RHK - Red Hawk Mining

[Broadside]

Re: FDL - Flinders Diamonds

That strange my stock (SAU) announced actually finding gold and the stocks price fell, are you sure about this theory?

radar, my theory needs fine tuning based on your experience. Better to just throw out theoretical values of the size of a resource rather than actually drill it. That way no one is disappointed and the sky is the limit. Shareholders are happy and so is the company itself, much cheaper to pay a geologist than have all those pesky drill rigs on site.

 

[Whiskers]

Re: FDL - Flinders Diamonds

At the moment, I suspect much of the volume is traders, so be prepared for when the music stops.

Good luck to those who ride it...

No doubt kennas.

FDL has 486 million shares and the turnover yesterday was 1.9 billion.

Thats about a four times number of shares turnover.

Already turned over 500 million again this morning.

 

[Snakey]

Re: FDL - Flinders Diamonds

No doubt kennas.

FDL has 486 million shares and the turnover yesterday was 1.9 billion.

Thats about a four times number of shares turnover.

Already turned over 500 million again this morning.

Wrong wiskers
They have a lot more shares than that try 973 million market cap at 10 cents = 97.3 million
.......................................

 

[yangxh]

Re: FDL - Flinders Diamonds

Im not sure i follow you here Yang.

Can you please tell me what you mean by "FDL found 500mt"? My understanding is they are only TARGETING 300mt and havent even detailed a drilling program yet.

A bit the same as me saying i am going to target 100mt in my backyard and then getting the shovel out imo

remembered a wrong figure. sorry. it should be 325 to 390 mnt target. it is realistic as it is so close to FMG.

 

[prawn_86]

Re: FDL - Flinders Diamonds

I really dont think that nearology classifies as 'realistic'. Possible maybe but not realisitc.

Just my

 

[Whiskers]

Re: FDL - Flinders Diamonds

Wrong wiskers
They have a lot more shares than that try 973 million market cap at 10 cents = 97.3 million
.......................................

I stand corrected Snakey.

I missed those latest issues. My interest in FDL is mostly by virtue of their association with CRJ.

Still double turnover. : Far too many day trades for my comfort.

PS. Turnover in RAU and KAL (recent hot stocks) has ground down to a crawl... this must be where all the DT's have gone.

 

[SevenFX]

Re: FDL - Flinders Diamonds

nice iron ore ann, currently up 140%, pretty easy though when you last traded at .01

cheers

Where are yah Happytown for being the first alert us to FDL again, nice announcement.

Another one lining up at the bank... :

SevenFX

 

[rico01]

Re: FDL - Flinders Diamonds

How would you feel now if you paid 15c for this today currently .081

Ah! the inevitable slide back to reality . Maybe this is only worth 5c as sugested

 

[stefoid]

Re: FDL - Flinders Diamonds

How would you feel now if you paid 15c for this today currently .081

Ah! the inevitable slide back to reality . Maybe this is only worth 5c as sugested

Probably not as bad as if you had sold out for 1 cent two days ago. At least buyers at 15 cents have some hope.

 

[greggy]

Re: FDL - Flinders Diamonds

yeah of course but if they are onto a good thing, then having a free carried exposure is a no risk exposure to a much bigger profit, no?

Being free carried is often the way go for the smaller explorers, but its still early days. Daytraders really got ahead of themselves this morning. At 15c FDL was capitalised just under $150 million. YT might well be close to the mark with his valuation and all.
DYOR

 

[moneymajix]

Re: FDL - Flinders Diamonds

Flinders Diamonds: Delivering 790% to shareholders since yesterday

Friday, 23 November 2007

Adam Schwab writes:


For those who believe that the music will never stop, like the market’s most oft-quoted bull, Charlie Aitken, Flinders Diamonds should be a warning bell. Yesterday, the company, which despite its name doesn’t produce any diamonds (actually, it doesn’t produce anything) increased by 790%.

Flinders, which last year made a loss of $9,549, saw its share price increase from 1 cent to 8.9 cents per share, after the company announced "an independent review of the iron ore potential at its Hamersley tenement E47/882 ... has outlined an exploration target of between 325 and 390 million tonnes of iron ore."

However, it should be noted that the company hasn’t actually drilled any holes at the tenement yet. The resource has simply been "inferred".

Flinders also noted in its Annual Report that in 2005 the company reached a deal with Andrew Forrest’s Fortescue Mining under which the junior miner would receive a 1% royalty from Fortescue’s mining. The AFR noted today that "about 220 million tonnes of Fortescue’s new 1 billion resources released last week lies on Flinders' ground".

Flinders’ rapid share price appreciation sounds a lot like 1969, when every company which announced that it had pegged a stake within shouting distance of Poseidon’s infamous, salty, Windarra nickel deposit, would see their scrip leap by hundreds of percent. Poseidon itself rose from a mere 80 cents to $280 in a matter of months, only to fall right back down to earth.

As noted by Trevor Sykes in The Money Miners (which should be compulsory reading for anyone investing in resources stocks):

It was not until September 1974 that production of nickel concentrates begun at Windarra. Then, in addition to other woes, Poseidon struck mine problems. [Further], low nickel prices were making Windarra only marginally economic. Poseidon now had large debt commitments and had been late to see the storm signals. It had maintained lavish offices and high exploration expenditure.

... then, Poseidon canvassed other major Australian miners and still received no offer for its once priceless mine. The AIDC as the major creditor appointed a receiver. Had it been any company other than Poseidon a receiver would have been appointed much earlier.

The Windarra mine closed in 1978. Poseidon itself was later acquired by Robert De Crespigny’s Normandy Mining (with WMC having acquired Windarra).

In a touch of irony, the Windarra mine is now owned by a company called Poseidon (formerly Niagara Mining), which is chaired by none other than Australia’s third richest man, Andrew Forrest, Flinders’ next door neighbour.

Meanwhile, while the market waits for Flinders’ eventual drilling results, no one will accuse the company of being flippant with shareholders funds. Last year, Flinders noted that its legal fees were $4,834. Barely a day’s work for one of the big city firms.

 

[Prospector]

Re: FDL - Flinders Diamonds

I was a sweet young girl when the Poseidon story happened :- my Aunt was employed with I think Flinders Mining which was associated in some way with Poseidon. And they made a lot of money from Poseidon shares. I dont know the details, my parents were naiive to the share market but I just knew that they struck it rich! So for a kid who wasnt even in her teens to remember all this is kind of weird, and it left its mark with me. And of course their exit strategy was spot on too. Must do some more digging

 

[SevenFX]

Re: FDL - Flinders Diamonds

Perhaps few smaller traders still workin this stock with over 52mil in the first 30mins bieng massive volume for FDL.

Whether it goes anywhere, returns to it 15c highs remains to be seen, as recent n decent resistance is yet to be overcome.

Floor support seems strong and say a build from here is immerent given fibs haven't been broken...yet...???

SevenFX

 

[yangxh]

Re: FDL - Flinders Diamonds

can anyone suggest how much the share is worth if FDL approves that it has 300+mnt through drilling program in the next couple of years?

 

[analyst80]

Re: FDL - Flinders Diamonds

can anyone suggest how much the share is worth if FDL approves that it has 300+mnt through drilling program in the next couple of years?

Don't get too excited as they haven't drilled yet but if you value Flinders Diamonds on the way Fortescue was valued from the start by brokers Flinders' value is between $1.34 per share to $2.00 per share depending on how much iron ore there is (between 325mil-390mil) and the price of iron ore.

 

[greggy]

Re: FDL - Flinders Diamonds

can anyone suggest how much the share is worth if FDL approves that it has 300+mnt through drilling program in the next couple of years?

As FDL's directors have already stated, the 300 million tonne figure is just a target, nothing more. Some traders are getting way ahead of themselves.
Alot of work needs to be done first. This might take quite a few years. In the end they might find next to nothing. Of course, at the end of the day FDL is just a very speculative stock.
DYOR

 

[Prospector]

Re: FDL - Flinders Diamonds

Don't get too excited as they haven't drilled yet but if you value Flinders Diamonds on the way Fortescue was valued from the start by brokers Flinders' value is between $1.34 per share to $2.00 per share depending on how much iron ore there is (between 325mil-390mil) and the price of iron ore.

I'd be very happy with the more modest estimate of $1.34. Don't want to be greedy now. Hoping for a parallel FMG story here.

 

[prawn_86]

Re: FDL - Flinders Diamonds

Don't get too excited as they haven't drilled yet but if you value Flinders Diamonds on the way Fortescue was valued from the start by brokers Flinders' value is between $1.34 per share to $2.00 per share depending on how much iron ore there is (between 325mil-390mil) and the price of iron ore.

Analyst, could you please provide a little more detailed calcualtions to your valuations, rather than just saying the final figure.

I know a lot of other companies with a lot more prospects and drilled results than FDL that have a lower market cap, so im sure everyone would be interested to see how exactly you came to this conclusion.

thanks

prawn

 

[analyst80]

Re: FDL - Flinders Diamonds

Analyst, could you please provide a little more detailed calcualtions to your valuations, rather than just saying the final figure.

I know a lot of other companies with a lot more prospects and drilled results than FDL that have a lower market cap, so im sure everyone would be interested to see how exactly you came to this conclusion.

thanks

prawn

I'm not going to go into the whole in depth evaluation and do the work for you however the market cap is what investors are prepared to pay for the company at the present time. This is not a good indication of what its future worth could be. I evaluated the company comparing it to FMG if the conceptual amount of iron ore was in fact reality. If you want to do some research look at companies like Atlas Iron, Sundance Resources and Territory Iron and what they were valued at during the exploration stage.

 

[prawn_86]

Re: FDL - Flinders Diamonds

I'm not going to go into the whole in depth evaluation and do the work for you however the market cap is what investors are prepared to pay for the company at the present time. This is not a good indication of what its future worth could be. I evaluated the company comparing it to FMG if the conceptual amount of iron ore was in fact reality. If you want to do some research look at companies like Atlas Iron, Sundance Resources and Territory Iron and what they were valued at during the exploration stage.

ASF is founded on evaluation and discusion, not just stating a figure and not providing research to back it up.

If you provide your research it will allow other members to critique it and discuss the pros and cons. No research is virtually ramping and has a chance of being removed.

Please conisder this in you future posts.

Thanks

prawn