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DML, DISCOVERY METALS LIMITED
mcart117
post Posted: Sep 19 2014, 11:04 PM
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In Reply To: nipper's post @ Sep 18 2014, 11:11 AM

The sad truth is that at current cu prices the open cut is marginal at best, and from my reading of the latest publication on zeta, it ain't much better. I was disappointed when I read it, and I'm not surprised the bankers didn't like it either.

"Positive Economics Confirmed for Zeta Underground Mine" the announcement was headed. That's not what I'd have called it, but as I've said before, the wording of more than one public announcement made by this company over the last year or two is open to question.

 
nipper
post Posted: Sep 18 2014, 11:11 AM
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In Reply To: mcart117's post @ Dec 13 2013, 10:10 AM

QUOTE
The Company now advises that it received a notice of breach from its Lenders stating that the updated Business Plan is not in a form and substance satisfactory to the Lenders, as required under the Amended and Restated Facility Agreement. The Lenders have reserved their rights.

The proposed renounceable rights issue announced on 1 September 2014 will now not proceed in the form and timeframe announced. Therefore, the development of the Zeta Underground Mine is on hold.

In the interim the Company will continue to operate the open cut operations at Zeta and Plutus, which delivered record copper production in July and August, while it continues to engage in discussions with its Lenders regarding future options

Now , what outcome for shareholders? Looks like a big squeeze-



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mcart117
post Posted: Dec 13 2013, 10:10 AM
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In Reply To: mcart117's post @ Oct 18 2013, 01:09 PM

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Blumont Group Ltd, which has lost more than $5 billion in market value this month, said it has secured $200 million in new funding from New York-based investment firm Platinum Partners ...


IMHO both the ASX and SGX need to tighten their rules on the use of language in announcements. To me the word "secured" implies the funding is in the bag, a certainty. IMHO, from the small print in the agreement with Platinum, the announcement should have read:

"Blumont ... has signed an agreement which might possibly result in new funding of up to a maximum of $200 million, if and only if a number of extremely unlikely conditions on the Blumont share price are satisfied."

Other forum users probably think I am a bit of a winge bag, but honestly, I was raised in a market where "my word is my bond" and words like secured mean secured.

 
mcart117
post Posted: Oct 21 2013, 04:33 PM
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In Reply To: arty's post @ Oct 21 2013, 01:36 PM

Fair question Arty. It seems to have done so far today, with a good volume at 10:



Whether it holds tomorrow is another question. My gut feeling is that now the Blumont funding seems to be sorted, it will return to the early to mid teens at some point.

But what a cock up - honestly - announcing a recapitalization on the ASX, when the company doing the recapitalization didn't actually have the cash at the time the announcement was made. Whether they knew, and hoped that no one would find out, or whether they were blithely ignorant themselves, my confidence and trust in this lot is zero.

However, I did watch an interview with the new head of Blumont, and he seemed pretty switched on, so I am still in there with a small position.

 
arty
post Posted: Oct 21 2013, 01:36 PM
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In Reply To: mcart117's post @ Oct 18 2013, 01:09 PM

Can it break 10c - and hold?
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I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
 
mcart117
post Posted: Oct 18 2013, 01:09 PM
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QUOTE
Blumont Group Ltd, which has lost more than $5 billion in market value this month, said it has secured $200 million in new funding from New York-based investment firm Platinum Partners ... Blumont will in turn use part of the proceeds to buy $100 million of convertible bonds in Australian copper miner Discovery Metals Ltd..

Source: http://www.reuters.com/article/2013/10/18/...N0I804D20131018


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mcart117
post Posted: Jun 12 2013, 07:14 PM
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This was posted yesterday by The Motley Fool:

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Discovery Metals Limited (ASX:DML) climbed 12.5% to close at 18 cents, after the copper miner announced that it was still in discussions with interested parties regarding a potential takeover offer. Earlier this year, Cathay Fortune withdrew its $1.70 a share bid, and the share price plummeted. It seems that Cathay may have come back or a second, cheaper bite at the cherry. The next takeover offer is unlikely to be anywhere near $1.70, but existing shareholders will be hoping for something materially above today’s share price.

Ref: http://www.fool.com.au/2013/06/11/asx-hot-...-and-fleetwood/

It's nice to see it mentioned somewhere outside a share forum!

 
mercury
post Posted: Jun 3 2013, 08:25 PM
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UBS is certainly playing with the price of this stock. I notice that they buy 7 million then sell 7 then buy again.... all within a few days.

Merc

 
mercury
post Posted: May 24 2013, 05:17 AM
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Looks like there could be a bidding war for DML. if two companies are involved in the sale process, (ie: pattersons) then I would expect that the banks will hold off foreclosure to get a good deal across, continue getting interest, and possibly transfer debts to new owner. A couple big buyers on the close asking a million shares each.

merc

 
mcart117
post Posted: May 22 2013, 12:31 PM
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In Reply To: mercury's post @ May 22 2013, 11:32 AM

I was a banker for 8 years, but we were too conservative to have anything to do with Africa.

Having said that, a bank which does lend on this sort of project ought to know that teething problems arise, and they ought to have the patience to ride them out, as indeed they have so far.

If they foreclose, even they risk coming out under par. If they hang in there, they continue to run a facility which presumably has relatively fat margins for them.

I guess it depends how much more exposure they are willing to tolerate before it comes good, and that depends on how much confidence they still have in the management.

 
 


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