gold mining company to drive this project forward, and with a significant equity interest in the development of the project, we have confidence that there is long term value in the project under the Monarch umbrella"

Monarch plan to concentrate on exploration until 2009 and recommence mining in 18 - 24 months.

IMO - Put these ones in the bottom draw and wait.

 

[Boyou]

For all us Monarch hopefuls, here is an excerpt from Minesite Home Edition .

If the gold price continues to rise, there is no doubt Monarch is holding a winning hand. But, the real value in the plan lies not in the “historic” workings at Hill 50, Davyhurst, Mt Ida, Bellevue, Riverina, or any other mines which have fallen under the company’s control. The value lies in the vast - and that is really, really, vast - package of tenements and mining leases which come with the deals. According to Monarch’s own reckoning it is already the biggest land-holder in the Eastern Goldfields region of Western Australia, an area which contains the fabulous wealth of Kalgoorlie, Coolgardie, Leonora and assorted other locations.

Michael Kiernen is a truly gutsy guy.

 

[So_Cynical]

Monarch certainly do have potential and there ambitious
anyone know there hedging situation?

Damm 100 character thing.

 

[Flick15]

Monarch certainly do have potential and there ambitious
anyone know there hedging situation?

Damm 100 character thing.

Completely unhedged and if you read this you will appreciate what is ahead for MON as it's future lies not only in it's current proven resources but in it's discoveries from the under-explored tenaments MON has been purchasing.

http://www.minesite.com/nc/aus/mine...gold-tending-to-run-before-it-can-walk/1.html

November 28, 2007 - Monarch Gold Tending To Run Before It Can Walk

By Our Man In Oz

Most companies, like people, learn to walk before they run. Not ASX listed Monarch Gold. Despite a poor production record over the past year, and a share price which is stuck in the cellar, Monarch is showing absolutely no restraint in its desire to play a leading role in the revival of the Australian gold industry. Over the past year it has acquired, consolidated, invested, expanded, and recruited at a pace so hectic that it is hard to keep track of exactly what it owns or find an answer to the question of why such a hurry. Before looking at the rapidly-expanding asset base inside Monarch the answer to the “why grow so fast” question lies in a simple belief held by the company’s chairman, Michael Kiernan, that the gold price is heading for US1000 an ounce and there is a race underway for gold assets, even if not everyone knows the race has started.

Other observers of the gold market might share Kiernan’s belief, but few are running as hard. Earlier this month, Monarch took perhaps its biggest step so far when it agreed to pay A$65 million for the historic Hill 50 goldmine in Western Australia. The key word in that sentence is historic, because Hill 50 is one of only two goldmines in Australia to operate continuously over the past 50 years. The other is the Kalgoorlie Superpit (and its predecessors). Close followers of the Australian gold sector will already be detecting the key message in this dispatch from Oz. That Monarch is buying old, pre-loved mines, with the hope of turning them into something special.

If the gold price continues to rise, there is no doubt Monarch is holding a winning hand. But, the real value in the plan lies not in the “historic” workings at Hill 50, Davyhurst, Mt Ida, Bellevue, Riverina, or any other mines which have fallen under the company’s control. The value lies in the vast - and that is really, really, vast - package of tenements and mining leases which come with the deals. According to Monarch’s own reckoning it is already the biggest land-holder in the Eastern Goldfields region of Western Australia, an area which contains the fabulous wealth of Kalgoorlie, Coolgardie, Leonora and assorted other locations.

After announcing the acquisition of Hill 50 on November 8, Kiernan said a first step would be to shut the mine, and keep it on care and maintenance for up to two years. In that time, exploration would be stepped up across the 1,100 square kilometres of tenement which came with the deal. There is little doubt that more gold will be found. At the point of the Hill 50 sale the previous owner, South Africa’s troubled Harmony Gold, said it was sitting on a resource inventory of 2.7 million ounces, plus a 2.7 million tonne-a-year processing plant. For Monarch to put a padlock on the gate of that operation is what an Australian might describe as “gutsy”, because it is saying in very clear terms: better times are expected and we can afford to sit on the resource, find more, and switch the plant back on when it suits us.

Kiernan said the Hill 50 acquisition would take Monarch’s JORC-compliant resource base to more than five million ounces of gold. “This is a significant step towards achieving our goal of becoming a 500,000 ounce per annum gold producer by 2009, and this project will provide a substantial contribution to profit for Monarch shareholders,” he said. “Monarch now has two world-class goldmining projects, Davyhurst/Mt Ida and Hill 50. And with the gold price surpassing US$800 per ounce, we are well positioned to capitalise on the potential of these historic projects.” He’s right. But, there’s more water to flow under Monarch’s bridge before it can claim success with its “gutsy” expansion plans. Getting its operations to work efficiently would be a good starting point.

“Yeh, we had a shocking bloody quarter,” Kiernan said of the three months to the end of September when Minesite popped into his West Perth office for a natter two weeks ago, just before the Hill 50 purchase was announced. “We went into the wrong pit, it was low grade, and we’ve moved out of that. The second quarter will be fine. But there’s no doubt we’re on the right track.” That bad quarter is reflected in Monarch’s share price which briefly traded up to A36 cents last April, but which has been stuck in the sub-A30 cent range for the past month. Investors can see Kiernan’s plan, and they can certainly hear it when he delivers one of his booming addresses, but they’re not yet putting their money where his mouth is.

That should change. If nothing else, Kiernan is an absolute enthusiast for mining, in all of its forms. Whether he’s trying to do too much, with other interests in iron ore (Territory Resources), mineral sands (Matilda and Olympia), copper (India Resources), vanadium (Windimurra), and mining engineering services (Mineral Resources) is an arguable point. Gold, however, is something that really tickles his imagination, and when the topic in a one-on-one conversation turns to gold his eyes light up, he gets louder , if that’s possible, and he enthuses with true zeal.

“I’ve looked around and can see lots of little people who can’t make it on their own,” he said. “If you put them together, and they have access to capital, good management and exploration skills, then you have a real recipe for success.” Minesite interrupts with this question: Aren’t you doing the same as Apex Minerals which is also consolidating gold assets in Australia. “Right, but they got the idea off me,” Kiernan said. “And they’re going for refractory ore, I’m going for the other stuff. Look at what’s been done so far. We’ve put Siberia Mining together, Davyhurst, Riveria, and Mt Ida. They’re four different areas, but if you put them under one processing plant you have a project. There’s no doubt gold is a winner.” :

 

[Boyou]

A really encouraging report,I think.

I have just finished reading a book on how to pick mining stocks. Two of the major factors are

1. Ground Positions ..look for companies that have large and strategic land holdings
2. Management. Look for agrressive ,experienced management teams

Seems to me Monarch scores high on these two. Kiernen's strategy of putting Hill 50 "On care and maintenence"is a sure sign of confidence in their future and the future POG. When the price is at all time highs and general investor focus is fully on gold he can throw open the gates and crank it up to production very quickly.

 

[2BAD4U]

Hmmmm I see Michael Kiernan just topped up with 500,000 shares yesterday. I like to think it's a good sign when the chairman is buying.

 

[Miner]

Yes with MK it is a good sign for HIM and bad sign for share holders when he buys from secondary market. Most of shares promoted by him get first inflated so people like start buy. When the shares plummett then he starts buy. Of course he is smart that is why he gets free options for which we pay 20 cents, for shares he pays 15 cents for which we pay 40 cents.
Examples are : IRL, MON, and few others.
Further to that his relative James K gets the privilege to earn commission from all rights issue as well. Say three cheers for MK and Crawley Investment.

Regards

 

[Miner]

Now there was a trading halt in MON.
MK has bought large amount of parcels.
Now the halt was to get shareholders approval for making one share for 3 share conversion. That would mean the share price will not be 75 cents but will be much less than that. DIO, POS all went like that and prices devalued.ON the other hand FMG is going to split just like CSL and BHP did. Share prices will speak for themselves.
There is one tangent from recent speeches of MK that he is looking for a synergy to amalgamate few of his stables. So in near future IRL, MON and few others probably get amalgamated. That will conserve MK's travel time !
Any one is following MON please comment on your expectation on MON future. Share price has been stagnant between 24 and 25 cents inspite of high buying by MK.

Regards

 

[Lucky_Country]

Quarterly will be very interesting early next year that could be the catalyst for a sp increase especially if you throw in some good drilling results maybe even an increased jorc

 

[porkpie324]

I have to concur with 'miner' over share price consolidation, I have been watching MON for a while, SP has come off lately but it looked like bottoming out on good volume. With the no of shares consolidating I will wait now to see what happens, anyone have any idea of the ex dates for this. porkpie

 

[porkpie324]

And thats what happened weakness with the SP after 3-1 consolidation, the quotes also look a bit top heavy this morning too. There's an article on MON in November's issue of Resource Srocks', well worth reading. I'm looking hard at these, hav'nt traded them yet though.porkpie

 

[trtkjd1]

Have just gone through the report on the hill 50 purchase , and call i cant quite work out why they are putting it on care and maintenence for a while. They suposedly have 2.7 m ounces grade 3.2 which if its open cut should be very robust . Dont get me wrong i like the company and am holding some stock just wondering if anyone is wondering the same thing.

 

[2BAD4U]

After announcing the acquisition of Hill 50 on November 8, Kiernan said a first step would be to shut the mine, and keep it on care and maintenance for up to two years. In that time, exploration would be stepped up across the 1,100 square kilometres of tenement which came with the deal. There is little doubt that more gold will be found. At the point of the Hill 50 sale the previous owner, South Africa’s troubled Harmony Gold, said it was sitting on a resource inventory of 2.7 million ounces, plus a 2.7 million tonne-a-year processing plant. For Monarch to put a padlock on the gate of that operation is what an Australian might describe as “gutsy”, because it is saying in very clear terms: better times are expected and we can afford to sit on the resource, find more, and switch the plant back on when it suits us.

I think the post by Flick15 (post #68) explains the reasons. I am sitting on these now waiting for that time to come when they do flick the switch.

 

[2BAD4U]

Nice run on MON the last couple of days getting back to it's "consolidated" price of 75c, but the volume isn't there so it will be interesting to see if this run lasts.

 

[Miner]

Nice run on MON the last couple of days getting back to it's "consolidated" price of 75c, but the volume isn't there so it will be interesting to see if this run lasts.

Dear 2BAD4U
thanks for the optimism. I do not want to pour water on high hope as me too having bought MON at 25 cents is sitting on them to get high . However as I have predicted earlier in this column MONDA has gone up only to 75 cents today. With MK story - a strange one all the time. My personal belief is he is a great operator and orator too. Look at IRL and you know why. It has been lagging around 16 cents for long time and only went up when they were issuing some rights. Unfortunately ASX only issues speed tickets when they gone up and the reverse is not true !
Territory Resources is one off story of success. Of course with Consolidated it went up because of strategic resources reasons and not of management strenght . If there was no take over then on its own merit the share price would have been remained stagnant.
My hope (so that I can book some profit) is there could be some takeover target or acquisition if the MONDA price remains stable at 75 cents on Thursday. Having worked in gold mines as well the moth ball story of a recent acquisition of a running plant does not sound convincing as an operator but there could be some hidden stories which surely to unfold in a weeks' time.

My two cents today.

Regards

 

[Lucky_Country]

I would like to think we will get a good exploration result in the near future as they have been drilling for some time now with no resulting jorc upgrade.
They will want a bang for the TSX listing