UML - Unity Mining

[System]

Unity Mining Limited (UML) was formerly known as Bendigo Mining Limited (BDG).

Previous discussion of this company can be found in the BDG thread: https://www.aussiestockforums.com/forums/showthread.php?t=1063

http://www.unitymining.com.au

 

[stokie]

Seems to have found a bottom and is on the rise again?

 

[OK2]

Unity Mining Limited (UML, formerly Bendigo Mining Limited) looks to be consolidating it's position based on the POG. Very few sellers but buyers moving in at this price even when the market is getting roughed up, may still be a good buy at what looks to be close to the bottom.

Would appreciate any wiz with the tools charting it.

 

[Gringotts Bank]

Might get some at close. Looks alright.

 

[skc]

Bought some of these on open.

Fundamentally UML has ~9c cash and aiming to produce ~40-50koz p.a. with ~5yr mine life. Plus other knobs and bobs.

Last quarter they sold 13.8koz of gold AT $1670/oz (revenue of $23.2m) at cost of $757/oz. That's pretty good cash flow of ~$12m.

So you get $44m cash in bank, an annual cashflow of ~$35-40m over the next 5 years (say $125m NPV) plus a few steak knives for free... at currnet market cap ~$65-70m.

Announcement of buyback has sparked interest (my interest anyway) and technically it's broken out of a decent flag pattern.



First resistance at 16c. Fundamental target is closer to 28-30c.

 

[tremmas]

Good find skc.

I am a big fan of junior producers and gold in particular. I like the look of this mob.

Interesting reading about their mine in Tassie - great location! Their annual production has been decreasing but I see that they've extended the resource and seem confident about maintaining 40-50,0000 oz pa for the immediate future. Would be nice to see some serious discoveries extend the life of the mine (did I read correctly that it's only 4 yrs at present?)

Every company worth their salt has a thumb in West Africa atm so will be interested to see what happens with their stake in Goldstone, particularly the resource near Anglogold.

Saw your post on LGD the other day and have taken a small position there after doing some research. Feel like a bit of an skc fanclub haha!

 

[skc]

Good find skc.

I am a big fan of junior producers and gold in particular. I like the look of this mob.

Interesting reading about their mine in Tassie - great location! Their annual production has been decreasing but I see that they've extended the resource and seem confident about maintaining 40-50,0000 oz pa for the immediate future. Would be nice to see some serious discoveries extend the life of the mine (did I read correctly that it's only 4 yrs at present?)

Every company worth their salt has a thumb in West Africa atm so will be interested to see what happens with their stake in Goldstone, particularly the resource near Anglogold.

Saw your post on LGD the other day and have taken a small position there after doing some research. Feel like a bit of an skc fanclub haha!

Frankly I didn't value their West Africa assets - to me those could easily become cash draining liability anyway. The cash backing and currently production do offer a low risk entry imo.

And thanks for the love... My other buy today is TIS. DYOR. Invoice for fanclub membership is in the mail.

 

[suhm]

I owned this when they were bdg but they never seemed to be able to find enough reserved with very patchy production and high cash costs. Has henty come good? As in stable production. They have always had a lot of cash for their market cap

 

[skc]

I owned this when they were bdg but they never seemed to be able to find enough reserved with very patchy production and high cash costs. Has henty come good? As in stable production. They have always had a lot of cash for their market cap

Feels like a cursed mine doesn't it with so many burnt past owners. They had a bumper Dec quarter so the immediate trend is up in terms of production. It is more a reward > risk trade for me rather than having a special insight on how the production would go.

 

[tremmas]

Frankly I didn't value their West Africa assets - to me those could easily become cash draining liability anyway. The cash backing and currently production do offer a low risk entry imo.

And thanks for the love... My other buy today is TIS. DYOR. Invoice for fanclub membership is in the mail.

Yeh I know what you mean - it is the fashionable thing to have West Africa interests.

Have had a quick look at TIS and might post a couple of questions over on that thread. It's definitely not my usual thing - I'm pretty ignorant about biotech stuff.

And as for fanclub membership payment - speak to LGD management as they will be funding it!

 

[tremmas]

Interesting reading about their mine in Tassie - great location! Their annual production has been decreasing but I see that they've extended the resource and seem confident about maintaining 40-50,0000 oz pa for the immediate future. Would be nice to see some serious discoveries extend the life of the mine (did I read correctly that it's only 4 yrs at present?)

In the last couple of weeks they have upgraded their reserves and resources and extended the mine life beyond 5 years. Exploration continues so hopefully they can keep extending it.

They also announced a net profit of 9.1 million and are on track to reach the top end of their 40 to 50,000 oz annual production guidance.

Goldstone commence drilling soon in West Africa. Would be nice if these interests provided a bit of extra icing.

Technically it has touched the 16c mark that skc talked about. If it can push through that with some momentum then the 52 week high of 17.5c is next.

 

[mr. jeff]

I owned this when they were bdg but they never seemed to be able to find enough reserved with very patchy production and high cash costs. Has henty come good? As in stable production. They have always had a lot of cash for their market cap

Further on it states, significant improvement in production at Henty, with higher grades and higher gold price.



A few interesting releases with info worth seeing. Will slice and dice more a bit later on. They are also extending the exploration at Gabon.

 

[springhill]

GoldStone Homase/Akrokerri Resource Update

 Homase/Akrokerri gold resource increased to 502,000 ounces
 Overall gold grade increased from 1.42 g/t to 1.74 g/t
 Additional resource update expected based on results of 20 drill holes under the Homase/Akrokerri resource

Hendrik Schloemann, GoldStone's Exploration Director, commented: "We are particularly pleased that the overall grade increased from 1.42 g/t to 1.74 g/t gold and are encouraged to raise the resource above the 500,000 ounce mark.
We are also optimistic about the potential for an additional resource update based on 20 completed drill holes not included in this update."
The Homase/Akrokerri gold resource, which was updated using results from 23 drill holes completed between June 2011 and March 2012, is 8.99 million tonnes at an average grade of 1.74 g/t gold, containing 502,000 ounces of gold. The Estimate has been compiled by SEMS Exploration Services Limited, an independent West African based firm of consulting geologists, engineers and surveyors.

 

[System]

On June 6th, 2016, Unity Mining Limited (UML) was removed from the ASX's official list in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between the Company and its shareholders in connection with the acquisition of all the shares in the Company by Diversified Minerals Pty Ltd through its wholly owned subsidiary Diversified Minerals Management Pty Ltd.

 

[finicky]

delisted from the close of trading on Monday 6 June 2016 pursuant to Listing rule 17.11.	06/06/2016
we understand through a wholly-owned subsidiary, Diversified Minerals Management Pty Ltd acquired shares in Unity and shareholders received 3.3 cents per share in cash, comprising 2.3 cents by way of Scheme consideration and 1.0 cent by way of capital return	06/06/2016