Tuesday, October 21, 2014

Blina Minerals (BDI) – worthy of a punt?

One stock that has come up on the radar the last few days is this little gold and diamond tiddler, Blina Minerals (BDI).

With the stock not trading at $0.002 for over a month and a couple of buyers coming up on open yesterday morning and this morning paying the same price it hasn’t been hard to identify that there was something going on in the background.  This was confirmed today with a solid 29 million units changing hands with basically all the stock trading at $0.002 except for a small quantity on close.  The stock closed at $0.001 however this can more or less be ignored as these units sold into the close appear to be sold by a Chi X bot that bought during the day and has a mandate that it cannot hold overnight.

Anyway, now that the trading aspect has been covered let’s take a look at the story which starts with another company, Orbis Gold Limited (OBS).

Orbis Gold recently announced an updated scoping study showing very solid numbers on their Natougou gold project in Burkino Faso.  At the same time, the company also announced that they had received an unsolicited and indicative takeover proposal by Semafo Inc. for $0.62-$0.65 per share.  Interestingly, Semafo Inc. did not have a condition to complete due diligence on the OBS takeover.  In other words they are very confident that the company is undervalued and they are wishing to move quickly.  So much so, a few days later they announced the takeover for $0.65 per share.  Trading in OBS shares has resulted the price creeping up to $0.70 today.  This suggests that the market believes another bidder may appear or that the stock has been re-rated as a result of the scoping study.  At the start of trading today the market capitalisation on OBS is approximately $167 million.  They’ve also hired an adviser for their defence indicating that there’s going to be more to the story.

BDI tenements lie adjacent to OBS’ making it a nearology play.  BDI’s tenements appear to be on the same fault line.  BDI has a miniscule market capitalisation of approximately $1.5 million. As at June 2014 their cash balance was $1.4 million.

BDI have made the following comments on the project “The soil sampling showed high gold values in excess of 50ppb but Blina was unable to access the original analytical reports and has therefore adopted a cautious approach to the results. However, the regional setting of the Exploration Licence just 15km from the Natougou gold deposit on an interpreted north-northwest trending structure and along trend from the regional soil geochemistry anomaly of Orbis Gold makes the tenement an attractive exploration prospect.”

News flow on Blina Minerals is imminent with the July quarterly activities Report stating the following:

“A soil sampling programme has commenced and results will become available in the September quarter.”

These sampling results are now overdue.

Back in town

It's been a long time...

We quite often start things and we either lose interest, get too busy or it all becomes too hard.

I really enjoyed posting about the stocks that caught my attention and hopefully assisting others in identifying opportunities.  It's been over a year and a half since my last posting to this blog but I'm hoping to change this and start posting semi-regularly when I can.

I've sort of made a start with sending out some tweets to my followers recently.  For the times that I can't post in detail to my blog or it's a time sensitive piece of information I'll send out a tweet.  I highly recommend that you click on the "follow me on twitter" banner!

For those that have followed me on Twitter recently may have come across a couple of gems!  These have included alerts to watch:
  • Toro Energy (TOE) - Identified that the MD of TOE was in India with Prime Minister to sign uranium deal ($0.08 -> high $0.13) and;
  • Capital Mining (CMY) - Alerted to the acquisition of Chinese Cloud Computing company ($0.005 -> high $0.013)
Today and yesterday I also alerted followers to OGI Group (OGI).  I sent out a high priority tweet yesterday afternoon at $0.007 after the company announced that they were acquiring graphite licences adjacent to Triton Minerals (TON).  It took some time for the market to digest the news before the stock closed at $0.01.  Today the company went on to open at $0.014 and trade right up to $0.03 before settling down to $0.024 on close.

TON today announced it's Nicanda Hill Maiden JORC Resource.  Trading was very erratic.  In true TON style the stock opened up high before getting sold off to close up $0.09 at $0.405.

For a piece of nostalgia on TON and it's initial moves, I dug up a previous post here:

How far they have come in two years!
Happy trading.

Wednesday, January 16, 2013

Artemis Resources (ARV) Star Performer

With the ASX market picking up quite substantially over the last few months confidence is finally starting to return to the small to mid cap sector.  Each and every day we are seeing a number of stocks moving aggressively and volumes increasing.

Today's star performer was Artemis Resoures, up $0.013 to $0.019 (171%) on 61.5 million units.  The company announced that a "Review of Mt Clement Project identifies significant antimony mineralisation". Antimony prices have risen signficantly in the past few years and the company believes that this part of their gold project now warrants drilling.

Coal prices have been in the doldrums and we are seeing recovery in this sector now with good gains made by stocks such as Stanmore Coal (SMR), Continental Coal (CCC) and Universal Coal (UNV) today (all up over 10%).

Wednesday, January 2, 2013

ASX up after Fiscal Cliff avoided

Our market motored along today with the ASX 200 (XJO) adding 57 points or 1.2% and crashing through the 4700 barrier.  This followed news in the US that the senate had passed the bill that will ensure that they avoid crippling tax increases and so called 'Fiscal Cliff'.

Telstra Corporation (TLS) continued on it's way with a rolling high and close of $4.44 (up $0.07).  Resources stocks such as RIO, FMG and NCM all had a very good day.  The banks were slightly stronger.

In the small cap space Drake Resources (DRK) outperformed, up $0.05 or 25.6% to $0.245.  The stock was only $0.062 before Christmas.  On the flip side, Korab Resources (KOR) a stock I mentioned yesterday, suffered profit taking and was down $0.053 to $0.092.

Tuesday, January 1, 2013

Korab Resources Surges on Asset Sale News

The ASX market closed early yesterday at 2:10PM EST however that didn't stop Korab Resources (KOR) surging 116% to $0.145 after making a price sensitive announcement at 12:20PM.

The company has announced that it is selling its Winchester magnesium project in the Northern Territory to an Estonian company for up to $33.2million.  Unlike many takeover deals announced in the resources sector of late this takeover is binding between the parties and subject to regulatory approvals.

The deal will involve Augur Investments Ou paying $16.6 million in cash on closing of the deal and potentially $16.6 million in royalties from mined magnesite.  On paper the deal is good, especially considering that after the share price surge Korab Resources still only has a market value of $17million.  The company also has a gold and silver project in the Ukraine, gold project in Western Australia and other non-core projects.

RCR released a broker research report on the stock on the 14th of December and has a valuation price of $0.21 per share.  The broker believes that the Winchester project is uneconomical so it remains to be seen if Korab Resources will actually receive any royalties in the future.

With Korab Resources currently short on funds it will be interesting to see if a capital raising is completed to get them through to the closing date of 31/03/13 for the deal.

Wednesday, December 5, 2012

QBE Smacked.

The ASX 200 was firmer today at 4520.40, up 16.8 points.

QBE was smacked 4.72% or $0.50 to $10.10 on no news.  The share price hit a low of $10.02 and was lucky not to have dropped below $10 and had the decline exaggerated further by stop losses.

Ten Network Holdings (TEN) went into trading halt before the market opened.  The company will be completing a capital raising.  The Financial Review reported today that the capital raising could be deeply discounted, possibly at $0.20 per share.

Wednesday, August 29, 2012

Syrah Resources (SYR) Nearology Play

Syrah Resources (SYR) is currently in trading halt pending assay results from it's Balama Graphite Project. Major shareholder Copper Strike (CSE) is also in trading halt for the same reason.

One stock that has recently captured attention of the market is Triton Gold (TON). Yesterday's spike of $0.03 or approximately 43% to $0.10 attracted a "please explain" from the ASX to which the company advised it had no news to announce or explanation on the increase in volume and share price. Trading today in the stock was frenetic as it surged to a high of $0.12 with a VWAP of $0.105759 and closing price of $0.094.

Triton Gold is definitely a stock to add to the watchlist. It has a market capitilisation of $10.2 million compared to Syrah Resources lofty $370 million. TON's share price has been running on the fact that it has acquired the rights to purchase 5 graphite prospecting licence applications in Mozambique. The ground is only 2km away from SYR's.