SGX listed LionCorpGold spins its Ballarat gold field assets as a billion dollar proposition, despite ample Australian disclosures to the contrary


The LionGoldCorp spin:
Under Castlemaine ownership, the Ballarat gold mine poured its first gold bar in September 
2011. The mine then embarked on a six to nine month production ramp-up. The average
annualised rate for the 9 months to December 2012 has been 30,000 ounces per annum. The
Ballarat gold mine is expected to produce between 40,000 and 50,000 ounces of gold in 2013.
Commenting on Castlemaine’s achievement, Chief Executive Officer Nicholas Ng stated,
“Ballarat has made the transition from explorer to producer and is targeting an
annualised production rate of between 40,000 to 50,000 ounces in 2013. With the
successful ramp-up complete, LionGold has demonstrated its ability to identify and
acquire gold projects which build value for our shareholders. We look forward to
providing updates on the Group’s other projects as these are progressed”


The underlying reality, reported on 21 November 2011, AFTER  Castlemaine's "achievement of pouring its
first gold bar in September 2011 :

GOLD miner Castlemaine Goldfields is holding talks to shore up finances after being forced to downgrade production at the Ballarat underground operation in Victoria it acquired off Lihir Gold more than 18 months ago.

Coming out of a trading halt on Friday, Castlemaine warned of an 8000 ounce shortfall in production over the next six months based on inferred resources for the Mako Fault Zone of 100,000 tonnes at 10.5 grams per tonne gold for a contained 33,100oz.
Castlemaine is the latest group to encounter problems at Ballarat after buying the problematic asset from Lihir in May last year for $A4.5 million in cash plus a 2.5% royalty interest, based on a net smelter return from future production, capped at $50 million.

Comments

  1. Rob ReinehrJuly 19, 2013 at 3:28 AM

    Is the market cap of liongold really a billion or so aussie dollars mate?

    I don't know much about reading financial reports, rocks are more my thing, but surely the value of our mine here in Ballarat, a few undeveloped minor deposits and a fraction of Henty down in Tassie and that Charters Tower imagineering isn't worth anything like that value. What do you think is their breakdown asset value today?

    Can you drop me an email so I can send you some more info in a less public way? Mine is rreinehr@hotmail.com

    ReplyDelete

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