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GDMN / AUM.TO : Jay Taylor will be on mailbag on the Commodities show on BNN tomorrow Friday.
February 19
Jay Taylor, Editor & Writer, Jay Taylor's Gold & Technology Stocks Newsletter
Focus: It's Mailbag Friday, and what a week it's been for gold stocks, futures and earnings. BNN gets answers to your gold-related questions from Jay Taylor, editor, Jay Taylor's Gold & Technology Stocks Newsletter.
Since he is high on GDMN its probably a good idea to send them an email asking about it
email is : commodities@bnn.ca
Show starts at 11:30 AM but unsure exactly at what time does the Mailbag bit run
Statement from Northstar Healthcare
Toronto, ON and Houston, TX, February 18, 2010 - Northstar Healthcare Inc. (TSX:NHC) today responded to a news release issued on February 17, 2009 on behalf of Mr. Brad Kovnat. The release indicated that Mr. Kovnat has asked a Texas court to appoint a receiver for the Palladium for Surgery-Houston and other Northstar subsidiaries. Northstar believes that Mr. Kovnat's claim is meritless and is subject to binding arbitration. Northstar intends to move to dismiss the lawsuit and ask the court to refer the matter to binding arbitration.
Northstar's understanding is that Mr. Kovnat -- a former employee of the company -- is a relative of Dr. Donald Kramer. Northstar is currently in arbitration with Dr. Kramer, the founder of Northstar, relating to claims made by the company under agreements relating to Northstar's acquisition of its interests in the Palladium for Surgery-Houston. Northstar noted that Mr. Kovnat today owns less than one half of one percent of the equity in the facility.
About Northstar Healthcare Inc.
Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites.
Northstar was founded and sponsored by Donald Kramer, M.D. and Stewart A. Feldman. Mr. Feldman also served as the co-principal and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.
Forward-looking statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com <http://www.northstar-healthcare.com/> or at www.sedar.com <http://www.sedar.com/> . There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
-30-
Philip Koven
Investor Relations
Northstar Healthcare Inc.
(416) 447-4740 Ext. 235
info@northstar-healthcare.com
NHC.TO
http://www.newswire.ca/en/releases/archive/February2010/17/c2659.html
some good laughs and expect a PR tomorrow by NHC
Indeed, rather than focus on repairing the Partnership and
developing new sources of revenue, Northstar's management, including its
CEO, has engaged in wasteful and potentially damaging activities,
including sending pornographic email messages to Partnership employees
during working hours.
In Al Gore´s bank account.
We are having the coldest winter in 50 years in Spain. Snow everywhere, even in the very hot south. Same for the rest of Europe
GDMN/AUM: I cant see my shares anymore on IB as GDMN, they are now AUMN (AMEX) and valued at 10.99, but I cant yet trade them. On the other hand I see GDMN is still trading at pinks, currently 10.55
I called my broker in Europe and he told me they will trade AMEX from tomorrow Wednesday.
So overall quite confusing. What is it like for you guys? Arwe you seeing any different?
Someone said on this thread that the IPO would price in last week.But othing so far.
Management uninformative as always.
Andrew Cook on BNN praising IAE once again...
http://watch.bnn.ca/investor-month/clip266397#clip266397 (about 15 min into the show)
Indian Farmers Fertiliser Co-operative buys GrowMax stake for potash project
The organizations head said the group plans to scour the globe for other low cost potash projects
Author: Euan Rocha (Reuters)
Posted: Friday , 12 Feb 2010
TORONTO (Reuters) -
http://www.mineweb.co.za/mineweb/view/mineweb/en/page31?oid=97972&sn=Detail&pid=31
India's IFFCO has acquired a stake in a Canadian potash explorer and plans to continue scouring the globe for other low-cost potash projects, the head of the world's largest fertilizer co-operative said on Thursday.
IFFCO, or the Indian Farmers Fertiliser Co-operative has acquired a 10 percent stake in Calgary, Alberta-based Americas Petrogas (BOE.V: Quote), along with a 20 percent stake in its subsidiary GrowMax Agri Corp, which owns a potash brine project currently being developed in Peru.
"This should be an extraordinarily unique potash project, involving relatively low risk and low capital expenditures," said IFFCO Managing Director U.S. Awasthi.
India relies completely on imports to meet its potash needs and the country was hurt when the price of the crop nutrient spiked to record levels in mid-2008.
"We want to have some kind of security over raw material requirements," said Awasthi. "After this deal, we will keep looking for projects that can come into production quickly."
This deal is the latest sign of the growing importance of the global fertilizer business, which has seen a spate of merger and acquisition activity in recent months.
GrowMax's Bayovar potash project is adjacent to Brazilian mining giant Vale's (VALE5.SA: Quote) huge phosphate development in Peru -- the project is also located near a deep sea port.
Bayovar is scheduled to begin production in 2012 with an initial output of 250,000 tonnes of potash annually at a cost of $125 million.
GrowMax plans to ramp-up annual production at the site to about 1 million tonnes over a five to six year period, Awasthi told Reuters.
Although details on an off-take agreement are yet to be finalized, IFFCO plans to buy 50 percent of annual potash output from the site.
IFFCO is one of India's top fertilizer manufacturers and it owns a 34 percent stake in Indian Potash Ltd, the country's largest potash importer.
IFFCO was formed in 1967 to produce fertilizer for the co-op sector in India. It currently produces more than 7 million tonnes of annually and has ties with 40,000 co-operative societies all across India.
Its assets are worth more than $10 billion and include manufacturing sites spread across the country, along with a series of joint ventures and investments overseas. (Reporting by Euan Rocha; editing by Rob Wilson)
GDMN looks like already graduated to AMEX as AUMN on my IB account
roflmao! Can I get 2 sisters instead if the price goes up significantly from here???
MMT.v: looks like another insider purchased a cool 1M shares... this time at 0.165
http://www.canadianinsider.com/coReport/allTransactions.php?ticker=MMT
plus BOD awarded themselves a ton of options at 17 cents today..
as much as common holders may want to shout "robbery!" , this is the way true capitalism works....
align interests, give incentives and things will work out fine in the end.
make out everyone equal and chaos will ensue.
here´s my political rant for today. dont forget to vote Palin those of you who can!!! or at least propose kozuh as Senator for Texas!!!
PS: Kozuh, how do I cage fight Bobwins? Knifes, bare hand ???
Mart Resources Announces Grant of Stock Options
08:31 EST Wednesday, February 10, 2010
Print this article
CALGARY, ALBERTA--(Marketwire - Feb. 10, 2010) - Mart Resources, Inc. ("Mart" or the "Corporation") (TSX VENTURE:MMT) announces that it has granted stock options to purchase up to 7,550,000 common shares of the Corporation to certain officers and directors of the Corporation and stock options to purchase up to 4,250,000 common shares of the Corporation to employees and consultants of the Corporation. The options have an exercise price of $0.17 per common share and expire on February 9, 2015.
ABOUT MART RESOURCES:
Mart Resources Inc. is an independent, international petroleum company focused on drilling, developing and producing oil and gas from low-risk proven petroleum properties in Africa. The Corporation currently is producing from the Umusadege Field, Nigeria.
Additional information regarding Mart Resources, Inc. is available on the company's website at www.martresources.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mart Resources Inc.
Wade Cherwayko
London: +44 207 953 4090
Wade@martresources.com
or
Mart Resources Inc.
David Halpin
Calgary: (403) 270-1841
David.Halpin@martresources.com
www.martresources.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
©2010 CTVglobemedia Publishing Inc. All rights reserved.
questions adressed to Mr. Kelertas can be sent to commodities@bnn.ca
says its referent to Wonarah project, so maybe a JV, offtake agreement or the likes, but not a likely take out of whole MAK
can you see any bid/asks ? I cant see nothing
MAK halted until release of news...
I cant find the release neither on Sedar or the website ?? where did you see it? TIA
why are you so surprised??? things take time in parts of the world as Africa.... expect delays most of the times
thanks so much for the update!!! damn! I was thinking to add more shares due to the selloff this week but didnt pull the trigger...
good. wasnt there a pinks one I first looked at it many months ago
guess It would be really low volume and hard to buy and sell
given the liquidity issue, if you can get around buying it directly in Australia, it´s really the way to go !!!
only trades in Australia that I know of
whats RSG share count at now? 400m so about USD 400m mkt cap? vs 400k oz if I am not mistaken. looks like a joke
GDMN: more news we have to find anywhere else. never mind to PR from GDMN themselves. or reply to any email with anything remotedly of any substance. amazing.
one of these days it´s gonna be the news stand guy that´s going to have to inform me because GDMN forgot to put out a PR ,
"hey, remember those Goddamn Mineral guys??? they just went to AMEX and sold 13 M shares to Hoschild and Sentient at 7 !!! "
ahhh. wake me up! just a bad nightmare!!!! (who says couldnt happen though...)
P.S: Anyone else found out about even more asset sales from GDMN since they dont care to inform?
SAN MARCO RESOURCES ACQUIRES 100% INTEREST IN LA BUENA GOLD PROJECT IN MEXICO
Vancouver, B.C. – Jan 11, 2010: San Marco Resources Inc. (SMN: TSX.V) is pleased to announce it has completed the acquisition from Golden Minerals Company (AUM.TO; GDMN.PK)) of a 100% interest in the La Buena gold/silver project in Mexico.
The La Buena property is located in the Eastern Sierra Madre region of Mexico in the state of Zacatecas. The property is situated roughly 8 kilometres north of the world class Peñasquito mine and 3 kilometres north of Goldcorp’s Noche Buena gold property where ongoing drilling has already delineated approximately 1 million ounces of gold. Goldcorp has reported in its 2008 annual report a resource at Noche Buena of 940,000 ounces of gold in 75.1 million tonnes grading 0.39 grams per tonne of gold. More recently, a November 24, 2009 Goldcorp press release states “At the Noche Buena deposit, north of the Peñasquito mine, in-fill drilling is expected to result in an increase in grade and tonnes of the gold resource.”
The La Buena property is comprised of a single 7,875 hectare concession that extends easterly along the north edge of the Noche Buena Mining District and then northerly some 8 kilometres to the Zuloaga mining district. Both districts have been dormant since the early 1990s however, historic mining supported several long-lived underground mining operations that produced base and precious metals from mantos and chimneys developed in Jurassic and Cretaceous reef limestones. The Providencia underground mine, a 3,000 tonne per day operation located 6 kilometres east of the acquired La Buena concession, is currently producing base metals from chimneys and mantos in the same limestones. (La Buena Map)
Ore at the Peñasquito mine is substantially hosted in calcareous siltstones of the Caracol Formation in association with subvolcanics. At the Goldcorp Noche Buena discovery located some 5 kilometres north of Peñasquito mine, subvolcanic quartz monzonite porphyry is thought to host most of the gold resource in oxides, but a deeper sulphide resource is developing. Caracol Formation siltstone hosts most of the ore at the Camino Rojo deposit (3.4 million ounces of gold and 60 million ounces of silver as reported on Canplats Resources website) located 50 kilometres to the south. The same Caracol Formation dominates the geology of La Buena however, shallow alluvium covers nearly half of the property. Subvolcanic pyrite-rich monzonitic intrusives occur locally on the property and the same shelf carbonates that host ore in the Zuloaga, Noche Buena, and Providencia districts are found at the north end of La Buena. Prospect pits and shallow workings at La Buena have been found in the reef limestones, subvolcanics and the Caracol Formation. Limited sampling by previous owners of the dumps and workings found on La Buena has returned gold assays as high as 3.67 grams per tonne gold.
Terms of the purchase were:
* Payment of (US) $125,000
* Issuance of 200,000 San Marco shares (non-transferable until May 9, 2010)
* Issuance of 300,000 warrants exercisable at a price of (Cdn) $0.70 per share for 3 years (underlying shares are also non-transferable until May 9, 2010)
* Sliding scale NSR 1.5% – 2.5% depending on gold price between $800 and $950 per ounce
* A buy down of 50% of the NSR for (US) $2 million
* (US) $1 million payment if a minimum of 1.25 million gold equivalent ounces (Measured and Indicated) are discovered. Payment may be cash or shares at San Marcos election
Chairman Robert Willis commented, “The La Buena project offers San Marco shareholders an opportunity for a new discovery in a very prolific historical and current mining district. Although this property is at a relatively early exploration stage, we do know precious and base metal occurrences exist on the property and the opportunity for a “buried” pediment discovery will be a focus by our exploration team.”
The technical information contained in this press release has been based on information reviewed by San Marco’s President, Robert D. Willis, P. Eng., a ‘qualified person’ for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
For further information contact:
Robert D. Willis
Chairman & CEO
604-813-2606
rdwillis@telus.net
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Obama-Mao: Madman at the helm... thanks note from goldbugs world all over !!!
Obama budget: Record spending, record deficit
Obama's multitrillion-dollar budget would deepen record pool of red ink, urge jobless help
ap
Andrew Taylor, Associated Press Writer, On Monday February 1, 2010, 8:25 pm
WASHINGTON (AP) -- Spelling out painful priorities, President Barack Obama urged Congress on Monday to quickly approve a huge new shot of spending for recession relief and job creation, part of a record $3.8 trillion budget that would boost the deficit beyond any in the nation's history while only slowly beginning to put Americans back to work.
If Congress goes along with Obama's election-year plan, the nation would still end the year with unemployment pushing double digits at 9.8 percent and this year's pool of government red ink deepening to $1.56 trillion -- by the administration's accounting.
The spending blueprint for next year calls for tax cuts for workers and business and more aid for cash-starved state governments as well as the unemployed. The jobs initiative largely mirrors last year's stimulus bill, but is about one-third its size. The president is asking for nearly $300 billion for recession relief and job stimulus.
The budget paints a remarkably dire picture of a federal government that will have to borrow one-third of what it spends next year as it runs a deficit that still would total some $1.3 trillion.
At the same time, Obama is acutely aware that persistent joblessness is the issue most likely to spell political trouble for Democrats in this year's midterm elections -- and perhaps for his own re-election chances in 2012.
The president's budget plan sees the deficit coming down by nearly $300 billion next year, and he's offering more than $1 trillion in deficit reduction proposals over the coming decade.
While proposing increases for immediate needs, he urged lawmakers to follow his lead and make cuts, even painful ones in programs dear to them. "I'm asking Republicans and Democrats alike to take a fresh look at programs they've supported in the past to see what's working and what's not, and trim back accordingly," he said.
"What I reject is the same old grandstanding when the cameras are on, and the same irresponsible budget policies when the cameras are off," the president said. "It's time to save what we can, spend what we must, and live within our means once again."
Republicans weren't impressed with the proposals.
"They're not willing to do big ideas. They're doing ideas that create perception but don't do anything big," said New Hampshire Sen. Judd Gregg, senior Republican on the Budget Committee. "The spending freeze for example. You're talking what, $10 billion on a $1.6 trillion deficit?"
Democrats, facing the prospect of major losses in November, are likely to join Republicans in balking at many of Obama's proposals. Moderate Democrats already are wary of another debt-financed economic stimulus program and may also choke on many of the recommended tax increases and spending cuts.
Obama's proposal to cut payments to wealthier farmers, for example is probably dead on arrival and his renewed push to end purchases of new C-17 cargo planes for the military is sure to incite a battle with lawmakers from California, where the planes are assembled.
Proposing a partial spending freeze, tax increases for wealthier people and a new fee on banks, the president's proposal still amounts to just tinkering at the edges of the larger budget problem.
Obama's budget presents a delicate balance between trying to cement the fragile recovery and pivoting to curb deficits that are on the rise not only in dollar figures but also as a political issue that is causing Democrats to lose popularity with independent voters.
So while pledging to tackle deficits, he also said that continuing them in the short term is necessary to help lower unemployment. We will "do what it takes to create jobs," he said. "It's essential."
His budget proposed a job creation tax credit of up to $5,000 for each new worker that businesses hire, another round of one-time $250 checks for senior citizen on Social Security and extended unemployment benefits and health insurance subsidies for the jobless. Obama also wants to extend a $400 "Making Work Pay" tax credit for most workers through 2011.
While White House Press Secretary Robert Gibbs spoke Sunday of a $100 billion jobs initiative, these "temporary recovery measures" in fact total $282 billion through the autumn of 2012, according to budget documents.
At the same time, Obama wants to hand off to a commission decisions on the tough steps needed to reduce deficits and slow the growth in the federal debt to levels economists deem prudent. The panel's recommendations wouldn't be due until after the midterm election.
Obama's proposal lays out a path to reduce annual deficits to about $700 billion in four years, but ideas for tax increases or cuts in popular benefit programs like Medicare or Social Security to reduce them an additional $200 million would have to come from the commission.
"We simply cannot continue to spend as if deficits don't have consequences, as if waste doesn't matter, as if the hard-earned tax dollars of the American people can be treated like Monopoly money, as if we can ignore this challenge for another generation," Obama said.
Balancing the budget or producing surpluses of the kind from 1998 through 2001 is now seen as all but impossible. Instead, many policymakers are for a secondary goal of stabilizing the national debt in relation to the size of the economy. That generally requires keeping the deficit to 3 percent of gross domestic product. Just three years ago, the deficit stood at 1.2 percent of GDP. This year it's 10.6 percent.
Obama dropped his plan into a poisonous election-year atmosphere. Republicans in Congress immediately labeled it as a toxic mix of higher taxes, big spending and debt, saying it would still produce deficits totaling $8.5 trillion over the coming decade.
Obama inherited a difficult deficit situation when taking office amid a severe recession and financial crisis that made tax revenues plummet and caused unemployment benefits and food stamp costs to spike.
"When I first walked through the door, the deficit stood at $1.3 trillion," Obama said, citing the estimates that greeted him a year ago.
Still, Obama now mostly owns the deficit as a political issue after passing last year's $862 billion economic stimulus bill and other major spending legislation that's earned mixed reviews with the public.
Obama would extend most of former President George W. Bush's tax cuts, as they apply to middle-income earners. Married couples making more than $250,000 and individuals making more than $200,00 would see their marginal tax rates rise to as much as 39.6 percent and also lose some of the benefits they take on itemized deductions like charitable gifts and mortgage interest.
Associated Press writers Martin Crutsinger, Stephen Ohlemacher and Jennifer Loven contributed to this report.
IAE: Octagon increases target to 3.00
Major Reserves Increase
(Ithaca Energy reports in U.S. dollars; all figures have been converted to
Canadian dollars, except as noted.)
Event
Last year was one of significant events for Ithaca, and one in which the
Company achieved a significant growth in reserves, more than making
up for the sale of assets to Dyas in mid-year.
Proved reserves have more than doubled since the Dyas transaction,
and Probable reserves are up 2.7x. On a year-over-year basis, Proved
reserves are up 10% to 16 million barrels equivalent, Probable reserves
increased 49% to 21 million barrels equivalent, and Possible reserves are
up by 60% to 42 million barrels equivalent.
The present value of the 37.2 million barrels equivalent of the Proven
and Probable reserves, discounted at 10%, is US$768.4 million or $5.00
per share; we estimate that cash in the Company could be worth
another
.30 per share, for an approximate asset value of $5.30 per
share. Adding in Possible reserves brings total reserves to 79.2 million
barrels, with a present value of US$1.8 billion or $11.45 per share; $11.75
after including an estimate for cash.
Reserves at Beatrice and Jacky had a positive revision, reflecting their
better-than-expected production performance. In addition, new reserves
were added at Stella, Carna Hurricane and Harrier. All reserves are
royalty free.
Drilling of an appraisal well at Stella is anticipated this quarter.
Ithaca is debt-free.
Recommendation
As of this morning, despite the stock price increase of some 10%, the
Company was trading just over 2x this year’s cash flow estimate of
.60 and at less than one-third of its Proven and Probable asset value
estimate of $5.30. Clearly, this is one of the most undervalued stocks in
the sector. Experience has shown, that over time, stocks will trade to
their Proven and Probable asset value – the “hardest” valuation metric.
We are maintaining our BUY recommendation and increasing our
target price to $3.00 (from $2.00).
COMPANY BULLETIN
February 1, 2010
Overview
• Ithaca Energy reported a major increase in
reserves for 2009. Proved reserves have more
than doubled since the Dyas transaction and
Probable reserves are up 2.7x.
• 2P reserves of 37.2 million boe, discounted at
10% have a present value of US$768.4 million or
$5.00 per share; 3P reserves of 79.2 million boe
have a present value of US$1.8 billion or $11.45
per share.
• We are maintaining our BUY recommendation
and increasing our target price to $3.00.
Price $1.28 Market cap. ($mm) $ 2 07.7
Shares O/S (mm) 162.3 Net debt (56.1)
Avg. daily vol. 900,000 Enterprise Value $ 1 51.6
2007 2008 2009E 2010E
EPS (basic) -
.02 -
.24 -
.06
.15
CFPS -
.01 -
.15
.38
.60
Production/mm shares 0.0 0.0 26.0 28.5
P/CF n/m n/m 3.3 2.1
EV/DACF n/m n/m 2.4 1.5
Revenues (mm) $1.4 $3.5 $126.4 $132.9
Cash Flow -
.8 -$20.0 $62.4 $97.9
Net earnings (2.5) (32.4) (9.4) 23
MAK.AX 11% drop : Havent had time to read the report, was there anything that hinted to a delay on the start up of operations? I red a few messages on Hotcopper and most seemed to suggest so and that was the reason for the big drop. Of course they could be reading too much into it as usual..
The End Result: Another Petrobakken Take-over in the Cardium
by Keith Schaefer on January 29, 2010
On Thursday January 27th, mid-tier Canadian oil producer Petrobakken (PBN-TSX) announced its second Cardium area acquisition – Result Energy(RTE-TSX). On January 4, Petrobakken bought out Berens Energy (BEN-TSX). This play has exploded onto the screens of analysts and investors in six short months.
I found two themes in reading the media and analyst reports on yesterday’s takeover of Result Energy (RTE-TSX) by Petrobakken (PBN-TSX):
1 Petrobakken overpaid for Result Energy.
2 This is the top of the Cardium market; sell.
Welllllll…I’m not convinced of that…what I took away from this transaction was:
1) Petrobakken just took out their major competitor for consolidating the play, and if they paid a premium to do that, maybe that was smart
2) PBN may have overpaid on production and reserve levels that analysts believe the Cardium is capable of; Petrobakken management clearly believes they can improve on what they’re now seeing in analyst reports
3) The stock chart on both PBN and its main Bakken play competitor Crescent Point (CPG-TSX) are stalling, indicating investors don’t believe they can keep up their growth curve with just the Bakken play. CPG has moved aggressively into other oil formations in Saskatchewan; the Viking and the Lower Shaunavon. So PBN thought they needed to do something.
4) Result management and their buddies just made a HUGE pass – they put their money in at 8.5 cents only 2-3 months ago and got bought out for 42 cents – five times their money in 3 months. (Annualized, that would be 20x your money.) I love those stories.
5) But the end result for retail shareholders however, wasn’t so great. Normally a buyout gets done at least at the high of the year on the stock so all shareholders make money. But Result traded one third of its brief new life above 42 cents.
6) Raw Cardium lands now sell for as much or more than Bakken lands – wow. Not bad for a play that’s barely a year old.
Now, to be fair to the “Cardium-is-overvalued” crowd, RTE management – Brett Herman et al – likely sold because they were getting outbid by Petrobakken on recent Cardium land sales. It became clear to them – or at least very likely – that nobody else was going to make it to intermediate tier status as a standalone Cardium play. So why not take advantage of the fast rising valuations surrounding the play?
(And even I have to admit the today’s valuations are assuming that all Cardium acreage is 100% prospective and every single well will be a gusher…there will be some pain at some point…heaven help the first junior that has to report it misses a Cardium oil well.)
As to overpaying, in one sense, the figures speak for themselves: PBN paid over $600,000 per flowing barrel for Result’s 750 boe/d of production. As context, that’s about 10x the average junior valuation.
But that’s not a fair valuation method. Petrobakken paid for the land. In the $480 million deal, back out $60 million cash Result had. Now, if we value the production level – and I’ll use the 1300 barrels a day production that Result will have on the official day of closing – at $75,000 per flowing barrel that works out to a value of $97,500,000. (You could argue production is worth up to $100K per flowing boe).
So back out a total of $157.5 million (60 + 97.5) for cash and production, and the value of the net 105 sections of Cardium land that Petrobakken bought through Result was $3.07 million per section, or $4800 an acre (640 acres in a section). Other analysts’ calculations have the number as high as $6000 per acre, or $3.8 million per section. Recent actual sales have been as high as $5600 an acre.
Brett Herman and his Result team just sold their previous company to Petrobakken in August 2009 – TriStar Oil & Gas. TriStar, like Petrobakken/Petrobank, was a consolidator of many of the juniors in the prolific Bakken tight oil play in Saskatchewan.
Now Herman had moved into the Cardium, and with a big premium valuation in their stock, was poised to begin consolidating the Cardium players that had lower valuations. Every other company would have been accretive to them. He could have gone on to create another mid-tier producer.
Then came Petrobakken’s surprise take-out of Berens Energy on January 4. I would suggest few people saw Petrobakken’s move into the Cardium coming, though it’s an obvious fit. The geological characteristics of the two formations appear to be similar, and Petrobakken’s innovation in horizontal drilling and fracing could potentially increase the value of the Cardium play a lot. And the Cardium is the largest oil formation in Canada. And as I mentioned earlier, after that came the Cardium land sales, for which Result was outbid.
Herman admits he never thought of selling until Petrobakken bought Berens. He was one of, if not the, most likely candidates to be the big consolidator of the play. But now he gets to find/create a new sandbox to play in.
My guess is that for the next few months, that sandbox will have an ocean, warm breeze and margarita beside it. But the end result for retail shareholders is they get to stay at home.
MMT: Huge insider buy just filed. 2M shares just bought by non other then the Chairman!
http://www.canadianinsider.com/coReport/allTransactions.php?ticker=mmt
AVR: Anyone knows when the shares from the last placement become free trading?
MMT is a clear candidate for a mutlibagger.
For those unfamiliar with MMT, here is a nice write up on it:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=45319880
plus there is a great board on it on Investor Village
http://www.investorvillage.com/smbd.asp?mb=12706&mn=314&pt=msg&mid=8303572
actually many of the posters there were early buyers of IAE and MMT is already being touted as the "African IAE" by some (some similarities between IAE and MMT in terms of their stories and of how undervalued is MMT now relative to were IAE was a year ago)
we have a saying in Spain..."theres never 2 without a third"
AGP,API, AAA???
anyone pick the chart of 3 potash/phospahte players: AAA,LGDI,AMZ
then pick the chart of 3 gold junior miners you know AT RANDOM
check the 50day MA
what do you see ?
what does it mean ?
good times ahead, probably :))
Mixed signals for Legend's phosphate project start
TONY RAGGATT
January 20th, 2010
THERE are mixed signals over a start date for Legend International Holdings' $2 billion phosphate project in North Queensland.
While analysts are bullish about the company's prospects after a recent upturn in world phosphate prices, there are suggestions the first shipment of phosphate rock from Townsville could be set back a year to 2011.
The first shipments had been proposed for late 2009 or early this year.
A company spokesman said yesterday there was no change to the company's timeframes since its latest release to the market late last year and there were no issues at present that would impact on meeting them.
However, workers at Townsville port have been told of possible delays until 2011.
The United States-listed company is proposing to export up to five million tonnes a year of phosphate ore and beneficiated phosphate rock produced from mines in the Mount Isa region's Georgina Basin by 2012.
It also proposes to produce value-added fertiliser products and phosphoric acid by 2013.
In its latest advice, issued in November, the company says a phase 1 plan involves the shipping of 500,000 to 1 million tonnes a year of phosphate ore in 2010.
* TOWNSVILLE A `DIAMOND' PORT
* PHOSPHATE MINE BID
It says it is designing a new outer berth 12 at Townsville Port to handle Panamax class vessels with a throughput capacity of 7.5 million tonnes per annum and an integrated material handling system including rail unloader, bulk storage facility, ship loader and conveyors.
Last month, State Transport Minister Rachel Nolan announced the Government had committed $102 million over the next two years to improve efficiency and increase capacity for future demand on the Mount Isa to Townsville rail line. However industry sources suggest that work is subject to customer demand. In a research analysis, Toronto-based analyst Joel Jackson of BMO Capital Markets says improving phosphate fundamentals, a commitment by the Queensland Government to invest in the needed rail infrastructure and the potential for 'considerable near-term catalysts' provides an attractive entry point for Legend's mid-2010 launch.
He says recent phosphate rock price increases from $90 to $110 a tonne are near Legend's required break-even thresholds and raises the opportunity for profitable sales of ore in mid-2010 if the company can get its permitting, mine and dry beneficiation operation in place.
''Our development scenario has assumed rail capacity on the key Mount Isa to Townsville rail line would be brought on to eventually support a 4 million tonne operation for LGDI (Legend) by 2020,'' Mr Jackson said.
''Until December, there was some apprehension that the Queensland Government would show definitive support with financial commitments for upgrading the rail line.
''With the December announcement that the Queensland Government will spend roughly $100 million upgrading the Mount Isa to Townsville rail line, a key infrastructure concern for LGDI's prospects, we have increased confidence suitable rail capacity will be in place for LGDI to support up to two million tonnes of product by 2015, and increased confidence that the Government might also support future rail upgrades to further boost the available capacity on the line,'' he said.
http://www.townsvillebulletin.com.au/article/2010/01/20/108245_business.html
link doesnt seem to work. or is it just me?
Excellent news for Allana Potash !!!
BHP plan signals major shift in potash
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/bhp-plan-signals-major-shift-in-potash/article1438683/
Move to invest $240-million in Saskatchewan project could threaten strength of long-term pricing, hurt junior explorers
Euan Rocha
Toronto — Reuters Published on Thursday, Jan. 21, 2010 8:09AM EST Last updated on Thursday, Jan. 21, 2010 9:59AM EST
BHP Billiton's plan to invest more money in its Saskatchewan potash project could weaken long-term pricing of the crop nutrient, threaten the viability of junior explorers and prove to be a game changer for the global fertilizer industry.
The world's largest miner plans to invest $240-million to fund the development of the first stages of its Jansen potash project in Western Canada. The mine is being designed to produce about eight million tonnes of potash a year, or roughly 12 per cent of current global capacity.
To be sure, $240-million is less than a tenth of what a project this size would cost and BHP only intends to make its final investment decision in 2011, but its announcement raises the likelihood that Jansen will eventually go into production.
BHP said it plans to pursue two other greenfield potash projects in the resource-rich province, while also working on logistics and port facilities to transport product from its mine.
Dahlman Rose & Co analyst Charles Neivert characterizes BHP's move as the proverbial 800-pound gorilla entering the room. He warns that the development of Jansen would put a damper on the long-term outlook for potash prices.
“BHP's announcement regarding the advancement of its Jansen potash project, and parallel work on a port and logistics, signals a growing level of commitment to entering the potash market in a major way,” said Mr. Neivert.
Potash is a common name used to describe various compounds containing potassium and it is a key ingredient in fertilizers. The mineral emerged from obscurity a few years ago, when high grain prices, coupled with tight potash supplies and strong demand drove prices to over $1,000 a tonne from below $150.
Prices have since retreated to about $350 to $400 a tonne, as farmers hit by the credit crisis and falling grain prices slashed their potash usage.
“With BHP coming in, if there is some reasonable discipline among all the players, you could still maintain a price level that is from a high-$200 to a mid-$300 range, which is still extremely profitable,” Mr. Neivert said.
But pricing in this range could imperil the projects of many junior explorers, whose comparatively small-scale potash projects will only generate viable returns with the price at $500 to $600 a tonne, or more.
“It's been hard enough for juniors to find funding before this (BHP project), because of the expansions that Potash Corp., Mosaic and Agrium have planned,” said Mr. Neivert, adding that it could become even tougher for the juniors going forward.
Dawn Zhou, the chief executive of Athabasca Potash shrugs off the threat posed by BHP, but admits that junior explorers like Athabasca will have to look for more creative ways to fund their projects with prices at current levels.
BMO Nesbitt Burns analyst Joel Jackson contends that BHP's plan may adversely affect junior explorers in Saskatchewan more than it would affect a company like MagIndustries, which is pursuing a potash project in Africa, as the economics of projects differ in both places.
However, not many analysts are overly optimistic about the long-term prospects for both existing potash producers and junior explorers.
In a note to clients, CIBC World Markets analyst Jacob Bout said that BHP's plans for Jansen would “flatten the long end of the potash pricing curve,” hurting junior potash companies.
BHP's foray into the sector might also weaken the hold that potash export consortiums like BPC and Canpotex have over global markets.
BPC, or Belarussian Potash Co., is the export arm of Russia's Uralkali and Belaruskali, while Canpotex is the export consortium jointly owned by Potash Corp., Mosaic and Agrium. The two organizations typically account for over 60 per cent of global potash exports.
“The entrance of a large global mining company, such as BHP, into the potash market would arguably weaken the position of incumbent producers, as BHP has a history of running its mines flat out,” Mr. Bout said.
reply from management to my emails. they seemed to imply they will go on with the plan: listing + secondary/IPO
GDMN: bought a few more shares the last 2 days. I think they will go ahead with the dilution together with AMEX listing. Even if they raise 6m shares at currrent price, we end up with 10.5 m shares and about 90m cash, or close to 9 bucks cash share + all the properties. I dont see how GDMN wont pop big once listed on AMEX
by "dramatic" did you mean down or up ? cause so far we are only getting down action this week
CFX.UN.TO - If I understood you well, are you saying they have to distribute 100% of all taxable income earned within a calendar year sort of like VIC.UN ? so we might take the increase to 44 cents a quarter or so for granted going forward? TIA
simply fantastic video. thanks!!!
didnt they say no more money to be raised?? these days one can trust absolutely no one
Level II looking simply fantastic
We have to phone call then !!!