PLACEYOURBETS
Jindalee set to do it again
LINDSAY DUDFIELD
MANAGING DIRECTOR
JINDALEE RESOURCES LTD
Jindalee’s Managing Director Lindsay Dudfield said that
after paying the dividend and associated tax, Jindalee still holds
significant cash reserves (boosted by accepting a cash takeover
for Anchor Resources in May 2011), which, combined with its 30%
residual stake in Energy Metals and other investments, places
Jindalee in very good shape to secure the next opportunity to grow
the company.
Securing a new project is our primary focus,” Mr Dudfield said.
We have an open mind about both commodity and jurisdiction,
and the quality of the asset will ultimately be the deciding factor.
To date we have looked at a wide range of projects spanning
North and South America, South East Asia, Africa and Europe, but
so far none have met our fairly ambitious criteria. We are very
disciplined in the way we approach potential acquisitions – the
bottom line is that any new project has to be capable of transforming
Jindalee and creating significant value for our shareholders.”
Mr Dudfield said that it is this same discipline that has allowed
Jindalee to grow without the need to go back to the market to raise
money since its original listing in 2002 when it raised $2.6 million,
mainly from family, friends and industry colleagues.
As a result we have one of the tightest capital structures around
with fewer than 35 million shares on issue, which provides fantastic
leverage for our shareholders once we secure the next project.
Furthermore all of the management team have significant stakes in
the company, which helps to keep us focused on achieving the best
return we can for our shareholders,” he said.
Mr Dudfield believes that market conditions today are similar
to those existing when
Fat Prophets Mining
first recommended
investors to buy Jindalee shares.
In 2003, most investors were risk averse and many well run
companies, including Jindalee, were trading close to cash backing,
presenting great buying for counter-cyclic investors. Market
conditions today are similar to those in 2003; investors are nervous
and Jindalee is trading at a significant discount to its liquid assets.
But it is in challenging times that the best opportunities become
available, and we are excited by some of the opportunities that are
appearing,” comments Mr Dudfield. “Needless to say we are very
confident about the future for Jindalee.”
Above: Visiting a base metal project in Brazil, Jindalee are
scouring the globe to locate a company-making project
Below: Jindalee management team
(
L-R) Terry Peachey and Lindsay Dudfield with
government geologist (centre) reviewing a project in Africa
Junior explorers represent a high risk, volatile end of the equity
market. Spectacular leverage can be achieved through exploration
discoveries, but statistics on success rates (and cost) can be
daunting. When participating in this end of the equity market we
need to try and improve the odds. One way this can be achieved
is by holding a diverse portfolio of ‘honest explorers’ that are
purchased during low points in their price cycle – and then be
patient! One such opportunity that currently fits these criteria is
Jindalee Resources.” (Source:
Fat Prophets Mining
,
July 2003).
These words of advice, written 12 months after Jindalee
Resources listed on ASX when the company was trading at $0.11
and close to cash backing, proved to be highly prophetic. Within
two years, Jindalee shareholders were offered a priority entitlement
to initial public offer (IPO) shares in Jindalee’s wholly owned
subsidiary Energy Metals, ahead of Energy Metals’ successful
listing on ASX as a dedicated uranium explorer.
Priority entitlements to junior explorers Anchor Resources
and Alchemy Resources soon followed and in July 2010, following
a cash takeover of Energy Metals by Chinese utility CGNPC at
12
times the IPO price, Jindalee shareholders were rewarded with
a $0.55 fully franked special dividend.
MINESITE 2012
147