Bendigo Mining (BDG)

There are times when you know you are just about to make some money because all the charts you look at some positive signs. Its like an alignment of the moons, something that doesn't happen enough, but it gives you the confidence to throw all your money at the market and say 'Yes'. On those occasions I can make $35-50K in a matter of a month. In actual fact these are the moments when I make 90% of my income, so you need to fight the tendency to overtrade and 'seize these moments'. Picking the right stocks is key. I am currently working on a report to help you do that.

Bendigo Mining is an emerging gold producer. Based on the nuggetty nature of its gold, it is difficult for the company to establish the veracity of its grade control system without proceeding to trial mining. This will occur from mid-2008. I dont see a great deal of price movement before then, but the stock should gain some support from a strong gold price. Currently the stock is trading at a strong technical support.
Nuggetty gold results in considerable statistical variance that can skew ore reserve calculations. The only way to ultimately determine how much gold is in the lode structures is to mine them. Historically these reefs produced an average of 10-11g/t of gold. The company has an operational gold treatment plant on-site and $58mil in cash. This places a value on the mining operation of just $110mil. Given the implied resource, this is a very low value. There is however the prospect of difficulties at the start of operations because its not the easiest operating conditions. ie. Narrow, often variable, discontinuous reef structures. See my Google Finance forum.
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Andrew Sheldon www.sheldonthinks.com