Know that would be an interesting proposition and BDG have abpout 60million in cash to play with: READ THE ARTICLE
Gold minnows in the soup Article from: Herald Sun
July 05, 2007 12:00am
IT CAN be a little suss when someone breathlessly passes on the rumour of the day, particularly when shares in the companies concerned could both do with a little bit of a kick along.
But, for what it's worth, Fully Frank has been told that Bendigo Mining and Perseverance Corp might be seeking to merge.
Bendigo is well out of favour after telling investors earlier this year that after outlaying a few hundred million to get to production stage at its historic Bendigo goldfield, it was going back to exploration.
That slashed the company's share price from about 73 to below 30, and it has barely recovered.
Bendigo shares were off half a cent yesterday at 31, while Perseverance scrip lost 1.5, or 7 per cent, to 19.5.
Perseverance is under the pump for similar reasons to Bendigo, this week citing its own production problems. Output from its Fosterville mine near Bendigo has fallen and the strong Aussie dollar has the company under pressure.
Investment bank UBS has responded by cutting its rating on the gold explorer from "buy" to "neutral".
According to the rumour mongers, the concept is to put the two underperfoming companies together -- although Ed Eshuys's gold miner St Barbara would have something to say about that.
It snatched a 10 per cent stake in Bendigo at the height of its troubles.
The rumour sounds exciting but a little bit fanciful to us.
Could it be, perhaps, that someone spotted Eshuys and Perseverance managing director Graeme Sloan chatting in Collins St recently?
PSV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
