NQM - North Queensland Metals

[noirua]

North Queensland Metals is Australia's newest gold producer from the Pajingo Mine JV near Charters Towers, NQM have a 60% interest. The Baal Gammon Project, 100% interest, is at Herberton, West of Cairns, and is a copper-silver-indiam resource.

Website: http://www.nqm.com.au

Boardroom Radio report, "Gold production target at Pajingo achieved", with CEO, Mr John Kinstry: http://www.brr.com.au/event/42799

 

[Golf 16]

The follwoing was in the Australian May 12 2008:
But the big news is that North Queensland Metals (NQM) will start developing its Baal Gammon deposit for commissioning late next year. In the historic Herberton mining region inland from Cairns, Baal Gammon has copper and tin, but also silver and indium.
In regard to the last mentioned, there was a report on Thursday that indium prices rose by $US200 a kilogram just in the past month to hit as high as $US730/kg. This was on the back of reports that China is further restricting exports and also building stockpiles of the metal used in every flat panel and television screen made in the world.
I would be interested in any opinions on the value of this stock.

enjoy golf.

 

[Golf 16]

This looks like a lonely thread.
I thought I might have a go at supplying some numbers. Most of the info has come from their prospectus and / or announcements. There is some conflicting info so I have done my best.
One major uncertainty for me is how to go from an "In Ground Value (or Reserves)" to a share value. I have used mixed methods.
What do you think?

If the figures provide any indication of worth, then a share value is between $1.17 to $0.98.

Golf is good.

 

[mrgroundwork]

hey golf... ur not alone... ive been watching for a bit as well... it looks very tempting... seem to have plenty in the ground... obviously the market is currently pricing in a lot of risk for the company to move to production phase, hence the lack of SP movement since the commissioning...

i'm gonna keep watching and do a bit more research... don't know much about iridium either, but being a key ingredient in flat panels can't be a bad thing, considering how much of a status symbol they have become...

 

[Golf 16]

Thanks Mr Groundwork for looking in. I think the element is Indium (In). I didn't know much about it either. According to NQM prospectus, the amount of Indium varies somewhat (or is affected by high variance in samples), and so I formed the impression that reserves were not as certain. It also appears that the method of extraction is difficult - at least that is the impression from listening to the BRR report. I would be most appreciative if you could check and evaluate the valuation. I would be very happy to consider improvements or other points of view. The sp has held today (Tuesday) in a poor day for miners.
Like golf, I am very much a learner. Cheers.

 

[boiler]

Gold Still Shining

Higher gold price boosts Dominion Mining
21-January-09 by Rebecca Lawson




A higher gold price has boosted Dominion Mining's quarterly revenue by 27 per cent despite a dip in production and higher cash costs at its Challenger mine in South Australia.

In its December quarterly report released today, the West Perth-based miner's revenue reached $29.3 million through the sale of 25,510 ounces of gold at an average price of $A1149 per ounce.

In the previous quarter the company sold 28,113oz of gold at an average price of $822/oz.

Over the six months to the end of December 2008, Dominion achieved $51.9 million in revenue, up from $55.3 million in the previous year.

Gold production was down 13 per cent over the December quarter to 25,014oz while cash operating costs were up from the September quarter's $A351/oz to $431/oz.

Meantime, Dominion produced 52,283oz of gold over the six months to the end of December 2008 at a cash cost of $416/oz.

The company has forecast gold production for the next six months to be around 54,000oz with a cash operating cost of $425/oz.

Dominion said at the end of the December quarter, 45,000 gold ounces, representing around 7 per cent of current reserves, was sold under forward sales contracts. The average delivered price was $A1003/oz.

"Of this position, 30,500 ounces at an average price of $1,035 are currently scheduled to be delivered over the 6 months January - June 2009. Deliveries into these contracts will be dependent on the spot gold price prevailing at that time," Dominion said in its report.

At around noon today the price of gold in Sydney was $US849.90 per fine ounce, up $US20.40 on Tuesday's close of $US829.50.

At the end of the December quarter, the company had $51.4 million in cash and $5 million in bullion.

Shares in Dominion were up 11 cents to $3.55 at 13:56 AEDT.

 

[boiler]

Gold price hits $1375 AU. Prospects looking good for this little producer. Quartiles out this week, cashflow should be solid.DYOR Cheers

 

[boiler]

Continues to impress. Gold price continues to rise, production cost falling gradually, no debt and should report a nice profit next month. Undervalued to say the least.

 

[Aston]

With the AU Gold price recently heading near $1400 AUD, I would be interested to read what others believe is the reason the NQM share price is wavering, compared to the GOLD index XGD. For example is it due to the amount of Reserves and Resources being quoted in recent company reports or are there other factors at play. Or is this stock moving in line with comparable small cap gold producers.

Thanks

 

[noirua]

NQM are under a takeover bid by Conquest Mining CQT that values them at 0.5 CQT + 10c in cash for each NQM share.
CQT are at 34.5c and equates to 27.25c a share with the 10c in cash.
NQM last trade was at 26.5c valuing the company at about $53 million.
The directors of NQM consider the bid inadequate.
http://wabusinessnews.com.au/en-story/1/81212/NQM-rejects-Conquest-takeover

 

[Aston]

If appears that "Shareholders are mobilising to protect their interests" with the launch of the following website http://nqmshareholders.com , which contains information on the company and the proposed takeover.

 

[PickEm]

A good post Aston. I posted the same on HotCopper.

The website will be of interest to confident holders with a medium term view.

 

[Aston]

A new announcement has been released for NQM
Summary: Outstanding Underground Drilling Results
Release time: 1/07/2010 8:50:00 AM
Price sensitive: Yes

ASX link http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01075755

 

[noirua]

What a puzzle we have here: Conquest's offer for NQM is worth 32c a share (15c cash + 0.5 CQT shares for 1 NQM); and Heemskirk's offer is worth 36c (1.2 HSK shares for 1 NQM).

Conquest (CQT) hold 20.91% of shares in NQM.

Newmont Capital have indicated they will accept Heemskirk's (HSK) offer for their NQM stock.
Offer requires 90% acceptance as it stands at the moment.

NQM have advised acceptance of HSK's offer.

Of course both sides or one bidder could drop out.

***
My own feeling is that Conquest hope Heemskirk will drop out if they can't get 90%, or Heemskirk's stock price will fall.

Heemskirk hope that the director agreeing to accept Conquest's offer withdraws his acceptance and Conquest agree.

NQM hope Heemskirk win the day but may privately hope Conquest will add another 7c a share to their offer and Heemskirk raise their offer, and / or Heemskirk drop their 90% acceptance.

My guess is Conquest will raise their offer to 15c cash and 0.75 shares in CQT per NQM share = 39c a share.