SXG - Southern Cross Goldfields

[cornnfedd]

Anyone know much about this stock? They are offering a rights issue at 8c, current price is 7c? does that seem correct?

sorry am i missing something here? Is SXG and SXGR the same stock?

The Rights Issue offers one new share and one free attaching option for every three shares held, for 8 cents per share. The free attaching options have an exercise price of 15 cents each and expire on 30 November 2010.

and: http://www.scross.com.au/

[ectoplasm]

Anyone know much about this stock?

sorry am i missing something here? Is SXG and SXGR the same stock?



and: http://www.scross.com.au/

I know a bomb went off under it today: up 47% and ranged over 10c & got another 16c to all time high... Quite an impressive performance!

Chart:

[springhill]

MC - $13m
SP - 4.5c
Shares - 291m
Options - Nil quoted
Cash - $2.2m

Major Shareholders
Mineral Resources Limited: 14.0 %
Western Areas Limited: 5.6 %

GOLD
 Positive Feasibility Study completed on the Marda Gold Project (WA), with key outcomes including:
 $130M of pre-tax cash flow from operations, NPV8% of $42M and IRR of 36% from initial production of 35,000oz pa over 5 years;
 Pre-production capital expenditure of $51M with 2-year payback;
 Average life-of-mine C1 cash operating costs of A$880/oz, including all open pit pre-strip and mining equipment ownership costs – highlighting the project’s financial upside and leverage to additional discoveries;
 Positions SXG to become the only gold producer in WA’s highly prospective Marda region, 400km NE of Perth, where its 4,000km2 tenement package provides outstanding greenfields exploration upside.
 Positive discussions continue with potential project financiers.
 Next steps for project development include competitive tendering for the Marda plant and infrastructure, actively pursuing the use of second hand plant options and statutory approvals, which will commence in the September 2012 Quarter.
 New gold discoveries at Red Boomerang and north of Gwendolyn support SXG’s strategy of establishing the only gold processing facility within a highly prospective belt where it is the dominant tenement and gold rights holder.

Key Marda Project Parametres
Open Pit Production: 2.3Mt @ 2.44 g/t Au for 185,000 ounces
Initial Plant Throughput and Metallurgical Recovery: 480,000 tonnes per annum and 95%
Initial Average Annual Gold Production : 35,000 ounces over 5 years
Pre-tax Operating Cashflow: A$130 million
C1 Cash Operating Cost (inc. pre-strips and mobile equipment ownership): A$880/oz
Pre-tax NPV (8% discount rate) and IRR: A$42 million and 36%
Pre-Production Capital Estimate (new plant including 15% contingency): A$51 million
Project Payback 2 years.

BASE METALS
 New massive sulphide intersection extends the Southern Gossan VMS prospect at the Copper Bore VMS base metals project:
 2.7m @ 1.4% copper, 4.25% zinc, 0.7g/t gold and 10.7g/t silver (SGRC011D);
 Mineralisation at Southern Gossan now extends over 150m along strike and 350m down-dip.
 Down-hole EM surveys completed on all SXG drill holes along the 10km long Copper Bore trend with results awaited, providing targets for follow-up exploration.

[Miner]

Capital Raising and Suspension from market.
All so lined up :
Sandstone Acquisition;
Marda excellent report
Already inbuilt information about capital raising but market failed to read it and react on time.
I bought by fluke a small parcel and should have kept faith on my own conviction and could get out with some handsome gain
Sudden interest of share buying:
20 Aug 2012 0.069 0% 0.070 0.067 378,999
17 Aug 2012 0.069 6.15% 0.070 0.065 968,280
16 Aug 2012 0.065 14.04% 0.065 0.056 1,259,602
15 Aug 2012 0.057 11.76% 0.057 0.054 1,071,178
14 Aug 2012 0.051 4.08% 0.051 0.051 100,000

[Miner]

after the market opening SXG dropped down bby 7.5% but still much above the rights share value and a very small volume 10000 . I do not know how that can be a trading volume being less than $500.
This will probably last until the shares will be available XR. I am still struggling who suddenly bought such a high volume before the announcements ? If it was insider trading then they should have been prudent to wait until the market opened with details of the rights ? Don't know .
Any way for enthusiastics the details are in announcement and road show.
What I did not understand however, why SXG disallowed and expelled all orders and full suspension considering their ex rights date is much after the market opened. So what was the purpose of this drama ?? (Could any reader of this thread please enlighten)
The rights is underwritten by Pattersons - a big plus saying there are people to back it.
Not only on technicals I am also relying on the 15% investment from Mineral Resources - Ricardo, Ellison of MIN are shrewed investors. If they can put their money I can. DYOR however and read the prospectus. I declare small holding

[Miner]

Gees
My estimate is going wrong again. The price of SXG gone down drastically on Monday even before it was declared XR. So I am assuming the rights should not have any value and the real price of the scrip could go down at the same price it was before the announcement.

The only silver line could be not to exercise the rights, take a punt and wait to market get corrected for a buying opportunity. The technical strengths do not change however so I will be holding them.

Any intelligent thoughts please ?