HiredGoon Posted January 10, 2007 Report Share Posted January 10, 2007 INVESTORS wiped more than $200 million off the value of Bendigo Mining yesterday after unexpectedly low ore grades forced the Victorian gold miner to start shutting down its Bendigo operation barely three months after starting. It is now likely to be a year, or even two, before production can restart as Bendigo seeks to extend drilling under the centre of the city in a bid to prove sufficient gold reserves. Analysts warned it could also take that long to restore market confidence. http://www.theaustralian.news.com.au/story...306-643,00.html Share price on ASX: http://www.asx.com.au/asx/research/Company...ndustryGroup=NO A bit of background - Bendigo is the name of a town which was a large producer during the 19th century gold rush in Victoria's gold-fields. Link to comment Share on other sites More sharing options...
drbubb Posted January 10, 2007 Report Share Posted January 10, 2007 Wow! that is a HUGE drop. Management will find their jobs at risk - whoops! a new CEO just came in... MIGHT be an opportunity- this sounds overdone: "As soon as Bendigo shares came off Friday's trading halt the price more than halved, eventually dropping 43.5c, or 60 per cent, to close at just 30c, valuing the company at $148 million. That is about equivalent to the value of the plant, equipment, development work and cash in the bank" Link to comment Share on other sites More sharing options...
BuffetJr Posted January 10, 2007 Report Share Posted January 10, 2007 Bendigo will be doing a LOT of drilling so price will probably rebound on gold results... However, PERSONALLY, I think that anyone who invests in mining companies for gold in Victoria (where i live) has ROCKS in their heads. i know minesite follows a couple, like Goldstar, but i wouldnt touch any of them. BuffetJr Link to comment Share on other sites More sharing options...
frizzers Posted January 10, 2007 Report Share Posted January 10, 2007 Buffett, do you know Vulcan Resources? Or Cape Lambert? Link to comment Share on other sites More sharing options...
Guest Guest Posted January 11, 2007 Report Share Posted January 11, 2007 Up 8% yesterday Up 30% in a few hours today! Link to comment Share on other sites More sharing options...
drbubb Posted January 11, 2007 Report Share Posted January 11, 2007 there you go... some of these big selloffs, are providing buy opportunities Link to comment Share on other sites More sharing options...
Guest Guest Posted January 11, 2007 Report Share Posted January 11, 2007 Goldman Sachs analyst said: "the market is unlikely to believe in this reserve until it has restarted production" They pay these people money for advise? Link to comment Share on other sites More sharing options...
drbubb Posted January 11, 2007 Report Share Posted January 11, 2007 when you read things like that, written about an oversold stock, it is time to buy similar story with BP imho Link to comment Share on other sites More sharing options...
BuffetJr Posted January 11, 2007 Report Share Posted January 11, 2007 Hi Frizzers Know Vulcan quite well, and their MD Alistair Cowden (unless things have changed since i last took a look at them), who can only be described as the Twiggy Forrest of the junior mining sector, given his tendency to talk up his stock. have quite a bit of potential, but his previous claim that part of their area in Finland could be another Kambalda in terms of nickel is a beat up. Recent drilling although looking good, is just infill drilling to confirm resource..do not think it can get much bigger than it is. Have a few friends that like this stock, and I think there is upside but not really my cup of tea. Though I do think they are undervalued for what they have...a bit like Jabiru (JML) when it was around the 20c mark. Cape Lambert looks to be just another iron ore wannabee, but some times those wannabees actually deliver. If I was going to buy an ASX iron ore stock, it would be Golden West...i actually recently sold them but only because i see more potential in another stock. Will probably buy them back at some stage...I can see RIO eventually selling them their side of the deposit because it makes no sense to mine it since its the deeper section. Cheers BuffetJr Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.