bmx report

Bemax Resources NL (BMX) Recommendation Spec Buy Buy Add Hold Sell
Risk Rating Low Medium High





Sector Gold Mining
Index NA
Market Capitalisation 191.9 m


Strategy
First Recommended 17/07/2005
Share Price * $0.22
12 Month Price Target $0.35
Suggested Stop Loss $0.125


* at the time of writing the report




How many shares do I buy

Trade = Amount ($) you're prepared to lose

Size Market Price - $0.120





Note. Amount ($) you are prepared to lose is typically 2-3% of the TOTAL amount you have to invest









wise-owl Checklist

Strong and experienced senior management and operational team in the mineral sands industry.
$12.7m operating profit for the six months ended 31December 2004.

The total finance facility for A$108m for the Pooncarie Project has been signed.

Major strategic shareholders Cristal Australia (27.11%) have just exercised 50m options at 13.5c.

Previous resistance at the 22.5c level is now being tested.

Summary
This section aims to give you a snapshot of the recommendation in a very clear and concise fashion and more importantly leaving you with a strategy to act upon immediately.




Background

Bemax Resources Limited (Ltd) is a junior minerals and exploration company focused on the Pooncarie Minerals Sands Project and the Murray Basin Joint Venture.






Investment Summary

With the Pooncarie Minerals Sands Project commencing in January 2005, BMX is on track and has achieved key milestones for project sales which are set to begin in early 2006. Whilst investing in the minerals sands industry has not come without risk in the past, BMX are in a strong position to take advantage of the resource rich Murray Basin region. The recent exercise of 50m options by major shareholder Cristal Australia and securing the A$108m finance facility are major achievements for BMX. The Western Australian Operations continue to improve and help strengthen the balance sheet. A successful development phase of the Pooncarie Minerals Sands Project is likely to see a market re-rating of BMX with strong cash flows expected in the next 24 months.

BMX was recommended as a 'speculative buy' to members on the 17th of July, 2005. The announcement of the marketing and toll agreement with Tasmanian Titanium Pty Ltd will add an estimated value of $15m to BMX's sales in the first 18 months after completion of mining. In light of the recent share price rise, it is recommended that existing members 'add' to their existing holdings, whilst the ‘speculative buy' recommendation is maintained for members with no exposure.