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Golden China (AUC.v) : Gold in China & bioprocessing

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Golden China, merging with Michelago, a good fit, thnx the Bio technology

 

Market cap (post-merger, and post 1:5 reverse split):

56mn shs x $1.00 = c$56million

 

pre-merger chart / weekly ... update : daily-6mos

bigez0.gif

 

Business Combination with Michelago

In December 2005, Golden China and Michelago entered into an agreement to combine their business operations and continue under the name “Golden China Resources Corporation” with a geographic and strategic focus on the People’s Republic of China. Under the agreement, Golden China agreed to acquire all of the outstanding Michelago ordinary shares in exchange for Golden China common shares. The exchange ratio agreed to by Golden China and Michelago was one Golden China common share for every five Michelago ordinary shares (raised later) - that's one Golden China common share for every 37.5 Michelago ordinary shares (was 25) after taking into account the pre-business combination consolidation of Golden China common shares on a one for five basis) subject to adjustment in certain circumstances.

 

As a result of the subscription receipts financing, the exchange ratio has been adjusted to one Golden China common share for every 7.5 (was 5.55) Michelago ordinary shares :

::

one Golden China common share for every 37.5 (was 27.75) Michelago ordinary shares

...after taking into account the pre-business combination consolidation of Golden China common shares on a one for five basis).

 

Completion of the business combination is subject to receipt of shareholder and regulatory approvals and other closing conditions, including the replacement of the existing working financing for the BioGold Facility. Golden China will call a special meeting of its shareholders to approve the business combination and expects to mail a management information circular describing the business combination to its shareholders in the coming weeks.

 

About Golden China Resources Corporation:

Golden China Resources Corporation is a public company focused on the exploration and development, operations, and merchant banking in the Chinese precious metal industry. Golden China is capitalizing on a combination of its international mining and financing expertise and a partnership with the Hong Kong-based financial services provider, Kingsway Group, to become a significant participant and consolidator in China’s developing precious metals sector. Golden China’s shares are listed on the TSX Venture Exchange under the symbol AUC. Golden China has announced a planned business combination with Michelago Limited (ASX: MIC) to form a significant participant and consolidator in the Chinese precious metal industry and the largest foreign producer of gold in China.

 

= =

 

BIOGOLD:

Michelago, above other things, has a 99% ownership in the Bacox Bio-Treatment Plant in Shandong China called BioGold. : the exclusive rights to “Bactech's Patented Bacterial Oxidation Technology” for a period of 10 years in China, Siberia, Korea and Mongolia

 

BioGold is already a producer with a profitable history. Since the first years results will not come out until August, or later it has been estimated that revenue for 2005 will be approximately RMB499m (A$96m) in MIC first year of operations : about $80M Canadian Dollars.

 

Cost is about 85% of the current price of gold, so their profit is about 15%: revenue of $80 CAD turns out to be about 15% of that which is about $12M CAD. The Corporate Tax Rate in China is about 33% but the Royalties and Exploitations Taxes are iffy. To be on the safe side I used a total tax rate of 40%. So this Gross Income of $12M CAD is now a Net Income of $7.2M, or profit.

(see post#3 on advfn)

 

SOLOMONS GOLD:

41% interest in a mine in the Solomon Islands called “Gold Ridge”. This mine has already been built and was in full operation in 1998, so other than spending some pocket change to get it back to tip-top shape, it is ready to go. The people caused the shut down of the mine in 2000 due to civil unrest and a rebellion. Since this time however things have stabilise and the mine can once again be put back into production safely - perhaps as early as late 2006.

 

AUC's CHINA DEPOSITS:

+ Beyinhar Project ... 24 Oct.'s excellent drill results

 

Golden China’s Beyinhar gold project lies within the Inner Mongolia Fold Belt Region, a productive orogenic belt hosting several skarn, shear-hosted, orogenic/mesothermal veins and porphyry Cu-Au deposits (like Jinshan's CSH.) Beyinhar is a near surface, bulk-mineable oxide, and heap leachable gold deposit. It is less than three kilometres from the Hohhot-Xilinhot highway in proximity to a well-established provincial railway line and within an easily accessible power grid supply.

 

+ Nibao Project

Latest drilling indicate a gold reserve of 850,000oz. Au including Inferred.- or Measured and Indicated is 550,000ozs (was 432,000 oz. prior to Oct. 2006 announcement) ...Nibao is expected to be a very low cost strip mine type operation. There is nothing sophisticated about this, nor is it an expensive process involving expensive operating equipment. The gold in the ore body is refractored and oxidised. To extract this gold from the ore body to an acceptable level they will need further treatment of this ore

 

 

= = = = =

LINKS:

Corporate website : http://www.goldenchina.ca

Stockhouse B'brd. : http://www.stockhouse.com/bullboards/forum...&table=list

Advfn thread........ : http://www.advfn.com/cmn/fbb/thread.php3?id=13044677

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MERGER MAGIC :: How the MIC assets & technology fit with AUC's deposit

============

 

## EXCERPTS : from a longer cut & paste job on Advfn ##

(if you want to see the Advfn thread, click here , //and try; user: geologic / password: gl4ad ):

 

from notes...

1/ Posted By: Goldbuggy2 ... 7/11/2006

 

Michelago, above other things, has a 99% ownership in the Bacox Bio-Treatment Plant in Shandong China called BioGold. In July 2005 Michelago completed the registration of, and was issued a Business License for, the Shandong MIC BioGold Plant.

 

This new license, and the one from Bactech, will allow Michelago to hold the license to the exclusive rights to “Bactech's Patented Bacterial Oxidation Technology” for a period of 10 years in China, Siberia, Korea and Mongolia

 

BioGold is already a producer with a profitable history. Since the first years results will not come out until August, or later it has been estimated that revenue for 2005 will be approximately RMB499m (A$96m) in MIC first year of operations.

 

...Taken this into consideration then revenue of $80 CAD turns out to be about 15% of that which is about $12M CAD. The Corporate Tax Rate in China is about 33% but the Royalties and Exploitations Taxes are iffy. To be on the safe side I used a total tax rate of 40%. So this Gross Income of $12M CAD is now a Net Income of $7.2M, or profit.

 

...The near future Net Profit Price to Earnings Ratio for Golden China Resources would be $7.2M / 275M Shares, which is $0.026 per share. No Screaming Hell at first, I admit, but non-the-less still a decent profit to Shareholders.

 

But let’s translate this $0.026 into actual share price. Most Junior Gold and Mid Tiers are trading at about a P/E of +40. Considering that with this cash flow and us holding several other potential properties a, 40 PE would be normal for Golden China.

 

So a $0.026 Earnings x 40 P/E = $1.04 per share. This is 400% higher than where we are at today and we are not talking 15 years from now here. But there is more!

 

As stated on Michelago Home-Page http://www.michelago.com/index1.html

“The Company has been operating BioGold since July 2005 and has commenced a plant expansion to increase the Bacox© Processing Capacity from 150,000 ounces and therefore total plant capacity to 230,000 ounces per annum. “

 

This represents also an increase in production of over 50% and thus net profits, earnings per share, and share price of over 50%. So now we are looking at a share price of approximately $1.59.

 

 

 

2/ Part 2 Posted By: Goldbuggy2 ... 7/11/2006

 

Michelago also has a 41% interest in a mine in the Solomon Islands called “Gold Ridge”. This mine has already been built and was in full operation in 1998, so other than spending some pocket change to get it back to tip-top shape, it is ready to go. The people caused the shut down of the mine in 2000 due to civil unrest and a rebellion. Since this time however things have stabilise and the mine can once again be put back into production safely.

 

At the time of this mine closure, in July 2000, the mine had proven resources of 2.3M ounces of gold, and further reserves of an addition 1.7M ounces of gold. Australian Solomon’s Gold, of which Michelago owns 41%, fully intend to bring the mine back into production by late 2006. The production rate is expected to be 150,000 ounces per annum with cash operating costs of $230USD/oz for the first 5 years of production. The total mine life, based only on the current resources, is expected to be in excess of 10 years.

 

In July 2003, the Australian Government and a number of other Pacific Nations were invited by the Solomon Islands Government to intervene in the ongoing conflict. The Regional Aid Mission Solomon Islands (RAMSI) comprised of over 1,000 police and armed forces as well as a number of commercial and political appointees was formed. Over $1BN has been spent since the formation of RAMSI and it is understood that this will be a long-term commitment by the Australian Government and the Pacific Arena. Since this time the country has now been considered to be a safe place to do business again.

 

...So using today’s price of gold of around $630USD/oz. and a cost of $230USD/oz. we are left with a Gross Profit per ounce of gold of about $400USD. This now translates into about $440 CAD/oz. Since production is expected to be 150,000 ounces and our portion is 41%, we end up with 61,500 oz. Au. From these figures our Gross Income then would be 61,500 x $440 = $27M.

 

 

3/

SUBJECT: Part 3 Posted By: Goldbuggy2 ... 7/12/2006

 

The Australian Stock Market is not a good place for any juniors golds (outside Oz) to raise money. Most if not all would list in Canada if they could.

 

Their only other alternative then, to keep things operating, was to take out a bank loan. When you consider that Michelago is a one-trick-pony, with only the Bio Treatment Plant earning income, you can see why borrowing money was not easy for them, or on favourable terms.

 

...Michelago spent over one year trying to raise capital unsuccessfully. (so they turned to AUC- db)

 

On the other side of this merger coin you have Golden China Resources. They are... a very new company and their first acquisition was to merge with APAC (a Canadian Co.). They then kept the Company President Michael Hitch, (who has since recently left the company) on to assist them in their exploration program.

 

They acquired 4 properties from APAC:

 

Golden China’s most advanced project from this merger is “Nibao”. First exploration results indicate a gold reserve of at least 432,000 oz. of Au. Many investors seemed disappointed in this and bowed out, but you have to consider that this is just the first result.

 

...Nibao is expected to be a very low cost strip mine type operation. There is nothing sophisticated about this, nor is it an expensive process involving expensive operating equipment.

 

Golden China does have one major problem with this mine though. The gold in the ore body is refractored and oxidised. To extract this gold from the ore body to an acceptable level they will need further treatment of this ore. This would entail increased capital cost for the mine, and also operating cost, which would cut deeply into profits.

 

To solve Golden China’s problem, they would need to build a Bio Treatment Plant, but first they would need all the approvals and technology from the vendor to do so. As it stands now, this would be difficult.

 

At the present time there are only two different types of Bio Treatment in China. Gold Fields owns one, who will only share it with partners or use themselves, and Michelago. Now are you beginning to see a connection here? A marriage made in heaven?

 

With Michelago’s expansion this will give them an additional 70,000 oz. of extra production capacity, which is more then enough to treat Nibao’s Concentrated Gold. Concentrating gold is relatively very easy to do and inexpensive. The end result is that you are left with one tonne of ore, which has ten times the amount of gold in it that is normally mined. That is why it is concentrated!

 

Although the distance to Michelago’s Bio Treatment Plant is quite far from Nibao, shipping costs in China are very cheap. It is estimated that the total cost will be around $4 per tonne of ore. Much cheaper then building a Bio Treatment Plant, if they could.

 

= =

 

So there you have it! Golden China has already given Michelago $20M even before this merger is confirmed, and this has already solved all of Michelago’s previous problems. They have all the money they need to expand and although they will still need a revolving loan for working capital, which has been approved by the Bank of China, they now enjoy much more favourable interests rates.

 

In return Golden China now has a place to treat their ore from Nibao, or any other mine they may have or acquire, as this type of ore body is common in China.

 

by : Goldbuggy2 ...MORE on Stockhouse:

http://www.stockhouse.com/bullboards/viewm...Time=2006-08-21

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(Note from Chief Investment Officer at Golden China)

 

Its been a busy week at Golden China and we have issued a number of press releases, copies of which are attached. I am sorry for the delay in getting these to you but I have been travelling preparing for the next exciting stages of our development and am just back in the office.

 

The sum fact of all these press releases is that we’ve closed!

 

As you can see, as a precursor to completing the business combination with Michelago, we have now competed the share consolidation of Golden China on a 1 for 5 basis. As a result, Golden China’s stock symbol has been changed to GCX.

 

We also announced yesterday that Michelago Limited has received final Court Orders from the Federal Court of Australia approving the schemes of arrangement to effect the business combination between the two companies. As well, Golden China has been granted approval from the Toronto Stock E xchange (TSX) to upgrade its listing from the TSX Venture E xchange to the main board of the TSX. The Australian Securities E xchange (ASX) has also granted approval for Golden China’s listing on the ASX. We have also closed the previously announced C$4.5 million financing.

 

The shares of the consolidated new Golden China will begin trading on the TSX tomorrow. Trading of CDI’s on the ASX will begin shortly.

 

Thanks to all of you for your patience and support. We hope we will all find that it has been worth it. Now that we can really focus our attention on running our business, watch for a lot of developments and news in the months to come. We continue to develop Nibao and Beyinhar, the plant expansion is in the works to a capacity of 230,000 oz of gold per year. We expect continued enhancement in the value of our investments and we are working on ways to continue to enhance the value of Golden China.

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Golden China is keeping up its "news offensive".

 

Golden China Resources Inc.

Vice President & Chief Investment Officer Interview

ROBTv “Power Breakfast”

 

 

Toronto, Ontario – December 15, 2006 – Golden China Resources Inc. (TSX: GCX) is pleased to announce that its Vice President & Chief Investment Officer, Garry R. Stein, will appear on ROBTv as follows:

 

Date: Monday, December 18, 2006

Live: 8:50 AM (EDT)

Network: ROBTv

Cable: Toronto : Rogers 57, Ottawa : Rogers 58, Montreal : Videotron 144

For more listings refer to: http://www.robtv.com/static/channel_lookup.tv

 

About Golden China Resources Corporation:

 

Golden China Resources Corporation is a public company focused on exploration and development, operations, and merchant banking in the Chinese precious metal industry. Golden China is capitalizing on a combination of its international mining and financing expertise and a partnership with the Hong Kong-based financial services provider, Kingsway Group, to become a significant participant and consolidator in China ’s developing precious metals sector. Golden China ’s shares are listed on the Toronto Stock Exchange and the Australian Securities Exchange under the symbol GCX. As a result of its recent business combination with Michelago Limited, the new Golden China is a significant participant and consolidator in the Chinese precious metal industry and one of the largest producers of gold in China .

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Golden China : chart

 

...is up 44% from the c$1.00-pp price at C$1.44

 

Some of us bought in the market, 10-15% below the pp price

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from an emailed rec'd from GCX's Gary Stein:

 

For those of you who may be interested the link below will take you to the Report on Business Television sight for Monday. If you scan down the page, you will find a link to view the video of our interview about Golden China. Please note that the capitalization table they used shows the wrong (old) shares outstanding.

 

http://www.robtv.com/shows/past_archive.tv?day=mon

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JUST reported : a 1-million Ounce Resource

==========

 

(from Gary Stein)

I am pleased to attach a copy of our recently issued Press Release on the initial mineral resource at Beyinhar, Inner Mongolia , China . The release announces a National Policy Instrument compliant initial mineral resource at a 0.30g/t Au cutoff, of measured and indicated resources of 17.6 million tonnes @ 0.84g/t gold for 475,000 contained ounces and an inferred resource of an additional 7.5 million tonnes @ 0.54g/t gold for 130,000 ounces. The primary deposit is contained in a largely oxide, near- surface zone. With an identified higher-gold grade central core and good recoveries from metallurgical testing, the Beyinhar oxide zone has excellent potential for a low cost open-pit heap leach operation. Management is confident of the potential for additional resources and will commence further drilling at Beyinhar in the spring.

 

Together with Golden China’s Nibao gold project (at the recommended 0.5 g/t gold cutoff for Nibao), Golden China now has combined mineral resources consisting of 1.022 million ounces of indicated and measured resources and 435,000 ounces of inferred resources.

 

We are very pleased with the excellent progress Golden China continues to make in moving both Nibao and Beyinhar into the development stages. We look forward to continued progress by our exploration and development team.

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what's going on here?

 

more sellers than buyers.

 

the question you should be asking is why aren't more people buying the stock at this low price?

 

i met with management yesterday.

they are spending alot of money this year (more than i had heard previously), and generating little cash flow to cover it. prospective buyers may be concerned (as i am), that they will need to raise money soon. (not what we had previously been led to believe.) i reckon, people are holding off on buying until the fundraising is done.

 

there are various actions they are examining to raise money without sellling equity, and/or realising some of the hidden value in the company. if those are successful- we hope they will be soon. then the concerns over a possible impending financing will ease. fingers crossed this will be within days

 

btw: i still think there is substantial hidden value here in : the deposit in inner mongolia (near jinshan's mine)- which mgt says has far more ounces than they can report until more drilling is done, and their investments in solomon gold, etc. but the size of the cash needs was the surprise. they will spend more than $10 million on prefeasibility and feasibility studies. and the cash generation from the bio plant has been hit by the loss of the bio culture in one of the processing tanks (i was told previously). i suppose it will take a few more months to grow that back.

 

they need to find a financing alternative and/or some more confident buyers to stabilise the price. i reckon that should happen soon

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i met with management yesterday.

they are spending alot of money this year (more than i had heard previously), and generating little cash flow to cover it. prospective buyers may be concerned (as i am), that they will need to raise money soon. (not what we had previously been led to believe.)

 

The old story then with small cap companies and their fundraisings. It's a shame. Why can't management be more honest when they write their prosectuses?

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there was a vote in early dec.

 

the problem may have occurred during a power outage after that

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There's an interesting article in this week's Economist about varying valuations of miners on differnet exchanges. It says Golden China are considering shifting their primary listing from Canada to Hong Kong:

 

(scanned)

 

Browsing the bourses

HONG KONG

 

Companies scour global exchanges to find a better price for their shares

 

BASED in Toronto, Golden China Re-sources is a mining company with the kind of scary but alluring profile you might expect for a firm that goes prospect-ing for gold. Established only three years ago, it is stilllosing money. But it boasts an intriguing technology using bacteriain the refining process, promising rights in China and what appears to be a growing inventory of established reserves.

 

With bullion prices rising and economic doubts gathering, times should be good for gold producers. But on the To-ronto Stock Exchange, Golden China has lost its lustre. Its share price has fallen by half since early 2006. In response, the company has embarked on a different kind of prospecting. It is studying how different bourses around the world value companies like itself. Its findings are a challenge to anyone who believes financial markets are consistent or rational.

 

Take, for example, the market’s view of “in situ” ounces, meaning gold that is in the ground. According to an outside analysis, Canadian exploration companies are valued at $75 an ounce on average. As refined gold now sells for more than $650 an ounce, this leaves some margin for pro-cessing and mining risk.

 

If the deposits controlled by these Ca-nadian companies are in China, the valuation slips to $43 an ounce. This may reflect worries that China’s methods of verifying potential assets are less stringent. It may also be a consequence of more general fears about property rights in China.

 

That would be the end of the story were it not for an odd detail. Golden China then went on to look at the valuation of

gold producers listed in Hong Kong or on the Chinese mainland. The results were striking: they were valued at $18o-240 an ounce. Sino Gold, an Australian company which on March i6th made a secondary listing on the Hong Kong exchange, is priced at about $190 an ounce.

 

There may be some simple explanations for these big disparities. For example, the Chinese companies in the study all turn a profit. But investors in gold exploration probably care more about the treasure to be unearthed than the trickle of income from ongoing sales.

 

In fact, Golden China has hit on a broader seam of market discrepancies: the value of a share often depends on where the stock is floated. The most glaring exam-ples are provided by Hong Kong-listed firms that alsolist in Shanghai, where they almost always get a better price for their shares. No wonder Hong Kong feels threat-ened by the migration of listings to its mainland rival.

 

More subtly, global exchanges disagree about the value they put on everything from food companies to banks, even after taking account of differences in a firm’s local prospects. Perhaps investors feel better protected and better informed by some bourses rather than others. Exchanges of-ten claim that stiff auditing and disclosure standards add a premium to the shares listed on them. But strangely, valuations right now seem highest in murky stock-markets like China’s.

 

Bourses may also attract their own distinctive base of investors, interested in some sectors more than others. America’s markets attract the technophiles, China’s lure the gold bugs. Like retail arcades, exchanges each seem to draw their own tribe of customers who know what they want, pay a premium for it and ignore bargains that would fetch much higher prices else-where. Golden China is like an electronics store trying to sell its wares (cheaply) on London’s Savile Row rather than Tokyo’s Akihabara market.

 

To profit from such disparities, enter-prising investors have long combed the world’s bourseslooking for cheap stocks. It makes perfect sense for companies to do the reverse: scour the world for markets that will pay high prices for their shares, thus reducing the cost of their capital.

 

Unfortunately, bagging a higher valuation is not always as easy as listing on a different exchange. For example, lots of inter-national companies coughed up for a Tokyo listing in the late 19805, hoping to share in the euphoric multiples then applied tojapanese firms. But they were disappointed; their share prices remained tied to those back home.

 

Golden China is considering a more dramatic migration. Already most of its 700 employees work in China. The company’s executives are thinking about join-ing them, and shifting their primary listing from Toronto to Hong Kong in the process. At the moment, they reckon the company’s $5om market value plus its debt is worth only as much as its plant and outside in-vestments, giving it no credit for its 1.5m ounces of gold. If more appreciative customers for their shares exist elsewhere why not bring the company to them? It would appear the only rational response to an irrational market.

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Browsing the bourses

Mar 29th 2007 | HONG KONG

From The Economist print edition

 

Companies scour global exchanges to find a better price for their shares

 

 

BASED in Toronto, Golden China Resources is a mining company with the kind of scary but alluring profile you might expect for a firm that goes prospecting for gold. Established only three years ago, it is still losing money. But it boasts an intriguing technology using bacteria in the refining process, promising rights in China and what appears to be a growing inventory of established reserves.

 

With bullion prices rising and economic doubts gathering, times should be good for gold producers. But on the Toronto Stock Exchange, Golden China has lost its lustre. Its share price has fallen by half since early 2006. In response, the company has embarked on a different kind of prospecting. It is studying how different bourses around the world value companies like itself. Its findings are a challenge to anyone who believes financial markets are consistent or rational.

 

Take, for example, the market's view of “in situ” ounces, meaning gold that is in the ground. According to an outside analysis, Canadian exploration companies are valued at $75 an ounce on average. As refined gold now sells for more than $650 an ounce, this leaves some margin for processing and mining risk.

 

If the deposits controlled by these Canadian companies are in China, the valuation slips to $43 an ounce. This may reflect worries that China's methods of verifying potential assets are less stringent. It may also be a consequence of more general fears about property rights in China.

 

That would be the end of the story were it not for an odd detail. Golden China then went on to look at the valuation of gold producers listed in Hong Kong or on the Chinese mainland. The results were striking: they were valued at $180-240 an ounce. Sino Gold, an Australian company which on March 16th made a secondary listing on the Hong Kong exchange, is priced at about $190 an ounce.

 

There may be some simple explanations for these big disparities. For example, the Chinese companies in the study all turn a profit. But investors in gold exploration probably care more about the treasure to be unearthed than the trickle of income from ongoing sales.

 

In fact, Golden China has hit on a broader seam of market discrepancies: the value of a share often depends on where the stock is floated. The most glaring examples are provided by Hong Kong-listed firms that also list in Shanghai, where they almost always get a better price for their shares. No wonder Hong Kong feels threatened by the migration of listings to its mainland rival.

 

More subtly, global exchanges disagree about the value they put on everything from food companies to banks, even after taking account of differences in a firm's local prospects. Perhaps investors feel better protected and better informed by some bourses rather than others. Exchanges often claim that stiff auditing and disclosure standards add a premium to the shares listed on them. But strangely, valuations right now seem highest in murky stockmarkets like China's.

 

Bourses may also attract their own distinctive base of investors, interested in some sectors more than others. America's markets attract the technophiles, China's lure the gold bugs. Like retail arcades, exchanges each seem to draw their own tribe of customers who know what they want, pay a premium for it and ignore bargains that would fetch much higher prices elsewhere. Golden China is like an electronics store trying to sell its wares (cheaply) on London's Savile Row rather than Tokyo's Akihabara market.

 

To profit from such disparities, enterprising investors have long combed the world's bourses looking for cheap stocks. It makes perfect sense for companies to do the reverse: scour the world for markets that will pay high prices for their shares, thus reducing the cost of their capital.

 

Unfortunately, bagging a higher valuation is not always as easy as listing on a different exchange. For example, lots of international companies coughed up for a Tokyo listing in the late 1980s, hoping to share in the euphoric multiples then applied to Japanese firms. But they were disappointed; their share prices remained tied to those back home.

 

Golden China is considering a more dramatic migration. Already most of its 700 employees work in China. The company's executives are thinking about joining them, and shifting their primary listing from Toronto to Hong Kong in the process. At the moment, they reckon the company's $50m market value plus its debt is worth only as much as its plant and outside investments, giving it no credit for its 1.5m ounces of gold. If more appreciative customers for their shares exist elsewhere, why not bring the company to them? It would appear the only rational response to an irrational market.

 

**************************************************

 

Interesting read and good to see a company look at it's listing from a practical point rather than feel tied to it. I know one company that is trying to work out how to get what was it's primary listing off so it can concentrate on it's listing on the NYSE.

 

Arn

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GCX needs to stabilise its cash position, and its cash flow requirements.

 

Once it has done that, the market should eventually see its valuation argument.

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LOOKING BETTER - received this email last night:

 

Golden China Resources (GCX: TSX, ASX) is pleased to announce that Australian Solomons Gold (TSX: SGA), a company that we own almost 24% of, today issued a press release announcing the results of a Feasibility Study on its Gold Ridge Project. The press release can be accessed via the Australian Solomons Gold website at http://www.solomonsgold.com.au/files/BFS_Release.pdf.

 

Golden China is pleased with SGA’s progress as it prepares to move into production and we continue to feel that our investment carries the potential for significant upside.

 

For more information on Golden China, please visit www.goldenchina.ca. For more information on Australian Solomons Gold, please visit www.solomonsgold.com.au.

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Had this email from them today:

 

Hi Dominic,

 

We are as perplexed as you with the recent decline in our stock price, especially given the recent positive occurrences related, in particular, to our Beyinhar gold project.

 

Beyinhar is shaping up to be a very strong asset for us. In fact, we expect it to be in production as soon as April 2008 at a cost per production ounce that is well below industry average. Leading up to this, you can expect to see a revised mineral resource estimate on Beyinhar, which we anticipate will double our current resource base. This will be followed by a feasibility study, which we are targeting to release by the end of the calendar year.

 

Things are also well on track with our BioGold project where we are aim to complete an expansion to the BACOX plant facility by the end of the year. The expansion will double treatment capacity and is expected to significantly increase BioGold cash flow. This will enable us to process the increased volumes under our new contract with Hellas Gold.

 

In terms of what we’re doing to rectify the share price situation, we have a series of road shows and investor meetings next month scheduled to raise awareness of our story, generate new interest, and put current shareholders’ minds at ease. This will be supported by a strong press release program. As well, we have increased our news dissemination in Australia (where we have experienced a particularly sharp decline in price over the last few weeks) and will also be on the road in this marketplace.

 

If you would like to discuss anything in more detail, please send me your phone number. I would be more than happy to give you a ring.

 

Best regards,

Kristen Humphrey

Communications Manager,

 

Golden China Resources (GCX: TSX, ASX)

 

Click this link for some interesting TA on the stock - http://www.stockhouse.com/blogs.asp?page=v...amp;postID=8365

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And today they announce another placement - debentures.

 

Bubb, can you analyse the significance of the latest fundraising?

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Bubb, can you analyse the significance of the latest fundraising?

 

They need the money. Cash flow is not what they led investors to expect.

They either exaggerated, or mis-calculated their cash flow needs

This is the gang that cannot shoot straight. Lighten up a bit, if you see breakeven

 

I'm still hopeful that the asset will win out in the end. But given the many disappointments,

I want to slim down my holdings a little at some stage

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Available via the link below, Golden China is pleased to announce very positive interim drilling results for the company’s 2007 exploration program at Beyinhar, our gold project in Inner Mongolia. The findings, which comprise several excellent drill intercepts including one with 69 metres averaging 1.16 g/t gold, are particularly significant in that they continue to demonstrate continuity and extension of the mineralized zone. As well, the results further move Golden China towards our target of reaching one million ounces of gold in the indicated and measured categories with the expected release of a revised NI 43-101 compliant mineral resource estimate this October, which will form part of the Beyinhar Feasibility Study, anticipated for December 2007.

 

 

 

http://www.goldenchina.ca/default.aspx?id=145

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Last Day of the 30/06/2006 to 30/06/2007 Australian Tax Year day after tomorrow.

 

Should relieve that Au tax selling pressure.

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Fighting back - at 87 cents

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EXCERPTS- from Stkhse.Bbd:

 

Why should GCX list in Shanghai??? Posted By: Goldbuggy2

Post Time: 7/18/2007 13:04

http://www.resourceinvestor.com/pebble.asp?relid=33965

 

2/

SUBJECT: China now #3 producer AND consumer Posted By: littleguy123

Post Time: 7/20/2007 13:54

 

Proving once again how well-situated GCX is, rapidly increasing production and demand continues to push China 'up the ladder' on both the supply and demand side.

http://en.ce.cn/Industries/Energy&Mini..._12239987.shtml

 

There are several interesting quotes, this is my favourite:

 

"The World Gold Council, a London-based marketing organization funded by the world's leading gold miners, earlier forecast that consumer gold demand in China will reach 600 tons annually in coming years."

 

Bullion sales from EU central banks have been the primary moderator/manipulator in keeping the POG at less than half its all-time high (in constant dollars). With Chinese buying (alone) rapidly becoming a counter-balance for those sales, (as I've posted before) the Manipulators are rapidly losing the capacity to Manipulate.

 

Of course, from GCX's standpoint, the Chinese gold rush will not only benefit GCX by pushing up the POG. It will also push up refining demand (and margins) for those with the right facilities.

 

Live LONG, and prosper.#

 

3/

SUBJECT: RE: China now #3 producer AND consumer Posted By: esplendido

Post Time: 7/24/2007 11:51

golden cross time to buy imo df

 

4/

SUBJECT: BIG volume - over 1 million Posted By: littleguy123

Post Time: 7/24/2007 11:56

Anyone have any data on today's trading?

 

5/

SUBJECT: RE: BIG volume - over 1 million Posted By: kkkrrrr

Post Time: 7/24/2007 12:00

crosstrade ... good sign!

 

@: http://www.stockhouse.com/bullboards/forum...&table=LIST

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