MON - Monarch Gold Mining

Boyou · 5 February 2008

Time to ring the bell again for Monarch

SP up 8.3%..I guess due to more buying by Mr Kiernen and perhaps the Mt Magnet purchase finalisation.

Now if they can just meet their production targets ......

grace · 5 February 2008

Boyou said:
Time to ring the bell again for Monarch

SP up 8.3%..I guess due to more buying by Mr Kiernen and perhaps the Mt Magnet purchase finalisation.

Now if they can just meet their production targets ......

Trading Halt......Some buying in to move the share price up before more capital raising perhaps? They are short on money in the short-term.....I think there was mention of raising more capital in the qrtly unfortunately.

2BAD4U · 7 February 2008

So was the trading halt for the announcement of becoming a substantial holder in AYR? If that was the case then why didn't AYR go into a trading halt also?

If so, I feel like a kid who got excited about an ice-cream, took one lick and the top fell off onto the ground.

2BAD4U · 7 February 2008

All right a dog has come along and about to lick up my ice-cream......

Suspension from quotation pending an announcement, was the reason. So what does / could it all mean?

Lucky_Country · 7 February 2008

Raising capital but how much do they want ?
Mt Magnet purchase maybe even a bit more too fast track production from there and refurbish the mill.

grace · 7 February 2008

Lucky_Country said:
Raising capital but how much do they want ?
Mt Magnet purchase maybe even a bit more too fast track production from there and refurbish the mill.

We'll know tomorrow I guess, but I heard a rumour that $35 million was being raised. They need some short term funds! I hope they don't keep going with the cash burn!

Lucky_Country · 7 February 2008

grace said:
We'll know tomorrow I guess, but I heard a rumour that $35 million was being raised. They need some short term funds! I hope they don't keep going with the cash burn!

Doubt we will find out tommorrow as MON is suspended pending an announcement.
$35 million = 70 million shares ! at a placement of 50c obviously !
Just seem to be losing money on this one bigtime cant remember the last good news !

jman2007 · 7 February 2008

Been reading through this thread and I have some comments.

This appears to me to be a very high-risk enterprise. I know everyone is very excited by the "vast" landholdings around Kalgooorlie, but exploration is ALL about risk, and increased land holdings can really eat into a companies budget.

I don't know the exact details of their holdings, but their annual miniumum expenditure committments for exploration leases, rent to be paid to the pastoral holders, local shire etc but it sounds like the costs will be significant.

Has anyone actually stopped to think about how they are going pay for the Harmony purchase? There is a fleeting mention in the market release talking about a $35M cap raising, but is this really the way to go? And if Hill50 gets moth-balled for two years you can forget about that as a cash earner until 2010.

Not trying to be negative here, but these are relevant questions that need to be asked.

jman

Disclaimer: DNH

Lucky_Country · 7 February 2008

jman2007 said:
Been reading through this thread and I have some comments.

This appears to me to be a very high-risk enterprise. I know everyone is very excited by the "vast" landholdings around Kalgooorlie, but exploration is ALL about risk, and increased land holdings can really eat into a companies budget.

I don't know the exact details of their holdings, but their annual miniumum expenditure committments for exploration leases, rent to be paid to the pastoral holders, local shire etc but it sounds like the costs will be significant.

Has anyone actually stopped to think about how they are going pay for the Harmony purchase? There is a fleeting mention in the market release talking about a $35M cap raising, but is this really the way to go? And if Hill50 gets moth-balled for two years you can forget about that as a cash earner until 2010.

Not trying to be negative here, but these are relevant questions that need to be asked.

jman

Disclaimer: DNH

MON is a cash burning machine for sure but is producing soon too be profitable (hopefully).
There surely must be some drilling results due soon have already released a few patchy results that look promising.
MT Magnet will become the centrepiece of their operations and debt and hedge free so you can make your own assumptions wether you think they will be a success early days but have a good buisness plan with great foundations.

jman2007 · 9 February 2008

I see MON have applied for an extension for their suspension from official quotation, could be for a number of reasons, one possibly resulting from difficulties in raising the necessary $35M, which wouldn't be a good sign.

If I held this I'd be keeping a close eye on the Davyhurst Mill, and in particular the cash costs per ounce. I don't know enough about Keirnan's background to say whether I believe he is capable or not in turning MON into a success story.

Sitting on the fence with this one at the very least, I'll be keeping an eye on them, but atm the Hill50 stand-down period still concerns me.

jman

juno123 · 10 February 2008

There seems to be a lot of speculation around that MON will never come out of suspension and will become like VRE.

I hope that doesn't happen as I have a lot of money invested in this company, but they appear to be playing games with shareholders and something just doesn't seem right.

grace · 10 February 2008

juno123 said:
There seems to be a lot of speculation around that MON will never come out of suspension and will become like VRE.

I hope that doesn't happen as I have a lot of money invested in this company, but they appear to be playing games with shareholders and something just doesn't seem right.

MON have 5 million oz of gold, VRE have 896 000 oz from the last quarterly. In the present climate, raising money will become harder and harder. I hope this is their last!

juno123 · 10 February 2008

grace said:
MON have 5 million oz of gold, VRE have 896 000 oz from the last quarterly. In the present climate, raising money will become harder and harder. I hope this is their last!

Grace,

Where does it say that Monarch has 5 million oz of gold and VRE only 896,000?

You don't work for Monarch do you?

jman2007 · 10 February 2008

grace said:
MON have 5 million oz of gold, VRE have 896 000 oz from the last quarterly. In the present climate, raising money will become harder and harder. I hope this is their last!

Grace, I'm also taking issue with your post.

Even combining all the ounces from the various Resource categories and their Ore Reserves from the last MON Annual, I only get around half of your figure at roughly 2.6g/t.

Please explain where you get this figure of 5Moz from, as imo it is blatantly incorrect and misleading.

Thanks
jman

Lucky_Country · 10 February 2008

5 million oz is a combination of existing assets Davyhurst, Riverina, Minjar, Mt Ida, Bellveue and the purchase of Mt Magnet if they raise the funds which personally I think they will.
Hopefully that will be the last of their spending and will start too become profitable and self sufficient from Davyhurst.

grace · 10 February 2008

Gold Reserves as follows (including Mt Magnet purchase)

Mt Magnet 2 700 000
Davyhurst 1 500 000
Riverina 200 000
Mt Ida 143 000
Bellevue 120 000
Minjar 400 000
Total 5 063 000 oz
(manually added as I can't find my calculator)
Please advise if you don't agree! I guess I should have qualified my statement with the purchase of Mt Magnet. Sorry!

grace · 10 February 2008

Have a look at Michael Kiernan's presentation at the Sydney mining club this week (slide 8 is about Monarch, even though it is titled Territory Resources).
- expects to be cashflow positive mid march
- cost of production current $977/oz
- cost 2nd half $633/oz (aim of $600 longer term)
It is worth a listen.

http://www.sydneyminingclub.org/

2BAD4U · 10 February 2008

grace said:
..I heard a rumour that $35 million was being raised....

No rumour, from their announcement 4/2/08 re: Mt Magnet purchase:

“Despite capital and credit markets changing substantially in recent times, we are confident of raising
$35 million to complete the conditions precedents attached to the purchase process,” Mr Kiernan said.

I've gone back over all the announcements and annual report for the last 12 months and FWIW I still think the numbers stack up (for me), still looking long term on this one.

grace · 10 February 2008

grace said:
Have a look at Michael Kiernan's presentation at the Sydney mining club this week (slide 8 is about Monarch, even though it is titled Territory Resources).
- expects to be cashflow positive mid march
- cost of production current $977/oz
- cost 2nd half $633/oz (aim of $600 longer term)
It is worth a listen.

http://www.sydneyminingclub.org/

Estimated average cost 1st 6 months 08 is $677/oz (even though current $977). Production at Davyhurst is now at full pace (per this presentation) so that is good!

Lucky_Country · 10 February 2008

Best yet too come imo and is not that far away.
What I am really looking forward too is some good drilling results when they come I dont know but if they do a placement Im sure there would be some kind of payback for the cash generated.
If the money is raised that is also a positive for the company in this enviroment as money is hard too raise and only good prospects will get what they want.

MON - Monarch Gold Mining

Boyou

grace

2BAD4U

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Lucky_Country

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grace

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jman2007

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jman2007

juno123

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grace

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2BAD4U

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