Member Info for Daisan

A significant buyer. We haven't seen one of those for a while. It will be interesting to see how committed they are.

No reaction on Friday and I suspect that it will be muted owing to the fact that there are now no producing assets - back to being an explorer. Will definitely react on the Chinese deal but this is looking less likely as time passes and Chinese companies are unreliable in my experience on the market.

Today's news on the CEO 'resignation' seemed inevitable given the recnt events.

Basel III was one of the great hopes for gold bugs but came to nothing. I remember hearing a podcast by someone where he suggested that they had it all wrong and it didn't mean that financial institutions were going to be buying gold. It turned out that he was right.

You see so many of these 'buying imperatives' that have so little effect on price. I suggest ignoring them and use your own judgement on the macro trends as that is what tends to be reflected in the gold price.

The best I got was 1.3p. It may have gone lower but if it did it was very short term. I don't remember Alfacomp being active at that time. My recollection was that he bought in somewhat later. Not that it matters one iota to anyone other than Alfacomp.

HarChris,

No, that's not what I said. If you look more closely, I said precious metals MINERS.

It is always difficult for share prices of mining companies to make progress when the underlying commodity is not really doing very much. Or, at least, not enough to suggest that it is offsetting increasing costs of operation. If only for the fact that investors are not even looking at that sector of the market (instead chasing the latest fad). This is doubly true of precious metal miners which tend to remain in the doldrums for long periods before having their day in the sun (which is quite often spectacular).

As always, patience is the key and if you believe that gold will have its day (and if you are here, I suspect that you do believe that to be the case) then the reward should be significant, provided some larger company has not bought it before then of course. Which would be rather annoying if it is not multiples of the current price.

Tanzania's debt position is not too bad in both absolute and relative (to African countries) terms. But two thirds is USD denominated so a strong dollar will impact them. With decent growth it is difficult to see them struggling to service it though.

Inflation has been below average for a few years. And whilst the shilling is not pegged to the USD it has been remarkably stable, presumably because the USD is widely accepted in Tanzania.

All things considered, if you are going to invest in Africa, at this particular moment in time Tanzania doesn't look to be a bad option.

Pallisades Gold Radio is hardly the worst of them and there is some interesting stuff, but I have to say that some of the guests over the past six months have been a little far on the 'oh dear' scale. I would prefer they stick to discussing gold rather than politics which is why I quite like the TA people.

Looking at previous years they sometimes don't publisha Q2 report separate to the half year. Since it is so late, I suspect that this is one of those years.

They are transfers. A big sell is being worked (obviously).

It looks like some are cashing out. Judging by the share price, the market either:

1. Doesn't understand

2. Doesn't believe

3. Doesn't care

Probably all three. The deals stated need to be completed. At the moment the market sentiment suggests that the Chinese deal feels unlikely.

I doubt whether it would go to 20p but even if it just went to cash value (not considering the assets in Kyrgyzstan) it would be a considerable increase from here).

I have said the same for the last few years but it falls on deaf ears as it doesn't fit the narrative. The last time I looked BMN had underperformed more recently but over the years these differences tended to even out.

Don't expect a logical argument to hold much sway at this end of the market!

The percentage drop was just because of the rather dubious uncrossing trade at close of play. It actually closed flat on the day.

The valuation method discussed is not prescriptive and I have seen projects valued at less. But WK would not be valued at $100/oz as these are not reserves.

The way to establish full value is to give the operation time to progress, improve cash generation, develop WK, increase reserves, increase the dividend and wait for the gold bull market to create the kind of mania that produces silly valuations. If you believe that we are in a bull cycle then it will come.

Not great news but not earth shattering and the initial post here is misleading (although not intentionally so, I believe).

The fascinating thing is that, judging by previous market reactions, pretty much no value was ascribed within BMN's share price to Enerox and yet when 10% is 'lost', BMN loses 25% of its value. Which just goes to show how bizarre markets can be.

The potential rise on a deal being done is enough for this to be a decent 'punt'. If you believe in the management team, then the deal provides it with sufficient funding to turn this into an investment.

Of course, the market would then be ignoring the obvious in the fact that a serious play views the company as being operated by serious players - you don't pledge $250m to a bunch of nobodies. These people would have a pretty significant warchest with which to make deals - a much stronger position than they have been up to this point.

So, the market is currently discounting the deal on the table, i.e. it doesn't really think that it is goong to happen. Nevertheless, should it fall through I would expect a bit of downside.

But let's assume that the deal does go through with the stated terms.

If the market subsequent to the deal values the entire entity at cash (i.e. ignoring all gold assets) then the shares would be valued at 11.35p.

However, if the market values the assets at the value they held before the deal plus the new cash, then the share price would be about 15p.

So, if we ignore the potential for using cash in a value accretive fashion (this end of the market frequently ignores such a thing), we have potential upside of 3-6.5p just on completion of the deal.

"Needs some news to blow it out the water or it’ll just linger around here unfortunately."

I assume that is irony.

My intention has always been to ride the gold wave that started in 2000, had an interim high in 2011 and will complete later this decade. The price of gold will be very supportive of miners for the next few years (with ups and downs of course) so why sell at the start of this next leg up?

Whilst WK will gobble up capital, I am hoping that some of the excess cash they are producing is used to improve the dividend. That is always useful for attracting new investors.