Tuesday, January 09, 2007

My comments on Bendigo Minings Restructure

Bendigo Mining (ASX:BDG) has decided to restructure itelf to deal with complications at its gold project in Victoria. It is going to officially become an exploration rather than mining business for two years in which it aims to better ascertain the extent of the gold deposit it is mining.

A writedown of between $A90m and $A210m is expected to be undertaken, leading to a loss for 2006-07. A trading halt on Bendigo's stock is expected to be removed on 9 January 2007.

This is one of the reasons it is hard to be an investor in mining / resource stocks. They are more suitable vehicles for trading. Espeically those companies which are smaller as they are very volitile. BHP Billiton Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO) are excpetions as they have
numerous projects at any one time and a long history of being successful.

Good Luck Investing.

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